Dairy Australia levy debate: Processor boss Grant Crothers hits back at farmer group

The gloves are off in a debate over the future funding of Dairy Australia with processor advocate Grant Crothers returning serve.

A war of words has erupted between the head of Australia’s dairy processors and its peak farmer group over cash contributions to Dairy Australia.

Last week, the Australian Dairy Farmers lobby group told its 5000 members to vote against any increase in the levies they pay to DA.

The ADF board ruled it would not support any increase in the levy, given dairy processing giants such as Fonterra, Bega and Saputo refusal to contribute levies to DA.

Today, the Australian Dairy Products Federation returned serve, urging the ADF “not reject the proposal to reform the Australian Dairy Industry Council.”

ADPF president Grant Crothers said: “it was perplexing why ADF continued to seemingly work against the interests of all dairy farmers.

“Now, ADF – incredulously – is urging its members to vote against increased funding for the farmer-led DA despite a farmer led levy review committee recommending an increase.

“Quoting that processors do not contribute to DA as a reason for no increase is void of logic and ignores the core purpose of DA, being to improve the profitability and sustainability of dairy farming.”

Currently, dairy processors make a peppercorn financial contribution to Dairy Australia, but are granted a seat on its board and its selection committee.

Processors are also listed as Group B shareholders and were represented on the advisory committee that recommended lifting farmers’ DA levy contributions by 20 per cent, from $32 million to more than $38 million.

Last week, ADF president Rick Gladigau called on processors to step up their financial contribution to DA.

“Processors must provide significant and proportionate funding to those projects that benefit the whole supply chain,” the South Australian farmer said.

Mr Crothers said the ADPF would work with its members to “establish a policy that will equitably provide a sustainable model that includes co-investment with DA.”

He then hit out at ADF’s membership numbers.

“We recognise that ADF membership is a low proportion of dairy farmers and don’t see that they are working for the benefit of all dairy farmers and the future sustainability of the industry,” Mr Crothers said.