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Mecardo Blog

Dairy farmers left holding the pail

Posted by Robert Herrmann on 30 June 2016

In rural and mainstream news services there is a regular stream of stories recounting the disastrous situation dairy farmers find themselves in as a result of the “claw-backs” advised by the milk processors last month.

Unfortunate as it is, these claw-backs are part and parcel of the milk supply agreements most of the dairy farmers in Australia commit to. In this article we aim to give an insight into dairy contracts for those outwith the dairy industry, and why most of the risk is held by the farmer.

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Topics: dairy