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Farmers baulk at long term milk contracts
5 Nov 2004
Farmers in the NSW southern highlands have baulked at signing long-term milk supply contracts with National Foods. The farmers content that the price offered by National Foods is uneconomic. The farmers say National Foods is offering an average price of 32 cents a litre, the same price they were receiving six years ago, and a price the farmers say is about three cents below their cost of production. National Foods buys about 170 million litres of milk a year directly from farmers in NSW, equal to about 80 per cent of its total milk requirements for the state. So far most farmers, who together produce about 135 million litres, have failed to sign up to the long-term contracts.
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