Dairy farmers hit back at 'price stunt'

The dairy giant announced a 1.1 cent a litre price rise last week, and placed full-page ads in local newspapers over the weekend claiming it now pays more for milk than any other local supplier.

The State Government, the Opposition and some media dubbed the increase a win for people power, and proof farmers a boycott of National Foods' products was working.

But a spokesman for the dairy industry's Collective Bargaining Group Phil Beattie says National Foods is already required to bring prices into line with the other major milk supplier, Fonterra.

"It's just a publicity stunt," said Mr Beattie.

He says the increase has been brought forward three months, and made public in an effort to make the company appear sympathetic.

"According to the contract that they want us to sign, they were going to step up their milk price alongside Fonterra's step-ups.

"Fonterra have stepped up now and so National Foods have stepped up at the same time, 1.1c a litre, which they would have done in January anyway.

"It's just a stunt to make it look like they're paying us more for milk, when they're not," he said.

A National Foods spokesman Geoff Lynch concedes the payment has been made early.

"Normally we would review our contract price in January and back-date any increases," he said.

Dairy farmer Richard Bovill says the ads will expose the truth behind National Foods ad campaign

"We'll be going through it chapter and verse and pointing out to the Tasmanian public how they're being deceived by National Foods," he said.

"In view of the difficult situation Tasmanian farmers are facing at the moment, we've brought that review forward and made the price increase announcement now."

National Foods maintains that its prices are determined by the global market but farmers say they are being paid ten cents a litre less than the cost of production.