Consultations between the WA dairy industry and the WA Agriculture Minister have taken place, following the rejection of a proposal by Harvey Fresh suppliers which would keep three producers in contract.
The decision came off the back of an agreement by the three immediately affected suppliers who agreed to reduce their combined annual production over the winter-spring period.
From January, they will be offered new contracts the same as existing suppliers whose contracts are up for renewal at that time, which will align the Harvey Fresh supplier base moving forward.
WAFarmers Dairy Section President Michael Partridge welcomed the announcement, saying it was a sensible decision that would keep many long term and respected producers in the industry.
“Given WA has difficulties in balancing the annual spring flush of milk and also balancing the market in such an isolated state as ours, we consider the agreement to reduce production to be sensible,” he said.
“Parmalat has had discussions with all its producers regarding supply and demand issues and getting this more balanced, as have the other processors.
“WAFarmers and the WAFarmers Dairy Section will continue to concentrate on securing a long term solution that will not only ensure dairy farmers stay in contract, but also safeguards the future of the entire industry and associated supply contracts for the foreseeable future.”
There are currently 142 dairy farms in WA.