After a drought, flood and high-cost woes, Australia's dairy giant Murray Goulburn announced it would buy milk from dairy farmers for less than the cost of milk production, pushing many farmers into the limelight. Most dairy farmers are heavily indebted, and some are forced to sell farms, cattle and machinery to survive. The crisis prompted the Australian Competition and Consumer Council (ACCC) to investigate the dairy industry and dairy maker Murray Goulburn.
According to the Sun Herald, 50-year-old dairy farmer George Kantarias filmed a six-and-a-half-minute short film uploaded to Facebook, which strongly accuses Murray Goulburn of low-cost exploitation of dairy farmers. In the short film, Kantarias turned the bucket open and dumped 2600 liters of milk on the ground to show that he and other dairy farmers in the region were forced to supply Murray Goulburn with milk below the cost of production.
Mr. and Mrs. Kantarias bought a 140-acre Katunga farm north of Shepparton last November for $ six hundred and seventy five thousand. In April, shortly after they began operating, dairy firm Murray Goulburn slashed wholesale prices for milk. In two days, the Kantarias and his wife's income halved. Compared to the purchase price of 6 yuan per kilogram of solid milk, Murray Goulburn is only willing to pay 2.75 yuan, and Fonterra Australia, the dairy dealer, also reduced the price.
"the cost of producing milk per litre is 38 cents, and they pay us only 30 cents," Mrs. Kantaria said.
In addition, Murray Goulburn said in a controversial claim that they paid $1.83 billion last year to the supplier, and therefore asked the Kantarias couple to give them a $50,000.
Today, the Kantarias couple are under enormous debt pressure, with banks calling them and other creditors asking them to pay overdue bills and accounts.
"it's our job, our family and our pension, but we're facing losing it," Mr. Kantarias said.
"it's the worst thing to have no food on the table. I can eat baked beans every day, but when you have kids, you can't do that, "Mrs. Kantarias said.
Foodbank, a food relief group, said it was the first time dairy farmers had been seen picking up food parcels from them this year. Foodbank provides more than 17 million free food parcels a year to people in need across Australia, up more than 11 percent this year from rural communities.
"the sad thing is that the farmers who provide us with food are the people who need to be rescued during the holidays," said Dave McNamara, chief executive of Foodbank Victoria.
The crisis prompted the Australian Competition and Consumer Council (ACCC) to investigate the dairy industry and dairy maker Murray Goulburn.
The Kantarias and his wife eventually signed a contract with Australian Consolidated Milk, a dairy vendor, to supply organic milk at a price of A $8 per kilogram of solid milk. While it takes them a year and a half to get life back on track, it brings a glimmer of light to life.
