Dairy Australia 2024 AGM: Processors succeed at ballot

Two ballot results at Dairy Australia’s annual general meeting have been described as a “double whammy” for farmers.

Processors have won their bid to stay part of Dairy Australia at the industry authority’s annual meeting, with DA directors also getting a pay rise in a crucial ballot.

United Dairyfarmers of Victoria lost its push to remove Australian Dairy Products Federation as a group B member of Dairy Australia at the Warrnambool forum on Wednesday.

The decision follows five years of primary producer criticism that while farmers chipped in about $30 million a year to DA in levies, matched by about $20m from the federal government, processors paid virtually nothing to DA.

The resolution requires at least 75 per cent of votes cast by members to pass — with the final figures yet to be released.

However, outgoing DA chairman James Mann told attendees that ADPF would need to pay by the time of next year’s AGM otherwise the processor group would be booted in 2026.

James Mann, seen here with his herd of cows on his farm in South Australia, near Mt. Gambier.

Australian Dairy Farmers president Ben Bennett welcomed Mr Mann’s comments and said processors needed to be kept accountable.

“This isn’t about fighting with the ADPF — this is about them paying their fair share,” the southwest Victorian farmer said.

“If farmers can pay with low farmgate prices, why can’t these billion dollar businesses?

“We understand this isn’t completely in the hands of the ADPF, the processors have the final say, like farmers have the final say at ADF. But that doesn’t mean processors shouldn’t pay their fair share — they’ve had ample time to do so.”

ADPF chairman John Williams said the vote reaffirmed “the value of collaboration and the importance of maintaining a unified voice.

“We believe in the strength that comes from working together, and this vote preserves the integrity of our industry’s partnership,” he said.

“Our position has always been clear: the Australian dairy industry is strongest when farmers and processors work together to tackle challenges and maximise opportunities.”

Meanwhile, a separate resolution was approved to lift DA board members’ pay by a cumulative $100,000.

The UDV officially opposed the proposed increase in remuneration for non-executive directors on the DA board, from an aggregate of $490,000 to $590,000 per year.

UDV president Bernie Free said the two ballots were a “double whammy” for farmers, with processors not contributing while executive fees rise.

“Farmers are making do with less, the milk pool is shrinking — given the state of industry, you would think Dairy Australia would be able to economise in these tough times,” Mr Free said. “But we respect the vote — the usual process is for the numbers to be released in full and we expect that as a matter of transparency.”

DA’s new chairman Paul Roderick and new board members Simone Jolliffe and James Neal were also officially sworn in at the Warrnambool meeting.

A separate vote was successful to amend the DA constitution to provide the board with flexibility to appoint either a managing director or a chief executive officer.