UDV president Bernie Free said his understanding was payments due on April 15 were not made to those farmers, while suppliers continuing to provide milk appeared to have been prioritised.
“Frestine’s inconsistency has created inequity and is placing immediate pressure on affected farm businesses,” Mr Free said.
“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.”
Over the weekend of April 18 and 19, affected suppliers received text updates from Frestine advising that management was working to secure payments, including disengaging its finance provider to address lending constraints.
A later update said the chief financial officer 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,” he said.
“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.”
VFF and UDV have advised the Department of Agriculture, Fisheries and Forestry’s Agriculture Policy Division and confirmed the Australian Competition and Consumer Commission has been notified and is briefing Agriculture Victoria.
VFF said impacted farmers were encouraged to seek independent legal advice, with mediation available under the Dairy Industry Code of Conduct for contracted suppliers.
