Poor business acumen and extreme mismanagement by the board was behind Murray Goulburn’s decision, while Fonterra did the same thing in a year it went on to post an $800 million profit – making the demands for cash a bitter pill for producers to swallow.

AN ONLINE petition calling for Fonterra to pay back their suppliers has attracted more than 19,500 signatures in a couple of weeks.

Fonterra, the world’s largest dairy exporter, posted revenue of $13.9bn (€8.75bn) for the first nine months of 2016/17, which is up by 8% on the same period last year.

“Picture a situation like what Fonterra did to us in a different work environment. It would be illegal to take money back from someone after they have already been paid for supplying goods,” Mr Jones said.

A class action is currently underway against Fonterra and Ms Singh-Mahil said she would now be joining the legal action.

Farmers said the decision saw Fonterra trying to “pass off” the 40c bonus, which had numerous conditions attached, as matching Murray Goulburn’s current milk price.

Fonterra has a legal obligation, under the Bonlac supply agency agreement, to match or make higher payments than Murray Goulburn (MG)

The couple estimate the price crash cost them at least $200,000 in lost assets (mainly through forced cattle sales), a figure that will take years and years for them to recuperate.