Kirkstall farmers Chloe and Rodney Brown are leaving the family farm after the milk price cut. RACHAEL HOULIHAN investigates the dairy crisis and its impact on the region.
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RODNEY Brown felt like his heart had been ripped out when he learnt Fonterra was drastically cutting its milk prices.
He instantly knew he and his wife Chloe would no longer be dairy farmers. Fonterra’s price cut meant the Browns would have to exit the industry they had spent up to 100 hours a week working in to provide for their daughter Charlotte.
Fonterra has cut its farmgate milk price from $5.60 per kilogram of milk solids (kg MS) to $5/kg MS for the 2015-16 season.
The step down with just two months of the season remaining means it will “claw back” money from its suppliers already paid on the earlier, higher price. For the Browns, that meant they would be paid $1.91/kg MS for the next two months.
They realised the offer from Fonterra was completely unviable for them to be able to survive financially.
“We didn’t get to make a decision,” Mrs Brown said.
“There were no real options. We either get out now or hope we scrape through and don’t go bankrupt in a few years.”
The couple sharefarm on Mr Brown’s parents’ farm and own about 120 cows. They also own a 140-acre outpaddock located near Hawkesdale, which will be put on the market. Some cows have already been sold and more will be sold through a livestock agent.
Mr Brown’s parents will stay on the farm and continue milking their own herd, while the Browns will seek work outside milking.
“I will end up finding outside income,” Mr Brown said.
“It feels like Fonterra has just taken my heart. It has just gutted us. I’ve been in the dairy industry since I was 16 and I’ve been milking cows since I left school. The day I said we were selling out a weight lifted off my shoulders. I’ve lost the passion for milking. The day they announced it would be $1.91 I lost interest and I lost my trust in the industry.”
The Browns are one of many south-west families questioning their commitment to the industry. They were among more than 80 concerned farmers at a Fonterra suppliers’ meeting on Tuesday.
“Everyday how do we get out of bed? It’s costing us money to get out of bed,” Mrs Brown said.
They found out about the price cut via a text message.
“We initially thought it was $5/kg MS for the next two months. We knew we could scrape through on $5 - it would be tough - but we could do it. Then we realised it would be $1.91 for the next two months and we worked out our costings. It didn’t even cover the feed costs of what the cows would get in the dairy, let alone in the paddock.”
Despite enduring a tough week, the Browns remain positive about the future.
“I’m looking forward to weekends and even having a bit of a sleep in,” Mrs Brown said. “It’s the beginning of the next chapter of our lives.”
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