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National Foods committed to FNQ

National Foods rejects claims made today by Shadow Minister for Primary Industries and Fisheries, Ray Hopper MP

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April 14, 2010

National Foods rejects claims made today by Shadow Minister for Primary Industries and Fisheries, Ray Hopper MP.

National Foods will meet its commitment and an obligation to purchase all the milk that Dairy Farmers Milk Co-operative (DFMC) members produce.

While DFMC and National Foods are currently discussing a more transparent, two- tiered pricing system to be applied on the Atherton tablelands, National Foods will continue to collect all uncontracted milk in excess of contracted volumes.

Under the new system, the first tier will accommodate contracted milk which will be processed at Malanda. The second tier will apply to milk deliveries that are over and above the first tier contracted volume for the Malanda plant. This milk will be processed elsewhere and is not profitable for National Foods.

This will simply make transparent the way milk is already priced according to its value. Farmers should not find this a dramatic change to current arrangements.

Importantly, National Foods’ production at Malanda is increasing on previous years.

National Foods is committed to the dairy industry in Far North Queensland and has recently announced investments in it milk processing facility in Malanda totalling $6.7 million.

For more information:
Geoff Lynch
General Manager Corporate Affairs
03 9188 7616
0405 319 819
geoff.lynch@www.lionco.com