The Murray Goulburn (MG) board and senior management have met with Prime Minister Malcolm Turnbull over the events that led to a surprise milk price cut in April.
The meeting between MG, the PM and his deputy Barnaby Joyce, took place yesterday afternoon and is the first of a series of formal talks on how to build a more profitable dairy industry in Australia, according to a statement from the Government issued yesterday.
According to the statement, the Government’s interests are in supporting Murray Goulburn suppliers.
"There can only be strong and profitable dairy processors if we have strong and profitable dairy farmers.
“Australia’s dairy farmers deserve fair returns at the farm gate, as well as transparency in milk price arrangements and supply contracts,” the statement said.
“It is important Murray Goulburn can explain to their suppliers what steps they will take to support farmers and restore confidence to the dairy sector.”
According to the statement, a further meeting involving Fonterra’s Australian management is planned for next week.
A dairy symposium, to be chaired by Minister Joyce and involving representatives from the farming, processing and retail sectors will also be held in Melbourne on August 25.
“The Coalition Government will also consider the outcomes of investigations by ASIC and ACCC into the Murray Goulburn and Fonterra decisions,” the statement said.
The meeting follows an ABC's Four Corners report 'Milked Dry' that aired on Monday that claims emails that MG executives were concerned about possible losses months before the major profit downgrade that resulted in it retrospectively cutting the price it paid to farmers, with NZ dairy giant Fonterra following suit.
MG has since asked its milk suppliers to pay back the difference, and Four Corners also looked at the impact of this on dairy farmers, with some now reportedly selling their farms or sending their cows to abattoirs, as they struggle to survive.
