The Australian Dairy Plan workshops highlight need for change

There is a need for a stronger, more united voice, with more modern structures that can make advocacy more effective, Australian Dairy Plan chairman John Brumby said.

Overhaul: Australian Dairy Plan chairman John Brumby said workshops showed industry bodies need to “do things differently”.

AN “overwhelming” need for a new dairy industry structure is one of the key points to have come out of the recent Australian Dairy Plan workshops.

Australian Dairy Plan chairman John Brumby told The Weekly Times from the 1000 attendees at 23 workshops, “overwhelmingly contributors identified the need for industry bodies to do things differently”.

“There is a need for a stronger, more united voice, with more modern structures that can make advocacy more effective,” Mr Brumby said.

While he said the feedback hadn’t come through as criticism, it was a reflection that “times have changed”.

It comes at the same time as there is pressure on other agricultural commodities, such as the beef cattle and sheepmeat sectors, for changing industry structures.

“We need to review industry structures so they are more agile, a bit leaner and stronger on advocacy,” Mr Brumby said.

It is a topic that will be discussed thoroughly at a national workshop taking place yesterday and today, with the Dairy Plan partners — Dairy Australia, Australian Dairy Farmers, Australian Dairy Products Federation and the Gardiner Dairy Foundation.

Mr Brumby said working out a new industry structure would not be simple, but the four partners had a deep commitment to get it right and they accepted that “change needs to occur”.

Mr Brumby said another consistent theme was around industry dynamics, including market power and the relationship between producers and processors.

“There has been a breakdown in trust between farmers and processors, I think everyone realises that, and there needs to be focus on how we can restore positive relationships,” he said.

Other key themes included the need for stronger marketing and promotion around the health benefits of milk and the importance of addressing social licence and environmental issues in best positioning the industry in a world of increased consumer scrutiny, choice and competition.

“There was a whole range of other issues around cost. Even though this year the milk price has moved up, there are still huge cost pressures with water, energy and feed,” Mr Brumby said.

But he said although there was still a lot of “pain and hardship” in the industry, there was a degree of optimism. “Part of that is due to this year’s milk price, but the tables may have turned a little, so it’s important we get the plan right.”

The final draft plan is expected by October.