‘Gutted and disappointed’ by Murray Goulburn price cut

BRAD Adams, who supplies Murray Goulburn with milk, is “gutted and disappointed” today after the company cut its farmgate milk price.

Let down: Brad Adams says plenty will have to change at Murray Goulburn.

BRAD Adams is “gutted and disappointed” today.

The Strathmerton Murray Goulburn supplier believes he and other farmers have been let down by the MG board.

“The board is appointed to do a job on our behalf, particularly a co-op,” he said.

“I supply the co-op because I’d like to think that it is in the best interests of farmers, but when things like this happen I question whether we should just start looking after ourselves.”

Mr Adams has milked up to 600 cows in the past two season but says he will have to reconsider numbers going forward.

In fact, his entire business is under review after he has expanded.

“(The announcement) is going to make it very tough to be a dairy farmer,” he said.

“I don’t mind external factors, beyond our control, impacting the milk price, but we have had communication with incorrect information.”

He said his business had commitments to pay for, such as water, which were business negotiations entered into with the understanding that there would be a higher farmgate milk price.

Mr Adams said if the milk price wasn’t there, he wouldn’t have bought or agreed to purchase what he had.

“They have really pulled the rug out from underneath us,” he said.

“We just want the board and senior management to be honest with us, tell us how it is.

“We can wear it, but we can’t make decisions on false information.”

There will be so much more MG will have to do for suppliers now in terms of the merchandise store and supplying feed, Mr Adams said.

He said plenty will have to change at MG.

“Management have decided that like people saying yes ... they don’t like any objection in a public forum or having to explain (themselves).

“This needs to change. There are plenty of people out there who have something decent to say and they should be listened too and (their comments) acted upon.”

“They treat suppliers like fools sometimes.

“But today, right now, I think the fools are in the head office.”

MG cut its milk price to $5.47 a kilogram of milk solids today, down from $5.90kg/MS in February and a $6.05kg/MS forecast at the start of the season.

To maintain the $5.47kg/MS, rather than the $4.47-$5kg/MS, which is available for MG to pay, the money will be recouped by the company from milk payments for up to three years.