The term of DFMC’s current Milk Supply Agreement (MSA) with Lion Dairy & Drinks (Lion) runs through until June 30, 2019. Over the past few months, DFMC, led by former chair Duncan McInnes, has had very productive and positive discussions with Lion about a new MSA. Importantly, the DFMC Board wanted to advise that an in principle agreement was reached late last year with the final agreement still being worked through. New DFMC chair Andrew Burnett said, “Reaching agreement was clearly important and provides certainty and security for our farmers.
“The key areas of the agreement from a DFMC perspective have been addressed and we look forward to continuing the partnership with Lion and communicating the details with members.
“Next season’s pricing discussions are yet to commence but co-operative members can confidently re-sign what will again be competitive offers in each region.”
Murray Jeffrey, Lion Agricultural Procurement Director, agreed.
“The key aspect of the new MSA agreement is to provide security between DFMC farmers and one of Australia’s leading branded dairy businesses. The discussions are continuing to move forward in good faith and we look forward to finalising the new MSA agreement in the coming months.,” he said.
Kathy Karabatsas, Lion Dairy & Drinks Managing Director, who has been involved in all the MSA discussions said: “We’re really pleased to have reached high-level agreement with DFMC and look forward to continuing the important partnership.”