Dairy

UDV’s plan to simplify milk price structure on show

By Rodney Woods

Dairy farmers sick of trying to make sense of complex payment structures imposed by milk processors are being invited to support a new plan spearheaded by the UDV.

The UDV is pushing for simple milk payment structures, saying the current system is hurting the Australian dairy industry.

UDV president Adam Jenkins urged farmers to turn out and support simplified structures as the farmer group hits the road — including visiting Cohuna, Kyabram and Numurkah — to promote the scheme drawn up in conjunction with industry consultants.

‘‘UDV has been calling for a simplified milk price structure for years, and it’s time for farmers to support the change,’’ Mr Jenkins said.

‘‘The reality is milk production has fallen and processors are trying to keep their facilities operating at an efficient level by holding existing milk while also attracting new milk.

‘‘The pressure on processors to find replacement milk as farmers swap factories leads to even more confidential deals.

‘‘What we are left with is an unjustifiable spread in prices being paid between farmers supplying the same processor.’’

The UDV believes the new structure will address farming system inefficiencies and confusion around complicated milk payment calculations.

‘‘We need a payment system that allows us to maximise our comparative advantage,’’ Mr Jenkins said.

‘‘One that encourages farmers to produce milk efficiently and at a time that suits their natural resources, whilst also acknowledging the requirements of the processors.’’

Dairy processors are under pressure to adapt their pricing structures after the Australian Competition and Consumer Commission released its report into the dairy industry, in which it recommended re-regulation as a feasible path for the sector.

The UDV price structure roadshow will head to:

■Cohuna Recreation Reserve, Island Rd, Cohuna on Monday, June 25 at 7.30pm.

■The Kyabram Club, Allan St, Kyabram on Tuesday, June 26 at 11am.

■The Shamrock Hotel, Melville Rd, Numurkah on Tuesday, June 26 at 7.30pm.

■RSVP by Thursday, June 21 by phoning the VFF on 1300 882 833 or emailing: udv@vff.org.au

■For more information about the UDV proposals, visit: www.FairPayments4Dairy.com

Seeking Clarity