Source: The Mercury, Helen Kempton
NATIONAL Foods was told "not to sook" after it was grilled extensively at a Senate Inquiry in Canberra yesterday.
The company, which has been at the centre of a bitter pricing fight with Tasmanian farmers since early October, was questioned for an hour by the Senate Select Committee on Agricultural and Related Industries.
Chair Bill Heffernan warned National Foods that dairy farmers would eventually stop milking unless there were fundamental changes in the food supply chain.
The Japanese-owned company's director of government and regulation Paul Evans said the merged National Food-Lion Nathan conglomerate employed 600 Tasmanians.
Mr Evans said it was disappointing that the three Tasmanian Senators on the panel, Richard Colbeck, Christine Milne and Kerry O'Brien had been seen to support a campaign to boycott the company's products.
Mr Evans claimed anyone who to tried to inject balance into the debate between the processor company and its 90-odd Tasmanian suppliers had been "monstered".
The company said no more price increases would be offered to Tasmanian farmers who now have just 10 days to sign a new contract.
National Foods would not tell the committee how many farmers had signed.
"November 30 is a genuine and hard deadline. No more money will be put on the table," Mr Evans said.
"To do so would jeopardise our commercial standing in the state.
"There is no white knight on the horizon."
Senator Colbeck said there had been no drop in the price of milk for sale in Tasmania despite farmers receiving significantly less at the farm gate.
National Foods said commercial confidentiality prevented it from saying if it was taking less from the retailer in line with drop in the price paid to those who supply it.
Senator Heffernan told National Foods it was creaming extra profit from Tasmanian farmers.
Senator Glenn Sterle accused the company of being deliberately evasive and was wasting the committee's time.
"No wonder negotiations failed down in Tasmania if that is the way the company operates," Senator Sterle said.
