Big bank offers dairy relief deal as federal milk money talks continue

STRUGGLING dairy farmers could soon receive more assistance from the Federal Government, with Prime Minister Malcolm Turnbull asking the Opposition to back the plan.

Tasmanian dairy farmers doing it tough because of a fall in the farmgate milk price are hoping for an announcement on a federal assistance package within days.

STRUGGLING dairy farmers could soon receive more assistance from the Federal Government, with Prime Minister Malcolm Turnbull asking the Opposition to back the plan.

Visiting the northern Tasmanian electorate of Bass today, Mr Turnbull acknowledged a dramatic reduction in milk prices was having “a very harsh impact” on dairy farmers.

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Because the Government was in caretaker mode ahead of the July election, it was in talks with the Opposition “about making more assistance available to dairy farmers”, the PM said in Launceston.

Local farmers have been pleading for an emergency relief package to help them as they say they are being forced off the land and having to cull their stocks.

Burnie-based independent senator Jacqui Lambie also weighed into the debate today, pushing for a 50c per litre emergency milk levy to help farmers facing major financial stress.

Major processors Fonterra and Murray Goulburn have cut the farmgate milk price from 42 cents to an unprofitable 37c a litre, also making it retrospective for the season.

Tasmanian dairy farmers, who produce almost 900 million litres of milk a year, have been particularly hard hit.

“I just purchased from my local supermarket in Burnie and paid $1.25 for the milk and $2.80 for the water. Fair bloody go Australia,” Senator Lambie said in a statement today.

“I trust the feedback I’ve received from the Tasmanian dairy industry and I believe our farmers when they say that 40 per cent of Tasmania’s dairy farms will be sold off to foreigners, bankrupted or shut down after the latest official downgrade of Australian milk prices.

“That’s why I’m standing up for our dairy farmers and calling for a 50c per litre emergency levy on our milk for at least two years which go straight to our Australian dairy farmers.”

Prime Minister Malcolm Turnbull was asked about assistance to dairy farmers during a visit to the northern Tasmanian seat of Bass today. Picture: LYNDON MECHIELSEN

Independent senator Nick Xenophon, from South Australia, is also calling for stronger protections for dairy farmers against “abuses of market power”, an inquiry into the industry and for the Commonwealth to use local milk powder in foreign aid.

“They [dairy farmers] deserve to make a decent living and a fair return on their investment. Right now many of them feel as though they’re feudal serfs,” he said today.

“If we don’t act now, the dairy industry ... will shrink to a level from which it may never recover.”

A major Australian bank has thrown farmers a financial lifeline in the form of a dairy relief package.

The ANZ offer, which takes effect today, includes suspending loan and credit card payments for three months and waiving fees for restructuring business loans.

ANZ general manager regional business banking Christine Linden said the bank was encouraging dairy customers to get in touch so it could provide support and work with them on the best possible solutions.

“Every farm has a different cost structure and unique characteristics,” she said

Industry service body DairyTas is holding discussion groups, led by John McMulvany of OMJ Agricultural Consulting, on surviving low milk price season.

DairyTas regional manager Mark Smith said the series of sessions — starting on June 8 at Legerwood Hall — would include how to calculate a break-even milk price, working expenses and tips on communicating with lenders.

Tasmanians can help farmers by:

DONATIONS to the Rural Relief fund, at any ANZ Bank branch or at www.ruralbusinesstasmania.org.au/Relief-Fund

SHOUT-A-MATE VISIT, which supplies grain for livestock, www.shoutamate.com.au