Retrospective cuts hit hard

By Emma Carinci on May 24, 2016
  • Retrospective cuts hit hard

    Bridget Goulding was devastated when her supplier, Fonterra, cuts its milk price.

Dairy farmers could have survived a milk price cut if they weren’t retrospective, according to a Fonterra supplier.

‘‘There’s still all this anger with it. We could have handled the cuts if the money hadn’t been retrospectively taken off us,’’ Katunga dairy farmer Bridget Goulding said.

Mrs Goulding said dairy farmers cannot escape their looming debts and will be forced to accept support packages offered by Fonterra.

‘‘Even without the support package, you’ll still pay interest on it (the money from the season owed to processors).

‘‘There’s no other choice really than to take the package.

‘‘I’ve been in farming 19 years — this is one of the worst times for the industry.’’

Although she is heartbroken by the decision, Mrs Goulding and her husband will continue supplying Fonterra.

‘‘I’ll remain loyal.’’

Mrs Goulding acknowledged part of this decision was because other processors, offering better prices, were not looking to take on more suppliers at this point.

‘‘What are our choices?’’

After achieving the ultimate goal of farm ownership, Mrs Goulding has been left devastated by the decision.

‘‘My husband and I only wanted to farm. Then to have this and have it pulled out of you — it’s dreadful.’’

Mrs Goulding said she agreed in particular with Farmer Power’s stance at the rally that consumers needed to have a better understanding of the plight of farmers and what the cuts mean for them and the future of the dairy industry.

By Emma Carinci on May 24, 2016

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