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‘Pissed off’: Co-op farmers speak out after NSW government axes Norco milk from hospitals

Farmers fighting to stay “strong and growing” have spoken out after a NSW department stopped milk from much-loved Northern Rivers co-op Norco being supplied to hospitals.

Norco dairy farmers are on tenterhooks as a “city” decision to axe their product from regional hospitals threatens jobs and livelihoods. Picture: Zoe Phillips
Norco dairy farmers are on tenterhooks as a “city” decision to axe their product from regional hospitals threatens jobs and livelihoods. Picture: Zoe Phillips

Upset dairy farmers have spoken out alongside politicians after a contentious decision to axe milk from much-loved local co-op Norco from hospitals in northern NSW and across the state.

Lismore dairy farmer Andrew Wilson said: “It’s a bit of a kick in the guts, really.”

HealthShare NSW has awarded a NSW milk contract to Dairy Farmers, pushing out farmer-owned co-operative Norco.

Mr Wilson said he hoped for ongoing backing from the government and businesses after the historic 2022 floods devastated the region.

“You’d think you’d want to keep all the business in the area and all the money flowing back to local people,” he said.

Mr Wilson pointed out Norco’s competitor was a multinational, meaning profits flow offshore.

He said he and counterparts producing milk in northern NSW were upset by the decision.

Supplier Andrew Wilson and Norco chief executive Michael Hampson. Picture: Supplied
Supplier Andrew Wilson and Norco chief executive Michael Hampson. Picture: Supplied

Mr Wilson said he hoped the lost contract would not impact milk prices, but he worried they could be forced down, putting less in farmers’ pockets.

“Then everyone suffers,” he said.

But a spokesman for HealthShare NSW, which manages the relevant state government food services contract, defended the decision.

He said in a statement the independent agency undertook an open and competitive procurement process for the tender, deemed to be “commercial in confidence”.

Meanwhile, Mr Wilson said he and other dairy farmers had a tough time in recent years and the bills kept climbing.

“We didn’t lose too many (cattle) in the floods, but it made them really sick,” he said.

“A lot of them had pneumonia – all the wet weather and no sun and nowhere warm or dry for them to sit down.

Julie Moore (second from left) at the Dorrigo Show. She is “pissed off” about the recent tender decision. Picture: Chris Knight
Julie Moore (second from left) at the Dorrigo Show. She is “pissed off” about the recent tender decision. Picture: Chris Knight

“My vet bill went from $3000 a month to $8000 a month just trying to get them all healthy again.

“Decisions like this don’t help – we need every cent we can to keep us strong and growing.”

Mr Wilson said he and other producers would be “very thankful” if the decision was dumped.

Norco slammed the “disappointing” and “disheartening” decision and also pointed out the contract went to a company with foreign stakeholders.

“Given our 129-year heritage in the Northern Rivers region, we are naturally disappointed by their decision to no longer support local and 100 per cent Australian-owned,” a spokesman said.

Farmer Julie Moore of Dorrigo said she was “pissed off” milk would be trucked up from the South Coast.

Dairy Farmers was picked to supply milk by HealthShare NSW. Picture: Dean Whitling/Supplied
Dairy Farmers was picked to supply milk by HealthShare NSW. Picture: Dean Whitling/Supplied

“Every litre lost has a bottom line effect on every one of our farms,” she said.

Ms Moore was also concerned about flow-on effects hitting farms, workers and the co-op.

She said Norco would be forced to reduce the price it pays for milk.

“Nothing else is getting dropped,” Ms Moore said,

“Our grain’s not dropping, our hay price isn’t dropping, our vet bills aren’t – everything is going up.

“I’m a bit pissed off with what the government is trying to do, yeah.”

Farmers have been able to supply Norco with as much milk as they like, but the loss of a significant contract means excess left over.

The Norco spokesman said the co-op wanted the decision reviewed.

“In light of the impact this will have on the Northern Rivers community and our hardworking local farmers, we remain hopeful that the decision will be reviewed in its entirety,” he said.

Clarence MP Richie Williamson says the removal of the contract could cost jobs.
Clarence MP Richie Williamson says the removal of the contract could cost jobs.

Federal and state Nationals MPs, including Page MP Kevin Hogan and Clarence MP Richie Williamson also lashed out and said metro bureaucrats had “complete disregard” for 191 farming families and hundreds who work for the Lismore-based co-op.

“We can’t allow our local businesses and families to suffer, especially in the middle of a cost-of-living crisis,” Mr Williamson said.

Coffs Harbour MP Gurmesh Singh, also the Shadow Regional Health Minister, said nurses and hospital patients had reached out about the issue.

Northern NSW dairy farmers are not happy. Picture: Elise Derwin
Northern NSW dairy farmers are not happy. Picture: Elise Derwin

“Norco has been the longstanding milk supplier for health facilities from Tweed Heads to Port Macquarie and the Government needs to listen to what our communities are calling for instead of trying to call the shots for them,” he said.

The Health Services Union has also called for local milk in northern NSW hospitals and health facilities.

Gerard Hayes, the union’s NSW secretary, said some patients would not consume milk unless it was Norco.

“Why would we cut this off at a time like this?” he asked.

Mr Hayes said Norco provided “economic lifeblood to hundreds of families” in the region amid a “double whammy” of floods and the ongoing cost of living crisis.

North Coast Nationals MPs, and Lismore Mayor Steve Krieg have joined forces to launch a community petition calling on the Minns Labor Government to restore Norco Milk to health facilities across the Northern NSW and Mid North Coast Local Health Districts.
North Coast Nationals MPs, and Lismore Mayor Steve Krieg have joined forces to launch a community petition calling on the Minns Labor Government to restore Norco Milk to health facilities across the Northern NSW and Mid North Coast Local Health Districts.

In response, a petition called “Community Petition to Restore Norco Milk in North Coast Health Facilities” has been launched in Lismore.

It comes as Lismore MP Janelle Saffin has launched a petition to parliament titled: Reinstate Norco as the Dairy Supplier for NSW North Coast Hospitals.

She called for the decision to be reversed across NSW and particularly locally.

Picture: Richard Gosling
Picture: Richard Gosling

The HealthShare NSW spokesman said the government decides tenders with factors including support for small to medium enterprise, sustainability, location, and whether the business is Indigenous-owned or has other socio-economic priorities.

“All existing suppliers were invited to submit a tender,” he said.

“To ensure a decision making process based on merit and fairness, only suppliers who fulfilled all mandatory tender requirements were considered during this procurement process.”

The spokesman said HealthShare worked closely with suppliers and potential suppliers through any tender process. Unsuccessful suppliers can participate in a debrief which includes feedback.

He said NSW Health tenders were subject to strict procurement guidelines and a robust evaluation process, including stakeholders.

Got a news tip? email catherine.piltz@news.com.au

Originally published as ‘Pissed off’: Co-op farmers speak out after NSW government axes Norco milk from hospitals

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Original URL: https://www.couriermail.com.au/news/nsw/pissed-off-coop-farmers-speak-out-after-nsw-government-axes-norco-milk-from-hospitals/news-story/714e009d386413c5554c85bcc4d3bb29