FARMERS MILKED DRY
Chinese company blocked from buying in
DAIRY farmers on the Tablelands have been described as “forgotten” one month after the Lion Dairy sale to the China Mengniu Dairy Company was rejected as part of the muscular diplomacy between Australia and China.
DOZENS of Queensland dairy farmers have been left in limbo by the suspension of the Lion Dairy & Drinks sale to the China Mengniu Dairy Company.
Queensland Dairyfarmers’ Organisation president Brian Tessmann said “around 100” farmers in the Far North and state’s southeast corner were currently locked into contracts with Lion.
“These farmers have had to put up with an unsustainable farmgate price for almost two years while Lion found a legitimate buyer and the sale price negotiated, and these farmers were expecting that price to increase once the Mengnui sale went through,” he said.
“The talk has been about the physical assets involved in the sale – the nine processing plants throughout Australia (including Malanda) and the equity of brands like Dairy Farmers and Big M – but very little concern has been shown to the grassroots farmers who supply them.
“Under the new Mandatory Dairy Code of Conduct those on existing long-term contracts will have to renegotiate with Lion in January 2021.
“That will be no small undertaking given Lion has indicated it does not have the funds or the inclination to continue operating its dairy and drinks division in Australia.”
The Morrison government blocked the proposed $600m sale of the Japanese-owned company – with the deal including the Malanda processing plant – to China-owned Mengniu Dairy last month.
“The fact remains that dairy farmers who have already put up with years of uncertainty and unsustainable pricing under Lion seem to be forgotten by the big boys in this international game of intrigue,” Mr Tessmann said.
“We must hope that from here on in the players have some thought for the livelihoods of the farmers caught in the middle.”
Last month Millaa Millaabased farmer James Geraghty said the rejection of the sale was contributing to a general feeling of uncertainty.
“There is concern with farmers as to the future and we are worried about who will own the Malanda factory, what attitude they will have to milk, and what products they will make,” he said.