Knuth prompts Health Minister to review loss of local milk contract

Shane Knuth said he was ropable about reports last week that the Cairns and Hinterland Hospital and Health Service (CHHHS) planned to not renew its milk contract with local farmers and instead sign up with major southern processor Parmalat.

Mr Knuth has since been communicating with Health Minister Cameron Dick and his office, who will now look into the legalities of CHHHS signing the contact with Parmalat.

“I have taken this to the top of the chain to get to the bottom of it to protect the rights and livelihoods of Tablelands dairy farmers,” Mr Knuth said.

The plans to sever the local contract with the Dairy Farmers Malanda factory come despite a ‘buy local’ campaign on the Atherton Tablelands to help save the $36.2 million-a-year industry.

“Milk will be sourced from 1,000 kilometres away, which is ludicrous because we’re already being flooded by milk being trucked up from the south – about 200 million litres each year,” Mr Knuth said.

Farmers are also grappling with the prospect of paying freight costs on most of the excess milk that could have to be sent south to find a market.

“It’s one more slap in the face for Tablelands farmers who have been through crisis after crisis – from deregulation to $1-a-litre milk price wars to drought to cyclones – which has slashed the number of farms from 270 to just over 40,” Mr Knuth said.

“This latest blow takes out a big production slice from the region’s milk supply and gives Parmalat a lot of money that should be going to Tablelands dairy farmers.”

Mr Knuth’s Fair Milk Price Logos Bill, which creates a voluntary scheme to ensure consumers know what milk has returned a sustainable price to the farmer, is currently before Parliament.