Australia - Dairy Farmers $11m drought relief package
Published:November 9, 2006
Source :Farm Weekly
Australian-owned dairy business Dairy Farmers Milk Cooperative (DFMC) today announced a $10.8 million relief package for farmer members impacted by the drought.
Based on a six-month package, the relief includes special monthly drought distributions totalling $7.8 million to be paid to DFMC farmer members from December 2006 to May 2007.
That averages 1.5 cents per litre.
In addition, DFMC will suspend its 0.5c per litre share levy, resulting in a total cash-flow benefit to its active members of 2c per litre on average.
Distributions will be calculated based on butterfat and protein levels in milk supplied and will apply to milk provided from DFMC active members for the period 1 November 2006 to 30 April 2007.
Further benefits are available for farmer members from franking credits associated with the special drought distributions.
Distribution payments will be 65pc franked in December 2006 and fully franked from January to May 2007.
Parent group Dairy Farmers chairman, Ian Langdon, said, "Given that more than 50pc of farmer members' farms fall outside Exceptional Circumstances (EC) declared regions, we will also be firmly focussed on working with government to ensure adequate support is provided to those that need it most."
DFMC chairman, Ian Zandstra, said the group would also ease the burden on suppliers by:
• Assisting in the completion of applications for government assistance.
• Providing ongoing advice on the availability of stock, feed and dairy water.
• Bringing forward the interim dividend by six months and increased the rate to 3.25c per share, which will be franked at 65pc, payable to shareholders on November 15.
• Suspending its Dividend Reinvestment Plan, effective immediately.
* Big milk processor, Murray Goulburn, also has moved to secure milk volumes in the second half of the 2006-07 season.
