Not only farmers hurting

By Emma Carinci on May 24, 2016
  • Not only farmers hurting

    Ian Reid says suppliers will also experience financial troubles because of the cuts.

Dairy farmers were reminded of the ripple effects of the milk price cuts when one of the speakers at last week’s rally in Tongala reiterated that agribusinesses were also victims.

‘‘Basically we’ve been screwed by someone else,’’ Reid Stockfeeds owner Ian Reid began.

‘‘At the moment, we’re under a reasonable amount of pressure from your industry.’’

Mr Reid said Reid Stockfeeds had fixed costs and any changes, short-term or long-term, would affect the business.

‘‘Whether we need 5000 or 1000 tonnes, our cost is the same.

‘‘We are a volume business — any effect on volume has a hell of an effect (on us).’’

While he understood dairy farmers were in difficult financial positions, Mr Reid said other businesses were also being challenged.

He said both dairy farmers and associated businesses had obligations to their families — for Reid Stockfeeds, its families included dairy farmer customers.

The second obligation all businesses had was to their bankers, Mr Reid reminded the crowd.

‘‘The first stop I would make for you guys is to the bank. I think you’ll find that all the banks are setting up interest-only loans.’’

He urged farmers to stay positive, communicate with their suppliers and seek support.

‘‘Be positive and most of all communicate. Communicate back to us, to the banker, to the industry — and get that support.’’

By Emma Carinci on May 24, 2016

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