Australian dairy firm withdraws price cut plan

Australian dairy company Warrnambool Cheese and Butter had planned to cut the price it pays to farmers, but has now reversed its decision.

Warrnambol intended to reduce milk price by nearly 20 cents per litre, and the initial announcement had forced some producers to sell their farms.

Hostile reaction from farmers regarding the price cut had caused the company to back down from its planned price cuts, said chairman David Karpin.

The company has decided to return to the prices announced in January, Karpin said.

David Basham, president of the South Australian Dairyfarmers Association, said he hopes farmers who sold stock or even their farms can get it back.

However, he added the price cut announcement has done some irreversible damage for the meantime.