Dairy processors ‘dragging their feet’ on pay
A showdown looms over processors’ contributions to Dairy Australia as farmers step up pressure with a revived vote. Here’s the latest.
Farmers are reigniting their campaign for dairy factories to financially contribute to Dairy Australia, with the processor representative body now hinting that it is working on a “funding model”.
United Dairyfarmers of Victoria president Bernie Free is set to revive a vote to remove
the Australian Dairy Products Federation as a Class B shareholder of Dairy Australia later this year if the five-year funding impasse isn’t resolved.
While farmers contribute about $30m a year to DA in levies, matched by about $20m from the federal government, dairy lobby groups including UDV say processors pay virtually nothing to DA.
Southwest Victorian dairy farmer Ian Morris said the ADPF and processors indicated back in 2019 they would come to the party in making some form of contribution to DA.
“It’s been more than five years since the Australian Dairy Plan was released in 2019,” Mr Morris said.
“This issue came to a head at last year’s Dairy Australia annual general meeting and Dairy Australia’s leaders said while they didn’t want to impose an ultimatum, they would have to kick ADPF off as a Class B shareholder if this wasn’t resolved in 12 months.
“Well, we’re eight months into that 12-month countdown and there’s been zero action.
“The ADPF and the processors are dragging their feet on paying up. All the while, farmers are keeping Dairy Australia afloat during one of the worst droughts on record.”
The ADPF was asked by The Weekly Times what timeframe the federation set to make a contribution to DA, and the annual figure it has nominated as that contribution.
In a statement, ADPF chief executive Janine Waller did not outline a timeline or figure but did say a “funding model” was in the works.
“As we consistently communicate, ADPF directly contributes money, time, resources, and expertise to whole of industry initiatives within Dairy Australia,” Ms Waller said.
“A joint taskforce is actively working on both a short and longer term workplan and funding model. The outcomes of this will be decided at the Dairy Australia AGM in November.”
Last year, Mr Free brought a motion to DA’s annual general meeting in Warrnambool, proposing the ADPF lose its special status.
The resolution did not pass but then DA chairman James Mann did express sympathy with Mr Free’s cause, giving the ADPF 12 months to pay.
Mr Mann’s successor as chairman, Queensland farmer Paul Roderick, has also called for processors to contribute.
Outgoing DA chief executive David Nation said it was regrettable the ADPF had not stepped up its financial contribution despite previous assurances.
“I do think the ADPF have capacity to make a greater contribution to DA,” Dr Nation said.
Mr Free said the lack of transparency from the ADPF over its contributions to DA was infuriating for farmers.
Under its constitution, the ADPF does not publish an annual report.
“The processors talk a big game about how they contribute to Dairy Australia but there’s absolutely zero transparency,” Mr Free said.
Ms Waller added that DA was a research and development corporation, meaning its role was “primarily investing in research projects for the benefits of farmers”.
“ADPF is focused on building solutions,” she said.
“We’re working to drive positive change, not fuel division.”
