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Goat milk dispute between HGM and suppliers continues
Despite the expiration of an ultimatum at the end of September, the vast majority of HGM suppliers have not signed a new contract for the supply of goat milk. There is still time for a solution, but both parties are still far apart.
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Persisting in the stalemate would mean that after the end of 2026 the vast majority of the milk will no longer be collected by the Ausnutria subsidiary and that the farmers will have to find shelter. The soup is not eaten that hot, HGM responds. Not all contracts expire at the end of 2026. There are also those that run longer.
However, HGM does not indicate that there are new openings for consultation with suppliers and that discussions can be held about adjusting the new contract conditions.
HGM announced at a major members meeting in September that it changes the terms of the contract and no longer pays a guaranteed plus for the milk supplied. The reason is said to be the changed situation on the goat milk market. Ausnutria has this year major reorganizations announced, with branches being sold and staff being cut. However, investments were also made in (partial) acquisitions of other companies, such as the remaining part of Amalthea and DPC. Many members said they felt overwhelmed by the adjustments, often even more so when they read the small print at home, it is said.
HGM does not want to make any statements about the details of the changes. According to the company, these are a matter between suppliers and HGM. The consequence is that of the roughly 130 million kilos of milk that HGM has now contracted, only 20 million kilos at most have been secured under a new contract, according to the suppliers. In the meantime, the goat milk market has turned from a surplus to a shortage market. The goat milk price is now lower than at the beginning of this year and last year, but still not at a very low level.