eastAUSmilk board meets to plan future
Last week the eastAUSmilk board met to discuss critical issues facing dairy farmers and plan for the future. This is the second time the new board, which commenced on 1 January 2023, has met. The fresh faces on the board, with only 1 board member being on the board for longer than 18 months, is a real positive for eastAUSmilk. Also, the drive and passion to lead the dairy industry forward is clear within the board.
Some guests attended the board meeting including Terry McCosker from RCS who spoke about the potential for carbon farming in the dairy industry. Unfortunately, carbon farming does not make commercial sense for dairy farmers at this stage due to lack of scale, but this may change in the future. Rob Cooper discussed the NSW Dairy Action Plan, and it is positive to see the NSW government attempting to help the dairy industry move forward with a clear plan.
New eastAUSmilk government relations manager Mike Smith provided training for the board on the basics of lobbying given his many decades working in senior roles in government and lobbying government. Mike also discussed his government relations plan for eastAUSmilk which will set the foundation for the coming year.
The board also continued a strategic planning process where clear priorities were developed for eastAUSmilk for the next 3 years. Some of the highest priorities decided included the need to implement a proactive program around bobby calves. The downturn in the beef market this year has highlighted the importance of this. Another key priority is to assist farmers implement new technology on their farms to drive innovation, profitability, and growth for the industry.
The upcoming yearly contracting period between processors and farmers was front of mind for board members at the meeting also. A very interesting next few months awaits.
Eric Danzi, CEO eastAUSmilk
Welcome to eastAUSmilk Mike Smith
EastAUSmilk last week welcomed our new addition Mike Smith to our team. Mike will begin a part-time role as eastAUSmilk’s government relations manager. Mike replaces Shaughn Morgan who has been undertaking this role until his departure in April.
Mike has a long history of working within government, including within ministerial offices. He finished in government in recent months with his last job as the chief of staff for the Queensland water minister. Mike is extremely well connected within the Australian Labor Party throughout Australia which will be a great asset for eastAUSmilk with a Labor government in power in Canberra, Sydney, and Brisbane.
Mike has previously worked for QDO in a consulting role before returning to government over 5 years ago. Mike is extremely professional and plans his work in a thorough and methodical way. Mike is always very focused on his priorities and achieving outcomes in key outcomes for eastAUSmilk and dairy farmers in Queensland and NSW.
Mike will meet with the board of eastAUSmilk this week. Mike has developed a detailed document about how to lobby governments in Australia. It will be very useful for the board to better understand the keys to lobbying given how central this role is to eastAUSmilk. In addition, Mike has prepared a detailed government relations work plan that the board will review.
There are several key issues for eastAUSmilk that Mike will government on. This includes gaining funding for key projects for eastAUSmilk and solving the competition problems in the industry, especially between retailers and the industry. Also, the government’s appetite for transformational change to industry structures was the key outcome of the Dairy Plan which has to date been ignored.
Please welcome Mike to his role at eastAUSmilk. I expect Mike to be a valuable asset for eastAUSmilk, dairy farmers and our partners in the Queensland and NSW dairy industry.
Eric Danzi, CEO eastAUSmilk
Jade’s big holiday
Jade Chan started working with eastAUSmilk in December 2019 and has been a huge asset over the past 3 ½ years. Jade’s enthusiasm is infectious with both staff and dairy farmers alike, which has made her a very popular team member.
One of Jade’s first tasks was to take samples of manure for JD testing from 140 Queensland dairy farmers. This required Jade to work very long hours and do the glamorous task of picking up manure samples and delivering them to the laboratory for testing. Jade did this task with a smile and with her typically bubbly attitude she achieved the milestone that was set.
Since then, Jade has undertaken a range of tasks for farmers including helping farmers after disasters, with flood, drought, and other government funding applications. This has required Jade to speak to a lot of dairy farmers, get to know them and gain their trust, which is a huge achievement. Jade would travel to farms every week in different regions.
Dairy farmers in Queensland have come to know Jade well and she is extremely popular with a lot of the dairy farmers. Her infectious bubbly personality and her ability to help farmers on a range of issues has made Jade quite a hit with farmers.
Jade has gone on extended leave for a big trip to around Europe and the United Kingdom. I hope Europe and the UK are ready for Jade’s arrival. Have a wonderful time Jade and appreciate all of the rich history and diverse cultures you will experience along the way.
Eric Danzi and Lynelle Rogers, eastAUSmilk
Lismore Workshop
eastAUSmilk holds numerous workshops throughout the year and all members in the region where the workshop is being held are welcome to attend. Recently a workshop was held at Warren Gallagher’s farm at Ettrick in Northern NSW. Attendance was a little lower than anticipated, however there was still a good turnout of producers and industry representatives.
The day started off with morning tea to allow for some late arrivals, which gave everyone a chance to enjoy a coffee and to catch up with friends and introduce themselves to others, including our Vice President Peter Graham.
Paul Shewen talked about the Feedmaster feed mill, which provides fresh milled grain and additives efficiently and is a reliable feature of the farm. As well as alternative milling systems that are available and different configurations to suit different operations.
Scott Fisher from Skytech solutions discussed the types and features of drones including aerial spraying, seeding, imagery and NDVI mapping, as well as licensing requirements and costs. Afterwards he offered a demonstration of his spray drone which had surprisingly little spray drift when demonstrated with water, despite being a rather windy day.
Chris from Norco Agrisolutions showed the benefits of topsoil mapping, and how it can improve the accuracy of soil tests. Topsoil mapping can detect trace elements, salinity and pH levels as well as different soil types i.e., rock and clay.
The day wrapped up with a tour of the recently renovated calf shed, soon to feature an automatic calf feeder, with plastic slat flooring off the ground for easy cleaning and separate pens for each age group. Overall, the on-farm workshop went smoothly and was a great chance to network and catch up with current and potential members.
Letisha Johnson, Project Officer eastAUSmilk
What is abuse of market power by a retailer?
Retailers in Australia play God. They have so much power and dictate to everyone, especially those who supply products to them. It is virtually impossible for suppliers to stand up to retailers or there are likely to be serious commercial consequences.
In the dairy industry, Coles purchases milk directly from farmers in most states except Queensland and Northern NSW. Woolworths purchases milk directly from farmers in all states for their Farmers Own brand.
All retailers set retail prices for all products in their stores, which sounds fair and reasonable. Coles sets the retail price for Coles branded milk which they own and all other milk products on their shelves. Woolworths sets price for Woolworths and Farmers Own brands they own as well as all other brands on the shelf. Is this fair? Definitely not.
Retailers are able to dictate to all processors who have little choice but to do as they are told or fear losing shelf space, product lines or have the price of their product set higher than their competitors by the retailer regardless of the wholesale price, thus reducing sales. If this isn’t abuse of market power what is?
And now Coles wants to purchase 2 milk plants off Saputo Dairy Australia which are used to bottle Coles milk. This will give Coles complete control of the supply chain and give them further power against other brands. Surely this will not be allowed? It is up to the ACCC to decide whether it will be allowed based on whether it will reduce competition. Blind Freddy can see that this move will reduce competition. We can never forget the fiasco of $1 a litre milk and the damage it caused to the entire dairy supply chain and in particular farmers.
Rather than allow retailers to increase their market power and dictate more to its suppliers, the ACCC and the Federal Government should find ways to reduce their market power. A starting point must be stopping retailers setting retail prices differently for their own brands compared to others. Retailers should not be able to put a small margin on their own brands and then add a margin that is 5 times higher on brands they do not own for their own commercial gain, which is what they do now.
This problem of retailers dictating to suppliers is not just a problem for the dairy industry. It is a problem for every industry and company that supplies retailers. So, the ACCC and the Federal Government must acknowledge this and do something about it.
Eric Danzi, CEO eastAUSmilk
Time for truth in labelling
In February, the US Food and Drug Administration released draft guidelines on labelling of plant-based dairy alternatives, which the peak American dairy body National Milk Producers Federation has called inadequate and fails to remedy the problem.
In response, Republicans and Democrats from dairy States have introduced the US Dairy Pride Act, which is intended to correct unfair practices of mislabelling non-dairy products and enforce correct labelling.
What has occurred in the USA highlights a similar issue in Australia.
The Australian and New Zealand Food Standards Code states that milk is derived from the 'mammary secretions of milking animals'. It is not crushed 'nuts' mixed with water and then fortified.
Milk is of immense nutritional value containing 9 essential nutrients as well as calcium to build and maintain healthy bone strength for growing children and the elderly. This has been confirmed by numerous scientific studies.
In January 2017, I said consumers should not be confused between the nutritional value of cow's milk as against plant-based drinks.
This was confirmed at the time by the European Court of Justice when it ruled in favour of the need to differentiate between dairy and plant derived products.
Supermarket customers would benefit from 'truth in labelling' as it would allow greater consumer awareness about the nutritional differences.
To obtain this goal, it has been suggested that a voluntary code could be introduced.
Voluntary codes do not work. They are honoured more in the breach than followed. The mandatory dairy code of conduct illustrates this point about the need for proper enforcement as against voluntary codes.
It is time for federal government action to ensure existing regulations deliver accurate food labelling for products.
Of course, plant-based drinks should continue to be available for people who wish to buy such products whether it be for health style or medical reasons.
The correct labelling of 'milks' should occur now to ensure that supermarket customers can make informed decisions about the milk they buy.
Iconic dairy terms for dairy farmers should be protected.
This should not be so hard or take so long.
Shaughn Morgan, Past Co-CEO eastAUSmilk
The last 8 years…
This week marks the end of my time with eastAUSmilk and I wanted to take this opportunity to reflect upon the past 8 years of my involvement with the dairy industry.
Initially as CEO of Dairy Connect and since December 2021, as Co-CEO of the merged organisation of eastAUSmilk with my colleague and Co-CEO, Eric Danzi.
The formation of eastAUSmilk established a dairy advocacy organisation representing fresh milk producers in NSW and QLD.
This remains a pivotal step towards sustainability for dairy farmers in these 2 states, including the development of dairy policy, its implementation and united advocacy before government.
The past 8 years have witnessed many challenges.
Mother nature brought bushfires, droughts and floods. Yet, after every natural disaster, dairy farmers remained resilient and positive. Farms were rebuilt and cows replaced.
During these times, fellow farmers and colleagues provided emotional and mental health support to their fellow farmers and their families, which remains an ongoing challenge.
I participated in many positive dairy outcomes including the demise of $1/L milk, the introduction of the dairy mandatory code, recognition of 'truth in labelling' and involvement in parliamentary inquiries.
I am proud of these and other dairy initiatives.
Yet, the challenges and opportunities remain, especially with dairy farmers exiting the industry, milk production declining and rising input costs. All of which I have touched upon in past columns.
The steps undertaken in the coming months and indeed years will be pivotal to arrest the decline of dairy farms and milk production.
The opportunity in Queensland will be the development and implementation of the Northern Dairy Industry Plan with stakeholders and government.
The Plan's recommendations and outcomes must provide leadership to revitalise dairy within the subtropical region.
In NSW, the Labor government has committed to appointing an independent and statutory Commissioner for Dairy & Fresh Food. This is a positive and pro-active step.
The Commissioner will be at the vanguard for constructive and collaborative change and will set a standard for other states to emulate.
As I leave eastAUSmilk, I remain eternally optimistic for the viability of the dairy industry and its long-term sustainability. There is too much to lose for it not to be.
Finally, to those people who have provided me guidance and support over the past 8 years, I end by saying thank you.
Shaughn Morgan, Co-CEO eastAUSmilk
What are dairy opportunities?
The core business of dairy farmers is to produce fresh milk but what are the other opportunities?
Agri-tourism is one such opportunity. Building appropriate infrastructure or using existing housing to enable families to stay on a working dairy farm provides a number of advantages.
In addition to receiving revenue for people staying on the farm, it also provides a platform for education as to dairy farmers being strong environmental managers and that they care for their cows.
Maintaining a social licence within the community is vital to long term sustainability.
Another opportunity would be the growing of dairy beef, especially into the domestic and overseas markets.
Studies have shown that quality of dairy beef is of a standard equal to traditional beef.
In a study released by MLA and Dairy Australia in February, live dairy exports delivered $180 million to Aussie dairy farmers in 2020/2021.
Since deregulation, the number of dairy cows exported has risen from 20,000 cows to over 90,000 cows in 2021. Currently, the bulk of cows exported are primarily from Victoria, with Queensland providing only 1% of dairy cow exports.
However, dairy opportunities need to be found and this could be such a program.
Earlier this year, Fonterra New Zealand announced that they were introducing a 'no kill' policy for calves.
Fonterra said that the calves should be raised and sold for veal to meat processors or to petfood processors.
While such a policy is not in Australia, the sale of calves for veal should be further examined and recommendations made as to whether this is a viable option for dairy farmers in the northern states.
To facilitate this opportunity, the board of eastAUSmilk has established a calf management committee, being chaired by board member Kay Tommerup.
In recent days, meetings have occurred with representatives of Queensland Department of Agriculture and Fisheries to progress ways in which to grow this as a viable market.
QLD DAF and eastAUSmilk will continue these positive discussions and discuss ways in which veal and dairy beef can be sold into overseas markets from Queensland.
If you might like to be a part of the deliberations and would like to join the calf management committee, please contact the eastAUSmilk office.
Shaughn Morgan, Co-CEO eastAUSmilk
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