Aussie PM to question dairy giant over ongoing milk price crisis
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E-mail Xinhua, August 16, 2016
The Australia's prime minister on Tuesday summoned the board of dairy giant Murray Goulburn to Canberra for questions, as the nation's plummeting milk prices continue to affect dairy farmers across Australia.
Malcolm Turnbull's government is reportedly considering a Senate inquiry into the dairy company's decision to ruthlessly cut the price it pays its farmers for milk and milk solids, which was highlighted in April this year.
Some farmers were forced to sell their cows and their farms in order to survive, while,in response, a government bailout package was announced for those struggling the most.
On Tuesday, Turnbull ordered a meeting between himself, deputy PM Barnaby Joyce and the heads of Murray Goulburn to pose questions regarding the decision to cut milk prices so drastically back in April.
Support packages for struggling farmers are also expected to be on the table during discussions, and Joyce said the meeting would help the government fully understand the shock decision to slash wholesale prices from around 5.60 Australian dollars per kilogram (of milk solids) to around 4.70 Australian dollars per kilogram.
"Obviously we need a little bit of transparency into exactly how they got themselves into this situation," Joyce said on Tuesday.
The news follows a report by the Australian Broadcasting Corporation (ABC) on Monday night, in which leaked documents showed Murray Goulburn was set to post a significant loss before it decided to pass the shortfall to its farmers.
Following the report, the nation's dairy farmers applauded the government's decision to hold transparent talks, and said it would be horrible if struggling farmers were forced to go through a similar situation in the future.
"(The price cut) was certainly something that we didn't need when we were looking at growth and opportunities into the key markets," Adam Jenkins, the president of the United Dairy farmers of Victoria, told the ABC on Tuesday.
"It'd be great for the Prime Minister to take that message on board.
"We fundamentally do not want this situation to ever happen again." Endit
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