2023 - The Future of Dairy
As we enter 2023, there is great opportunity for the dairy industry in Queensland and NSW to grow, be sustainable, remain viable and increase profitability into 2023 and beyond.
This requires the ongoing support and involvement of farmers becoming members of dairy industry bodies like eastAUSmilk, which represents the best interests of their members. Strong advocacy remains a tenet of what we do.
As the new year approaches, there are still many issues for the dairy industry to confront, address and find solutions to. These range from stopping the continuing decline of milk production and the number of dairy farmers exiting.
Other issues include maintaining a strong farm gate price for suppliers and assisting the Dairy Mandatory Code fulfill its mandate of restoring trust and transparency.
As we reflect upon the last 12 months, the dairy industry in Queensland and NSW has encountered a number of issues that have impacted upon the viability, sustainability and profitability of the dairy industry in these two states.
As the dairy industry association representing fresh milk dairy farmers in 2 States, we have an obligation to ensure that the views and will of its members are best represented and the services provided of the highest standards.
We will continue to enhance the 'AUS' in our name, being Advocacy, Unity, Service.
The NSW State election to be held in March 2023 will allow advocacy to come to the fore. Engagement with government has commenced and we will strive to achieve positive outcomes for the dairy industry from the NSW government and commitments from the NSW opposition.
We will seek from the political parties programmes that will allow dairy farmers to have reason to stay on the land and continue to provide fresh nutritious milk 24/7.
There are opportunities to seek government support for projects that impact directly on dairy farming enterprises. These include technology adoption; dairy beef (bobby calves); marketing; warm climate grasses; and drought planning and incentives.
Policy issues also will be addressed and include for instance the availability of dairy in aged care facilities; the adoption of 'truth in labelling'; amongst other issues.
2023 will be vital for the success of the dairy industry in Queensland and NSW. Your dairy body eastAUSmilk will be at the vanguard of seeking positive and collaborative outcomes. Your involvement will be pivotal for its success.
Shaughn Morgan, Co-CEO eastAUSmilk
2022 - A Reflection
As we reflect upon the last 12 months, the dairy industry in Queensland and NSW has encountered a number of issues that have impacted upon the profitability and sustainability of the industry in these two states.
This has been reflected in the continuing decline in the production, which has continued to be quite significant as compared to 2021. The recent milk production report from Dairy Australia for October 2022 indicated that there had been a 6.6% decrease in October 2021, while the national year-to-date was down 6.5%.
In Queensland there has been a year-to-date decline of 11.3% while NSW has decreased by 11.9%.
There are a number of reasons for the declining milk production, including dairy farmers exiting the industry, the lack of the availability of labour, the floods that devastated parts of Queensland and NSW, inflation, amongst other issues.
However, there has been strong farm gate price that has been paid by processors to their suppliers, but this has been offset by increasing input costs that have been encountered by dairy farmers.
The dairy industry has been grateful for the strong support of the Queensland and NSW State governments in supporting the dairy industry by the on-going availability of loans and grants to enable dairy farmers to rebuild their farm infrastructure, restore their cow numbers and ensure the availability of fodder for their farms.
The risk of a biosecurity incursion has also been on the minds of dairy farmers. This has been evidenced by the onset of FMD and LSD in Indonesia and elsewhere, including the strong preparedness that the state and federal governments are taking to stop such an incursion occurring, and to be prepared for prompt action, if an incursion did occur.
In recent times, there has also been discussion regarding methane emissions, especially given the action of the New Zealand government in imposing attacks on cattle in the country. Strong action by the industries peak bodies has seen the Federal Minister for agriculture, Murray Watt, indicate strongly that there was no intention of the government to impose such a tax in Australia.
As 2022 comes to an end, the dairy industry continues to look at ways to ensure its profitability and viability into the future. This will be reflected by the steps that eastAUSmilk will take in 2023 to ensure the sustainability of the fresh milk dairy industry in Queensland and NSW.
Shaughn Morgan, Co-CEO eastAUSmilk
Final board meeting of interim eastAUSmilk board
This week the interim board of eastAUSmilk met for the final time in Brisbane. The interim board of eastAUSmilk commenced on 1 December 2021 and finishes on 31 December 2022. The interim board was appointed by QDO members as part of the merger between QDO and Dairy Connect.
The new board that commences on 1 January 2023 will be selected by eastAUSmilk members via a democratic election process. During this process, 4 board members have been returned unopposed who are Waylon Barron (Darling Downs QLD), Ruth Kydd (Southern NSW), Kay Tommerup (Scenic Rim/Lockyer Valley QLD) and Matthew Trace (Gympie/Moreton/Burnett QLD).
In addition, James Geraghty (Northern/Central QLD) has not stood for the board and will end his term. James has been a highly valued, considered, and respected board member for several decades and will be sorely missed. James will be replaced by Glenn Drury who has been elected unopposed and we look forward to Glenn joining the board. Glenn is a highly respected dairy farmer in Malanda in north Queensland and I’m sure that Glenn will do a good job as a director of eastAUSmilk.
In the final seat in northern NSW, Graham Forbes and Peter Graham are both standing and an election is currently underway. I encourage all eastAUSmilk members in northern NSW to exercise their democratic right and vote. All votes need to be received in Brisbane by 5pm Sunday 18 December.
At the board meeting in Brisbane this week, a number of key issues were discussed including the state of the dairy industry, dairy beef and potential new corporate entrants into the northern industry. In addition, a range of guests attended the board meeting including Minister for Agricultural Industry Development and Fisheries and Minister for Rural Communities Mark Furner and QFF CEO Jo Sheppard.
Eric Danzi Co-CEO eastAUSmilk
Improving biosecurity and climate preparedness on the Atherton Tablelands.
Last month eastAUSmilk started the first of their Dairy Resilience Workshops on the Atherton Tablelands with a meeting held on the Walmsley’s farm in Upper Barron, FNQ. This round of workshops is responding to the current climate and biosecurity environment looking at improving on farm preparedness to these risks.
Kicking off the workshop Rachel Davis from the Bureau of Meteorology presented the products available by the Bureau including long range Seasonal Outlooks for the region, weather forecasting and the Climate Services for Agriculture Program. Rachel gave helpful tips and tricks around interpreting the Bureau’s weather app and future weather forecasts on their website which can help inform decisions and preparation activities for the upcoming disaster season. We are looking at a third La Nina in a row, which increases the likelihood of flood events in the coming months.
Tom Couston from the Department of Agriculture and Fisheries (DAF) veterinarian team had a chat about biosecurity preparedness in the case of and Emergency Animal Disease (EAD) such as Foot and Mouth Disease (FMD) or Lumpy Skin (LSD). He provided an in-depth overview on the current movement of FMD and LSD throughout Indonesia and the Australian Government’s efforts at the border. Farmers were able to broaden their understanding of their roles, responsibilities and what would potentially happen during a National Livestock Stand Still and take the opportunity to update their Biosecurity Plans.
Kylie Pickering a DAF Biosecurity Officer touched on the requirements for a Registerable Biosecurity Entity (RBE), how to check registrations and update contact information in the case of an EAD.
These events are being delivered through the Farm Business Resilience Program which aims to build the strategic management capacity of farmers to prepare for and manage business and climate risks. Similar workshops are planned for the South-East Queensland corner for the new year, stay tuned for dates and locations.
Jade Chan – eastAUSmilk Project Officer
Rick Gladigau re-elected as president of ADF
South Australian dairy farmer Rick Gladigau has been re-elected as a director and President of national policy and advocacy organisation Australian Dairy Farmers (ADF), following ADF’s AGM last week.
The ADF Board remains unchanged with Rick Gladigau from South Australia (President), Brian Tessmann from Queensland, Ben Bennett from Victoria, Heath Cook from New South Wales, and Andreas Clark from South Australia as an independent director.
Victorian dairy farmers Glenn Britnell and Ian Morris were also candidates in a three-way contest for the one seat on the Board open at this year’s AGM but were both unsuccessful.
Voting in the election was well down on last year with under half as many farmers voting. This may indicate support for the status quo and re-electing Rick as a director and president. Alternatively, this may indicate apathy from dairy farmers towards ADF with under 3% of all dairy farmers in Australia voting.
eastAUSmilk looks forward to working with ADF during the next year. It is imperative that ADF leads the dairy industry throughout Australia. Farmers have cried out for transformational change in industry structures during the failed dairy plan process. To date, nothing has happened on this front bar the merger of QDO and Dairy Connect to form eastAUSmilk. It is time for ADF to show leadership and deliver on this absolutely, fundamental requirement for dairy farmers and ADF.
In addition, eastAUSmilk looks forward to working with ADF to increase membership by dairy farmers in ADF to ensure that ADF is more representative of dairy farmers. We look forward to ADF finally admitting eastAUSmilk members in NSW as ADF members. Our members in NSW who have been blocked by ADF to becoming members of ADF are rightfully extremely confused and disillusioned. We would like to increase ADF dairy farmer membership in NSW since the number of ADF members in NSW is currently extremely low.
Eric Danzi, eastAUSmilk Co-CEO
Communities - making a difference
The past months and indeed years have witnessed one natural disaster after another impacting upon regional and rural communities. From bushfires, droughts and more recently floods.
Rural and regional people are thankful for the support of those communities in which they live, the support of their governments and the support of people from far afield.
Each level of support enables rebuilding, whether it be physical or emotional.
For farmers though, the loss of infrastructure such as sheds and fences are nothing to the anguish of losing their farm animals, which in some instances have been with their families for years.
With Christmas fast approaching perhaps now is a time for reflection and taking pause to support those friends, colleagues and family who have also suffered unbearable loss of not only their farms but loved ones as well.
A shoulder to lean upon, a friendly smile, a desire and willingness to listen can be of enormous support to people as they look over the damage and heartache that they have experienced.
I attended the Dairy Research Foundation Dairy Symposium last week at Forster NSW and listened to a number of speakers talk about their experiences with the damage to their farms and the mental health impact that natural disasters have had upon them.
Orry Berry from Local Rural Adversity Mental Health told the attendees at the Symposium that 1 in 5 people will experience mental health issues. A sobering thought.
A dairy farmer from Taree, Sam Nicholson, particularly resonated with me and brought home the enormity of the impact that the flood had upon him and his young family.
He talked about what he did to get through the harrowing times that he and his family experienced after his dairy farm was flooded, with all the resulting damage you would expect and have read about.
His first instinct was to get up and move forward, to reinvest in his flood damaged dairy farm - to get it up and running again. Getting cow numbers back to where they were.
By making 'crossroads decisions' immediately - not dwelling upon them.
Remaining positive and optimistic.
But what truly made a difference was the love and support of his local community.
People turning up to help him re-fence his property, fixing his sheds, it was not only community but 'farmers helping farmers'.
They were just being there.
I am never surprised by the resilience of farmers, especially during times of great upheaval.
But what Sam taught me was to never underestimate the enormity of the support of people - to just be there.
With Christmas almost upon us, this is indeed a time of reflection and helping those who need your shoulder, your ear or a meal.
For those who may need mental health assistance, help is a phone call away. Whether it be your local men's shed (1800 550 009) or national bodies like Beyond Blue (1300 22 4636), Suicide Call Back Service (1800 659 467), or Lifeline Australia (131 114).
Never feel you cannot seek help and never be afraid to ask for support. We will be there for you.
Shaughn Morgan, Co-CEO eastAUSmilk
Australian Dairy Farmers elections
The Australian Dairy Farmers (ADF) elections are currently on with the AGM being held on 24 November 2022. At the AGM, an election will be held for one board position currently held by ADF President Rick Gladigau. There are three people standing for the ADF Board, being Rick Gladigau, Glenn Britnell and Ian Morris. Rick is a dairy farmer from South Australia and both Glenn and Ian are dairy farmers from Victoria.
I encourage all dairy farmers who are ADF members to vote in these and all elections. The elections are a democratic process, and it is important for dairy farmers to have their say. Voting closes on Monday 21 November for those not attending the AGM so please vote now.
Until three years ago, the support of 20 or 30 dairy farmers was enough to get onto the ADF board. This was certainly not a rousing endorsement from the over 4000 dairy farmers in Australia. It reflected the apathy that existed from dairy farmers towards ADF and the disinterest that most dairy farmers had. At the last elections held last year, successful candidates received up to around 200 votes which is a substantial improvement. I hope that this level of interest is maintained this year and that in the future at least a thousand dairy farmers vote in elections.
So please all dairy farmers who are members of ADF please exercise your democratic right and vote in this year’s election. If you are an eastAUSmilk member and you are not sure who to vote for, please consider giving your proxy to eastAUSmilk President Matthew Trace.
Matthew is in a position to know all the candidates well and can make an informed decision on who would best look after the interests of all dairy farmers including those in Queensland and NSW.
Dairy farmers don’t let this opportunity to exercise your democratic right slip by and vote now.
Eric Danzi, Co-CEO eastAUSmilk
Legislative Protections Afforded, Legislative Protections Achieved
The announcement by Fonterra Australia that it has settled its class action with over 350 dairy farmers closes a period of uncertainty and distress for many impacted.
The payment by Fonterra of $25M, without admission of liability, to be paid to those impacted by their actions in 2016, will provide small comfort to those who lost far more at that time, including the loss of trust in Fonterra as their processor.
Yet positives did arise from the ashes of the claw back of the farmer's milk price by Fonterra and the then Murray Goulburn.
The Mandatory Dairy Code of Conduct was introduced as a result of the lobbying of dairy industry bodies.
It has proved to be vital in helping to restore trust, openness and transparency between dairy farmers and their processors.
The Code will be celebrating its 3rd anniversary in January 2023, and it has grown organically over the past years, with oversight by the ACCC.
Since its commencement, it has continued to provide a strong platform for dialogue to achieve oversight of the milk supply agreements that were provided by processors to their suppliers.
The Code required that milk supply agreements had to be negotiated in good faith, be drafted in plain English and prohibited retrospective clawbacks as evidenced in 2016 amongst other safeguards.
Many farms are family owned and are small businesses. They are therefore afforded legislative protections against those who may be considered more powerful in their dealings.
The federal government has recently enacted unfair contracts protections for small businesses, which passed federal parliament on 27 October. The legislation is intended to ensure more competition and better prices.
By their very nature, many family-owned farms are small businesses.
The definition of a small business has been extended to be businesses with less than 100 people (from 20 people) or less than $10M turnover in the last income year.
Penalties have also been substantially increased for unfair contract terms that are found by the courts to be included in standard form contracts.
The Act provides businesses 12 months to review and amend their standard form contracts to comply with the legislation otherwise higher penalties can be imposed by the court.
Under the Competition and Consumer Act, penalties for businesses may be, whichever is the greater:
• up to a maximum of $50M; or
• three times the value of the "reasonably attributable" benefit obtained from the conduct, if the court can determine such a figure, otherwise if the benefit cannot be determined, 30% of adjusted turnover during the breach period.
For an individual, the maximum penalty will increase from $500,000 to $2.5M.
These changes have been supported by agricultural bodies such as the NFF and the ACCC.
As like the Mandatory Dairy Code, these changes will need to be monitored and amended as required to ensure that they provide the best available protection to small businesses.
President of NFF Fiona Simson has correctly identified that further work will be "needed to be done to ensure competitive markets in our food supply chains."
"The unfair contract terms laws are vital to protect consumers and small businesses against terms in these contracts that take advantage of this imbalance in bargaining power. We are pleased that these laws have been strengthened," ACCC Chair Gina Cass-Gottlieb said.
Where market power is abused by those in stronger bargaining positions, advocacy bodies like eastAUSmilk will highlight these abuses to government to seek appropriate redress.
We will watch closely as these changes come into effect and eastAUSmilk will lobby for further changes, if needed, to ensure dairy farms remain sustainable within the dairy value-chain in their relationship with processors and supermarkets.
Shaughn Morgan, Co-CEO eastAUSmilk
eastAUSmilk - time for member’s involvement
The first anniversary of the amalgamation of Queensland Dairyfarmers Organisation and Dairy Connect in forming 'eastAUSmilk' occurs on 1 December.
It has been an exciting 12 months under the guidance of Matt Trace and the members of the interim board and interim district councils.
The values that underpinns the organisation, as highlighted by the 'AUS' in the name, being 'Advocacy, Unity and Service', have provided a positive and collaborative way in bringing together dairy farmers from two states under one umbrella.
As has been said, unity of numbers and unity of purpose provides the foundations of a strong and united organisation enabling it to effectively advocate before government and other stakeholders within the dairy value chain.
With the terms of the current members of the interim board and district councils coming to an end on 31 December, eligible members of eastAUSmilk are encouraged to consider standing for their district council and/or for the board.
Nominations are now being received until Sunday 13 November and you may obtain a nomination form for your district council and/or for the board from Lynelle Rogers by emailing her on ea@eastausmilk.org.au or by phone (07) 3236 2955. Alternatively, you may download the nomination form(s) from the eastAUSmilk website at https://www.eastausmilk.org.au/board-and-district-councillor-nomination-forms
If more nominations are received than positions available in either the district councils or the board, then elections will be held to determine those who will be elected.
The board of the eastAUSmilk recently amended the boundaries of the 6 District Councils to ensure inclusivity of the members within the two States, which are now:
• the Northern – Central Qld District;
• the Burnett - Gympie - Moreton Qld District;
• the Scenic Rim – Lockyer Valley Qld District;
• the Darling Downs Qld District;
• the Northern NSW District (North Coast - Mid North Coast – Lismore - North Inland); and
• the Southern NSW District (South Coast - Sydney basin - Inland).
Involvement of the members in the democratic process of any industry association is vital for its well-being and corporate governance. I encourage you to consider becoming involved within your organisation.
If you have any questions, please feel free to contact your representative interim board member whose contact details may be found at the eastAUSmilk website or by contacting the office.
Shaughn Morgan, Co-CEO eastAUSmilk
Methane emissions - part of a bigger whole
The Australian dairy industry comprises a dairy herd of over 1.4 million cows, a workforce of over 43,000 and farm gate production valued at $4.8 billion.
In its 2021 report 'economic and broader contribution of the Australian dairy processing industry', Deloittes also estimated that dairy processors generate $15.7 billion in sales and support 70,000 full-time equivalent jobs.
The contribution of Australian dairy to the economic well-being of the nation is unquestioned.
The recent announcement by the New Zealand government to impose a 'fart tax' on livestock from 2025 may result in NZ beef and sheep production falling by 15% to 20%, with dairy declining by 5%.
NZ farmers have reacted by marching in the streets against this decision by their government.
Australian farmers were justly concerned.
Federal Minister for Agriculture Murray Watt consulted with peak agricultural bodies regarding Australia becoming a signatory to the global methane pledge to seek the aspirational collective non-binding goal, with 122 other countries, of reducing methane emissions by 30% by 2030.
Minister Watt stated that "the pledge does not require reduced herd sizes and (the government) will not legislate taxes or levies to reduce livestock emissions".
Peak bodies welcomed the Minister's pledge.
CEO of the Cattle Council, John McGoverine, stated that "millions in cattle levies have been invested in new feed additives that significantly reduce methane emissions including asparagopsis, or pink seaweed, which can cut emissions by more than 90%".
Australian dairy has also committed to reducing methane emissions.
Dairy Australia supports a 5 pronged approach on emission levels, including boosting diet quality; genetic improvement within cows; availability of better feeding for cows; improving a farmer's herd fertility and perfecting pastures.
Australian dairy farms are declining already. Any 'fart tax' would substantially increase the decline and any tax would be opposed by agricultural industry bodies.
Farmers need to be provided with incentives to reduce methane emissions not penalties as in New Zealand.
Rather government must improve resourcing for RD&E to find better ways to reduce emissions across all industry sectors, not just agriculture.
While the government's pledge is only an aspirational goal, it needs to be remembered that Australian food security and our economy depends on a strong agricultural sector. This should not be forgotten in future discussions.
Shaughn Morgan Co-CEO eastAUSmilk
Engagement - a key word
Any industry association is underpinned by its members and that the activities that the organisation undertakes on their behalf.
This can range from providing members services through to actively advocating for issues that impact decisively upon their industry or area of concern.
In the instance of eastAUSmilk, it is the coming together of the members from Queensland Dairyfarmers Organisation and NSW based Dairy Connect.
As eastAUSmilk nears the first anniversary of it becoming a united and dedicated fresh milk dairy farmer organisation, its ideals of Advocacy, Unity and Service are as relevant now as it was when it began its existence in December 2021, if not more so.
Yet, like any industry organisation, eastAUSmilk is only as strong as the members it represents. It must continue to rely upon the active and public involvement of its members in the role that it plays in representing their interests.
Seeking positive change through the development, implementation and advocacy of dairy policy is of paramount importance to ensure a strong, viable and sustainable fresh milk dairy industry into the future.
Ensuring a positive future for the next crop of dairy farmers.
This illustrates the purpose of eastAUSmilk. To provide a positive and seismic change in the way that we address the changes required and to make public the roadmap to reach its goal of a sustainable fresh milk industry in NSW and Queensland.
However, any agricultural industry body requires the support of the farmers that it represents as members provide the voice, direction and way in which dairy policy can be developed and implemented.
You need only look at its achievements in recent years with the demise of $1/L milk, the introduction of the Mandatory Dairy Code and bringing public awareness to 'truth in labelling'.
However, the issues continue.
The need for strong biosecurity protections to prevent the introduction and spread FMD and LSD; to ensure that appropriate safeguards are implemented to lessen the devastating impact of natural disasters such as floods and drought; ensuring the profitability of dairy farms and that a strong farmgate price is attained; developing a northern dairy industry plan with government and stakeholders to a fresh milk dairy future.
In early November, eastAUSmilk members will be receiving their notification for elections to district councils. These councils in turn provide the basis of the eastAUSmilk board.
This involvement by members ensures the strong platform for member interaction in all avenues of policy development and interaction. As I stated above, any industry organisation is only as strong as the members it represents.
I urge you to consider putting your name forward to serve your fellow dairy members and the dairy industry generally by standing for your regional district council.
Shaughn Morgan Co-CEO eastAUSmilk
Norco Ice Cream Factory Rebuild Great News for Lismore and Dairy Farmers
On 28 February 2022 the world changed for Lismore, but unfortunately in a devastatingly bad way. The biggest flood in history caused chaos for everyone including dairy farmers, businesses and residents alike. Almost everything was badly flooded and the devastation was heart breaking for all. 7 months later things are far from normal still. Most houses are inhabitable, and most businesses are not operational.
In the middle of this sits Norco, a dairy cooperative and the biggest employer in the Lismore region. Their head office and ice cream factory were flooded like everything else in Lismore. 7 months later their head office is getting closer to completion but the ice cream factory has been cleaned up and left dormant.
It was great news to hear this week that the ice cream factory will now be rebuilt thanks to $45.7m in funding from the federal government. Without this funding it would not have been commercially viable to rebuild the ice cream factory and I thank Minister Watt for ensuring this rebuild will become a reality.
The rebuild will allow many of the factory workers to remain employed and will help the rebuild in the devastated town of Lismore. The ice cream factory will also be a positive for Norco in diversifying income streams and increase profits. This should allow Norco to return extra money to its dairy farmer shareholders to drive further milk price increases to farmers and pay a sustainable price.
It is very positive to see Norco investing in the northern NSW and Queensland dairy industry. This will be a major manufacturing facility which is rare in the northern dairy industry. The factory will utilise some excess milk in spring and create additional demand for milk when there is too much to meet fresh bottled milk requirements.
Thank you to Minister Watt for securing funding to help the Norco ice cream factory to be rebuilt. I look forward to the construction going quickly and the factory being operational in the near future. This is a big win for both Lismore and dairy farmers which need positive news after the devastating year they have faced.
Eric Danzi Co-CEO eastAUSmilk
Falling milk production, declining dairy farmers - where to for Queensland?
The Australian dairy industry has seen a continued decline in the production of milk and this continued decline is showing no signs of abatement.
Dairy Australia, the dairy industry’s research and development corporation has stated that there was a 8.3% decrease in July. At the same time the year-to-date drop in NSW was negative 12.6% while Queensland was a negative 14.3% year-to-date.
The constant pressures being faced by dairy farmers are contributing to dairy farms being sold and farmers exiting the dairy industry or moving into other commodity groups such as beef.
In recent years, droughts and floods have been constant. Now the Bureau of Meteorology is predicting a strong chance of a third La Nina weather pattern adding to these woes.
Yet farmers generally and dairy farmers specifically remain eternally optimistic about the future of their farms and the communities that underpin them.
In September last year, the NSW Government released the NSW Dairy Industry Action Plan. The plan has put forward 28 recommendations to revitalise the NSW dairy industry over 4 themes.
Like NSW, Queensland dairy industry is in the process of developing a northern dairy industry plan which is intended to also revitalise the dairy industry in this state and return profitability and sustainability into the dairy industry.
This plan is intended to cover the subtropical region and is being driven by dairy industry advocacy body eastAUSmilk in consultation with Dairy Australia, Subtropical Dairy and dairy industry stakeholders including processors and the state government.
The draft terms of reference have been developed with Dairy Australia, Subtropical Dairy and supported by the eastAUSmilk board. It is intended to be overseen by a steering committee with an independent chair who has an understanding of the Queensland dairy industry.
The steering committee will establish a number of sub committees to consider issues such as pre farmgate competitiveness; market dynamics and opportunities; and the policy and enabling environment.
The failure to revitalise the Queensland dairy industry is not an option. Falling milk production and declining dairy farmer numbers must be halted.
The dairy industry players including advocacy body eastAUSmilk will assist in addressing those concerns and start that dialogue.
Shaughn Morgan, Co-CEO eastAUSmilk
More positive times for dairy industry
The dairy industry has had many tough times over recent years. There was the drought that kept going, followed by devastating floods, ongoing wet and muddy conditions, and a massive increase in the cost of inputs.
However, in recent months there have been some significant positives. Although there has been some rain, weather conditions have generally been better in most regions over recent months. Hopefully this continues and we have a normal wet season coming up.
The cost of inputs has stopped rising rapidly and have fallen for some inputs. The price of some inputs including urea increased again after falling considerably. Hopefully, we can see a steady fall in key inputs including fertiliser, fuel, and grain over the coming months.
The milk price increased substantially in July and most farmers would likely receive between 85c and $1 per litre this year. This is a historically very high milk price and with a softening in input costs would lead to decent profits for most farmers.
So, what has been the impact of the changes on dairy farmers? Some farmers have still ceased dairying in recent months but the mass exodus that we saw, especially during the drought, has ended.
There are an increasing number of farmers spending money on their farms given the more positive times currently and expected in the future. Some farmers are buying cows in an attempt to rebuild herds and increase milk production to take advantage of higher prices. There are an increasing number of farmers investing in capital on their farms both machinery and sheds.
Many farmers are investigating whether to make large changes to farm infrastructure to make their farms more resilient to future weather events (both flooding and droughts). This would be a very large capital investment for most farmers so many are wanting more certainty over future milk pricing before making such huge investments.
There are more positive signs for the industry. Most farmers want clear commitments from processors to increase milk prices to at least $1/L in the next year and maintain the 15C/L for new milk for at 3 years. These clear signals will be required for farmers to pull the trigger on substantial investments leading to large increases in production. I expect that the potential new entrants to the dairy industry are wanting the same before investing.
Eric Danzi, Co-CEO eastAUSmilk
Kay Tommerup appointed to QFF board
Kay Tommerup is a dairy farmer from the Beaudesert area who recently joined the board of eastAUSmilk. Kay has considerable skills in a range of areas which she has used to diversify her dairy farming business over the years with her husband David. The Board and senior management of eastAUSmilk believe Kay’s skills and enthusiasm would be useful not only for eastAUSmilk but also QFF (Queensland Farmer’s Federation). As such, eastAUSmilk has appointed Kay as our QFF nominated Director.
I fully expect that Kay will use her skills and experience to assist and lead QFF forward over the coming years. I expect all at QFF will value Kay’s input and inspire QFF to move forward as an organisation.
It is vitally important for QFF to work in partnership with government to achieve outcomes for farmers and government. Developing partnership programs with government is a key area that we need to further enhance to ensure that farmers flourish in the new world. I expect Kay to be of great value in developing and implementing these partnership programs in many areas including water, natural resource management and animal welfare. In addition, addressing government red tape restrictions on farmers and industry marketing are key skills of Kay’s that I expect to be utilised by QFF to help achieve outcomes for all farmers.
QFF undertakes a range of activities on behalf of eastAUSmilk and farmers which often go unrecognised. In addition to the key areas above, QFF is very active in a range of areas including water management and pricing, natural resource management, biosecurity, and labour.
Good luck to Kay in her new role. I look forward to watching her help lead QFF forward over the coming years to ensure that QFF delivers new and innovative outcomes for all QFF farmers.
Eric Danzi, Co-CEO eastAUSmilk
Milk comes from dairy cows not plants
Dairy farmers and their families are grateful for the ongoing strong support of Australian consumers for fresh nutritious milk, which is a staple of their food basket.
This is demonstrated by the continuing demand for fresh milk by supermarket customers.
Dairy Australia's Human Health and Nutrition Policy Manager, Melissa Cameron, in her recent presentation to the eastAUSmilk Annual Forum, indicated that 98% of households continue to regularly purchase milk.
She went on to say that 82% of households also agree that it's important to support the Aussie dairy industry.
Indeed, dairy milk provides 9 nutrients essential to human health.
Milk also contains other nutrients including B vitamins for energy, vitamin A to help maintain a healthy immune system and calcium and vitamin D, both of which work to build bone strength.
It is for these reasons that our peak advocacy body Australian Dairy Farmers (supported by the State Dairy Organisations and based on the empirical data and evidence provided by Dairy Australia) advocates for the importance of 'truth in labelling' in dairy produce.
Iconic dairy terms such as ‘milk’ should be safeguarded from misuse. This is especially so with the increasing acceptance of plant-based drinks as a 'milk substitute'.
Non-dairy alternatives generally had filtered water added to their plant base and were fortified with calcium and a range of other minerals and vitamins.
In some cases, key minerals and vitamins were not naturally present in these plant-sourced drinks. Nutrients were added to these products to try to mimic the composition of dairy milk.
Hence, the nutritional differences between dairy milk and plant-based alternatives are self-evident and 'truth in labelling' should occur now.
In the USA, the National Milk Producers’ Federation characterises such labelling as a misappropriation of ‘traditional dairy terms’ and says that ‘food labels should clearly and accurately identify the true nature of the food to the consumer’.
These non-dairy businesses should not be permitted to represent their products as something they are not.
Thus, the Government should act now to implement the many recommendations put forward over the past years and ensure that dairy milk is afforded the protection that the name 'milk' deserves.
Dairy farmers who work from before dawn to well after dusk each day deserve no less.
Shaughn Morgan, co-CEO eastAUSmilk
Annual Forum and Annual General Meeting 2022 - A Reflection
The Board and members of eastAUSmilk were grateful for the hospitality afforded to them by the people and dairy farmers of the Northern Rivers when the advocacy body held its recent Board Meeting, Annual Forum and Annual General Meeting in Lismore.
We were pleased to support the community as it continues its rebuilding of its township within its region, after the devastating impact of the floods.
The members were provided with 2 policy updates from experts in their fields on the preparedness to prevent foot and mouth disease and other biosecurity risks from reaching Australian shores (www.daf.engagementhub.com.au/animal-disease-preparedness) as well as the high nutritional value of dairy as against plant-based alternatives (www.dairy.com.au/health/nutrients).
Both presentations were well received, and copies of the speaker's PowerPoints may be obtained by emailing shaughn@eastausmilk.org.au
In 2 further addresses, the CEO of Norco, Michael Hampson, reflected upon the importance of collaboration within the dairy industry while CEO David Inall spoke about the activities of our peak industry body Australian Dairy Farmers.
The current Board also agreed to the timetable for the upcoming Board and District Councils to replace the interim members. Information will be made available in October for the nomination process and elections to be held so that the elected members can commence their tasks on 1 January 2023.
To stand for elected office, join eastAUSmilk and become an active member of your industry association. Further information regarding membership may be obtained from Lynelle at ea@eastausmilk.org.au
In his Presidential Address, Matt Trace, spoke about the positive messages from the FairGo Dairy Logo campaign within the dairy industry and the natural disasters that NSW and Queensland have encountered over the past 12 months.
The resilience of the agricultural sector to such adversity is to be applauded.
Expressions of thanks were also extended to former President (and current ADF Board member) Brian Tessmann as well as former Board members Joe Bradley and Gary Wenzel who all stepped down since the 2021 AGM.
The Board, District Councils and staff look forward to continuing to lobby and advance the cause of a strong, vibrant, and sustainable dairy industry in the northern States in the months and years ahead.
Shaughn Morgan, co-CEO eastAUSmilk
Feed in tariff need for ROI on solar for dairy
A dairy in the Lockyer Valley region, milking 250 cows, has implemented a photovoltaic (PV) system and management opportunity based on the energy audit report the farm received through the Energy Savers Plus Program Extension. Through the program the business site received a dairy shed energy audit carried out by AgVet Energy and an electrical site analysis performed by Solar Energy & Battery Storage Solutions (SEBSS) as well as an irrigation energy audit completed by The Energy Guys, all engaged by eastAUSmilk.
The goal of the business is to reduce electricity costs by implementing a PV System and making maximum use of the energy generated by the system to reduce energy imported by the grid.
Thanks to data provided by SEBSS performance monitoring of the Solar PV system, I was able to evaluate the savings and outcomes achieved from the farms investment.
Monitoring the farm energy use from June to August 2021 the load was 314 kWh/day with an average 271 kWh/day being supplied by the grid. With average grid supply cost of 20 c/kWh the 43 kWh being supplied by PV the system conservatively achieves a grid annual saving of $3,139.
As the business was on demand tariff 44 no income was being generated from the excess solar being fed into the grid. The business aims to move to a consumption tariff, so we explored the potential income from an expected feed in tariff of 7.84c/kWh.
With the average utilisation currently of 44% annually the PV system is expected to export 30,660 kWh. Potentially generating just over $2,400 per year.
With the increase of solar utilisation expected due to irrigation through summer the income generated through solar export will be reduced; however, this means the total business savings provided by the system will be higher as the export rate of 7.84 c/kWh is far less than the grid supply rate of 20 c/kWh. Provided that irrigation occurs during sunlight hours to make the most of the PV output.
The total expenditure invested by the business was $37,000. With over $3,000 in annual savings from reduced grid supply the calculated payback period of this investment is 11.78 years with a return on investment of 8.5%.
If the business is able to generate income from the PV export the total annual savings $5,542 would reduce the calculated payback period to 6.68 years with a return on investment of 15%.
Solar Energy & Battery Storage Solutions (SEBSS) can provide a comprehensive electrical data analysis for your business, Paul Reynolds on 0414 636 099.
Torie Harrison – eastAUSmilk
eastAUSmilk – accountability and growth
At the heart of every industry body is its members.
Members provide the guidance to the elected officials in undertaking their duties and policy direction for staff to advocate on the many issues that the members confront on a daily basis.
In that regard, eastAUSmilk is no different to any other organisation whose task is to safeguard the interests of their members.
Part of that democratic process is the holding each year of the Annual General Meeting where the members are provided with a 'health' check on their organisation.
They are able to ask questions of their Chairperson and seek confirmation from members of the Board. It is not just an expectation but a statutory requirement for such meetings to occur.
It is in essence the accountability that members not only want but need.
On 30 August, eastAUSmilk will be holding its AGM at the Lismore Turf Club, starting at 1pm. It will be preceded by the Annual Forum where member updates will be provided, and topical policy issues will be presented and discussed.
One of the major issues that dairy farmer members have raised with their Board members in recent times is that of biosecurity and in particular the safeguards that are in place to prevent 'foot and mouth disease' and 'lumpy skin disease' from taking hold in Australia.
We are pleased that at the Forum, representatives of QLD DAF and NSW DPI will address matters relating to biosecurity and where members can raise questions that they may have.
As well, Melissa Cameron from Dairy Australia will provide information regarding the nutritional benefits of dairy milk as against plant-based alternatives. This is topical given the continuing public discussion regarding 'truth in labelling' and its importance to dairy farmers and consumers generally.
Updates will also be provided by the CEO of dairy cooperative Norco, Michael Hampson, and the CEO of Australian Dairy Farmers, David Inall.
The Annual Forum will be from 9.30am for a 10am start and is open to members and dairy farmers generally.
Additionally, the day will also be an opportunity to mix informally with other members, dairy farmers, directors, and staff.
Through such interaction, the vitality of eastAUSmilk can be maintained and allowed to grow organically.
The Board of eastAUSmilk looks forward to welcoming you to the Annual Forum and AGM on 30 August at the Lismore Turf Club.
Shaughn Morgan, Co-CEO 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