The Present and Future for eastAUSmilk
As the son of a dairy farmer, I was brought up with an awareness of the day-to-day issues affecting this industry. From when I was able to attend our local branch meetings, I have always been actively involved in our organisation. Firstly, as a member, then delegate, branch president, district councillor and board member to now president of eastAUSmilk.
I enjoy being actively involved and hopefully at the end of the day I am helping make a positive difference for our dairy farmers. One thing that I do know for certain is that if we don’t have organisations like eastAUSmilk, to fight on our behalf, our dairy industry would be in a seriously worse off state. Whether it was the dollar a litre fight with the supermarkets or the now compulsory dairy code of conduct we have in place, or the many week to week issues that our organisation fights on our behalf. For example, just recently the Processors organisation has been approaching the government saying that the Dairy Code of Conduct needs to be substantially changed to allow them to reduce the price paid to farmers. Also, with the recently announced government enquiries into the supermarkets, we as farmers (not just dairy farmers) know very well the problems with trying to get anything near a realistic price for our products under the current system.
As President, I am often told that it is my task to talk the industry up. My response is fairly simple. If us as dairy farmers, are making a real sustainable living on our farms and (God forbid) even a return on our investment, that is when the industry will talk itself up.
In Australia, total milk production peaked a number of years ago at just under 12 billion litres. This year the forecast is around 8 billion litres. Australia is now a net importer of dairy products. I repeat, Australia is now a net importer of dairy products. If these facts and figures don’t bring a reality check to government and consumers, I don’t know what will. The government and banks especially need to rethink how we can finance young people to get them into the industry. If they genuinely want a dairy industry, then their approach and response need to change dramatically.
I would encourage all dairy farmers, if you are not already, to become members of eastAUSmilk, so that we can work positively together for our industry.
By Joe Bradley, eastAUSmilk President
eastAUSmilk FNQ Trip
Last week the spotlight shone on the FNQ dairy industry, showcasing its strengths and drawing attention to aspects which do not allow it to expand and flourish. The whole board of eastAUSmilk, their CEO, Eric Danzi and Government Relations Manager, Mike Smith, their staff and the President and CEO of Australian Dairy Farmers, Ben Bennett and Stephen Sheridan had the privilege to meet, visit and discuss the future direction of industry with the local dairy farmers. The team visited 10 local dairy farms to gain an insight into dairying in the tropics and the challenges it brings. Dinners were held giving the farmers a chance to meet and chat with the board, staff and ADF delegates. EastAUSmilk staff were able to assist with applications for the disaster recovery grant from the effects of Cyclone Jasper, resilience plans for the Drought Preparedness Grant and the opportunity of the On Farm Connectivity Grant. FNQ local dairy farmers support and enthusiasm was outstanding. Our visitors were also able to visit some of our renowned tourist spots and marveled at the picturesque Atherton Tablelands countryside and hospitality.
Geographically, Far North Queensland dairy farmers are isolated. With a yearly average above 1.2 metres rainfall with high humidity and one major processor, our isolation means that on all our inputs there is a freight component (about 25% above SEQ prices). This automatically has an impact on the cost of production/ profitability, herd fertility, lameness, incidence of clinical mastitis, increased SCC which all put increased pressure on production, herd management and milk pay bonuses. It cannot be emphasized enough that dairying in the tropics is like dairying in no other area.
Milk production and farm numbers have continued to decrease over the last 3 -5 years. Factory intake has decreased year on year of around 4 million litres annually and our farm numbers are down to 35. Supply to our local markets is short for significant periods of time throughout the year. This shortfall has been made up by shipping milk from Victoria and when it allows South East Qld. Putting in place a new milk system to allow FNQ farmers to produce this shortfall profitably has fallen on deaf ears. Remembering our area once produced 135 million litres annually with the longest milk run in the world, we have the capacity and knowledge to make up the difference if it were profitable.
Like everywhere else in Australia, competition for land use is high. This translates to large increases in land values. Competition in FNQ has come from beef production, other horticulture/tree crops, FIFO mine workers investing and retirees looking for lifestyle. When dairy farms leave the industry rarely do they come back as dairy farms and the opportunity for young farmers to purchase or lease farms is very limited.
Whatever the solution is to FNQ’s decreases in production and farm numbers it has to be recognized that dairying in the tropics has challenges, freight has a huge impact on profitability and if farms are profitable, farmer perceptions of our industry will have a significant impact.
Paul Newland, eastAUSmilk Board Member
eastAUSmilk Board and Staff visit FNQ
On the 5th of February, the eastAUSmilk board and staff travelled to Far North Queensland to visit our members in Malanda, Milla Milla and Atherton as part of the semi-annual face-to-face board meeting. We spent the week visiting a number of farms and engaging with members, including several dinners with excellent turnouts.
Due to the recent impacts of cyclone Jasper, eastAUSmilk staff were also able to assist with applications for the disaster recovery grant, which can be used to help rebuild damaged roads, laneways and fences, as well as clean up and replace machinery. We were also able to assist with more resilience plans for Drought Preparedness Grant applications.
In total, the majority of the board visited 8 farms, discussing the diversity and challenges of dairy farming on the Tablelands, which differ significantly from other areas. All of the farms have a unique way to combat their challenges, and it has been most interesting to see the methods behind each. While it is a high rainfall area, the soil does not readily hold moisture, and this also brings its own challenges such as maintaining accessible laneways and additional care being required by the cows themselves.
While we unfortunately couldn’t visit everyone, it was fantastic to catch up with most of our members over the four dinners we had during the week. These were spread between regions to be convenient for each region. With an average of 40 in attendance at the first three dinners, representing the majority of eastAUSmilk members, there was some great discussions on a wide range of topics.
We appreciate the hospitality of all our FNQ members for making the week such a great success and hope to be able to return soon.
By Letisha Johnson, eastAUSmilk Project Officer
Farm Business Resilience
EastAUSmilk has been assisting our members in creating ‘Farm Business Resilience plans’ and applying for the subsequent Drought Preparedness grant which offers up to $50 000, or 25%, towards new permanent infrastructure to help improve drought resilience. Some of the recently approved projects include drilling bores, installing tanks, troughs, and irrigation, as well as feed storage such as haysheds, silage pits and commodity sheds.
The Farm Business Resilience Program has been on offer to Queensland farmers since 2022 and has seen a considerable uptake of farmers applying for the drought preparedness grant. While 25% does not seem to go far towards something like a centre pivot irrigator, which will currently set you back the most part of $200 000, it is of great benefit to anyone already planning to implement an eligible project. EastAUSmilk’s goal within this program is to limit the amount of paperwork that our members need to complete by themselves and assist with the applications as much as required to ensure as many of our members as possible have access to this funding.
Our contract for this project is set to run out at the end of June this year, however the grant will continue to be available as long as there is funding behind it. We have continued to have good uptake of the project with 18 farms involved between July and November 2023, and 7 to date since then. Not all of these farms have applied for the drought preparedness grant, but have completed resilience plans which can assist in providing an overview of the business as well as being a step ahead for any future grant applications through QRIDA, as the majority of grants will require a resilience plan on application.
Now is a great time to think about completing a farm business resilience plan, whether you are interested in applying for the drought preparedness grant or not, there are plenty of other benefits to having one on hand. Drought Preparedness applications must be approved before any project can be commenced and this includes paying for materials or equipment, however, applicants are able to pay a deposit if necessary.
By Letisha Johnson, eastAUSmilk Project Officer
Dairy Code Review – Farmers Urged To Make Submissions
Department of Agriculture, Fisheries and Forestry has announced commencement of preliminary consultation on the coming review of the Dairy Industry Code, and eastAUSmilk is urging dairy farmers to make a submission before the 15 March deadline.
Information about the consultation process can be found here https://haveyoursay.agriculture.gov.au/industry-comments-on-the-operation-of-the-dairy-industry-code. You can download a discussion paper, and 8 focussed questions, from that web page.
eastAUSmilk has warned farmers this is a narrow consultation, focussing on eight issues of concern raised in the first (2021/22) review of the code by DAFF, and not all of their concerns can be addressed this time around. Those eight issues are reflected in both of the downloadable documents.
While many dairy farmer concerns can be raised in the context of these eight questions, not all can be. eastAUSmilk’s submission will make clear that consideration of a narrow range of issues, based on feedback in 2021, is not a good enough review of the code a further three years down the track.
eastAUSmilk is concerned that, somehow, DAFF came away from the 2021/22 review claiming everything was generally satisfactory with the code, and seem to have been unaware of the many and widespread concerns of eastAUSmilk members. Certainly, since that review, many other concerns have been raised with eastAUSmilk by members.
Included on the list of issues to be raised are the need to make suppliers a secured creditor, control or prohibition of milk swaps by processors which are used to undercut pricing, minimum price for later years needs to be at least the year one price, further barriers to processor collusion, final contract terms rather than initial terms need to be made public.
Individual dairy farmers are urged by eastAUSmilk to have their say via the above feedback page, and also to let eastAUSmilk know what concerns have been raised. Anyone making an online submission will be emailed a copy of their submission, and that can be forwarded to Mike@eastAUSmilk.org.au.
Mike Smith, eastAUSmilk government relations manager
Milk prices and dairy code
Now we are into January, everyone in the dairy industry will start to focus on what will happen to milk prices in July. The dairy code requires processors to publish preliminary prices and contracts by 1 June and some will make announcements well before then. And speculation will increase in the coming months as both farmers and processors try to feel out what will happen.
There has been a lot of complaining by some processors and processor representatives about the dairy code and milk prices. Some media commentators, claiming to present a professional view, have simply repeated the views of some processors and their representatives.
They claim the Dairy Industry Code is distorting the market and forcing farmgate prices too high. That’s simply not true.
The Dairy Industry Code has corrected some of the market failures in the dairy industry and gone some way to ensuring farmgate prices reflect competition for milk. That is about supply and demand for milk across Australia and within each different region. When the supply of milk reduces, as it has so significantly in recent years because of significant cost increases, the price would logically go up. Processors willing and able to pay more will attract milk. Those not willing to pay more lose milk to their competitors and will face a shrinking business. It’s all pretty simple, really. Some in the industry don’t seem to understand these economic basics, although most farmers do.
What would happen if some processors, and the media who parrots their views, got their way and milk prices fell by $2/kg or around 15c/L?
Disaster! There would be absolute carnage and milk production would probably halve across Australia in a few years. Is that the outcome that some processors want, or do they think farmers are magicians and can continue to produce milk while losing money?
Like it or not, the Australian dairy industry has contracted massively over recent decades, as a result of income being stripped from farmers. It is now an industry largely focussed on domestic demand and increasingly on domestic fresh milk. It is time for all to recognise this and stop living in the past.
Eric Danzi, CEO eastAUSmilk
Commonwealth Program Working for Dairy Farmers
Dairy farmers in New South Wales and Queensland are making good use of a new Commonwealth technology subsidy program. The On Farm Connectivity Program will subsidise dairy farmers (and others) to take advantage of connected machinery and sensor technology, up to 50% of the cost. Up to $30,000 can be claimed by each farm business.
Queensland dairy farmers Karen and Gary Wenzel have been funded under the program, and love it. He says he’s invested $40,000 in smart collars, with 50% of the cost covered by the new program.
Karen and Gary intend to use the collars to manage their artificial insemination program, but also to remotely monitor cattle heat, and the health of individual beasts and the herd.
They said making the purchase required very little effort, just a discussion with the collar supplier, Semex, and are urging their fellow dairy farmers to take up the opportunity.
Farmers must purchase through approved suppliers, only, and suppliers will complete the application and forward it to the Government, on behalf of each producer.
EastAUSmilk is aware of other dairy farmers with similar positive stories to tell.
Project guidelines set out a long list of products which can be purchased, and including livestock monitoring technology such as smart tags and collars, and many other things as well including drones and smart gates. More details are here at On Farm Connectivity Program including program guidelines and lists of approved suppliers.
EastAUSmilk urges dairy farmers to make an application as soon as possible: when the bucket is empty the program expires, so farmers need to get in right away! We checked in with the Government just before Christmas and there were still program funds available, but the Government says it is a one-off program and the only chance for this kind of subsidy.
Interested dairy farmers should contact Semex or eastAUSmilk for more information.
Mike Smith, eastAUSmilk Government Relations Manager
EastAUSmilk and Government: 2024
EastAUSmilk’s engagement with governments will be just as active in 2024 as it was in 2023.
We need to make sure the Commonwealth and the states fulsomely implement the recommendations of the Food Security Inquiry and commit to a dairy industry package that builds sustainable incomes and milk production.
Early in the year we’ll be making a submission to the Senate’s inquiry into the misuse or market power by major supermarkets, and making clear that many of the problems in the dairy industry are based around supermarkets undermining industry viability.
Queensland will have an election on October 26, and we’ll want all parties to commit to policies and programs which build dairy industry viability. We’ll hope to see a taste of that in the 2024 Queensland State budget, too, and an acknowledgement of the issue from New South Wales and the Commonwealth.
During 2024, we expect the Commonwealth to start the process of reviewing the Dairy Industry Code, and we will be advocating major and urgent improvements.
New South Wales has a Dairy Industry Plan, and we will continue discussing the need for such a plan across Queensland’s dairying industries, with the Queensland Government, as we also discuss the Northern Dairy Industry Plan with both New South Wales and Queensland governments.
EastAUSmilk has already made a submission about the Queensland State budget 2024, and we will be doing the same for the Commonwealth and New South Wales.
We might have had a reprieve from drought, but we need to press those three governments about the deficiencies in their respective drought programs.
Bobby calf/dairy beef solutions remain a priority in our engagement with all three governments, and we’re awaiting feedback on recent proposals.
We’re hoping current negotiations with the Queensland government, to facilitate on-farm tech training and uptake bear fruit early in 2024.
… and early in 2024 eastAUSmilk will engage with the Commonwealth to ensure they adopt the recommendations of the Commonwealth Parliament’s Food Security report, and implement them properly – particularly the rescue package for the dairy industry.
Mike Smith, eastAUSmilk government relations manager.
EastAUSmilk and Government: 2023
It's been a busy 2023, and a challenging environment, for eastAUSmilk’s relations with governments. March saw a Labor Government in New South Wales, and a new Agriculture Minister in Tara Moriarty. Federally, Labor started 2023 still early in their term, their first time in Government since 2013. In Queensland, the Labor government started and finished the year thinking closely about the October 2024 State election – fortunately the reshuffle under new Premier Miles saw stability with Mark Furner keeping the agriculture portfolio.
We’ve engaged actively with all of the relevant Ministerial offices, and hosted Queensland Minister Furner on a dairy farm visit, and Commonwealth Treasurer Chalmers and Minister Watt likewise.
During the year, eastAUSmilk has dealt with, or continues to deal with dozens of issues:
We’ve made strong representations about beefing up the Dairy Industry Code.
EastAUSmilk supported the prohibition of unfair trading practices in a submission to the Commonwealth.
Coles’ proposal to acquire two Saputo processing plants saw us raise many concerns with the Commonwealth, New South Wales, and Queensland governments, and we will continue.
We’ve discussed the failed implementation of the National Dairy Plan’s priority number one – major industry reform – with those same governments and will continue to press them.
Our immediate past President has been very involved in development of the Norther Dairy Industry Plan, and we’re continuing to engage with the New South Wales and Queensland governments about it.
EastAUSmilk was very disappointed there was nothing much for dairy farmers in any of the Queensland, New South Wales, or Commonwealth budgets in 2023, and we’re looking for better outcomes in 2024.
We’ve pressed those three governments about the gaps in their respective drought programs and come up against a lazy economist’s’ response time and again, that coping with drought should be part of normal farm business, and farmers shouldn’t need government support.
Bobby calf/dairy beef solutions have been on the agenda for just about every discussion with government, and we’re awaiting feedback on research proposals.
EastAUSmilk has pressed governments to facilitate technology uptake by dairy farmers, and there’s currently a Commonwealth government program offering just that, and negotiations with the Queensland government too.
We opposed the Commonwealth’s ridiculous Biosecurity Protection Levy, and the New South Wales government’s slashing of Coastal Harvestable Water Rights.
And just as the year ended, two things:
The Commonwealth Parliament’s Food Security report landed, proposing a rescue package for the dairy industry – we’ll be looking for the government to adopt the report and recommendations, and implement them properly.
And, the Senate has initiated an inquiry into the misuse or market power by major supermarkets – we’ll need to make a submission by February 2024.
Mike Smith, eastAUSmilk government relations manager.
Joe Bradley the new eastAUSmilk President, Tim Bale and Waylon Barron Vice Presidents
Joe Bradley was recently appointed to replace Matt Trace on the eastAUSmilk board. He also took over Matts position as president of eastUSmilk. Tim Bale and Waylon Barron were both elected vice presidents.
Matt has left the eastAUSmilk board due to potential conflicts it would create in his new role on the Australian Dairy Farmers (ADF) board. This is unfortunate but understandable. Matt has done an outstanding job as president of eastAUSmilk, and it has been impressive to watch Matt grow and develop his statesmanlike approach in the role of president and chair.
Matt will be lost to the board of eastAUSmilk but will be very useful to eastAUSmilk and our dairy farmer members in his new role at ADF. Anyone who knows Matt is well aware that he is a determined person who loves a fight and will be forthright and strategic in achieving outcomes for dairy farmers.
EastAUSmilk is very lucky to be able to replace Matt with Joe as president. Both are extremely capable and determined leaders who are passionate about dairy farming. I’m sure that Joe will do a fine job as president of eastAUSmilk. Joe is from Dayboro just north of Brisbane and is a person I have looked up to since joining the dairy industry and have regularly sought his advice and assistance. This is another occasion where Joe’s leadership was needed, and he is willing and able to step up.
Tim Bale is from Stewarts River near Port Macquarie in NSW. Tim has recently joined the eastAUSmilk board but has immense experience in many roles both within and outside the dairy industry. He is well known for central to the establishment of the farmers owned brand with Woolworths. Tim’s experience and knowledge will be invaluable to eastAUSmilk as vice president.
It’s also great to see Waylon Barron step up as vice president. Waylon is from the darling downs region in Queensland and is one of many dairy farmers who have become involved in eastAUSmilk over the past 6 years. He started on the darling downs district council, came onto the board just over 2 years ago and now has stepped up as vice president. Waylon is a very switched on and respected dairy farmer who I’m sure will adapt quickly to the role of vice president.
Congratulations to Joe, Tim and Waylon.
Eric Danzi, CEO eastAUSmilk.
Saputo acquisition by Coles
As reported previously, eastAUSmilk and other players in the dairy industry, have made multiple submissions to the Australian Competition and Consumer Commission urging that they attach conditions to the acquisition by Coles of two Saputo milk processing facilities, in Laverton (Victoria) and Erskine Park (New South Wales).
Our concern was twofold – one, that an integrated supply chain would give Coles unprecedented powers, and two, that the acquisition could, over time, substantially reduce competition for fresh milk, to the detriment of farmers. eastAUSmilk made it clear the industry needs more milk processor competition, not less.
As well as with ACCC, eastAUSmilk has repeatedly raised these issues with Commonwealth, New South Wales and Queensland governments.
ACCC initially released a Statement of Issues in July 2023 identifying preliminary concerns about Coles’ bargaining position in the dairy supply chain, and the potential for reduced competition for raw milk.
The ACCC has now rejected the proposition that the acquisition would reduce competition, and that they need to intervene. No conditions have been placed on the acquisition. The scope for ACCC to intervene was always narrow, restricted to the marginal impact on competition of the acquisition, and issues such as the community having ongoing access to locally sourced fresh milk, regional community resilience, fairness between big business and small, and so on, cannot be considered by ACCC.
On Wednesday 6 December, eastAUSmilk CEO Eric Danzi, and Government Relations Manager Mike Smith, discussed the Commission’s conclusions with ACCC Deputy Chair Mick Keogh.
ACCC concluded the acquisition is unlikely to result in a substantial lessening of competition over the next 5 years, and noted Coles’ conduct with dairy farmer suppliers is covered by the mandatory Dairy Code of Conduct and their interactions with processors is covered by the voluntary Food and Grocery Code of Conduct. They use the 5-year timeframe because they cannot predict industry conditions further ahead than that, with sufficient confidence.
They will release a statement of their reasons, probably early in the new year. eastAUSmilk will consider if there are further options open to us, to protect dairy farmers from negative outcomes of the acquisition. We hope other processors can use these developments to increase competition for milk supply, in the Sydney region.
Mike Smith, eastAUSmilk Government Relations Manager
Are Dairy Farmers Still Droughted?
eastAUSmilk has been chasing public servants in the Commonwealth, New South Wales and Queensland governments, and their Ministerial offices, to stress drought issues and drought response inadequacies.
This week, there’s good drought news for dairy farmers in most parts of Queensland and New South Wales. Tim Bale, near Taree, says the rain is ideal and “it’s a late spring”; Paul Newland in Malanda says everything has turned green overnight; Waylon Barron, just south of Toowoomba, reports widespread rain has stimulated furious summer planting; Kay Tommerup, near Beaudesert says her pigs will need to learn to swim.
With recent good rains, city dwellers may be mistaken and think all is now great for farmers everywhere, but they would be wrong.
Our members are cautioning that while recent widespread rains are a welcome relief, not everyone has had enough rain to make a difference. Most are also saying that without decent follow-up rains in the next couple of months, any pasture or feed growth promoted by November rains will be too limited to make a great difference.
In many cases, watercourses have flowed only a little, and dams have not filled, which means irrigation water access may not be much improved.
Every bit of advice from the experts says farmers must plan for drought and build their resilience. Our members have been investing time and money in their drought planning, and have incurred costs, along with the stress of a very dry 2023. While few had begun actively destocking before the rain, many had been letting herd size shrink, opting to keep numbers low, and trying to source feed to see them through the summer. Most have been unable to grow fodder to see them through to winter rains, and will still have to buy feed to supplement whatever they can now grow following November’s rains.
Feedback from members is making it very clear that circumstances are very different from region to region, and between localities, which makes it important that government policymakers are stopped from trying to make policy on the basis of the overall or average industry situation.
eastAUSmilk is going to keep on talking with government at every level about the ongoing need to ensure policies and programs reflect a full understanding of the true and diverse circumstances of farmers, and the possibility that recent rains could turn out to be not a real reprieve, but false hope.
Mike Smith, eastAUSmilk Government Relations Manager
eastAUSmilk and Australian Dairy Farmers
eastAUSmilk President and Queensland dairy farmer Matt Trace was appointed to the board of Australian Dairy Farmers at the Annual General Meeting held on 23 November. ADF is the national peak body of state-based dairy farmer organisations.
Matt is very grateful for the solid support he received from industry across the country to take up this role, and particularly for the support from the northern industry. Former QDO Board member Joe Bradley attended the meeting and exercised a large number of proxy votes in accordance with the wishes of Queensland members of ADF.
Previously, Queensland dairy farmer views had been represented on the ADF Board by Brian Tessman, who did not nominate for re-election. We should all be very grateful to Brian for his good work on the Board, on behalf of dairy farmers everywhere.
The resolution at the AGM proposing appointment of an independent director was defeated, therefore there is currently a vacancy in that role, and a new independent director will be appointed by ADF shortly.
Because of the potential conflict of interests, Matt will stand down from his position as chair of eastAUSmilk, and from the eastAUSmilk board, in the near future. eastAUSmilk’s Gympie/ Moreton/ Burnett District Council will be asked to appoint a new member to the eastAUSmilk board, to replace Matt.
The eastAUSmilk Board will then also need to meet to appoint a new chair.
At the Annual General Meeting, ADF deferred election of their new President, to allow the Victorian Farmers Federation to fill the vacant Australian Dairy Farmers National Council positions from Victoria. Because the chair is elected by the ADF board and the ADF National Council jointly, the absence of eight National Council members from Victoria would be significant in that election, and those at the ADF AGM thought they should give the biggest milk-producing state the chance to have their full say in the ballot.
Matt Trace, eastAUSmilk President
New Dairy Industry Leadership
EastAUSmilk’s constitution requires that Directors (Board members) are nominated by the District Committees across New South Wales and Queensland, from amongst dairy farmers who are themselves District Committee members, which is a good way to ensure the organisation keeps close to grassroots members.
When long-standing northern New South Wales dairy farmer Peter Graham move north into Queensland, his director position became vacant – Peter’s contributions to the organisation have been invaluable, and much appreciated, and eastAUSmilk is sorry to see him go.
However, in his place, the Northern New South Wales District Committee has nominated a most able replacement, Tim Bale from Stewarts River near Taree in New South Wales, and he’s now been appointed a Director by the eastAUSmilk Board.
Congratulations, Tim!
EastAUSmilk has a total of six Directors – one from each of the district committees in New South Wales and Queensland.
Peter has also been Vice-President of eastAUSmilk, and this appointment also lapsed when he ceased to be a Director. A new Vice-President will be appointed at the next Board meeting.
Further congratulations go to dairy farmer and entrepreneur Kay Tommerup, who has just been elected Vice-President of Queensland Farmers Federation, the peak body representing most of Queensland’s agricultural industries. Kay has been on the Queensland Farmers Federation board for two years, representing eastAUSmilk interests. She’s from Kerry, in the Scenic Rim, and is a Director of eastAUSmilk.
National Ag Day
Dairy farmers around Australia celebrated National Ag Day each in their own way. Kay Tommerup, with daughter Georgia and son Harry, joined Queensland Farmers Federation at Reddacliff Place in the Brisbane CBD, encouraging passers by to sample dairy products, and chat about the industry. Taste-testers wanted to know where the products are made, where the farms are located, and where they can purchase products for themselves.
Mike Smith, eastAUSmilk Government Relations Manager
Government and Ministerial Meetings
eastAUSmilk’s recent round of meetings with government departments and Ministerial Offices has seen government better understand the situation of dairy farmers, but no big leaps forward.
Drought is the big issue we’ve talked about with each of the Commonwealth, New South Wales and Queensland governments, pressing them on the need for more direct assistance than is currently available. While eastAUSmilk supports governments focusing on building farm business resilience, cutting such programs as freight subsidies doesn’t make sense until resilience is further embedded.
We’ve also stressed that drought is here already – even the farmers who aren’t yet droughted are planning to follow their neighbors in de-stocking, stockpiling and sourcing fodder from other areas, and generally preparing for the worst.
We’re proposing to governments a multi-faceted approach to resolving the bobby calves/dairy beef issue, starting with investigating the extent of the problem: how many are using sexed semen and where, what stops sexed semen uptake or changing to dairy beef breeds, how many bobby calves are there annually, what has been the experience with dairy beef breeds, and more. Once we have a better handle on the size and shape of the issue, we’ll be better able to pursue relevant solutions.
The same round of meetings included Australian Competition and Consumer Commission and focused on the status of Dairy Industry Code review. We pressed how important it was for the Code to move with the times, address newly discovered problems, and rebalance negotiating power between farmers and milk processors. We’ll be collating initial code amendment suggestions and providing them to Department of Agriculture, Fisheries and Forestry in the near future, to ensure they are aware of the scope we see necessary for the review.
When talking with the Commonwealth, we also repeated our rejection of the so-called Biosecurity Protection Levy, and noted we’ll be making a submission to the Treasury review of unfair trading laws.
Mike Smith, eastAUSmilk government relations manager.
Australian Dairy Farmers AGM and board elections
The Annual General Meeting (AGM) of Australian Dairy Farmers (ADF) is being held on 23 November 2023. This is a very important meeting where the future of the Australian dairy industry will be shaped.
Amongst the important issues in front of the meeting is appointment of a further dairy farmer to the ADF board. Currently Brian Tessmann from Queensland is a board member, but has not renominated. Matt Trace, a Queensland dairy farmer and president of eastAUSmilk, is the sole nominee, and if elected will be the sole voice for Queensland on the Board.
I encourage all dairy farmers to have their say at the meeting, if possible by joining the meeting – you will receive information from Australian Dairy Farmers about how to join. Those unable to join the meeting can vote online up to 2 days before the meeting – the deadline is 9.30 AM Queensland time on 21 November. Not only can you vote on a further farmer Board member, but also another five resolutions – including electing an independent director, alignment of ADF regions with RDP regions, and examining the organisation’s financial performance.
If you can’t make it, and can’t vote online before the meeting, please make sure you give your AGM proxy vote to a dairy farmer who will attend the meeting.
In the past, if Queensland farmers were giving someone a proxy we have encouraged them to give these to the eastAUSmilk president. However, Matt did not feel this was appropriate given he is seeking appointment to the ADF Board. The eastAUSmilk board has asked former Board member Joe Bradley to make himself available to collect proxies on behalf of eastAUSmilk members who want their vote to count but can’t participate. I encourage you to contact Joe about your proxy if you might not be able to vote. Joe is contactable on 0400 642 063.
Please do not let this important opportunity to have your say slip by – these decisions are very important. If you have any questions, please call any eastAUSmilk director, Joe Bradley or myself.
Eric Danzi, CEO eastAUSmilk.
Farm Business Resilience Program
eastAUSmilk has been assisting our members in creating ‘Farm Business Resilience plans’ and applying for the subsequent Drought Preparedness grant which offers up to $50 000, or 25%, towards new permanent infrastructure to help improve drought resilience. Some of the recently approved projects include drilling bores, installing tanks, troughs, and irrigation, as well as feed storage such as haysheds, silage pits and commodity sheds.
The Farm Business Resilience Program has been on offer since 2022 and has seen a considerable uptake of farmers applying for the drought preparedness grant. While 25% does not seem to go far towards something like a centre pivot irrigator, which will currently set you back the most part of $200 000, it is of great benefit to anyone already planning to implement an eligible project. eastAUSmilk’s goal within this program is to limit the amount of paperwork that our members need to complete by themselves and assist with the applications as much as required to ensure as many of our members as possible have access to this funding. This will hopefully help complete their desired projects and at the same time provide an outline of the risks and opportunities of their individual businesses.
The program has thus far been very well received, with a good percentage of our members utilizing the grant as an incentive for completing a resilience plan for their farm. eastAUSmilk aims to complete another 12 or more plans before the end of the program, however, which will require even more member engagement. We are on track to achieve this though, and I personally look forward to engaging with our members and helping them become better prepared to face future challenges to their business.
The Drought Preparedness grant is set to end in June 2024, so anyone still planning to apply should do so soon to allow time for projects to be completed by the deadline. Applications must be approved before any project can be commenced and this includes paying for materials or equipment, however, applicants are able to pay a deposit if necessary.
By Letisha Johnson, eastAUSmilk project officer
Dairy farmers and drought
EastAUSmilk is becoming very concerned about the impact of drought on dairy farmers in Queensland and parts of northern New South Wales.
The Bureau of Meteorology predicting below average rainfall through most dairy farming areas in Queensland and in north-eastern New South Wales over the next three months, and we’re getting reports from members that this year’s rainfall in some areas has been less than during the Millenium drought of two decades ago.
While recent rain in parts of New South Wales near Bega has eased conditions somewhat, they’re not out of the woods by any means.
If conditions like that continue, many dairy farms will experience great difficulty keeping herds alive, and the morale of dairying families will be once again crushed by circumstances beyond their control. That’s to say nothing about the likely financial consequences for those farms and their local communities.
Many are yet to fully recover from the devastating impact of dollar-a-litre milk, the last drought, and the last floods. An extended drought, without necessary government support, will be the last straw for some.
While eastAUSmilk backs the move by governments to support farmers to build their drought resilience, this drought has come too soon for that resilience to have built up, and too soon for financial and advisory supports to be removed.
We’re making representations to each of the New South Wales, Queensland, and Commonwealth governments to be ready with appropriate financial supports, as well as advice and other assistance, for drought-stricken farms.
Governments in the two states have historically had different approaches to programs of assistance to farms hit by drought, and the weather patterns are predicted to be quite different between most of New South Wales and Queensland, both governments need to understand the need to support their farmers and communities to outlast this drought.
Mike Smith, eastAUSmilk Government Relations Manager
Bobby Calves and Dairy Beef on the agenda
EastAUSmilk have been closely considering how best to assist farmers in managing the issues and opportunities around bobby calves and their unsaleability, having already raised this issue with the New South Wales, Queensland, and Commonwealth governments.
We recognise that properly addressing the issue will entail a multi-faceted approach. EastAUSmilk is investigating a package of programs which would include training in the use of artificial insemination and sexed semen, incentives for dairy farmers to make the shift (some of the equipment can be quite expensive and sexed semen can be twice the cost of unsexed), and advocacy by government to dairy farmers of its uptake including defining the economic benefits.
Research into the optimal dairy beef breeds, considering geographic location and herd genetics, will help to ensure the program’s longevity and success. Farmers considering adopting sexed semen into their herd management system would have access to relevant data enabling a move to a more valuable and saleable animal. Evaluation of alternative, more consistent markets, and how they could be established, will also be key to the success of the program.
However, before embarking on a comprehensive program such as this, we must be sure we are working with facts. EastAUSmilk is looking to survey our members to collect a range of relevant information including the extent to which they produce bobby calves, use artificial insemination, and use sexed semen. This data will also provide further evidence on the current roadblocks preventing the uptake of dairy beef, and the option of using artificial insemination and sexed semen.
EastAUSmilk is committed to providing leadership and innovative thinking to allow dairy farmers to take the lead in finding and managing sustainable solutions to this issue.
Mike Smith, eastAUSmilk government relations manager
Kay Tommerup, eastAUSmilk board member
Unfathomable – devastated by bushfire again
Imagine how you would feel if you were facing the same fate as you did in 2019-2020 devasted by bushfire.
It is unfathomable to think about but that is what happened to one dairy farmer in the NSW south coast in the Bega Valley region. From Coolagolite Road, Coolagolite (Bega Valley LGA) in the north right through to Cuttagee, Barragga Bay, Murrah, Bunga and as far south to Goalen Head is where the bushfire burned or become far too close to three dairy farms. The bushfire affected area was 6,700 ha in size.
After the fires in 2019-2020 the family were able to rebuild and return to their farm to be caught off guard this time around and have it burned to the ground 3 years later. It is not the fact that the grassed areas and established trees are burned as fire does not discriminate. Livestock, water infrastructure, fences and the list goes on of farm losses that cost millions of dollars to repair and rebuild. Let alone the enormous mental and emotional toll that a disaster such as this can have on a family and community.
The Bega Valley is a dairy farming region, are a close community and it is understood that the fires came close to destroying surrounding farms. One of which was also devastated by fire in February 2020 in the aftermath of the Black Summer fires, however was fortunate to be spared this time.
Farmers, especially dairy farmers work tirelessly to build their property as a sustainable model for years to come and to hopefully one day hand over to their children, to have it destroyed in an instant places enormous pressure on them and their family. If devastation of this magnitude keeps happening to our agricultural communities there will be a shortage of farmers in the future, hence a supply shortage of dairy products which is not something we want to occur.
It is easy to say ‘keep on going’ as farmers always do, but with the forecast of a horror summer for bushfires it is hard to stay so positive. One thing is for certain farmers will always look out for their neighbour!
Lynelle Rogers, eastAUSmilk Executive Officer