Dairy farmers to vote on processors' role
Source: DairyNews.today
Dairy farmers are again about to vote on the future role processors play with their representative body. It is the second time a motion to remove the Australian Dairy Products Federation as a class B shareholder has been raised at Dairy Australia's (DA) annual general meeting.
It will go to a vote at the upcoming AGM, in Wollongong, NSW, in about a month's time. A motion to remove the
ADPF was lost last year. The ADPF, along with the ADF, are DA's two class B shareholders and industry bodies that represent the wider Australian industry DA chairman Paul Roderick has said the organisation would not take a position on whether the ADPF should remain a class B shareholder.
The resolution has been proposed by Australian Dairy Farmers (ADF), the other group B member. ADF has claimed that ADPF and processor financial contributions to DA remain significantly lower than those made by farmers. "Over the past year, DA has held extensive discussions with ADPF and processors regarding investment in DA services," Mr Roderick said.
"Unfortunately, we haven't received a funding commitment that we could comfortably call co-investment,and that does not reflect the value DA provides across the supply chain." He said DA was disappointed with the progress in talks with the processors. Mr Roderick emphasised it was a decision solely for farmers as the primary funders of DA.
"The Dairy Australia Board will not adopt a collective position on this resolution," he said. But the heads of the two Victorian peak dairy bodies differ on whether or not processors should lose their seat on the board. United Dairyfarmers of Victoria president Bernie Free has claimed that while farmers pay $30 million a year in levies, processors paid virtually nothing.
"DA wouldn't support last year's motion, given that they wanted another 12 months to get a new funding model done and dusted," he said. "It's just teaching the processors if they stall long enough, they don't have to pay, but if they don't pay, they shouldn't have influence at DA". He said the dairy model had changed, co-operatives no longer being the major players in the processing sector.
"They get a free ride, a seat at the table, without having to put money in, but getting the benefit of what DA does," Mr Free said. Dairy Farmers Victoria president Mark Billing said for him, the issue was around industry unity. "I believe we need everybody at the table and removing a body, when negotiations are still going on, about what role ADPF will have in the future, I think, is an interesting move," he said.
"I understand there will be a lot of farmers who think the processors need to contribute, and I would agree with that, but I think the way it's being pressed by ADF is not conducive to getting the outcome farmers want."As industry shrinks, and there is pressure on farms and processors, we have imported products coming in that are taking a significant market share.
"The last thing we need to be doing is pulling the industry apart; we should be going the other way." ADPF executive chair John Williams said the organisation and its members were deeply disappointed by the resolution."ADPF fears this proposal - from our partner advocacy body under the Australian Dairy Industry Council - risks creating division within the industry, at a time when unity and collaboration are essential to driving progress," Mr Williams said.
Since last year's AGM, AFPF has established a task-force to develop a sustainable program of work and a funding proposal, co-invested in whole-of-supply chain initiatives and has submitte a financial proposal to DA. "Our industry is facing significant challenges that affect the entire supply chain," Mr Williams said.
"Surging production costs, coupled with a long-term decline in milk supply, are being compounded by supermarkets narrowing product ranges and prioritising their own brands or imported dairy. Mr Williams urged voting members to reject the ADF resolution. "It's the time to unite on our vision for prosperity and action," he said.
ADPF was lost last year. The ADPF, along with the ADF, are DA's two class B shareholders and industry bodies that represent the wider Australian industry DA chairman Paul Roderick has said the organisation would not take a position on whether the ADPF should remain a class B shareholder.
The resolution has been proposed by Australian Dairy Farmers (ADF), the other group B member. ADF has claimed that ADPF and processor financial contributions to DA remain significantly lower than those made by farmers. "Over the past year, DA has held extensive discussions with ADPF and processors regarding investment in DA services," Mr Roderick said.
"Unfortunately, we haven't received a funding commitment that we could comfortably call co-investment,and that does not reflect the value DA provides across the supply chain." He said DA was disappointed with the progress in talks with the processors. Mr Roderick emphasised it was a decision solely for farmers as the primary funders of DA.
"The Dairy Australia Board will not adopt a collective position on this resolution," he said. But the heads of the two Victorian peak dairy bodies differ on whether or not processors should lose their seat on the board. United Dairyfarmers of Victoria president Bernie Free has claimed that while farmers pay $30 million a year in levies, processors paid virtually nothing.
"DA wouldn't support last year's motion, given that they wanted another 12 months to get a new funding model done and dusted," he said. "It's just teaching the processors if they stall long enough, they don't have to pay, but if they don't pay, they shouldn't have influence at DA". He said the dairy model had changed, co-operatives no longer being the major players in the processing sector.
"They get a free ride, a seat at the table, without having to put money in, but getting the benefit of what DA does," Mr Free said. Dairy Farmers Victoria president Mark Billing said for him, the issue was around industry unity. "I believe we need everybody at the table and removing a body, when negotiations are still going on, about what role ADPF will have in the future, I think, is an interesting move," he said.
"I understand there will be a lot of farmers who think the processors need to contribute, and I would agree with that, but I think the way it's being pressed by ADF is not conducive to getting the outcome farmers want."As industry shrinks, and there is pressure on farms and processors, we have imported products coming in that are taking a significant market share.
"The last thing we need to be doing is pulling the industry apart; we should be going the other way." ADPF executive chair John Williams said the organisation and its members were deeply disappointed by the resolution."ADPF fears this proposal - from our partner advocacy body under the Australian Dairy Industry Council - risks creating division within the industry, at a time when unity and collaboration are essential to driving progress," Mr Williams said.
Since last year's AGM, AFPF has established a task-force to develop a sustainable program of work and a funding proposal, co-invested in whole-of-supply chain initiatives and has submitte a financial proposal to DA. "Our industry is facing significant challenges that affect the entire supply chain," Mr Williams said.
"Surging production costs, coupled with a long-term decline in milk supply, are being compounded by supermarkets narrowing product ranges and prioritising their own brands or imported dairy. Mr Williams urged voting members to reject the ADF resolution. "It's the time to unite on our vision for prosperity and action," he said.
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