Dairy farmers threaten to revive vote against processor lobby

The processor lobby could be kicked out of a key role at Dairy Australia if one of Australia’s largest dairy farmer groups has their way. See the details.

One of Australia’s largest dairy farmer groups will move to kick the processor lobby out of a key role at Dairy Australia later this year, following inaction over financial contributions.

United Dairyfarmers of Victoria president Bernie Free said he would revive a vote to remove

the Australian Dairy Products Federation as a Class B shareholder of Dairy Australia, if DA head honchos failed to fulfil a pledge to crack down on the ADPF.

While farmers contribute about $30m a year to DA in levies, matched by about $20m from the federal government, Mr Free said processors paid virtually nothing to DA.

Last year, Mr Free brought a motion to DA’s annual general meeting in Warrnambool, proposing the ADPF lose its special status.

The motion was unsuccessful but then DA chairman James Mann indicated the resolution could be revisited by DA itself if the ADPF failed to contribute this year.

“If the processors don’t pay up, Dairy Australia’s board needs to follow through with what it committed to at last year’s AGM – stop the free ride for the ADPF,” Mr Free said.

“And if DA won’t get tough, we will at the UDV and so will farmers across Australia.

“Dairy farmers are battling one of the worst droughts in a century in one part of the country and are clearing up after the floods in another part of Australia.

“The processors are doing well for themselves, so they should be able to pay their fair share. “Talk about kicking farmers when they’re down.”

United Dairyfarmers of Victoria president Bernie Free. Picture: Nicole Cleary

Wrapping up his tenure as DA managing director at the end of last month, outgoing boss David Nation said it was regrettable that the ADPF didn’t step up his financial contribution to the national dairy organisation in recent times.

“I do think the ADPF have capacity to make a greater contribution to DA,” Dr Nation said.

Mr Mann’s successor as DA chairman, Paul Roderick, has also called for the ADPF to step up its DA financial contribution.

The Weekly Times asked the ADPF when it would make a contribution to DA, what figure it planned to nominate as its DA contribution and whether it would consider backdated payments.

None of those questions were directly answered, however, ADPF chief executive Janine Waller said the federation and its processor members “have and will continue to contribute financially and in-kind to Dairy Australia on whole of industry initiatives.”

Janine Waller, ADPF executive officer.

“(The) ADPF invested 11 per cent of our total revenue last financial year across emission reductions, water, nutrition, and productivity – as well as significant in-kind contributions,” Ms Waller said.

“This was in addition to member-direct investments into Dairy Australia initiatives.

“With the alignment of our strategic plans, a taskforce has been established comprising representatives from Dairy Australia, ADPF and processors, to develop a whole of supply chain co-investment plan that will benefit the Australian dairy industry.”