December 21, 2009
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Tasmanian dairy farmers come to agreement with National foods
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The Farmers' Collective Bargaining group emerged from talks with the company today saying it will recommend its members sign their contracts with National Foods.
This comes after months of bitter arguments between the two groups over the value of fresh milk in Tasmania, and how much it costs to produce it. Bargaining Group spokesman Phil Beattie said he's very happy with the outcome and delighted in recommending contracts to farmers. "We've reached an agreement on a fair and open system of comparing the National Foods price to [Tasmania's other major milk processor] Fonterra. He added.
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Most of National Foods' suppliers came out of contract on 30 November, but refused to re-sign with the company because they said the price on offer was significantly below the cost of production and would send them broke. The farmers also wanted to review the 'model farm' structure used by National Foods to calculate its milk price.
Most of National Foods' suppliers came out of contract on 30 November, but refused to re-sign with the company because they said the price on offer was significantly below the cost of production and would send them broke. The farmers also wanted to review the 'model farm' structure used by National Foods to calculate its milk price.
National Foods cut all contact with the Collective Bargaining Group two months ago, before both parties returned to the negotiating room last week in Melbourne.
