Dairy Australia board selection: Processors call shots

Processors are calling shots on nominating Dairy Australia’s directors, but contribute nothing in funding.

Levy payers: Farmers fund Dairy Australia, but processors play a pivotal role in selecting its board members. Picture: Dannika Bonser

PROCESSORS are playing a pivotal role in nominating Dairy Australia’s directors, despite contributing nothing to the peak research and development corporation.

The Australian Dairy Products Federation, whose members include Fonterra, Saputo and Parmalat, hold two of the five position’s on DA’s board selection committee.

Yet DA’s most recent financial report showed it received no funding from processors in 2017-18, while dairy farmers chipped in $33.3 million in levies, “matched” by $20.5 million from the Federal Government, plus $4.8 million in grants from the Department of Agriculture, plus royalties and investment revenue.

ADPF executive director Peter Stahle and Lactalis Australia (Parmalat) national milk supply manager Steve Oldridge sit on the board selection committee, which is chaired by existing DA director and former Warrnambool Cheese and Butter CEO David Lord.

“No wonder people have lost confidence in DA, with a selection committee like that,” Dairy Connect president Graham Forbes said. “It’s a good indication of why DA’s in such a mess.”

DA this week issued the selection committee’s list of preferred board candidates to fill three positions at November’s AGM: current DA chairman and Bega Cheese director Jeff Odgers, Canadian pension fund subsidiary Aust­On director Josephine Rozman and vaccine researcher Professor Paul Wood.

Mr Lord said the nominees would “bring a broad set of skills and experience that will add value to our goal of supporting farmers today, and the sustainability of the industry into the future”.

To be elected into the vacant director roles, each of the three nominees will need to gain more than 50 per cent of the votes at the AGM.

Applicants who wish to nominate separately to the board selection committee process can submit their nomination in writing, supported by signatures from at least 100 Group A members of Dairy Australia.

Nominations must be received by Dairy Australia by 5pm on August 30.

A DA spokesman said that while processors currently made no contribution to the RDC, they were “in discussion with ADPF around possible” contributions at some later date.