North East and Goulburn Murray Farmer

Page 1

NORTH EAST AND GOULBURN MURRAY

Part of the Farmer Group Rural Newspapers Covering Victoria Published since 1984

FARMER TO FARMER PAGE 13

MAY, 2016

37 Rowan Street, Wangaratta 3677

Capital Tax Write-Off 2015/16

Bruce Diffey talks water

PAGES 16-19

PAGE 21

Tough times ahead as MG cuts price Dairy farmers facing uncertain future after Murray Goulburn slashes farmgate milk price

REWARDING CAREER: On the eve of Sharman Stone’s (MHR Murray)

retirement from politics, she talks to the North East and Goulburn Murray Farmer about her rewarding career and her love of the Goulburn Valley. See pages 4 and 5 for full story.

DAIRY farmers that are carrying a high level of debt could be forced out of the industry after the Murray Goulburn Co-operative (MG) announced it has cut its milk price by 10 per cent. Milk producers are struggling to come to terms with MG’s announcement it has slashed its farmgate milk price for the rest of the financial year from $5.60 a kilogram to between $4.75 and $5 per kilogram. The price cut followed the company’s announcement its net profit after tax would be less than half its prospectus forecast of $89 million and as a result managing director Gary Helou resigned. Some industry stakeholders fear the 10 per cent loss on

BY JODIE FLEMING

jfleming@ nemedia.com.au

milk solids prices will force some dairy producers out of the industry. They have warned that dairy farmers who are carrying a high level of debt and have to pay for feed and up to $300 per megalitre for water will struggle to keep afloat, now that prices they will be paid for possibly the next three years will be below the cost of production. Murrabit dairy farmer Andrew Leahy, who has 600 cows and has been selling milk to MG since 1983 said that he will be “severely hit

financially” as a result of the revised milk price. “The problem is that because we were told we would get that price we committed to paying out grain and hay, fertiliser and water based on those prices and now we are going to have to go back and renegotiate a payment plan with all those businesses,” he said. “The season was going to be tight anyway and we knew that so we had to get an overdraft to cope with that, so it makes it very hard to pay bills and we don’t want to be on bad terms with our suppliers. “I thought with the way the season was going, which wasn’t great anyway, we would at least break even. Continued page 6

Ring NOW for your BROAD ACRE needs!

Ring Gavin Snowdon for more information

0427 218 563 phone: 5721 8563

www.gltweeds.com.au

info@gltweeds.com.au

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