Reviews of supply contracts, pricing system underway

Jun 17, 2016

Dairy farmer representatives on the ADF Markets, Trade and Value Chain Policy Advisory Group (PAG) gathered in Melbourne this week to discuss a range of measures to establish a fairer, more transparent dairy market.

Simplifying supplier contracts and agreements featured heavily and methods to make them simpler and more transparent. Further to this the lack of transparency regarding milk pricing, and its ability to be retrospective is unacceptable and must be addressed.

The PAG also reviewed the methods to give clear, independent and credible market and price signals to dairy farmers and how this might be practically applied to the Australian dairy market.

Providing farmers with the right tools and resources to manage the opportunities and risks associated with a fluctuating dairy market was also a focus to help bolster the industry’s resilience in the long term.

Significantly, the meeting agreed upon the need to modernise the Australian industry’s pricing structures and contracts to recognise the complex operating environment that farmers face, to better balance financial risk along the supply chain. ADF is working with all state members, levels of Government and industry to achieve these endeavours.

ADF continues to press for the release of the full dairy support package as soon as possible and will update farmers as soon as this information is released.

We have had a couple of operational changes at ADF in recent weeks, with the resignation of ADF CEO Benjamin Stapley announced yesterday. The ADF Board has already taken steps to ensure that the role of CEO is well served in both the short and long term.

Contact has already been made with former ADF CEO John McQueen, now an industry consultant, to step into this important leadership role on an interim basis while the recruitment process is completed. Mr McQueen steps into the role as early as Monday morning and there will be a smooth, effective transition so no time is lost in fulfilling ADF’s mission to lobby for a stronger future for Australian dairy farmers.

These are unprecedented times and we need to ensure we have the right leadership balance to effectively address these issues, while not losing sight of other priorities important to building farmers long term sustainability.

The small team at ADF, remains committed to driving strong policy to transform the way our industry operates for the better.

Many farmers have been calling our offices in recent weeks seeking advice, assistance and information on what ADF is doing on their behalf. We encourage you to keep connecting with ADF to ensure we effectively represent your interests.

 

David Basham

Acting ADF President

Early pricing signals essential

Jun 10, 2016


Many in the dairy industry feel under enormous pressure at the moment. Farmers not only have the challenge of adapting their business plans to recent price shocks – we also pick up the paper to read about it every day. With more processors' opening milk prices due in coming weeks, following Warrnambool Cheese and Butter’s (WCB) announcement today, no doubt some will feel the pressure begin to mount once more.

We recognise that the announcement from WCB will come as a shock to many, given it is well below the cost of production. Despite the disappointing low price, we must recognise that they have heeded calls for early price signals and provided much needed certainty to their suppliers.

While we are an industry under pressure, we are also an industry that has the know-how and motivation to overcome these adversities and thrive in the long term. No one is alone in this scenario and we need to ensure that all farmers feel supported during tough times.

ADF, together with our state members and Dairy Australia is fighting for our farmers. We can’t solve all of the issues farmers are currently facing, but we can work to relieve some of the immediate pressures and accelerate change to ensure this doesn’t happen again.

We have welcomed the promises made by State and Federal Government, now they must stop playing politics and deliver. Farmers need certainty as to their options right now.

While we await Government decisions, there are industry resources available to help farmers manage the impact of recent events. It’s important to make the time to take up these opportunities. Dairy Australia’s Taking Stock provides free one-to-one business analysis that can help you prepare for the season ahead.

The Dairy Farmer Central website launched this week by the Victorian dairy industry, lists all of these tools and more. It also signposts events - some of these events will inform and help you plan for the season ahead, others provide an opportunity to take time out from the farm and get some perspective. We are working to make this website applicable Australia-wide.

These tools are not a silver bullet to restore our businesses but they will help navigate the challenges, so we can move toward a stronger, fairer and more sustainable future.

David Basham

ADF Acting President

Have You Responded to the Regional Wellbeing Survey Yet?

Dec 09, 2015

Open until the 31 December, the 2015 Regional Wellbeing Survey forms an important piece of social research that farming organisations and government agencies draw on to understand farmers’ views and social impacts on a range of regional issues.

This year’s survey covers issues such as drought, water reform, green tape, CSG and mining, sustainable farming practices, markets, farm finance, and innovation. With more than 9000 respondents in 2014, the survey results to provide a sound statistical policy resource. 

For more information and to complete the online survey visit: http://www.regionalwellbeing.org.au


World Milk Day - Celebrating our farmers

Jun 01, 2015

Monday 1 June, is World Milk Day.

The Food and Agriculture Organisation of the United Nations started the day of recognition in 2001, and we’re using the occasion to celebrate the Aussie farmers who work hard to produce this delicious, nutritious beverage.

For Australian dairy farmers, producing and delivering premium milk is a matter of pride. This is why Australian dairy has a reputation for consistently high quality and safe products worldwide.

They work hard 7 days a week, 365 days a year to create fresh, great tasting and wholesome fresh milk that Aussies consumed almost 2.5 billion litres of in 2014 alone.

Each daily on-farm activity involved in producing the milk, whether ensuring the cows are healthy or efficiently cleaning milking equipment, contributes to the quality assurance of dairy products. From the twice daily health herd checks during milking to stringent testing for milk headed for the processor, safety is ingrained in what we do.

Our industry is known for being a ‘dairy deli’ in that we place great importance on the quality rather than quantity of supply and this is what sets us apart. It’s our point of difference to focus on our high quality standards and it’s something our industry must maintain (even with our aspirations of growth) as we will never compete on quantity or price with our major competitors.

Dairy farmers work rain, hail or shine to produce our milk and want to be known for being prosperous, trusted and world renowned for the nutrition of our dairy products. Like any Australian, dairy farmers hope to see the effort put into our work reflected in our returns.

Australian Dairy Farmers (ADF), as part of the Australian Dairy Industry Council (ADIC), is committed to ensuring our dairying sector has a sustainable future. That’s why we’re working with our farmers, processors and industry partners, including Dairy Australia, to ensure that dairy continues to enhance livelihoods, improve wellbeing and minimise its environmental footprint well into the future.

This commitment is recognised and promoted through the Dairy Industry’s Sustainability Framework. The second Progress Report has just been released and shows that while we still have hurdles to overcome, progress is being made. This Framework highlights to the rest of the world that Australian dairy is acting on its social, economic and environmental responsibility.

To produce, refrigerate, transport, process, distribute and deliver fresh milk requires a considerable amount of daily planning, work, risk and investment on the part of dairy farmers and processors.

So why be a dairy farmer? Is all the milk worth it? Dairy farmers would say yes ten times over – because they’re passionate about it.

This World Milk Day, we ask that everyone remember that milk is made from hard yakka, pure passion and a commitment to sustainable practices. It is made by an Aussie dairy farmer. 

 

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