eastAUSmilk and Australian Dairy Farmers
eastAUSmilk President and Queensland dairy farmer Matt Trace was appointed to the board of Australian Dairy Farmers at the Annual General Meeting held on 23 November. ADF is the national peak body of state-based dairy farmer organisations.
Matt is very grateful for the solid support he received from industry across the country to take up this role, and particularly for the support from the northern industry. Former QDO Board member Joe Bradley attended the meeting and exercised a large number of proxy votes in accordance with the wishes of Queensland members of ADF.
Previously, Queensland dairy farmer views had been represented on the ADF Board by Brian Tessman, who did not nominate for re-election. We should all be very grateful to Brian for his good work on the Board, on behalf of dairy farmers everywhere.
The resolution at the AGM proposing appointment of an independent director was defeated, therefore there is currently a vacancy in that role, and a new independent director will be appointed by ADF shortly.
Because of the potential conflict of interests, Matt will stand down from his position as chair of eastAUSmilk, and from the eastAUSmilk board, in the near future. eastAUSmilk’s Gympie/ Moreton/ Burnett District Council will be asked to appoint a new member to the eastAUSmilk board, to replace Matt.
The eastAUSmilk Board will then also need to meet to appoint a new chair.
At the Annual General Meeting, ADF deferred election of their new President, to allow the Victorian Farmers Federation to fill the vacant Australian Dairy Farmers National Council positions from Victoria. Because the chair is elected by the ADF board and the ADF National Council jointly, the absence of eight National Council members from Victoria would be significant in that election, and those at the ADF AGM thought they should give the biggest milk-producing state the chance to have their full say in the ballot.
Matt Trace, eastAUSmilk President
EastAUSmilk meets More Decision-Makers
Last week, eastAUSmilk’s team met with officers of the Federal Treasury Department, and advisors to New South Wales Minister for Agriculture, and Regional and Western New South Wales, Tara Moriarty.
eastAUSmilk Chair of the Board Matt Trace and Government Relations Manager Mike Smith talked with Treasury about the Australian Competition and Consumer Commission review of the proposed purchase by Coles of two Saputo milk processing plants. They also pressed the case for review and updating of the Dairy Industry Code. The Treasury officers were very interested in the proposition that some of the processors have begun to work out ways around the provisions of the Code, and agreed to meet eastAUSmilk again, once the ACCC announces the results of their review, on 20 July.
The discussion with Minister Moriarty’s advisors covered the same Coles and Saputo issues, and changes needed to the Dairy Industry Code, as well as industry sustainability measures, animal welfare issues, and foot and mouth disease preparedness. eastAUSmilk and the Minister’s office will get back together soon for further discussions, and some of the topics covered will also be discussed with New South Wales’s Department of Primary Industries, in the near future.
Minister Moriarty was invited to visit a dairy farm, and eastAUSmilk promised to show her the basics of how a dairy farm works. She was also invited to an eastAUSmilk Board meeting.
As with all of the meetings held with Ministerial Offices and Departments over the past several weeks, eastAUSmilk has found discussions to be positive, and constructive, and in all cases there’s a commitment to continue them.
Mike Smith, Government Relations Manager eastAUSmilk
EastAUSmilk meet with Ministerial Officers in Canberra
Queensland dairy farmer and eastAUSmilk Board Chair Matt Trace, and Government Relations Manager Mike Smith, were in Canberra last week, discussing important issues with public servants and Ministerial Offices. Amongst others, they met with Department of Agriculture, Fisheries and Forestry, and advisors to the Assistant Minister for Competition Andrew Leigh and Treasurer Jim Chalmers.
Competition policy, and the proposed purchase by Coles of Saputo milk processing plants in Victoria and NSW, were discussed with everyone, and the need for an urgent review of the Dairy Industry Code was stressed. eastAUSmilk made it clear the industry needs more milk processor competition, not less. Other issues raised included industry sustainability opportunities and needs, structural reform of industry bodies, extending Queensland’s previous “fair go” marketing campaign, animal welfare, and foot and mouth disease.
The eastAUSmilk team were at pains to stress that while some dairy farmers can look forward, plan, and invest, many are still struggling under debt and stress arising from dollar-a-litre milk, drought, floods, and other pressures beyond their control. This impacts the capacity of the industry to withstand unreasonable or uncompetitive behaviour by processors or big retailers, such as milk prices not matching increases in farm input costs.
They also stressed competition laws are fundamentally flawed when no consideration is given by Australian Competition and Consumer Commission or Government to issues such as ongoing access to locally sourced fresh milk, regional community resilience, fairness between big business and small, and more.
More meetings will be held in the next week, to ensure politicians and public servants at every level understand current conditions in the industry, and the importance of these issues to dairy farmers.
ACCC expects to announce the results of their review of the proposed Coles/Saputo deal on 20 July. Their options include waving it through, rejecting it, or raising competition issues to be addressed. A further round of discussions is planned once that review is finished.
Mike Smith, Government Relations Manager eastAUSmilk
A change of the guard at eastAUSmilk
It’s a sign of a healthy organisation when a quality member of the team can stand down and is readily replaced by an equally capable person. That’s exactly what has just occurred at eastAUSmilk. Gary Wenzell stood aside in June to concentrate on his farm and family commitments. I know Gary was disappointed he could not see out his full term, but these things happen in life, and he has made the right decision for his family. From the entire team at eastAUSmilk we wish him all the best and thank him for his dedicated service through the difficult times of the last couple of years.
As per the constitution the district council of Scenic Rim/Lismore was to appoint a replacement and after much interest Kay Tommerup has been appointed. I have known Kay for many years, and she will be a great addition to our team. Kay and Dave have a long history in the dairy industry as is evident by the near vintage NORCO supplier sign on their front gate. However, what has impressed me is the unique perspective Kay will bring to the board around what makes a profitable dairy farming business.
After many years of dairying in the traditional model of “it’s all about milk” Kay and Dave decided to move into Agri-tourism with open days and farm stays, and direct to customer sales. They have been immensely successful. I’m sure with many difficulties along the way but they have in the end found a pathway to profitable farming that is resistant to the variance in weather. In more recent times they have also moved into on-farm processing with the development of their own creamery and the subsequent sale of products such as cream, butter, and ice cream.
While this path is not for everyone it’s the different way of thinking backed with a successful track record that will make Kay a valuable addition to our team. I welcome you Kay and am looking forward to working with you in the interests of our dairy industry.
Matt Trace, President eastAUSmilk
Dairy Levy Poll – Lets all take notice
With the results in from the Dairy Levy Poll the farmers who pay the levy couldn’t have made their thoughts any clearer. An overwhelming majority of those who cast their votes backed the no change option. This was some 71% of voters who participated. A convincing result such as this can only occur when the alternative options provided are not to the liking of the voters. Possibly more disappointing is the option recommended by LPAC to farmers of an increase of 20% to the levy only received 15% of valid voter support. This raises the question was LPAC listening to the levy payers and is it the right mechanism to decide levy options in the future?
Some will no doubt say it’s not a judgment on the performance of LPAC who selected the options or Dairy Australia who receives and spends the levy funds, but rather a sign of tough times in the industry. I think this would be a naïve and unproductive approach. Farmers have not seen value in their levy and that’s why they have not backed an increase. As farmers are aware the only way to deal with a problem or as we often call it “a stuff up” is to acknowledge the error and deal with it head on. That’s what industry needs to do right now. Let’s put on the listening ears and take direction from the most important people in the industry, the levy paying Dairy Farmers.
What eastAUSmilk will be taking from this result is not the opportunity to tear down individuals or organisations who seem to have lost their way as farmer representatives in recent years and through the entire levy poll process, but rather a much-needed circuit breaker to wipe the slate clean and get it right from now on.
There are two vital questions for all industry bodies not just Dairy Australia to answer very soon. Is LPAC the best way to set future levy options and have the levy funds been spent in the best interests of the farmers who pay the levy?
Matthew Trace President eastAUSmilk
Let’s set our own future
On December 1, 2021, eastAUSmilk began with the merging of QDO and Dairy Connect Farmers group. It is a new concept that allows a fresh start and a chance to do things a little differently. While we have a strong presence and long history in both QLD and NSW it's time to have a good look at what we do well, and what we can do better.
One of the important tasks that eastAUSmilk will need to complete over the coming months is to develop a strategic plan. This may sound a bit boring, but it is actually important for our company and our members. A strategic plan will identify why we exist and what we want to achieve for our members. It's a chance for the board, the company and members to identify issues we need to address and then prioritise.
This is not something that the board and staff of eastAUSmilk can do alone. We need the assistance and insight from our members, and our potential members, on what direction we should take.
Over the past 5 years there has been a strong focus on retail pricing given $1/L milk. Both QDO and Dairy Connect that make up eastAUSmilk played a central role in removing $1/L milk and now all milk is at least $1.30/L. The price is now moving up, which is sensible given increases in costs of production, without the anchor of a fixed retail price. Moving forward, we need to decide what else to focus our attention on in the next few years.
We will undertake an extensive consultation process with our members and potential members. We will listen to what our farmers think we should do and we will ensure that these views are properly taken into account. We will not ignore what farmers tell us but embrace your feedback.
Member meetings will occur across QLD and NSW during March and April. I strongly encourage all interested dairy farmers to attend and have their say. Dairy farmers will be notified about the details of proposed meetings in March.
Yes you have been asked for feedback many times by many in the dairy industry and I too feel that we have not always been listened to. This is a chance to be heard by a growing organisation that values your opinions.
Please contact your eastAUSmilk directors or staff if you would like to know more.
Matthew Trace– President eastAUSmilk