Dairy farmers are disappointed with the refusal of National Foods to consider increasing milk prices.
Milk processing company, National Foods, has rejected a fresh approach from its Tasmanian suppliers to negotiate a milk price that meets the cost of production.
Recently, all but five of the 85 Collective Bargaining Group members signed a document calling for a price of around 40 cents per litre at the farm gate.
The company wrote back last week rejecting the offer, saying the measure would cost more than $16 million. Farmers' advocate, Richard Bovill, says it is disappointing.
"It's not going to improve National Foods' position with Tasmanian consumers or Tasmanian farmers," Mr Bovill said.
"This is a very strong and courageous group of farmers who want to stick together, who are desperately trying to get a fair deal for themselves and their families." The company has given farmers until Monday to sign a contract, or risk a further cut in their price offer. Mr Bovill says farmers must hold the line. "They know they have absolutely no chance of improving their position if they just jump on board with the National Foods offer.
"They were hoping that the new CEO might have intervened to try and settle this and be fair to the farmers, but at this point in time that hasn't happened."
Meanwhile, a Federal Senate committee looking into Australian food production has backed Tasmanian dairy farmers in their battle with National Foods.
The Select Committee on Agricultural and Related Industries heard evidence from farmers at a hearing in Devonport in October.
Its interim report states that National Foods' latest milk price offer falls well short of the cost of production, and says if low prices persist, many Tasmanian farmers will be forced from the industry.
It also says the situation raises serious questions about the concentration of market power within the industry.
The final report is due out in June next year.
Source: ABC
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