SW dairy supply still a problem

WAFarmers is still trying to reach a long-term solution to WA’s dairy oversupply crisis as the March State election looms.

WAFarmers chief executive officer Stephen Brown said negotiations were continuing at State and national levels.

“We hope to reach a solution before the State Government goes into caretaker mode in preparation for the State election, however we will be addressing the issue on the WAFarmers State election policy platform,” he said.

On November 26 Harvey Fresh, which is owned by Parmalat, extended a six-month lifeline to five South West dairy farmers whose contracts were due to expire in early 2017.

This followed Brownes’ cancellation of four dairy supplier contracts.

Harvey Fresh expressed hope the global oversupply might correct itself in 2017 and that it could increase exports of UHT and bulk milk to Asia.

A company spokesman said they would reassess its position and look into whether it could further extend the contracts.