Victorian Farmers Federation chicken-meat growers threaten to leave and divert levies

The Victorian Farmers Federation’s chicken-meat group is urging growers to leave the peak body and start their own entity, citing “major differences”.

New direction: Chicken meat grower Allan Bullen has joined other industry leaders in plotting a new direction, urging growers to join the new Victorian Chicken Meat Council. PICTURE: ZOE PHILLIPS

The Victorian Farmers Federation’s 100 chicken-meat group growers have threatened to fly the coop to set up their own state body to negotiate with processors.

“It has become apparent over a number of years that the chicken meat group and the VFF are moving in two different directions,” VFF chicken meat group president Vince Croston said.

The move follows a major restructure of the VFF, led by president Emma Germano and implemented by chief executive Jane Lovell, which has led to divisions within the lobby group as commodity groups are stripped of staff.

Leaders of the VFF’s chicken meat group are urging all 100 of their grower members to divert the $300,000 in levies they pay each year to the federation into a new body – to be called the Victorian Chicken Growers Council.

“The industry is moving towards a national focus,” Mr Croston said.

“Inghams and Baiada are national companies, as are the RSPCA and FREPA (Free Range Egg and Poultry Australia). Hazeldenes are on the verge of being sold and Turosi may well expand interstate.

“Therefore, we feel the Australian Chicken Growers Council should be our peak body, as it has the capacity to deal with processors at a national level.”

Mr Croston said “the VFF does not see themselves being involved in commercial arrangements however the chicken meat group does and negotiates nearly all commercial arrangements”.

Letters have already been sent out to growers urging them to sign over their levies to the new body.

The group includes current chicken meat group vice-president Owen Shaw — whose father Wally was a former VFF president — former group president Allen Bullen and other growers Paul Bonacci, Alan Murray, Peter Hanrahan and Paul Mannes.

While the chicken meat group consists of just 100 growers they each contribute an average of about $3000 that goes straight into the VFF’s coffers.

Careful management has also meant the chicken meat group has accumulated a $460,000 surplus, plus a deal that delivers additional income to the VFF through discounted LPG of which growers use large volumes to heat their sheds.

Mr Shaw said the group had put its proposal to the VFF leadership three weeks ago and offered to still contribute a base membership fee (about $640) for cross-commodity work.

But he said they heard just yesterday from Ms Germano, who issued them with a letter demanding they “cease and desist” from trying to recruit growers to the new VCMC.

“The VFF require the VCGC to cease and desist from making or producing any statement, documents, suggestions, or inferences, that the VCGC has any power or influence in relation to any VFF member, membership payment or arrangement,” Ms Germano stated in her letter to Mr Croston and other growers.

She then warned Mr Croston and Mr Shaw they had exceeded their “2-year allowable tenure and 4 x 2-year term tenure (8 years) as a Commodity Councillor pursuant to clause 7.4.1 and 8.5.2 of the Constitution”. That is despite Ms Germano and the VFF board previously allowing David Jochinke to remain president beyond his four-year maximum term.

Ms Germano also said the VFF was currently undertaking an audit into the chicken meat group and its governance.

“The VFF reminds all commodity groups and Commodity Group Councils that, and pursuant to the Corporations Act 2001 (the Act), high standards are required by office bearers, as listed in this letter, to act in good faith, not to act for improper purpose, avoid any conflict of interest, and act with care and diligence,” Ms Germano wrote.