The Coalition Government has agreed to extend much needed support to Victorian dairy farm businesses affected by the retrospective pricing decisions of National Dairy Products (NDP), through Dairy Recovery Concessional Loans.Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce, said the Coalition Government is standing by dairy farmers affected by retrospective cuts to farmgate milk prices beyond their control.
“The Coalition is delivering a $579 million Dairy Support Package to support dairy farm businesses affected by the decisions of Murray Goulburn and Fonterra to make retrospective cuts to farmgate milk prices late in the 2015-16 season,” Minister Joyce said.
“So far (at 18 November 2016) $57.6 million in Dairy Recovery Concessional Loans have been approved to 102 dairy farm businesses across Victoria, New South Wales, Tasmania and South Australia.
“Recently the Australian Competition and Consumer Commission (ACCC) advised that, similar to the actions taken by Murray Goulburn and Fonterra, NDP had retrospectively cut farmgate milk prices to suppliers in 2015–16.
“In light of this new information the Coalition Government has taken immediate action to amend the Dairy Recovery Concessional Loans eligibility criteria to include farm businesses that supplied milk to NDP in 2015–16.
“This will provide meaningful assistance to farmers who not only experienced retrospective price cuts but who have not been paid for milk supplied in recent months.
“I commend the Member for Gippsland, Darren Chester MP, and the Member for Wannon, Dan Tehan MP, for making representations on behalf of dairy farmers supplying NDP.
“NDP suppliers will be able to apply for Dairy Recovery Concessional Loans upon agreement by the Victorian Government.”
Under the Coalition Government’s new Farm Business Concessional Loans Scheme, $250 million in concessional loans funding is available until 30 June 2017 to assist farmers to rebuild their businesses following drought and farmgate milk price cuts.
“The Coalition is determined to ensure a strong future for dairy and has established an inquiry into the national dairy industry. The inquiry is being undertaken by the ACCC’s newly established Agricultural Unit, following a $11.4 million commitment through the Agricultural Competitiveness White Paper,” Minister Joyce said.
