Movement in the ranks of Victoria’s farmers has resulted in the loss of 3.6 per cent of milk supplies for Murray Goulburn (MG) in recent weeks.
Around 130 million litres has gone to rival processors since the cooperative cut the price it pays for milk last month, according to The Weekly Times.
The movement has been highest in traditionally loyal family farms swapping to rival processors, according to the report, and Fonterra Australia, Warrnambool Cheese and Butter and Burra Foods picking up the most supply.
MG told the market it had to cut its milk price due to global conditions. “Commodity prices remain the largest external influence on MG's financial performance,” MG's interim CEO David Mallinson said at the time.
Global conditions had not improved, he said, with key commodity prices remaining below US$3,000 per tonne for almost two years, much longer than historical price downturns.
