Fonterra appoints new CFO
Fonterra has appointed a new chief financial officer, seven months after its last CFO’s shock resignation.
The federal government will provide $58m immediately as recovery loans to suppliers of Murray Goulburn and Fonterra. Both processors recently slashed their farmgate milk prices.
Another $530m in concessionary loans will be paid over the next two seasons; the recovery loans will be for terms of 10 years. The lending will be funded by expanding the drought loan scheme to include dairy-specific criteria.
Deputy Prime Minister and Minister for Agriculture and Water Resources Barnaby Joyce says the Coalition will immediately help dairy farmers in hardship to enable them to endure these difficult times and return to profit.
The Australian dairy industry suffered a jolt last month when the country's largest dairy co-op Murray Goulburn slashed its farmgate milk price to A$5.47/kgMS, down from the original forecast of A$6.05/kgMS.
Fonterra suppliers were next to reel in shock when the company reduced its payout from A$5.60 to A$5kg/MS.
Australians go to the polls on July 2. Joyce says the Coalition is helping farmers now under the Caretaker Conventions, not waiting until after the election.
The Government has also announced $21m to fast-track the upgrade of the Macalister irrigation district in Gippsland.
And it will supply cash for rural financial counsellors and a 'tactics for tough times' scheme.
Minister for Human Services Alan Tudge emphasises that the Coalition is not delaying help.
"We've ramped up the number of staff processing farm household allowance claims. An extra 18 people have been brought in to process claims and work directly with farming families on their individual cases, with a special focus on people in financial hardship," Tudge says.
"Where a farmer is facing real hardship and we have received the full details, a decision can be made almost immediately. If there is any difficulty obtaining the information we need to assess a claim, farm household case officers can talk to the farmer's accountant or financial adviser to help get the information needed."
The Government's one-stop-shop mobile service centres are touring the hard-hit dairy areas of regional Victoria and South Australia. They are staffed by people who can answer farmers' questions.
Tudge says the Coalition will appoint a dedicated dairy industry liaison officer who will work with dairy farmers and local communities to coordinate support and services.
Joyce says to help ensure the domestic dairy industry avoids a situation where processors unexpectedly reduce farmgate milk prices late in the season, a re-elected Coalition government will work with the dairy industry to establish a commodity milk price index.
"The index would introduce greater transparency and market signals in domestic and global milk prices. The Coalition will consult with the industry on the design of the index that would provide dairy farmers with valuable information."
Banks offer support
Australian banks have thrown their support behind dairy farmers hit by the low milk prices.
The Australian Bankers' Association says the changes to farmgate prices coincide with many dairy farmers facing drought and higher business costs.
ABA executive director retail policy Diane Tate says this mix of problems strains incomes and cashflows.
"We urge dairy farmers worried about their financial situation to contact their bank, the earlier the better, to see what help is available," she said.
"Banks understand the agriculture industry is heavily impacted by seasonal factors and price fluctuations. That's why banks take a longer-term view in agricultural lending. They work with farmers who may be experiencing financial difficulties and can put in place special loan arrangements."
Assistance offered may include:
• Deferral of scheduled loan repayments
• Waiving fees and charges
• Interest free periods or no interest rate increases
• Debt consolidation to help make repayments more manageable.
