The Victorian Farmers Federation (VFF) has said that the loss of 80 jobs as a result of the closure of the Murray Goulburn Co-operative plant at Leitchville in Northern Victoria should be an alarm bell for both State and Federal Governments.

President of the United Dairyfarmers of Victoria (UDV), the dairy commodity of the VFF, Chris Griffin said that the reason given for the plant’s closure, a fall in milk supply due to the drought, was not surprising.

“Irrigation districts across Northern Victoria have struggled to maintain production, with record low water allocations over the past few years, together with uncertainty surrounding infrastructure upgrades and the Federal Government’s water buyback program,” Mr Griffin said.

“Over the 12 months to November 2009 milk production in Northern Victoria fell by more than 17 percent. The long drought has also hit crop, livestock and horticulture production throughout the region,” Mr Griffin concluded.

VFF President Andrew Broad said while he supported moves by Murray Goulburn to redeploy workers, the factory closure would still have a significant impact on local farmers and the community.

“The closure of the Leitchville factory is perhaps the best recent example of what happens to rural communities when water is removed,” Mr Broad said.

“The VFF has stood together with the State Government in the face of criticism and has continued to support the four percent water trading cap. The cap remains the best mechanism to ensure water is traded from districts at a responsible and sustainable level while minimising the threat to rural communities. Removing it would result in more irrigation water being permanently lost, lower levels of local food production and higher rates of rural unemployment.”

“The VFF has been highlighting the need for a stronger focus on regional development to create rural economies that are more diverse and resilient.”

“Driving job creation and economic development in rural areas should be a higher priority for government and must come ahead of the continual expansion of Melbourne. Encouraging more people into our major cities is lowering our quality of life, not improving it,” Mr Broad concluded.

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