Put dairy in Aussie hands

ATHERTON Tableland dairy farmers have called for state and federal governments to back a homegrown effort to acquire Lion Dairy and Drinks and secure the Far North’s milk industry.

The Morrison government this week blocked the proposed $600 million sale of the Japanese-owned Malanda processing plant to China-owned Mengniu Dairy.

Millaa Millaa-based farmer James Geraghty said that while the development wouldn’t have an immediate impact on his business, it 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.

“The door is open for an Australian entity to walk in and buy Lion and we would like to see government providing a grant or low-interest loan to make that happen.

“Bega and Norco showed interest during the initial stages, but neither had the capacity to buy it in 2018, and we would like to see the government step in and help like they have helped other Australian companies.”

Hill MP Shane Knuth said it was in the country’s interests to have an Australian firm running the FNQ milk industry.

“The Tablelands dairy farmers are hurting – some are getting loans just to be able to pay their bills – and the number of dairy farmers up here has already dropped from 270 before deregulation to 53 now,” he said.

“COVID-19 has taught us not to rely on overseas interests and even a small amount of government assistance will be helpful.”

A Tablelands industry in decline was buoyed by Mengniu’s plan to expand the product range at the Malanda site when Lion listed the plant for sale last year. Bega Cheese, Tanarra Capital and mining magnate Andrew Forrest are understood to be interested in the factory that will remain on the market until December.