Push to Remove ADPF as Dairy Australia Shareholder Fails, May Resurface in 2025
Source: DairyNews.today
A bid to remove the Australia Dairy Products Federation (ADPF) as a Class B shareholder of Dairy Australia was unsuccessful at the organization’s annual general meeting (AGM) on November 27 in Warrnambool. The motion, driven by the United Dairyfarmers of Victoria (VFF UDV) and submitted by Australian Dairy Farmers (ADF), required a 75% majority but failed, with 87% of farmers voting against it.
Outgoing Dairy Australia Chair James Mann described the result as “comprehensive,” emphasizing the strong industry preference for collaboration between farmers and processors. However, Mann warned that the issue could be revisited at the 2025 AGM if processors do not make formalized investments in Dairy Australia’s initiatives.
Processor Contributions Under Scrutiny
Mann highlighted the importance of shared funding, noting the need for processors to increase their financial contributions to Dairy Australia. While processors currently contribute approximately AUD 170,000 annually, Mann suggested a target of AUD 3–5 million, to be drawn from profits rather than impacting farmer payments.
“The board believes an essential demonstration of collaboration is for processors to invest in Dairy Australia services that benefit the entire supply chain,” Mann said. “Should this not be achieved, we are likely to support a resolution to replace ADPF as a Group B member in 2025.”
ADF Push for Accountability
ADF President Ben Bennett supported the motion, citing significant changes in the industry’s structure, which is now dominated by multinational companies rather than farmer-owned cooperatives. He argued that processors benefit from Dairy Australia’s marketing efforts and should contribute financially.
“Farmers believe processors should fund programs that directly benefit them, such as generic milk advertising,” Bennett said.
ADPF Defends Role in Industry
ADPF President John Williams expressed disappointment over the resolution, describing it as a challenge to the unity of the dairy sector. He emphasized the federation’s longstanding contributions to the industry, including investments in research, sustainability, and technical support.
“For decades, ADPF has worked alongside farmers and their organizations to ensure a thriving dairy industry,” Williams said. “The strength of Australian dairy lies in the cooperation between farmers and processors.”
A Path Forward
Mann reiterated the board’s commitment to fostering collaboration between farmers and processors. He stressed that Dairy Australia expects a formal shared funding model within the next financial year to ensure the industry's sustainability.
With the failed resolution setting a “transparent line in the sand,” the debate underscores growing tensions within Australia’s dairy sector over funding responsibilities and governance. While the ADPF retains its seat for now, the pressure to formalize processor contributions signals that the issue may resurface in the near future.
Processor Contributions Under Scrutiny
Mann highlighted the importance of shared funding, noting the need for processors to increase their financial contributions to Dairy Australia. While processors currently contribute approximately AUD 170,000 annually, Mann suggested a target of AUD 3–5 million, to be drawn from profits rather than impacting farmer payments.
“The board believes an essential demonstration of collaboration is for processors to invest in Dairy Australia services that benefit the entire supply chain,” Mann said. “Should this not be achieved, we are likely to support a resolution to replace ADPF as a Group B member in 2025.”
ADF Push for Accountability
ADF President Ben Bennett supported the motion, citing significant changes in the industry’s structure, which is now dominated by multinational companies rather than farmer-owned cooperatives. He argued that processors benefit from Dairy Australia’s marketing efforts and should contribute financially.
“Farmers believe processors should fund programs that directly benefit them, such as generic milk advertising,” Bennett said.
ADPF Defends Role in Industry
ADPF President John Williams expressed disappointment over the resolution, describing it as a challenge to the unity of the dairy sector. He emphasized the federation’s longstanding contributions to the industry, including investments in research, sustainability, and technical support.
“For decades, ADPF has worked alongside farmers and their organizations to ensure a thriving dairy industry,” Williams said. “The strength of Australian dairy lies in the cooperation between farmers and processors.”
A Path Forward
Mann reiterated the board’s commitment to fostering collaboration between farmers and processors. He stressed that Dairy Australia expects a formal shared funding model within the next financial year to ensure the industry's sustainability.
With the failed resolution setting a “transparent line in the sand,” the debate underscores growing tensions within Australia’s dairy sector over funding responsibilities and governance. While the ADPF retains its seat for now, the pressure to formalize processor contributions signals that the issue may resurface in the near future.
