Murray Goulburn Cut Milk Prices, Farmers Feel the Pinch
Australia's largest milk processor Murray Goulburn Co-operative Co trimmed the long-held milk price which it planned to pay farmers, by about fifteen percent. This was the first cut to milk price in a mid-season after the financial crisis hit the globe. The move angered the farmers.
It does not end there Murray Goulburn also lowered its profit forecast. The company's stock dropped almost forty percent on the Australian Securities Exchange.
The company's severe milk price cut is affecting the farmers so much that they are selling milk for lower than their production cost.
That ignited a new campaign which called on shoppers to "Show Some Dairy Love." It has got support from several farming communities and is hitting the major social media platforms.
The campaign is aimed at everyone said, Dianne Bowles, from Mead in north central Victoria. She said, "The main message that I'm saying is buy dairy. Buy dairy product it will help your farmers, we've got a world class product here, buy it."
With Murray Goulburn's decision, many of the dairy farmers are thinking about leaving the industry. A farmer from northern Victoria, Andrew Leahy, who supplies to Murray Goulburn said the announcement will cost him $150,000 in the next couple of months. Mr. Leahy said "The price drop on its own wouldn't have been the end of the world but the lack of rain and high water prices has made it very difficult."
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