The VFF UDV is continuing to support dairy farmers impacted by ongoing payment delays from Frestine Dairy Australia, with some suppliers who ceased supply in April still unpaid for milk produced in March.
VFF UDV President Bernie Free said his understanding was payments due on 15 April were not made to those farmers, while suppliers continuing to provide milk appear to have been prioritised.
“Frestine’s inconsistency has created inequity and is placing immediate pressure on affected farm businesses.”
“When farmers have supplied milk in good faith and remain unpaid, that is simply not acceptable.”
“This is critical cashflow and at this time of year, with fuel and fertiliser shortages and high input costs, delays like this have real consequences on farm,” Mr Free said.
Over the weekend, affected suppliers received text updates from Frestine advising that management was working to secure payments, including disengaging its finance provider to address lending constraints, with a further update expected Monday and payments anticipated within one to three weeks.
A later update said the CFO had returned and submitted financial forecasts to a new trade finance provider, with feedback expected shortly, but no confirmed payment timeline.
Mr Free said the inconsistency in Frestine’s communications was adding to compounding uncertainty for farmers.
“Farmers are receiving fragmented updates by text message, with shifting timelines and no certainty. We won’t accept that.”
“Farmers are being asked to carry risk they did not sign up for, with no clear line of sight on when they will be paid.”
“We are frustrated by the lack of direct engagement from Frestine. Farmers deserve clear answers and they absolutely deserve to be paid,” Mr Free said.
VFF UDV has advised the Department of Agriculture, Fisheries and Forestry’s Agriculture Policy Division and confirmed the ACCC has been notified and is briefing Agriculture Victoria.
Impacted farmers are encouraged to seek independent legal advice, with mediation available under the Dairy Industry Code of Conduct for contracted suppliers. VFF UDV will continue advocating for affected suppliers, with the issue to be discussed at the VFF UDV Conference on 1 June 2026.