Lawyer David Burstyner explains what decisions from dairy companies mean for possible legal action

Mr Burstyner has Fonterra suppliers on his books who will continue with a class action up until that company, like Murray Goulburn, agrees to forgive its loan scheme and repay farmers

Fonterra farmers yesterday vowed to pursue legal action against the NZ processor if Mr Dedoncker does not commit to pay the full $50m-$60m now owing to milk suppliers.

"If the old board members won’t resign, the ACCC actions give the new chair reason to demand so" says Paul Mundy, a Cobram East Murray Goulburn supplier.

Australia’s largest milk processor today issued a statement saying it would “forgive” the MSSP in order to “mitigate the risk of further milk loss”.

After major milk processors Murray Goulburn and Fonterra lowered prices below the cost of production in May last year, the Robertsons, who supply to Fonterra, said they “didn’t see a milk cheque” as their business equity dropped by $200,000.

Fonterra Australia milk supply manager Matt Watt would not be drawn on whether Fonterra, which claims to be paying more than Murray Goulburn, could guarantee it would not cut its price before the end of the season

Rene Dedoncker, Australian head of the world’s biggest dairy company, Fonterra, said the crisis was caused by “out of control” pricing by Victorian processor Murray Goulburn, and its former chief executive, Gary Helou.

Two large processors cutting the farmgate milk price last season have eroded the trust between farmers and milk factories. Nothing has changed on this front since and the “dairy crisis” is almost at its 12-month anniversary.