A rumour has been building in the dairy industry that has piqued the interest of The Dealer.

One informed source told me that the two main farm organisations were, behind closed doors, actively encouraging farmers to join the scheme, which gives farmers a 14c/l (12p/l) payment to reduce milk supply for the last three months of the year.

Why would they do such a thing, you ask?

Well, the less milk, the greater the bargaining when they meet co-ops to lobby for milk price increases.

Even if they had no intention of using the volume of milk they applied for, farmers were told to apply anyway as it would increase the power to call for price increases.

I wonder.