NORTH EAST AND GOULBURN MURRAY
Part of the Farmer Group Rural Newspapers Covering Victoria Published since 1984
Bruce Diffey talks water PAGE 8
JUNE, 2016
FARMER TO FARMER PAGE 14
37 Rowan Street, Wangaratta 3677 PAGES 16-21
year SPECIALS FINANCIAL
Whorouly farmer tells dairy board to resign Producer counts the cost of milk price debacle
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BY JODIE FLEMING
jfleming@ nemedia.com.au
so I bought enough shares and I am now locked in for the next three years,” Mr Newton said. “The funny thing is my Dad always vowed he would never go to MG and I wish I had of listened to him.” Because one of Australia’s largest dairy processors guaranteed that a price of $6 per kilogram of milk solids would remain, Mr Newton borrowed to buy feed to get him through the drought to ensure his cows could continue to produce the greatest possible milk volume. He also borrowed money so he could plant pasture to feed his cows over the winter months and to buy shares in MG when it floated on the stock exchange last year. Continued page 7
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c21d11829-v2/2316
DOING IT TOUGH: Whorouly dairy farmer Rod Newton has a message for the Murray Goulburn board which wants him to pay back $400,000 over the next three years with interest as a part of the company’s funds clawback. Farmer-shareholders of the co-operative are deeply concerned about the way in which the business has been managed. Story: page 7. PHOTO: Marc Bongers
WHOROULY fourth-generation dairy farmer Rod Newton owes his milk supplier $400,000. Murray Goulburn – the company which over-inflated the price it would pay for milk in the face of a contracting global dairy market – insists on clawing back from Mr Newton money it advanced to him in a market that everyone knew was falling. Everyone – that is – except the co-operative’s board members. Mr Newton milks about 600 cows at peak on his owned and leased 650-hectare dairy farm south east of Wangaratta. He has supplied MG with 5.5 million litres of milk since last August after he decided, with his family, to change processors after supplying to Dairy Farmers since 1970. “I changed to MG because I thought the industry needed a strong milk supplier like MG,