The scars of the 2016 milk price clawback, initiated by the former Murray Goulburn Co-operative and subsequently followed by New Zealand-based dairy giant Fonterra, still haunt many Australian dairy farmers.
Despite settling a class action lawsuit, Fonterra continues to grapple with a damaged reputation among local suppliers, according to reports from Country News.
Bridget Goulding, a former Fonterra supplier, expressed her hope that a reputable company would take over Fonterra’s operations, provided it wasn’t a major retailer like Coles or Woolworths. She recalled the unfavorable $1 per litre deal previously negotiated by Murray Goulburn, noting, “The Australian dairy industry would be better off without Fonterra. They revealed their priorities with the price clawback, and it was clear their suppliers weren’t their main concern.”
The impact of the clawback was profound, affecting not just the financial stability of dairy farms but also the broader regional communities. “2016 really destroyed confidence in the dairy industry,” Goulding added.
Conversely, Kyabram supplier Mark Mullins responded to the news of Fonterra’s possible exit with surprise but no concern for his future dealings. “I’m not worried about what comes next with the processor,” he said, indicating a readiness to adapt to new circumstances.
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