Dairy Competitiveness Project Workshop in Toowoomba
At the Dairy Symposium held in Melbourne in March 2024 a cross section of participants from all dairy supply chains come together to discuss ‘all things dairy’.
From this symposium, the government decided to design and facilitate a series of regional industry workshops in all states, to ask for recommendations to enhance the Australian dairy industry’s productivity and competitiveness.
The Queensland regional workshop, convened by Dairy Australia was held in Toowoomba on 5 November and was designed to explore the drivers of competitiveness and productivity for dairy, focussing on the trends and issues most relevant to the Queensland dairy industry.
Participants from across the dairy industry were invited to attend the workshop and represent, operate and/or manage key segments along the dairy supply chain.
The workshop aimed to:
Explore the drivers of productivity and industry competitiveness
Discuss the regional dynamics impacting competitiveness
Inform how industry and government can collaborate to enhance the dairy industry's competitive position for the region and nationally
A pre-workshop pack was circulated prior to the workshop, which provided background information to participants and key themes to be considered. A survey was undertaken pre workshop and both farmers and industry representatives have given feedback. Many of the issues raised in Queensland have been flagged in other states.
The pre-workshop survey showed that farmers:
Are dependent on the local fresh milk market
Believe there is a lack of regional focused and delivered RDE
Don’t believe there is sufficient training or education
Are exposed to milk movement from other states and demand dynamics
The local value proposition is not valued or communicated
More input from discussions relating to key issues raised by the group at the Toowoomba workshop will be gathered. A report will be written for the Commonwealth Minister for Agriculture, Fisheries and Forestry on how to improve productivity and competitiveness in the dairy industry.
Lynelle Rogers, eastausmilk
Queensland’s Election and Dairy Farmers
eastAUSmilk congratulates David Crisafulli on his election as the 41st Premier of Queensland – the first LNP Premier since 2015.
The biggest issue in Queensland for eastAUSmilk is reversing the decline of milk production across the State. For that reason, we’ve made sure we’ve kept the previous LNP Opposition up-to-date on where we’re going with development of the dairy industry plan, both Shadow Agriculture Minister Tony Perrett, and the Opposition leader’s office. Now they’re in Government, we’ve already requested meetings so we can give the new Agriculture Minister and the new Premier’s office an update.
The new Cabinet hasn’t been announced yet, but we’re expecting Tony Perrett will be Agriculture Minister, or in an equally influential and senior portfolio – we know he understands what the dairy industry needs, and that the new Agriculture Minister will be presented very soon with a plan for the industry’s future.
Based on our discussions this year as the plan has been developing, we’re very confident eastAUSmilk and the dairy industry will get a good hearing and some positive results from the new Minister. We’re also working closely with Department of Agriculture and Fisheries on the dairy plan, so they’re ready to give the new Minister advice about the plan’s importance and content as soon as it is needed.
Arising from feedback from dairy farmers, processors and others in the industry during October, the Advisory Group drafting the plan, led by eastAUSmilk, is rapidly moving towards having a final draft plan ready.
There’s a big difference between the way Brisbane voted and the rest of the state, but the many regional seats switching to the LNP guarantee a very solid voice for Queensland’s regions, and agriculture in particular, in the Crisafulli government. The new Premier comes from a canegrower family, and several of those Members of Parliament likely to be in the Crisafulli Cabinet have a solid agricultural background.
Mike Smith, eastAUSmilk Government Relations Manager
Quality, Fresh Milk for Queensland… Or Not
Queensland’s Premier wants Olympic athletes to eat the best of Queensland beef in 2032.
Must those Olympians drink imported UHT milk with their brekkie, along with the rest of Queensland?
Because the market for dairy products is inefficient and unfair, and our climate makes milk production more expensive, Queensland's milk production has been sliding backwards for two decades; we now produce only 45% of what we consume. Unless this decline is reversed, we’ll more and more be forced into un-fresh options like UHT milk as in much of Europe.
Queensland produces some of the best milk in Australia, and so much of our state is great for dairying. Queensland’s best dairies are amongst the best in Australia, and our dairy industry can be prosperous, vibrant, and resilient. Yet reliance on only the dead hand of the market is forcing the state backwards.
Continued production decline puts at risk the economic viability of both local dairy farming and milk processing, on which so many regional communities depend.
Even without further decline, importing our fresh milk from down south is less and less secure, with growing risks from disaster, import and supply chain failure, disease, and more. We rely too much on supply from Victoria, which might at any time be diverted to meet demand elsewhere. Last year’s report to the Australian Parliament Australian Food Story: Feeding the Nation and Beyond demands a coherent plan for dairy product food security.
Trucking fresh milk the length of Australia adds avoidable greenhouse gas emissions to the dairy industry’s social license risk, and reduces milk shelf life.
None of this is news to government and industry, but leaving the Queensland dairy industry to market forces has not slowed milk production decline, nor improved farm prosperity.
If Queenslanders are to keep their milk fresh, change is essential, and the evidence of the last 20 years is that this will require governments and industry to go beyond reliance on the market to sort things out. Governments and industry must acknowledge that need for conscious and planned change, and show leadership to reverse milk production decline, or they are committing Queenslanders to UHT and powdered milk rather than fresh.
There will be a dairy industry plan for Queensland on the table very soon. It won’t be unrealistic or expensive, but must be truly supported, to get the dairy industry on track to a prosperous, vibrant, and resilient future.
Mike Smith, EastAUSmilk Government Relations Officer
Taking time out for technology
eastAUSmilk held a succession of workshops across the Southeast Corner last month as part of the Dairy Farmers Technology Uptake Program, funded by the Queensland government’s Backing Bush Communities Fund. The first day of workshops started out in the Scenic Rim near Roadvale, venturing up to Esk then across to Pinelands, North of Toowoomba. Warwick was next on the list, finishing up the workshop with a tour and walk around Rob Stewart’s farm. The workshops finished at Gympie looking at automation and monitoring systems within Barb Gear’s dairy.
John van Bergen from Jantec Systems was welcomed along to speak about his herd monitoring systems, dairy shed automation and automated grain feeders. He was able to discuss with each farmer the individual benefits a farm could gain from each bit of technology and how it could be tailored to their systems and integration with heat detection systems. A big focus was on the mechanisms of the CellSense, the somatic cell count monitoring system, which has a benefit to farm managers who aren’t always in the milking parlour.
Farmers were also advised on the different grant opportunities in relation to on-farm technology improvements opening over the next few months. eastAUSmilk was also offering grants via the Backing Bush Communities Fund to improve technology uptake with a successful first round of grants being completed. Farm businesses were able to acquire grants for improving internet connection around farm, upgrading radio towers on irrigation systems, adding extra collars or heat detection units on a current system, autodrafting systems and autosteering. Round two has closed with similar projects proposed by interested farmers to improve labour demand for jobs, herd health and overall business efficiencies.
eastAUSmilk will also be visiting North Queensland to host two more workshops in the last week of November, dates to be announced.
Jade Chan, eastAUSmilk Project Officer
Dairy Plan Consultation Closing Soon
EastAUSmilk has been out and about talking with industry stakeholders about proposals to be included in Queensland’s first ever Dairy Plan. These proposals can be downloaded from the eastAUSmilk website.
One on one meetings have been held with some stakeholders such as processors, and more are to come.
District meetings have been held in Malanda, Milla Milla, Oakey, Woodford, and Kandanga, with the final meeting scheduled for Monday 14 October at Beaudesert RSL, at 6.30pm.
Anyone who wants to provide feedback and hasn’t been able to get to any of these meetings – e.g. dairy farmers around Rockhampton – can find a link on the eastAUSmilk website for online feedback. They can also send eastAUSmilk an email to be connected to a Zoom hookup.
The Zoom hookup will be at 6.30pm on Tuesday 15 October, but anyone who wants to participate must email eastAUSmilk in advance so they can be sent an invitation.
Feedback so far has been quite varied, ranging from the suggestion that there’s not enough incentives in the proposal for uptake by some farmers, to strong support. Many dairy farmers have said some of the proposals need more detail before they are strong enough.
Many of the proposals in the plan will require support from the Queensland government, and Department of Agriculture and Fisheries, the current Minister Mark Furner, and the Shadow Minister Tony Perrett have been kept thoroughly in the loop and given every opportunity to advise of any problems with the draft proposals.
For much of this year, an Advisory Group consisting of eastAUSmilk (leading the project), Department of Agriculture and Fisheries, Bega, Norco, Lactalis, DFMC, and SubTropical Dairy have been working to identify proposals to:
• grow the milk pool,
• build the economic viability of dairy farming,
• facilitate uptake of productivity and efficiency improvements, and
• build industry and community confidence in the future of the industry.
The Advisory Group proposes that the plan aim at a prosperous, vibrant, and resilient Queensland dairy industry, which has halted the decline in milk production, and is growing to produce at least 300 million litres or more of white milk per year, with flatter supply, by 2032.
Once this final round of consultation is finished, the Advisory Group will consider how best to reflect that feedback in the plan, work out some more details of how the various proposals can best be implemented, and produce a final plan. The plan will lay out some of the first steps for implementing it, as well as for monitoring and managing implementation.
Mike Smith, eastAUSmilk Government Relations Manager
Dairy Plan Proposals - Ready for Your Feedback
Proposals on the table for Queensland’s Dairy Plan are now public and ready for feedback, and can be downloaded in full from the eastAUSmilk website.
The Advisory Group developing the Plan developed a list of four priority areas and proposals associated with them, from industry suggestions in June and July. All proposals came from within the industry.
Now, this final round of consultation will see changes to the current proposed priorities and proposals, and they will then become the core of the dairy plan. Feedback can be via the following district meetings or online, via a link on the eastAUSmilk website.
· Malanda Hotel, Tuesday 8 October, 6.30 pm for 7 pm
· Oakey RSL, Tuesday 8 October, 6.30 pm for 7 pm
· Woodford Hotel, Wednesday 9 October, 11.00 for 11.30 am
· Kandanga Hotel, Wednesday 9 October, 6.30 pm for 7 pm
· Milla Milla Hotel, Wednesday 9 October, 6.30 pm for 7 pm
· Beaudesert RSL, Monday 14 October, 6.30 pm for 7 pm
The Advisory Group proposes that the plan aim at a prosperous, vibrant, and resilient Queensland dairy industry, which has halted the decline in milk production, and is growing to produce at least 300 million litres or more of white milk per year, with flatter supply, by 2032.
Financing the Future
1. Trialling options to maximise farmer benefits from QRIDA support programs, including consideration of whether QRIDA’s processes are fit for purpose
2. Create and facilitate new funding models to fill the gap between current funding options
3. Developing a dairy industry prospectus and other supporting information to raise awareness of the sector as an investment target
Pathways into the Industry
4. Extension program focus, including legal options: targeted at existing farms/farming families, and addressing succession planning, legal options, and more
5. Making dairying appealing through a marketing and communications campaign
6. Upskilling job-seekers and others in dairying
7. Promoting share farming and leasing
8. Facilitate connections between farmers and prospective investors
Risk mitigation for stable production
9. Extension and information
10. Upskilling, and financial support, to facilitate farm business planning, including risk & disaster mitigation/management, and use of QDAS/benchmarking
11. Identification and advocacy of industry relocation options, for new as well as existing farms
12. Climate and natural disaster program for dairying: e.g. infrastructure to mitigate heat stress, mitigate feed issues in the wet, on farm sustainability, renewables
13. Facilitating on-farm production and systems which are climate resilient
14. Identification of barriers and solutions to expand feedstock options, including GMO and imported strains, for pest and disease management
15. Facilitate inclusion of Biosecurity in farm business planning
16. Identification of animal welfare risk, and solutions
17. Support on-farm uptake of changed practice, including new technology and production systems
Productivity Improvement
18. Establish profitable pathways to surplus stock management
19. Facilitating sexed semen uptake, to both improve herd genetics and avoid surplus calves
20. Facilitating herd improvement, including facilitating genomic mapping of herds
21. Pasture management extension
22. Active importation and testing of successful international pasture and fodder varieties
Mike Smith, eastAUSmilk Government Relations Manager
Big Supermarkets Have a Dairying History
Revelations this week that big supermarkets may have been faking their price cuts and specials will come as no shock to dairy farmers.
Australian Competition and Consumer Commission has said they are prosecuting both Coles and Woolworths in the Federal Court. It is alleged that the supermarkets raised their prices on a range of items, and then reduced those prices claiming they were now discounted or on special. The fake discounts kept prices at or above the long-term prices for those items – actually a price increase disguised as a discount.
The ACCC says that the conduct they are taking to court involved 266 products for Woolworths at different times across 20 months, and 245 products for Coles at different times across 15 months, and has provided details of several case studies. These included a $3.50 product having its price increased to $5.00 for 22 days, then reduced to $4.50, and promoted as a price cut.
In response to this news, the Prime Minister has said he will prioritise a new mandatory food and grocery code of conduct and introduce legislation by the end of the year imposing multimillion-dollar penalties against supermarket giants who breach the rules. This new food and grocery code is due to commence in April next year. eastAUSmilk has made several strong submissions to government in support of making that code mandatory, and strengthening it through properly addressing bullying, amongst other changes.
eastAUSmilk is often told by the big supermarkets that they acknowledge the pain caused when they drove farmers to bankruptcy and suicide during the dollar-a-lite milk era, but they say that’s all in the past. They say they’ve changed, but if the ACCC succeeds in their action, it will confirm that the culture of the big supermarkets is the same, and they’ve just shifted targets. In fact, there’s been no review of their business strategies based on the harm they did with dollar-a-litre milk, no update of their internal code of ethics – they’ve just moved on to other ways of making massive profits, and could change strategies again at any time they chose.
eastAUSmilk has called for changes to the Dairy Industry Code to address the impact of big supermarket pricing and margins on the dairy supply chain. The Commonwealth government has promised to begin their review of the Dairy Industry Code in September, but we expect this to be delayed – slightly – because of the reshuffled Agriculture portfolio.
Mike Smith, eastAUSmilk Government Relations Manager
ADF approves eastAUSmilk members in NSW
It was very positive to see the ADF board approve eastAUSmilk members in NSW as members of ADF. This is an issue that has been ongoing for almost 3 years, and it is great to see that it has now been resolved.
As eastAUSmilk has significantly increased our membership in NSW in the past few years, more and more farmers in NSW have wanted to be involved in ADF and applied for membership. This is positive since it is important for a significant number of farmers to have a say in in ADF which is the national voice for dairy farmers in Australia.
I would like to thank the directors of ADF for their resolution of this issue. Particularly NSW dairy farmer Heath Cook who has championed this issue for many years and ADF president Ben Bennett.
I know that many NSW dairy farmers who have been approved as ADF members are very happy and grateful that this has occurred. I expect that this will create further interest from dairy farmers in NSW to become members of eastAUSmilk and ADF.
eastAUSmilk looks forward to ADF moving with the times and showing leadership on some critical issues of importance to dairy farmers across Australia. The industry is currently in a very difficult position and the reduction in milk prices in many states this year has made things even more difficult.
In this state of flux, strong leadership from ADF is a must to force change. There is no value in working to maintain the status quo when the current situation is so difficult for so many farmers. I’m sure this is the expectation from the new ADF members from NSW that ADF has just approved as well as most other dairy farmers in Australia.
Eric Danzi, CEO eastAUSmilk
The Ekka is where the Farmers’ meet to catch up in the city!
For many city folk, the Ekka is the only chance they get to experience the sights, sounds, and smells of country life. Seeing a dairy cow up close or watching them being milked is even less likely to be something they are exposed to outside of Ekka.
The dairy industry has been an important contributor to the rich history of the Ekka dating back to the very first exhibition in 1876, making it one of the RNA’s oldest supporting agricultural industries.
Each year, proud dairy farming families pack up and leave the farm behind to bring their best milking cows to Ekka for judging. Regarded as the most prestigious dairy show in Queensland, a win is seen as the ultimate recognition of the hard work, passion, and many years of selective breeding that goes into producing the best of the best milking cows.
Leaving the farm behind for 8 days is no small undertaking for these farmers. For many, the trip to Ekka is a family affair, and the result of close to 12 months planning and a cost of many thousands of dollars.
Showing dairy cattle runs in their blood - most are 3rd or 4th generation exhibitors.
EastAUSmilk shares our farmers’ pride in their craft, and this year we’re working with the RNA to better connect Ekka visitors with the dairy industry. Our Queensland Dairy stand in the Agricultural Hall showcases and celebrates the many faces of the dairy industry. Farmers, producers and processors have been invited to come together on the stand to share their passion for the industry.
We’re encouraging Ekka visitors to head on over to the Dairy pavilion to meet our farmers and their exceptional dairy cows to recognise our farmers’ efforts to have fresh milk available for families all over Queensland.
Kay Tommerup, EastAUSmilk Director
What’s Moo-ving Milk Prices?
Australia’s milk production is slowly shrinking, with some regions shrinking faster than others, because milk processors are making it happen.
A significant reason for this shrinkage is the pricing and demand environment does not give farmers sufficient incentive or confidence to expand or improve, and, in some cases, this commercial environment encourages dairying properties to leave the industry.
Against all rationality and against the industry’s long-term interests, early in 2024 we began to see media stories from Australian Dairy Products Federation, the advocacy megaphone for dairy processors, saying milk prices are too high and they have to come down.
So many reasons, all fake, were advanced for this.
“We’ll see more imports displacing expensive Australian dairy products,” they said … though dairy imports fell last year - down 9.1 per cent for last financial year to May, exactly the period over which ADPF says milk prices would encourage more coming in.
“We want to increase the volume of Australian dairy products and keep imports out,” they said … though cutting prices will always reduce production and send dairy farms out of the industry.
Those who care about the long term and the facts know Australia’s dairy imports bounce around. Yes, they were up in 2022-3 … to about the same level as 2017-8. As has been reported in the media, the ADPF's own Milk Value portal shows cheese imports have been falling since November last year. The facts haven’t stopped processors claiming that high dairy imports are a big factor requiring that they make a big drop in farmgate prices for the 2024-25 season.
Milk processors have chosen to export into low cost markets, and now try to claim domestic farmgate prices must be kept low so exports are competitive in those markets – there’s no bottom point to such an argument, no lower and lower price at which they can’t claim that if the price was just a little lower they could sell into yet another market.
When the ADPF makes these demands for cuts at the farm gate, without any authority whatsoever from their members, they’re demanding a shrinking milk pool, less Australian milk in homes, and an unfair market. For any regulators who care to listen and watch, they’re demonstrating the market is still uncompetitive, and unfair, with farmers at the mercy of ADPF demands.
Mike Smith, eastAUSmilk Government Relations Manager
Keeping eastAUSmilk Board Members Busy… and Well Informed
August 30th marks the day for the eastAUSmilk AGM. This year it is being held in Wingham, NSW. Wingham lies in the Manning Valley on the Mid North Coast of NSW.
With over 100 dairy families on the Mid North Coast, the industry is ripe in the area, with many young families making their mark in the industry and ‘having a go’.
Board Members will be treated to a very busy and educational three-day tour of the area, beginning with their arrival in Gloucester, a picturesque town inland of Wingham, for two farm tours. The evening will see Board members meeting with local producers and their families over a meal, whilst patronising a local establishment, and appreciating what local farmers are able to provide.
Day Two is jam packed with four producer meetings on farm, leaving Gloucester early and heading to Wingham for the first farm tour, ensuring that board members are seeing the best of the coast. Continuing the focus on local producers and local produce, lunch will be a local fish co-op, situated just down the road from dairy farm tour number three, treating those who are joining eastAUSmilk to the best local fishery and agricultural produce that the area has to offer.
Day Three the final day on the Mid North Coast with breakfast in gorgeous Wingham, followed by guest speakers before morning tea and the AGM, which is to be held at Wingham Golf Club. The AGM will be followed by networking and discussion over lunch before all start making their way to their respective homes.
All members are warmly invited to attend the Annual General Meeting at Wingham Golf Club at 10:15am on 30 August 2024: a more formal meeting notice will be provided shortly.
Abby McMillan, NSW Member Services Officer
Dairy Plan for Queensland Moves Closer
The advisory group which is guiding development of Queensland’s dairy plan has last week begun the task of looking at all of the feedback received so far and identifying priorities and common themes – issues which must be addressed in the plan, and ideas for change.
This dairy plan is all about growing Queensland’s milk pool, building the economic viability of the industry, facilitating productivity and efficiency improvements, and building confidence in the future of the industry in Queensland.
With eastAUSmilk leading development of the plan, feedback has been received from six district meetings (about 120 people attended all together), discussions amongst advisory group members themselves, and individual discussions with SubTropical Dairy, larger processors, and others. In addition, eastAUSmilk has received emails from several individuals about the problems they see as priorities, and suggesting solutions, and received responses to our invitation for online submissions. Notes of district meetings and other discussions, together with online and email input, have amounted to many thousands of words and over a hundred pages of notes.
The advisory group is made up of representatives from each of eastAUSmilk, SubTropical Dairy, Department of Agriculture and Fisheries, Lactalis, Bega, Norco and DFMC.
Once that group has digested all the feedback and proposals received so far, the next steps will include seeking advisory group consensus on the issues which must be addressed and proposals for change, then trying to reduce them to a smaller number of concrete proposals which will have a real and lasting impact.
The group will then have to weave them into a draft plan.
Once draft documents are ready to put in front of farmers, processors and other stakeholders, we’ll schedule another round of face-to-face consultations including district meetings.
Once that further feedback has been received, the advisory group is expected to modify their draft, and propose a final plan.
There’s more information about the plan on the eastAUSmilk website.
Mike Smith, eastAUSmilk Government Relations Manager
Innovation in managing wet weather
Robert Miller of Narrawilly fame is a fifth-generation dairy farmer from Milton, New South Wales. His family history is in dairy farming in the Milton area of New South Wales since 1859.
The Milton property has been a dairy farm for more than 160 years and was damaged after decades of agriculture. In the past 30 years, Rob has been regenerating the land by planting more than 1000 trees each year, rehabilitating rainforests and creating wetland areas. Being custodians of the land Rob focuses on protecting the habitat and conservation of the land he grazes his cows on. Rob is a true conservationist.
Rob has become a real innovator when it comes to wet weather where 1000mm has fallen in the last 10 weeks. He has applied 3000 tonnes of coal dust waste sourced from the Wollongong steel works (at no cost), to build a temporary feed pad. The coal dust is machine spread and compacted on farm to the size necessary for a feed pad to feed 600 odd cows. The feed pad is 200 meters long x 50 meters wide to help with feed times when other areas on the farm are too wet to graze. The waste is also used as a temporary measure to repair laneways.
Bark chip and ‘clean renovators delight’ (bricks and concrete that would have otherwise gone to landfill) has been utilised on the farm to fill holes created by constant rain. Once compacted and filled with bark chip, this method has become a long term and cost-effective solution to repairing laneways.
Waste from sawmills is used to erect loafing areas which is a cheap way of building loafing areas on the ground for cows to rest. Importantly, loafing areas are built up and are not only on high ground but ground that doesn’t have leaking acquirer and has a rock base. Coarse waste that allows water to drain freely rather than compact is essential. It’s also important for Rob to maintain his feed pads by regularly topping up with sawmill waste.
Rob has come up with a cheap solution to be able to feed while keeping the low-cost pasture grazing system (land generally not suitable to cropping) for his farm to avoid the significant problems of extreme wet. He has shown that spending millions of dollars on infrastructure is not required for those farms that are trying to avoid disaster from extreme wet. All pasture farmers should look at what Rob has done and find ways to cheaply avoid disaster from future normal and extreme wet events.
By Lynelle Rogers, EastAUSmilk and Rob Miller, Milton
Dairy farmer grants available to improve technology uptake on farm
EastAUSmilk has been successful in securing funding through the Department of Agriculture and Fisheries to improve technology uptake on the dairy farm. The first round of grants for the Dairy Farmers Technology Uptake Program (DFTUP) has closed, offering 25% of total tech cost up to a maximum of $15,000 ex GST, per dairy business.
There are two parts to the program, multiple information and training workshops in each dairying region, and provision of financial assistance for technology uptake. The program aims to increase knowledge and adoption of technology to improve labour efficiencies as well as cow health, welfare and fertility. The dates for workshops and training sessions will be announced soon. However, if there is a particular technology you are interested in and want to learn more about, please get in touch.
Grants available to eligible dairy farmers in Queensland which includes eligible items such as:
Autodrafting gates
Automated feeding systems
Cup removers
Auto calf feeders
Drones (spray or fertiliser)
Heat detection collars or ear tags
Precision technology
Mobile app upgrades and towers
Somatic cell count sensors/ in-line SSC detectors
Businesses in general are struggling with labour shortages with businesses located in rural or regional areas, facing bigger challenges due to lack of population density and accessibility. Mechanisation or technology investments on farm looks to not only improve labour efficiencies resulting in less time demanded per job but also improve decision making and enhance business planning.
The addition of technology on farm can provide additional benefits which includes improved herd health management and monitoring. Automated calf feeders, for example, reduce labour and improves overall welfare for the calf, with the option to tailor feeding rates per calf but also maintaining optimal hygiene of the equipment.
Jade Chan, eastAUSmilk Project Officer
Powering towards a Queensland Dairy Plan
The first round of district meetings has been completed on the path to developing Queensland’s Dairy Plan. As well, online input has been opened, and one on one meetings with key stakeholders (like processors, SubTropical Dairy, and more) are well underway.
EastAUSmilk members and others have already shown plenty of interest, with around 120 people attending the various meetings.
Queensland needs an effective dairy industry plan to make sure Queenslanders can drink fresh local milk into the future, that farmers run profitable businesses, and their communities remain vibrant.
Right now, that’s not where we are. We have the smallest average dairy herd size of all states, our farms produce just 45% of the milk Queenslanders consume, we’ve got only 40% of the farms we had in 2011, and too many farmers are struggling to make a decent income.
EastAUSmilk, the three largest milk processors (Lactalis, Norco and Bega), Dairy Farmers Milk Co‑operative, SubTropical Dairy, and Department of Agriculture and Fisheries, make up the Advisory Group steering development of the Plan. They all want to bring the industry together to lift production, increase farmgate profitability and drive efficiencies throughout the supply chain.
With the input from those meetings and online proposals, the Advisory Group will shortly begin drawing out the big themes and big ideas, coming up with the priorities, and drafting the plan. It is expected to cover ways to address that decline, how to make farmer and processor investment and planning decisions easier, actions to build the economic viability of dairy farming and processing and building confidence in the future of the industry.
Once there is a draft Plan, there will be a further round of consultation, including district meetings, to explain what’s in it and why, and get proposals for further change.
The final plan, or a very well-developed draft, is expected by late August. That’s an ambitious timeframe, but we think we can make it happen.
There’s more information about the plan and the process of developing it, on the eastAUSmilk website.
Mike Smith, eastAUSmilk Government Relations Manager
Thanks Colin
Highly respected NSW dairy farmer Colin Thompson passed away last week. Colin and his wife Erina ran an elite Total Mixed Ration (TMR) dairy farm in Cowra. They milked around 300-350 cows in a free stall and averaged around 45L per cow per day. Colin was widely regarded as being one of the top handful of dairy farmers in Australia and was a real gentleman with integrity and a desire to help others.
Colin was a real leader in the industry and was passionate about dairy farming. He was obsessive about doing everything absolutely spot on and this obsession resulted in elite results that many other farmers watched and followed. I knew that Colin’s knowledge and experience would be of great interest to dairy farmers in Queensland. And I knew that dairy farmers in Queensland, especially TMR farmers, could learn a lot from Colin.
As a result, in early 2020 I asked Colin to give presentations throughout Queensland about his farm and journey as a dairy farmer. His farming story impressed a lot of farmers and really blew some away with what was possible. It was clearly not realistic or practical for most farmers to copy everything that Colin did.
Colin was not egotistical re his approach, but rather trying to help farmers find a few things of relevance to their farm to improve their operation. I know a number of farmers made changes as a result of Colin’s grand tour. From small changes like putting in more water troughs near feed pads to spending a lot of money in new concrete silage pits.
Colin had an obsession that cows must have an abundance of clean water to drink at all times. Any time he saw anything but pristine water for cows he would ask me “would you drink it?”. I would always answer no and he would say well neither will cows. I got the message Colin.
Thanks Colin for everything you did to lead the dairy industry and be a farmer that others followed with your farming practices. And to Erina and your family, my thoughts are with you.
Eric Danzi, eastAUSmilk CEO
Queensland Dairying – Profitable and Growing – Industry Voice Needed
Everyone in the Queensland dairy industry is invited to meetings across the state, for input into the proposed Queensland Dairy Plan.
These meetings will be very important in identifying what will be in Queensland’s Dairy Plan.
• Malanda Pub Monday 24 June 6.30 PM
• Maleny Hotel Tuesday 25 June 10.30 AM (note the changed time!)
• Millaa Millaa Pub Tuesday 25 June 6.30 PM
• Oakey RSL Tuesday 25 June 6.30 PM
• Warwick RSL Wednesday 26 June 6.30 PM
• Beaudesert RSL Monday 1 July 6.30 PM
eastAUSmilk is leading development of the Plan, along with the State Government, SubTropical Dairy, Bega, Lactalis, DFMC, and Norco, and these are all members of the project’s advisory group, providing oversight of the plan’s development.
The Plan will be aimed at growing the milk pool in Queensland, building the economic viability of dairy farming and processing across Queensland, facilitating productivity and efficiency improvements, and building confidence in the future of the dairy industry in Queensland.
It will not only identify the major barriers to reducing costs, increasing productivity and profit, and growing the hectares devoted to dairying, but also find ways to sustain improvements in each those areas, which are practical and will be supported by dairy farmers and other stakeholders.
Farmers, processors and others in the industry need to speak up now. This is a big opportunity to ensure a bright future for the Queensland dairy industry, which mustn’t be missed.
If anyone can’t make it to one of the district meetings, they will be asked for input online, shortly, too. If anyone can’t make it to their most local meeting, they should feel free to go to another.
Because the whole industry is being consulted, farmers, processors and others who aren’t members of eastAUSmilk or Australian Dairy Products Federation are welcome. Separate meetings with processors, researchers, and others, will be scheduled, in the near future.
Mike Smith, EastAUSmilk Government Relations Manager
Thanks to the dairy farmers of Wagga Wagga, Blighty and Finley
Last week, my president Joe Bradley and I visited dairy farmers in one our southern most areas around the towns of Wagga Wagga, Blighty and Finley. We were blown away by the reception we received from all the local dairy farmers. A trip to the area was long overdue and prompted by a question by dairy farmer Nina Marshall as to why I hadn’t visited the area yet.
We met with 6 dairy farmers in Wagga Wagga and Tumut including a visit to the farm of Amy and Melinda Hayter. This was an opportunity for Joe to continue his obsession with Brown Swiss cows. The cold conditions in Tumut were a far cry from the Queensland weather Joe and I are accustomed to.
We then moved to the Finley and Blighty areas where we met with around 40 dairy farmers. The willingness of farmers to show us their farms and welcome us to their community was overwhelming. We were blown away by the farms we saw and certainly gave me a new perspective on what is possible in the dairy industry. The scale and efficiency of operations was extremely impressive, and all dairy farmers should visit and learn from these dairy farmers.
The farmers really appreciated the opportunity to gather and talk with their fellow dairy farmers which is something they have not done for years. Clearly for many of the farmers they felt like they were the forgotten dairy farmers of NSW being so isolated from other farmers.
The massive drop in milk prices announced on 3 June was the major talking point as was the dumping of some farmers by their processors. We all hope that prices lift or there will clearly be a lot of farmers cease especially for those whose contracts expired in June.
A very special thanks to Ruth and Neville Kydd for hosting Joe and I. it was great to finally see what I have heard Ruth talk about for many years. The Kydds run a very impressive operation and are rightfully highly respected by their local farmers. The Kydds are due to open their new 80 stand rotary in early July (we hope for Ruth’s sake) to go with the two 50 stand rotaries they already have. The rumour is that if the electricity isn’t hooked up in time the dairy will be powered by Ruth’s pedal power.
Eric Danzi, eastAUSmilk CEO
Lower Prices will be a Disaster for Farmers and Milk Production
It is extremely disappointing to see opening prices announced this week down by around $1-$1.50/kg milk solids (8-11c/L). Processors, via their representative body ADPF (Australian Dairy Products Federation), have been talking down farm gate prices for the last year.
The vast majority of Australian milk is sold domestically including around a third going into milk bottles. So it is hard to understand the obsession of some milk processors and ADPF on exports and using this to drive down farm prices.
Farmers in Victoria and other areas which are on 1-year contracts will bear the brunt of lower milk prices in addition to the very dry conditions in Victoria and other areas.
Most dairy farmers in Queensland and NSW are on 2-5 year contracts that do not expire until at least mid next year. So in the short term prices will not change for most of our farmers. However, the lower prices announced will send a shiver down the spine of dairy farmers everywhere. Any farmers who are off contract need to shop around and compare prices from all processors.
If prices do not increase significantly in the next month before contracts are finalised, then milk production will fall massively in the next year and almost certainly fall below 8ML nationally. Processors will get their way to drive down price, but production which will likely never recover. Farmers need confidence in the industry and this will only occur if processors commit to stop dropping prices.
This is a ridiculous and dangerous outcome, driven by short-sighted decision-making amongst processors. It was just six months ago that a Commonwealth Parliamentary report on food security said dairying is in trouble and needed a stand-alone strategy to build reliability of supply, and here are the processors, led by Australian Dairy Products Federation, already actively trying to cut milk supply in the interests of delivering excess profits next year. If the Commonwealth adopts that report, they’ll have to work out what to do about this bad behaviour.
Joe Bradley, eastAUSmilk President
Dairy Plan for Queensland
EastAUSmilk has secured funding from the Queensland government for development of a Queensland dairy plan. We see this as a first step towards development of the long-proposed Northern Dairy Industry Plan, which would eventually cover parts of New South Wales as well.
On top of the state government contribution, each of eastAUSmilk, Bega, Lactalis, DFMC, and Norco, have committed funds.
The project requires eastAUSmilk to engage industry stakeholders, in developing a plan that will be led by industry and be consistent with both the Northern Dairy Industry Plan, and the Australian Dairy Plan.
We intend to move fast and are looking to have a draft plan by the end of August.
The objectives of the project include growing the milk pool in Queensland, building the economic viability of dairy farming across Queensland, facilitating productivity and efficiency improvements, and building confidence in the future of the dairy industry in Queensland.
A Project Advisory Group has been established, and includes representatives from eastAUSmilk, Subtropical Dairy, Department of Agriculture and Fisheries, Bega, Lactalis, DFMC, and Norco. Their first meeting should be in the next week or two, after which Queensland’s dairy farmers and other industry stakeholders will find they are being asked to contribute their creativity and suggestions.
This is a big opportunity to ensure a bright future for the Queensland dairy industry, and we must not miss it.
In the plan, we need to not only identify the major barriers to reducing costs, increasing productivity and profit, and growing the hectares devoted to dairying, but also find ways to sustain improvements in each those areas, which are practical and will be supported by dairy farmers and other stakeholders.
There will be extensive consultation with eastAUSmilk’s Queensland members, as well as other industry stakeholders. Meetings will be held in each of eastAUSmilk’s Queensland districts, and there will be opportunities to provide online feedback.
By Mike Smith, eastAUSmilk Government Relations Manager