Australian Dairy Farmers vote to force Saputo, Fonterra to pay more
The two-pronged plan aims to force processors to pay their fair share to Dairy Australia, instead of continuing to rort farmers.
Australian Dairy Farmers national council have unanimously endorsed their Victorian members’ call to oust processors from the industry’s peak research, development and marketing body, unless they pay their fair share of Dairy Australia’s costs.
The national council’s resolution was considered by ADF board last Friday, which is now developing a two-pronged strategy to put pressure on processors to pay up.
The first involves ADF talking to both Federal Coalition Government and the Labor Opposition on how they go about imposing compulsory levies on processors.
ADF directors are also considering their options on amending DA’s constitution to oust processors, if they fail to contribute to contribute to the R&D and marketing body.
Amending ADF’s constitution would require 100 farmer members to call an extraordinary meeting of DA members to vote on removing the processor body Australian Dairy Products Federation.
While farmers contributed $32 million to DA last year, processors chipped in just $400,000.
Yet processors are still granted a seat on DA’s board and its selection committee, are listed as Group B shareholders and were even represented on the advisory committee that recommended lifting farmers’ DA levy contributions by 20 per cent to $38m.
At the same time Dairy Australia is spending close to $10 million a year on post-farmgate projects that benefit processors, ranging from manufacturing innovation, dairy health, school programs and international market development, all of which is funded by the $32m farmers pay in levies each year.
ADF directors say farmers have had enough of processors’ procrastination, given it had been calling on Saputo, Fonterra, Bega and others to pay a fair share of DA’s costs since 2019.
“We feel it’s time the processors did their part in funding (DA’s) post farm gate marketing and other work,” ADF director Heath Cook said.
“We don’t want to have to pursue the other options. But the ball is in the processors’ court.”
ADPF president Grant Crothers said processors were already contributing $400,000 to DA and they had offered to boost funding of the joint processor-farmer Australian Dairy Industry Council “to deliver a stronger dairy industry voice” and for “co-investment opportunities with DA”.
United Dairyfarmers of Victoria president Paul Mumford dismissed Mr Crothers argument, saying “ADPF already has a say over DA funding as a Group B member”, which gives them a seat on the board.
Mr Crothers also said processors were contributing right along the supply chain, via the farmgate price.
“Processors will pay $4.7-$5 billion to farmers for raw milk, to fund the farmgate to processor supply chain in the year ending June 2022,” Mr Crothers said.