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Regional milk boost: Bonlac to pay Gippsland suppliers a higher price
28 Jul 2004
Bonlac Foods will pay its Gippsland farmers a higher price to produce milk than their counterparts elsewhere. Gippsland farmers wanting to grow their milk supply will receive a growth incentive equivalent to $1 a kilogram of butterfat. Dairy farmers under the same scheme in different regions receive 60c/kg/butterfat equivalent.
Bonlac said it's the first time a region has been targeted to grow milk, with the aim being to increase input into Bonlac's Darnum Park plant. Chairman Noel Campbell said suppliers in all regions will benefit: as Bonlac's financial position strengthens, there will be improved returns through milk price and suppliers' share of value in the company.
But a Tasmanian Bonlac supplier said the extra money to be paid to Gippsland suppliers will have to be removed from others. The reason Gippsland suppliers are being offered more is because Bonlac has greater competition from other companies, he claimed.
However, Poowong supplier Noel Tonkin said farmers are still waiting for the full step-up they didn't get last season and it's also unlikely that a dividend will be paid this year.
Weekly Times, 28/7/04, page 5.
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