UPDATE: Milk Price Index definitely back on

Index

SECOND UPDATE 23/01/18: Hours after the Department provided this update, the Minister’s office rang to clarify the CMPI’s status with this news:

“The Minister last week met with dairy farmers and senior dairy leaders who expressed support for the further development of the dairy price index.

“The Government is committed to working with industry to deliver the index to provide dairy farmers with extra information to help them plan and risk manage their businesses.

“The Minister is encouraged by the positive approach of dairy farmers to rebuild from recent challenges to create a stronger and more profitable future for the industry.”

It’s on again!


UPDATE 23/01/18: After the UDV president, Adam Jenkins, tweeted that the post below was incorrect, I asked the Department for further clarification. Here is the response:

  • “The contract in place to deliver the Commodity Milk Price Index was terminated by mutual agreement.”
  • “The department will put options to the Minister for Agriculture and Water Resources on the best way forward to deliver on the government’s commitment to achieve greater transparency and market signals in domestic and global milk prices, in accordance with the advice received from industry.
  • “This may still be via the CMPI.”

Meanwhile, Milk Maid Marian has been informed that the team which had won the contract to deliver the Commodity Milk Price Index has not been permitted to engage with stakeholders since late last year.


The Milk Price Index intended to offer farmers transparency around farmgate milk prices has been quietly scrapped.

It’s not yet clear where the $2 million set aside for the project will be reallocated.

In response to an email from Milk Maid Marian, a spokesperson for the Department of Agriculture and Water Resources said:

“The Department of Agriculture and Water Resources and Webber Quantitative Consulting have mutually agreed to terminate the contract to deliver the Commodity Milk Price Index.”
“The department will put options to the Minister for Agriculture and Water Resources on the best way forward to deliver on the government’s commitment to achieve greater transparency and market signals in domestic and global milk prices, in accordance with the advice received from industry.”
For Milk Maid Marian’s money, some really rigorous research into how the milk pricing system could be reshaped to address the issues identified by the ACCC would be very well spent indeed.

 

5 thoughts on “UPDATE: Milk Price Index definitely back on

  1. It was always going to be as useless as the proverbial teats on a bull so no big loss.
    Just another one of Barnaby’s bungles and waste of money

  2. It just goes on and on and on!! The only people benefiting from the whole disaster are bureaucrats and consultants!

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