VFF to cease paying ‘exorbitant’ ADF fees

Victoria’s peak farming organisation has informed Australian Dairy Farmers it would no longer pay ADF membership fees that were seven times higher than any other similar peak body.

The Victorian Farmers Federation has called on the peak body representing Australian dairy farmers to come up with a sustainable funding model, after signalling it would cease paying its “exorbitant” annual fees.

In a letter emailed to Australian Dairy Farmers president Rick Gladigau and the ADF board in October last year, VFF president Emma Germano outlined the organisation’s intention to reduce future payments to ADF from the current $360,000 affiliation fee.

“Our failure to pay the exorbitant fees was not an oversight. The delay to pay was due to an internal analysis and audit, requested and supported by the UDV council … As a result, and post completion of our review, and as our business model is evolving, I must inform you, that we will no longer be paying membership fees to the ADF to this financial level again,” the letter read.

The VFF is paying ADF seven times more than other similar peak bodies in membership fees annually. Pictyre: Zoe Phillips

Each year the VFF pays affiliated farming organisations such as ADF, Sheep Producers Australia, Cattle Australia and Grain Producers Australia membership fees.

The annual affiliation fee the VFF pays ADF of about $360,000 is seven times more than similar peak bodies, and nearly double the current fee paid to peak national body, the National Farmers’ Federation, of $220,000.

According to the VFF’s latest annual report, a total of $719,260 was paid in affiliation fees.

ADF declined to comment.

United Dairyfarmers of Victoria president Mark Billing said the current fee structure was set up in 2012, and alluded to the fact that nothing has changed since.

“I’m sitting on the sidelines in all of this (but) it’s something I know the VFF wants to discuss with ADF,” he said.

Mr Billing said the VFF was under pressure on multiple fronts, with stagnating membership and a recent major restructure to cut costs.

Meanwhile Ms Germano said she was looking forward to meaningful engagement with ADF to resolve the matter.

In the VFF’s October letter, Ms Germano said: “We wish to open immediate discussions in relation to the above and request that the ADF provide the VFF with a sustainable funding model that must include solutions and reforms that are under, or may be required, for consideration”.

The VFF’s letter came in response to correspondence from ADF about overdue fees.

The issue appears to be longstanding, with the ADF’s letter including a veiled threat that a failure to pay the invoices “in a timely manner” could result in UDV council representatives and members aligned with UDV “being ineligible” to participate in voting at elections in the upcoming ADF AGM.