Thursday, 15 June 2017 09:55

Low opening the final straw for Oz farmer

Written by 
Australian farmer Brian McLaren. Australian farmer Brian McLaren.

Australian farmer Brian McLaren has been a loyal Murray Goulburn supplier for 48 years but the latest price blow could be the final straw.

“Murray Goulburn has ruined me physically, financially and mentally,” says the Woolsthorpe farmer.

“I’ve had a gutsful. You can only get belted over the head so often; you can’t keep coming back.”

McLaren had hoped for an opening price about A$5.50 but more realistically expected A$5.30 with step-ups to boost it towards A$6 later in the year.

However, the season opening of A$4.70/kgMS with a forecast closing price of A$5.20 - $5.40/kg MS has him “gobsmacked”.

Now McLaren is weighing up options for transferring to another company, although he admits his choices are limited.

“I’m looking elsewhere now but my options aren’t great. We will look at Saputo or the Midfield Group or give it away.

“At $4.70 and when you factor in the 10 cents promised for loyalty it’s $4.60 I can’t make a living; nobody can.”

“I’ve been a Murray Goulburn man for well over 40 years. I’ve been supplying them since the Grassmere factory closed and they initially came to the district.”

McLaren has spoken to his accountant and says he will make a “calculated decision” on his future. “We haven’t done the sums. We don’t want to jump out of the frying pan into the fire. It has to be a commercial decision.”

McLaren, who milks 700 cows, says starting at the low price would cost him A$480,000.

“We produced 480,000kgMS last year and if we’re a dollar under our competitors that means I just lost $480,000.”

He remains frustrated about the cooperative’s problems.

“I understand they’re hamstrung in regard to what they can do, but I want to know why.

“If Saputo are trying to source millions of litres to run a cheese factory -- Murray Goulburn has one at Cobram; why can’t we sell the same product and chase an extra 10 million litres.”

McLaren (65) is now considering his future. “I’m working my arse off for nothing. I don’t mind working hard but I want to be paid for it.”

More like this

Saputo committed to Oz dairy

Canadian dairy company Saputo says its acquisition of Murray Goulburn will add to and complement the activities of its dairy division in Australia.

Oz supply chain at crossroads

Australia's key dairy region is facing a “supply chain revolution,” says Rabobank senior dairy analyst Michael Harvey.

Featured

2026 fresh produce trends shaping Kiwi food culture

According to the latest Fresh Produce Trend Report from United Fresh, 2026 will be a year where fruit and vegetables are shaped by cost pressures, rapid digital adoption, and a renewed focus on wellbeing at home.

Editorial: Having a rural voice

OPINION: The past few weeks have been tough on farms across the North Island: floods and storms have caused damage and disruption to families and businesses.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Battle for milk

OPINION: Fonterra may be on the verge of selling its consumer business in New Zealand, but the co-operative is not…

Birth woes

OPINION: What does the birth rate in China have to do with stock trading? Just ask a2 Milk Company.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter