Monday 3 September 2012

Coles visits dairy farm to address $1 milk issue

 
A public letter of dismay to supermarket giant Coles from the wife of a dairy farmer may have stirred the big retailer into taking direct action to help milk suppliers crushed by low prices.
 
Jane Burney's comments about Coles' $1 a litre house brand milk and its seemingly superficial concern for farmers portrayed in its big budget television advertising campaigns attracted 73,000 supporting 'likes' on Facebook early this month.
 
But two weeks ago Ms Burney, who is married to fifth generation Manning Valley dairy farmer Murray Polson, secured a meeting with a high-ranking Coles representative on their farm at Oxley Island.
 
Coles' government and corporate affairs advisor Chris Mara travelled from Melbourne to spend 90 minutes with the family, encouraging Ms Burney to explain the frustrations and struggles NSW farmers were undergoing thanks to Coles' $1/L milk price.
 
Although Coles officials are not commenting on what was discussed, Ms Burney asked the company to commit to immediately lifting farmgate milk prices, and commit to moving towards a sustainable price for the fresh milk industry.
 
She also called on Coles to provide more transparency in its negotiations with milk processors, particularly in regard to flow-on impacts on the farmgate price.
 
Also at the meeting was Kempsey dairy farmer Mike Jeffery, "Austral Eden", and Australian Dairy Farmers (ADF) executive member Adrian Drury.
 
Mr Jeffery said Coles had two weeks to respond to Ms Burney's points, and further action by farmers could take place depending on the retailer's response.
 
Ms Burney believed Coles' actions had been "positive for the industry".
 
"I don't think it was just a PR stunt. I think it will lead somewhere and I think (they) will gain a bit of understanding of what it is like to be a dairy farmer," she said.
 
"The people who set this (discount milk price) scheme up obviously have no understanding of the cost involved... and we are not getting a sustainable price."
 
Mr Mara's farm visit included a tour of some of the modern infrastructure on the property.
 
"The reality is farms like this are equipped with the latest technology to continue milking into the next generation but (Coles') pricing standard is taking that away from the next generation," Ms Burney said.
 
"These aren't old, broken down farms, or broken down farmers for that matter.
 
"Many have children to follow on the land, but who just aren't able to.
 
"This whole 'Down Down' milk pricing campaign is destroying our farms, our families, and ultimately their spirit, I mean, the fact farmers are crying - and these are 60-year-old men."
 
Ms Burney said Mr Mara rejected suggestions low farm gate prices would eventually lead to fresh milk shortages for consumers, saying, that would never happen because consumers love fresh milk.
 
"They may love it, but when we are all out of business and unable to produce fresh milk, I don't know where it is going to come from," she said.
 
"Chris Mara also tried to say processors aren't fulfiling their obligations in passing on any price increases, but the processors' brands are also losing market share to generic milk.
 
"The whole supply chain is losing money."
 
Ms Burney's decision to post a letter to Coles on its Facebook site was partly prompted after watching a Coles television commercial promoting its support of Australian farmers.
 
She said the campaign was insulting.
 
The subsequent overwhelming public support she received from her letter was completely unexpected.

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