Van Dairy to Cull 700 Cows Following Cancellation of Fonterra Milk Contract
Source: The DairyNews
Tasmania's largest dairy operation, Van Dairy Limited (VDL), is set to cull at least 700 cows in response to the termination of its 25-million-litre milk contract with dairy giant Fonterra.
Fonterra Australia officially ceased collecting milk from VDL farms at the beginning of February, citing a series of unresolvable commercial factors as the basis for its decision. Matt Watt, Fonterra's director of farm source, stated that the milk volumes supplied by VDL had significantly declined in recent years.
"We stopped collecting milk from all VDL farms on February 1 after providing VDL with several months' notice to mitigate the impact on their business and supporting them in determining their next steps," said Watt.
VDL owner Xianfeng Lu expressed disappointment over Fonterra's decision and indicated that the company would manage its herd numbers accordingly in response to the reduced milk production agreement. Approximately 700 cows, representing around 10% of the herd, are expected to be sent to the Greenham abattoir in Smithton.
While the specifics of the cull were not confirmed, Lu emphasized his commitment to supporting Van Dairy farms and its 90 employees. The move follows a series of challenges for Van Dairy, including environmental investigations and a board mass resignation in 2018. Despite these difficulties, Lu remains dedicated to supporting the Circular Head region's dairy industry and employment.
The Fonterra decision will prompt the company to seek alternative milk supply sources from other Tasmanian farms, with no intention of reducing production at its Spreyton and Wynyard processing plants.
"We stopped collecting milk from all VDL farms on February 1 after providing VDL with several months' notice to mitigate the impact on their business and supporting them in determining their next steps," said Watt.
VDL owner Xianfeng Lu expressed disappointment over Fonterra's decision and indicated that the company would manage its herd numbers accordingly in response to the reduced milk production agreement. Approximately 700 cows, representing around 10% of the herd, are expected to be sent to the Greenham abattoir in Smithton.
While the specifics of the cull were not confirmed, Lu emphasized his commitment to supporting Van Dairy farms and its 90 employees. The move follows a series of challenges for Van Dairy, including environmental investigations and a board mass resignation in 2018. Despite these difficulties, Lu remains dedicated to supporting the Circular Head region's dairy industry and employment.
The Fonterra decision will prompt the company to seek alternative milk supply sources from other Tasmanian farms, with no intention of reducing production at its Spreyton and Wynyard processing plants.
