Saputo and Parmalat give Bega farmers choice for the first time

Both Saputo and Lactalis (formerly known as Parmalat) have been active in the district this week and local dairy farmer Phil Ryan has welcomed their presence.

"Saputo held a meeting at the Bega Country Club on Wednesday, which was well attended and Parmalat has been providing farmers with income estimates," Mr Ryan said.

"It's a sign of how competitive the market for milk at the farm gate has become.

"Having some competition for our milk is definitely a good thing for farmers near Bega.

"Our own farm is supplier number 3 for Bega and has been supplying them since 1899 and that history and community is valuable but we also have to consider what is right for our business.

"We love what we do but many farmers in the district are struggling financially and without the good spring and summer we had last year, up to 20 farms may have been forced to leave the industry."

Mr Ryan said last week's announcements from the big three supermarkets had reinforced their influence on the competitiveness of different processors.

"Aldi and Woolworth's decision to increase the (shelf) retail price of milk this week was a good thing," he said.

"We need to see that carried across to all dairy products like cheese and butter because they are also being heavily discounted at the supermarket.

"There has been no retail based farm gate price increase for the majority of farmers who supply processors with no exposure to fresh milk.

"That's not fair to farmers and it makes some processors less competitive in the battle for milk supply."

Lactalis Australia supplier services manager northern and western Malcolm Fechney confirmed the processor was considering collecting milk from the Bega Valley.

"Lactalis has provided income estimates to a number of dairy farmers near Bega who are in the process of price discovery," he said.

"We are exploring the viability of collecting milk from the Bega Valley if farmers and Lactalis can settle on arrangements that will be beneficial for everyone in the long-term."

A Saputo spokesperson told Stock & Land that it, too, was keen to recruit milk around Bega.

"At the request of local dairy farmers in Bega, we recently met to discuss our pricing structure which aims to promote simplicity, transparency and fairness for all suppliers," the Saputo spokesperson said.

"Saputo Dairy Australia welcomes any dairy farmers in the Bega region who are interested in supplying Saputo to contact us directly."

This story first appeared on Stock & Land

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