The milk processing company, National Foods, has rejected a fresh approach from its Tasmanian suppliers to negotiate a milk price that meets the cost of production. “It’s not going to improve National Foods’ position with Tasmanian consumers or Tasmanian farmers,” Mr Bovill said. Meanwhile, a Federal Senate committee looking into Australian food production has backed Tasmanian dairy farmers in their battle with National Foods. The Select Committee on Agricultural and Related Industries’  interim report states that National Foods’ latest milk price offer falls well short of the cost of production, and says if low prices persist, many Tasmanian farmers will be forced from the industry. It also says the situation raises serious questions about the concentration of market power within the industry.
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