What will politicians in NSW give dairy?
The NSW state election on Saturday 25th March provides an opportunity for advocacy bodies, such as eastAUSmilk, to seek commitments from politicians on behalf of its members.
This will be no different when Queensland goes to the polls on 26th October 2024.
In NSW, it is critical that government and the labor opposition recognises the pivotal role that dairy farmers play in the 'day-to-day' lives of its citizens and the nutritional value of milk for the community.
The current NSW dairy position is grim, with Dairy Australia showing NSW milk production declining in year-to-date figures of -11.8% for January and the number of dairy farms declining from over 1,700 farms in 2000 to under 500 dairy farms now.
What is required are forward-thinking, positive and collaborative election promises to address the underlying systemic issues within the NSW dairy industry.
The NSW labor opposition has committed to appointing a statutory and independent NSW Dairy and Fresh Food Commissioner to revitalise the NSW dairy industry.
The NSW labor opposition has promised that the Commissioner would oversee, in the first year:
An effective mediation and arbitration process for NSW farmers in consultation with local industry and the ACCC (in conjunction with the mandatory code for dairy);
A truth in labelling policy for dairy and fresh food;
A model uniform national standard to deliver consistency in testing, sampling and the calibration of equipment used in fresh milk production to ensure a fair farm price;
Review best practice business models, review contracts and plans for long term industry sustainability as well as better competition and succession planning for dairy families; and
Convening a whole of dairy industry roundtable to review the state of the dairy industry and the 28 recommendations arising from the NSW dairy action plan.
This is an important and pivotal initiative. It is deserving of bipartisan support.
While the NSW liberal and nationals government has not made specific dairy announcements, it has announced increased funding to the Farm Innovation Fund, doubling the amount farmers will be able to access; as well as expanding fee-free training through its investment in upskilling and growing the agricultural workforce to livestock industry.
Prior to you voting on Saturday, ask questions of your politicians and be informed about what each political party will provide to agriculture generally and dairy specifically. Every vote counts for a long-term sustainable dairy industry.
Shaughn Morgan, Co-CEO eastAUSmilk
Time for whole of Dairy Supply Chain to get a fair go
Several years ago, QDO attempted to gain traction with a fair go logo for Queensland dairy farmers. Although very well intentioned, the program was not able to get off the ground. However, the underlying issue that the fair go program aimed to address has not gone away. That is the sustainability of dairy farmers is still at risk and there is substantial contraction of the industry across the country as a result.
How do we stop the contraction of the dairy industry? The whole dairy supply chain must be profitable and sustainable for the contraction to end. This includes dairy farmers in all states of Australia, dairy processors throughout Australia and the companies that transport milk from farms to processing facilities and then onto retail and export destinations. The whole of the dairy supply chain throughout Australia must get a fair go or the contraction and job losses will continue across the country on farm, in factories and in transport companies.
The Australian dairy industry lost 300ML in 2021/22 and is on track to lose 630ML in 2022/23. But we have some retailers and processors saying the price paid to farmers and processors should go down because the world price has gone down? This makes little sense in Australia where production has slid so far that we have gone from a major dairy exporting country to a net importer of dairy products.
Surely if there is a major shortage of milk the lowest valued uses included low valued exports will cease and the milk will continue to move to higher valued domestic uses? And surely the retail price of dairy products, including fresh milk products where almost 40% of Australia’s milk production is used for, must go up substantially?
Alternatively, the price can stay low, the industry will continue to contract and imports will increase further. And the imports are often from countries who subsidise their production, use drugs that are illegal to use in Australia and do not adhere to animal welfare standards applied in Australia. Is that really what consumers and retailers want?
Eric Danzi, Co-CEO eastAUSmilk
Continued Consumer Demand for Fresh Milk with Declining Milk Production
The January 2023 Dairy Australia milk production report continues to show both national and state decline in milk production.
National figures for January 2023 showed a 3.6% decrease on January 2022, with national year-to-date being down 6.6%.
The two largest fresh milk producing states also showed a decline in year-to-date figures, with Queensland production being -8.5%, while NSW is -11.8%.
Thus processors will need to ensure their continued supply of fresh milk for the coming year and beyond. This should therefore auger well when dairy farmers negotiate their milk supply agreements with their processor.
Rabobank's latest report 'Australia's Drinking Milk Markets: from Loss Leader to Improving Performer' indicates that the "liquid 'drinking' milk market remains of key importance to Australia's dairy sector - with improved domestic retail pricing and opportunities for further export growth".
This is based upon stronger and higher prices for fresh milk and other dairy produce in Australian supermarkets.
While Australians continue to consume fresh milk in high quantities compared to other nations, there has still been a reduction in the amount of milk being drunk over the past years. Dairy Australia figures have indicated that domestic milk consumption has fallen by 13% since 2012/2013 when Australians drank 106.7 L per person.
Total Australian fresh milk consumption contracted by 1.1% (about 36 M/L) in 2020/2021.
Rabobank dairy analyst, Michael Harvey, has indicated that this is not unique to Australia as many westernised economies have shown a similar trajectory to that of Australian milk consumption.
Rabobank's report indicates that "it's not all bad news for domestic dairy consumption, with consumers simply consuming dairy in different forms".
The report also goes on to state that there are also growth opportunities for exports of liquid milk, especially in the 'Greater China' markets. Total volumes of fresh milk in these markets have expanded by an average of 25% each year over the past decades.
Dairy farmers should enter their milk supply agreement negotiations in the positive knowledge that the need for nutritious fresh milk is in continued demand for both the domestic and export markets.
This, in conjunction with the safeguards afforded by the Dairy Mandatory Code, should enable dairy farmers to seek a strong and fair farmgate price for fresh milk.
Shaughn Morgan, Co-CEO eastAUSmilk
Embracing community collaboration in Northeastern NSW
EastAUSmilk staff Eric Danzi, Lynelle Rogers and I were invited to attend this month’s farm walk at Darryl and Coral Rose’s dairy farm in Goolmangar NSW. There was a good turnout of 24 people including other farmers, as well as representatives from Norco, Subtropical dairy and NSW Natural Resources Access Regulator and Rabobank. It proved to be an excellent opportunity to provide an overview of what we do, catch up with members and connect with other organizations in the area, as well as being great to see farmers supporting each other.
After some friendly introductions and a cup of tea, the group had an open discussion on the successes and challenges on their own farms. NRAR facilitated discussion on future water allocations and metering requirements as well as offering support to farmers planning ahead for likely changes. The use of drones was also discussed, and it was somewhat surprising to hear how widely they are used in the area when growing fodder crops, for spraying, fertilizing and even seeding. They have proven particularly useful when planting uneven paddocks and even more so when wet, where it would be difficult or impossible to work paddocks with a tractor. Future milk prices were also a topic of debate with little confidence in them either rising or falling, leading to some hesitance to make any major investments until they can be confirmed one way or another.
We visited several other member’s farms while in the area which was a great opportunity to visualize the different methods and goals of each and to help gauge areas where we can provide support and potential avenues to extend our services. Having only recently incorporated NSW into our member base, putting faces to names and understanding their individual goals and needs is invaluable for providing services where they are needed the most.
EastAUSmilk aims to hold an on-farm workshop at Lismore in April to facilitate additional discussion on key points of interest for our members, including a look at a newly installed feed mixer and calf shed, as well as topsoil mapping, RFID collars and drones for various uses. This is something we will be looking to continue across all regions in the future to promote new ideas and technologies within the industry as well as address any arising concerns from members.
Letisha Johnson, Project Officer eastAUSmilk
Individually Strong, Collectively Stronger
Over 600 dairy farmers and delegates attended the Australian Dairy Conference last week.
The conference was held for the first time in several years, and the attendance illustrated the collective need to unite.
The program was rich in content, ranging from the keynote address by the executive chairman of Bega Cheese, Barry Irvin, to presentations on the future of dairying in Australia (including opportunities), dairy farm succession, 'cattle, methane and climate' through to sessions on strong and effective advocacy to have our dairy voices heard, including enhancing the perception of dairy via mainstream and social media.
The attentiveness of the delegates showed a strong desire to seek the most up-to-date information available on these and many other matters that were discussed between the sessions.
The tone for the Conference was set at the beginning by the personal journey that Barry Irvin gave to those in the auditorium during his reflective presentation.
This was also a hallmark of the emotional journey shared by Lynn Sykes as she touched upon her many years of guidance for dairy farmer families as they transverse the perilous path towards farm succession.
Former federal MP Cathy McGowan discussed her 'kitchen table' approach to political discussion with her community. An approach that could be adopted in any number of federal and state electorates.
I raise these 3 speeches as they illustrate the personal side of advocacy, farming and the importance of 'collective mateship' amongst dairy families.
It is about personal interaction and being there for one another during natural disasters and emotional stress. It is about coming together and being there for one another.
Over the coming weeks, we will touch upon some other aspects from the conference sessions.
In the coming months, other dairy issues will be addressed by those directly affected, especially as dairy farmers begin the process of negotiating their milk supply agreement with their processor.
However, we will confront all these issues together. As we have in the past, as we have done now and as we will do in the future.
Shaughn Morgan, Co-CEO eastAUSmilk
All eyes on 1 June contracts
There is constant discussion in the dairy industry about the upcoming yearly frenzy for milk which officially starts on 1 June. Some contracts have already been presented including 3-year contracts in Victoria at around 90c/L.
It is unclear what will happen to prices from 1 July 2023. On the one hand, retailers are trying to contain price increases given the 30-year high inflation rates. In addition, world dairy prices are not as favourable as they were last year.
On the other hand, milk production in Australia fell by 300ML in 2021/22. Production has already fallen by around 300ML at the halfway point of 2022/23 so is on track to fall by 600ML for the year. Australian production will likely fall to under 8BL which is a far cry from the almost 12BL peak. The days of Australia being a large dairy exporter are well and truly behind us and we are now a net importer of dairy products.
So, what does all this mean for prices in July 2023? There are 2 options. The first is that prices only increase marginally from the 2022/23 prices. If this occurs, production throughout Australia will plummet and most likely a further 1BL of milk will disappear. Dairy farmers throughout Australia will not continue to produce milk for love and need reasonable profits to justify continuing. Can you blame them when there are many other options for their land that require much less work, risk, inputs and labour? No, you can’t.
The other option is we see substantial increases in prices to justify farmers continuing and for some expanding. Given a 15c/L price increase across Australia last year has still led to a 600ML loss, it is clear that a further increase in line with last year is required to stem the tide of milk loss.
But is plummeting milk production really a bad thing for the industry? Can’t processors remove their low valued lines and make the same money as they did previously? Well, that’s all great, but what happens if they weren’t making much money last year? And how do processors fulfill contracts where these low valued products are required if they don’t make them anymore? And if these low valued lines are removed, how many factories across Australia are shut down, how much do processors write down the value of their business and how many people are unemployed?
June will be a fork in the road time for the Australian dairy industry.
Eric Danzi, Co-CEO eastAUSmilk
Milk Production, Farmgate Price and the Mandatory Dairy Code
Milk production data has been released by Dairy Australia for December 2022. It shows a continued decline in milk production throughout Australian dairy States, as shown by the graph below:
Source: Dairy Australia (https://cdn-prod.dairyaustralia.com.au/-/media/project/dairy-australia-sites/national-home/pages/milk-production-reports/national-milk-production-report-december-2022.pdf?rev=0af5a5fc28e347b3a4bf498f2fc5f53f)
The data also indicated that national milk production for December 2022 "showed a 6.5% decrease on December 2021, whilst national year-to-date was down 7.1%".
These figures are concerning.
It has been suggested by some dairy commentators that the milk production for 2022/2023 may fall beneath 8 billion litres for the first time since 1992/1993.
Hence, the up-coming 2022/2023 milk supply agreement negotiations between dairy farmers and processors for a fair and profitable farm-gate price is essential for retention of dairy farmers within the dairy industry and increased milk production.
As negotiations begin, dairy farmers should review the safeguards provided by the Dairy Mandatory Code since it commenced in 2020.
Processors must place on their websites before 2pm 1 June their standard form milk supply agreements, which must be available for all to access. They must also provide pricing justification, be genuine and comply with the provisions of the Code.
Importantly, the Code is predicated upon good faith discussions in reaching an agreement and be in plain English.
While the Code does not set a minimum price, it does state for instance that a minimum price must be included in the agreement after consensus is reached. It also indicates that the agreement must have a cooling off period (14 days) and include a definite supply period with quality and quantity requirements specified.
This requires a level of trust and cooperation between the parties, which the Code has been restoring over the past years since the collapse of Murray Goulburn in 2016.
Being prepared for your negotiations and having access to the most up-to-date information is essential to reach a reasonable and transparent agreement.
The ACCC has published a fact sheet for dairy farmers which may be accessed at https://www.accc.gov.au/publications/what-the-dairy-code-means-for-farmers-fact-sheet
Further assistance is also available from dairy advocacy bodies like eastAUSmilk.
Shaughn Morgan, Co-CEO eastAUSmilk
EastAUSmilk President and Vice President Elected
The new board of eastAUSmilk commenced its 3-year term on 1 January 2023. The board met for the first time on 30 January 2023 and at this meeting elected their president and vice president. Matt Trace from the Gympie region was elected president. Matt continues in this role that he has held for 1 year since the inception of eastAUSmilk. Matt operates 2 dairy farms and has been a director for 7 years.
Peter Graham from the Lismore region of NSW was elected the vice president. Peter joined the board on 1 January 2023 after serving as a very active district councillor of eastAUSmilk since its inception in December 2021. Although new to the board, Peter has extensive experience in board roles including previously being a local government councillor and on the Norco board. Peter has a real passion for the dairy industry and dairy farming. Peter also has long been a strong advocate for bringing NSW and Queensland together as one dairy industry through eastAUSmilk and is well known in both NSW and Queensland.
The board felt it important to have both NSW and Queensland represented in the key leadership roles of president and vice president. Matt and Peter will be able to lead their respective states and most importantly lead eastAUSmilk in the interests of all dairy farmer members in NSW and Queensland.
It is now time for eastAUSmilk to move forward under the leadership of Matt, Peter and the other eastAUSmilk board members being Ruth Kydd, Kay Tommerup, Waylon Barron and Glen Drury. The board will need to set the strategic direction for eastAUSmilk for the next 3 years. Most importantly, they will decide the key priorities that we will focus on.
Eric Danzi, Co-CEO eastAUSmilk
Dairy - ‘resilience is the future’
It is a marvel to have witnessed the strong and ongoing resilience of the dairy industry, and particularly dairy farmers, over the past months.
This is despite recent natural disasters such as floods and the reducing number of dairy farms with the continued decline of milk production, as evidenced by Dairy Australia statistics.
Dairy resilience is a strong positive sign and illustrates the desire to ensure the long-term viability of the Australian dairy industry.
It is therefore essential that industry players in the dairy value-chain, from dairy farmers to retailers, continue to engage in a positive and collaborative manner. This also extends to other pivotal stakeholders such as the federal and state governments.
This will assist the long-term sustainability of the northern dairy industry specifically and the Australian dairy industry generally.
This engagement via for instance the establishment of a northern dairy industry plan steering committee illustrates the importance of ongoing dialogue and collaborative effort.
That is not to say that this will be an easy path to travel. Indeed, it will not.
The northern dairy industry, being northern NSW up to the tip of Queensland, faces many challenges.
The plan will review and examine issues associated with market failure, industry fatigue, accessing labour, ongoing cost pressures from increased farm inputs and the lack of productivity gains in recent years.
The success of the plan will depend upon those people, organisations and companies who contribute to it and particularly those dairy farmers who wish to engage with their industry bodies and processors in the coming months and years.
Our dairy leaders have a long path to tread.
Nevertheless 'resilience' is vital for the future of the Australian dairy industry and for the growth of milk production in the domestic and export markets.
On a personal note, I have had the privilege of being Co-CEO of the amalgamated body of Dairy Connect farmers group and Queensland Dairyfarmers Organisation since December 2021 and I have decided that the time is right to move on from this role.
It has been an honour and a pleasure to have been involved with the dairy industry over the past 8 years, and I look forward to watching the dairy industry go from strength to strength in the years ahead.
Shaughn Morgan, Co-CEO eastAUSmilk
A very different eastAUSmilk board commenced in January
On 1 January 2023, the new board of eastAUSmilk commenced its 3-year term. This is the first time that elections have been held to elect all 6 directors of eastAUSmilk.
The directors are Glen Drury, Matt Trace, Waylon Barron, Kay Tommerup, Peter Graham and Ruth Kydd. Glen and Peter are new to the board and I’m sure will both contribute significantly over the next 3 years.
The board of eastAUSmilk and QDO previously has changed massively over the past few years. 6 years ago, the majority of the QDO board had been directors for a significant period of time with many having around 15 years’ experience. To some this was seen as a positive while others saw this as a significant negative.
Of the current 6 directors, the longest serving is Matt Trace who has been on the board for 7 years. The next longest serving director is Waylon Barron who has been on the board for around 15 months. Ruth Kydd has been on the board for 13 months, Kay Tommerup 5 months and both Glen and Peter have just started their term.
This change in the composition of the board is very stark and I think a real positive for the organisation. It shows there is interest from farmers on being on the board which is very positive. But also, there is real diversity on the board in gender, size of farms, farming systems and farm businesses. This is quite a change from the past.
I look forward to working with the new board as we strive to make a real difference for our members. There is a lot that could be done by eastAUSmilk and it will be up to the new board to decide the direction and priorities of the organisation.
Eric Danzi, Co-CEO eastAUSmilk
Big thanks to James Geraghty
After 22 years on the board of QDO and eastAUSmilk James Geraghty retired as a director on 31 December 2022. EastAUSmilk will not be the same without James and all staff and directors are all extremely grateful for everything that James has done during his long stint on the board.
James is very passionate about the dairy industry and all dairy farmers and is especially passionate about representing and looking after the interests of dairy farmers in north Queensland. By a considerable margin, the north Queensland dairy industry is the most engaged group in the industry, and this is in large part due to James.
James has always focussed on what is best for dairy farmers and has always been honest, thorough and considered with everything he does and says. He has been a great help to me personally and also to the eastAUSmilk President Matt Trace. His knowledge and attitude will be sorely missed at eastAUSmilk.
I haven’t always agreed with everything that James says. But I always know that James will be upfront with me and do and say what he thinks is right in the interests of dairy farmers and eastAUSmilk. I admit on several occasions I have been wrong, and I have learnt from James which I am grateful for.
I will also miss the array of colourful north Queensland stories from James especially those about guns and tree kangaroos. And I will miss James’ favourite saying which is “we are different in north Queensland.”
A big welcome to the board for Glen Drury. Glen is a very highly respected farmer from Malanda in north Queensland who I’m sure will be an asset on the eastAUSmilk board. And I am very confident James will assist Glen any time Glen wants some advice or help.
Eric Danzi - Co CEO eastAUSmilk
2023 - A Year of Dairy Growth
As we enter 2023, eastAUSmilk is entering a new and exciting phase of its growth and development.
While we will face a number of challenges, there will be as just as many opportunities.
The members of the interim Board of eastAUSmilk have now completed their tenure and the newly elected Board members took their positions on and from 1 January, with a focus on the future of the dairy industry.
In that regard, congratulations are extended to the newly elected board members who will be representing their district regions, being Waylon Barron (Darling Downs QLD), Ruth Kydd (Southern NSW), Kay Tommerup (Scenic Rim/Lockyer Valley QLD), Matthew Trace (Gympie/Moreton/Burnett QLD), Glenn Drury (Northern/Central QLD) and Peter Graham (Northern NSW).
In addition, we extend our thanks to former board members James Geraghty and Graham Forbes for their commitment and service to eastAUSmilk, whose tenure concluded at the end of 2022. Their continued involvement in their respective district councils is welcomed and we look forward to their continued input into the growth of the organisation.
With the initial phases of the establishment of eastAUSmilk completed, new opportunities for the dairy industry in NSW and Queensland will occur.
The district councils and board will be reviewing the opportunities afforded by initiatives such as the Northern Dairy Industry Plan through to the development of dairy beef as well as ongoing engagement with state and federal governments.
The Plan will be vital to future growth and the steering committee will oversee the 3 sub-committees who will be looking at a range of options over the coming months.
This will include examining financial sustainability and profitability for dairy farmers and making appropriate recommendations to industry and government, which eastAUSmilk will strongly advocate for over the coming year.
To support this work, we are also focusing on farmer collaboration to improve relationships in the supply chain. We will work constructively but without fear or favour with processors and supermarkets to achieve positive outcomes.
As we face these challenges and opportunities, eastAUSmilk will continue working on your behalf to ensure the best future for our dairy farmer members.
Shaughn Morgan, Co-CEO eastAUSmilk
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