Challenge Dairy Cooperative has signaled to the Agriculture Minister Terry Redman its intention to go into voluntary administration.
Challenge Dairy Cooperative has signaled to the Agriculture Minister Terry Redman its intention to go into voluntary administration.
The decision comes a month after Challenge Dairy Australia called in administrators and was placed in receivership.
Capel-based Challenge Australia Dairy is jointly owned by Challenge Dairy Cooperative (51 per cent) and Singapore company QAF Ltd (49 per cent).
Mr Redman said Challenge Dairy Cooperative had advised farmers to negotiate individual contracts with other processors.
Close to 50 farmers who supply milk to the co-operative will be affected.
Mr Redman said the state government will do all it can to support farmers.
"This is a very difficult period for these farmers who have to negotiate new contracts with processors while dealing with recent financial losses," Mr Redman said.
The State Government is funding farm visits to suppliers of Challenge Dairy Cooperative with the South West Development Commission working with industry to ensure this support reaches each cooperative supplier.
"The visits will enable farmers to discuss their concerns and can lead to advice on what support is available, whether it be counselling or financial services," Mr Redman said.
See statement from Minister below:
The State Government is working with industry to coordinate services including on-farm visits for impacted suppliers of Challenge Dairy Cooperative.
Agriculture and Food Minister Terry Redman said Challenge Dairy Cooperative representatives had informed him of their intention to appoint administrators and advised farmers to negotiate individual contracts with other processors.
"This is a very difficult period for these farmers who have to negotiate new contracts with processors while dealing with recent financial losses," Mr Redman said.
The Department of Agriculture and Food was coordinating technical and management advice for farmers; in regular contact with a number of Challenge suppliers to monitor the situation; and assisting with an across-agency response.
The State Government is funding farm visits to suppliers of Challenge Dairy Cooperative with the South West Development Commission working with industry to ensure this support reaches each cooperative supplies.
"The visits will enable farmers to discuss their concerns and can lead to advice on what support is available, whether it be counselling or financial services," Mr Redman said.
Impacted farmers can contact the department on 1300 725 572 for technical support and advice. Centrelink has a free-call Farmers Assistance Hotline on 1800 050 585.
Employees of Challenge Australian Dairy (CAD), which had receivers appointed last month, can also access support services through the 24-hour free-call State Government's WA Worker Assist helpline (1800 200 680) or Centrelink on 13 28 50.
