ABC NSW Rural Report
EastAUSmilk President Matt Trace discusses the purchase of two milk processing plants in Melbourne and Sydney by Coles – they will need to be monitored…
To listen to the Mid and North Coast Rural Report click on ABC Rural Report the interview with the eastAUSmilk President starts at 5.45 mins into the broadcast.
Source: Kim Honan, Presenter, 6 April 2023
Federal Government commitment to a Dairy Symposium and Digital Dairy Platform announced
The commitment by the Federal Minister for Agriculture David Littleproud to hold a dairy symposium after the upcoming Federal election is welcomed by eastAUSmilk.
This announcement followed on a meeting between the President of eastAUSmilk, Matt Trace, with the Deputy Prime Minister Barnaby Joyce at a recent dairy farmer meeting at Muswellbrook NSW in early April where Matt raised with the DPM the holding of a dairy symposium.
Minister Littleproud also met with dairy farmers at Singleton NSW on 20 April with eastAUSmilk Vice President Graham Forbes and during an interview on the NSW Country Hour later that day, discussed the importance of a dairy symposium. You may listen to the interview at ABC Country Hour
Barnaby Joyce convened the 1st dairy summit after the 2016 federal election which brought together dairy stakeholders to consider issues confronting the industry due to the collapse of Murray Goulburn and the then clawback of dairy payments to dairy farmers.
The time was right for a look back over the past years since the initial dairy symposium in August 2016 and to determine what has occurred since that time and find out what has worked and what needs further review.
In reference to the symposium, Matt indicated that the dairy industry needs to find further solutions to the issues that confront those players within the dairy value-chain, particularly given the market failure within the industry and which was highlighted in the ACCC's report into the dairy industry.
The development of the dairy mandatory code of conduct, which can trace its beginnings to the 2016 dairy symposium, was the beginning of the restoration of trust and transparency in the relationship between the dairy farmer and processor.
Further discussion needs to now occur around the relationship of the supermarket within the dairy value chain.
Co-CEO of eastAUSmilk, Shaughn Morgan, has indicated that the Code has a few more steps to enhance its ability to provide the trust and transparency required.
The dairy symposium provides a place for that to occur.
The Federal Minister for Agriculture has also announced today the development of a digital platform to assist dairy farmers being provided with up-to-date information regarding value, price and other relevant dairy data.
The development of this digital platform in conjunction with the Dairy Code and the Milk Value Portal are beginning to provide dairy farmers with a suite of dairy products that will assist them in addressing the many varied issues that they are confronting daily.
This will also lead to further discussion of supermarkets being subject to the Dairy Code given the apparent 'inadequacy' of the Food and Grocery Code to provide appropriate oversight of supermarkets and their relationships with fresh food suppliers.
With the announcement and commitment today by Minister Littleproud, eastAUSmilk looks forward to being a part of providing the solutions with the other dairy bodies to stop the decline of the number of Aussie dairy farms and in finding a way to rebuild the strength and resilience of dairy farmers generally.
Dairy Levy Poll – Vote Your Way
In the coming days, many eastAUSmilk members and other dairy farmers throughout Australia will be receiving their information packs from Dairy Australia for the dairy levy poll. This will be the first time in 10 years that we will have a say as to the amount that levy payers will need to contribute into the future.
In reaching a decision as to how to vote in the dairy levy poll or indeed whether to vote at all will depend on how you feel Dairy Australia has delivered for you and your dairy farm over the past years.
There are differing views as to their effectiveness. Some consider that they provide a worthwhile service while others do not see the value in where their levy dollars go. Some farmers would prefer to use the money themselves to ensure their sustainability for their farms and families.
This is why it is important that dairy levy paying members have a say in the differing options being put forward for consideration, even if it is to keep the status quo.
There are 4 options being proposed before voting commences on 24 February, being no change to the levy, an increase of 15%, an increase of 20% (which is recommended by the Advisory Committee) or an increase of 25%.
I personally remain disappointed and concerned that the Advisory Committee did not include an option to decrease or remove the levy. I know that many farmers have expressed this same disappointment to me over the past months.
It is no secret that this is the reason that I and another member of the Advisory Committee, who is based in NSW, resigned from the Advisory Committee last September. I do not regret that decision and continue to believe that it was the right one at the time.
It has been, in some ways, a flawed process. Yet the outcomes of the vote remain important to eastAUSmilk members in QLD and NSW and it is important that our levy paying members have a say. A message must be sent to those making the decisions.
Last week, the Board of eastAUSmilk considered the differing options that dairy farmers will be given to vote upon.
Like me, the eastAUSmilk Board was concerned that not all options will be provided to dairy farmers to consider, however it was decided that it is still important that our members have an opportunity to have their say.
Your vote and its outcome will assist me and the other senior members of eastAUSmilk in continuing to advocate for appropriate accountability by Dairy Australia in the delivery of its legislated obligations.
At the end of the day, this is not only about research and development but also about leadership within the dairy industry.
Matthew Trace – President eastAUSmilk
Woolies drought package call leaves unresolved dairy issues hanging…
Woolworths today announced that it will end its dairy producer drought payment program on 30 June leaving a number of industry issues unresolved, according to advocacy group eastAUSmilk.
EastAUSmilk President Matt Trace said the extra drought levy payment was intended as a temporary measure when it was introduced in 2018.
It has played an important and beneficial role for dairy farmers since its introduction and this benefit should be acknowledged.
"Importantly, Woolworths has stated that they will provide more "timely support for farmers through existing milk purchase arrangements" with the development of a "new mechanism" if extreme conditions that occurred in 2018 should arise again. We look forward to being a part of any discussions that improve the response time to address such critical issues when they arise," Matt Trace said.
"While the retailers drought levy provided support for many dairy farmers during difficult financial times during the past years, there remain a number of challenges that the industry faces that need to be addressed and resolved.
"The farm-gate price may be improved for many dairy farmers but others continue to face financial and on-farm pressures," Matt said.
The processors who currently supply milk to Woolies for their home-brand label are Bega, Fonterra and Lactalis.
“Lactalis has indicated in a letter to their dairy farmer suppliers that they will continue to provide this payment as part of their farm-gate price until June 2022 and they further stated that the payment will continue in the coming seasons for Queensland dairy farmers and likewise in other States," eastAUSmilk Vice President Graham Forbes said.
"This is a positive announcement by Lactalis and it is hoped that other processors will make similar public announcements.
"However, substantial challenges to the long-term sustainability of the dairy industry remained on the radar.
"In recent years the issue of ‘market failure’ continues to be of concern within the dairy industry and which has been highlighted by the ACCC in its published reports," he said.
"There is also the on-going negative impact that increasing input costs are having on farm-gate prices, such as the spiralling cost of fertiliser and diesel, which have doubled in price during the past 12 months.
EastAUSmilk Co-CEO Shaughn Morgan said that the timing of the announcement by Woolworths will allow the 'good faith' provisions of the Mandatory Code to be tested, especially as the new milk year commences.
"It is vital that future generations of dairy farmers be provided with a strong basis to grow their dairy farms and ensure long-term sustainability, with the Code assisting in maintaining that viability.
"The Federal election also provides an opportunity for the Government and Opposition to commit to supporting dairy farmers through progressive election promises that will ensure growth within the dairy industry through, for instance, enhancing the Mandatory Code.
"EastAUSmilk looks forward to having those discussions with the relevant Ministers and staff in the coming weeks and months as the Federal election draws near," Shaughn concluded.
Matthew Trace, President, eastAUSmilk
Graham Forbes, Vice-President, eastAUSmilk
Shaughn Morgan, Co-CEO, eastAUSmilk
eastAUSmilk value in membership
The most common question I hear when talking to a farmer about becoming a member of eastAUSmilk is what value do I really get for my money?
The answer is actually a lot. Many see eastAUSmilk as necessary to ensure government, processors and retailers take the views of the dairy industry seriously when making policy decisions around the farm gate milk price, environment, animal welfare, a fair market to trade our product in and the general right to farm. There has been a tremendous value returned to the farm gate milk price with the end of $1 a litre milk and the introduction of the mandatory code of conduct that has seen considerable genuine competition for milk.
Would these things have been achieved without a strong member-based industry organisation? I would say no.
Yet there are many more benefits in being a member of eastAUSmilk than just the big picture achievements for the whole dairy industry.
We offer many direct services including employment advice through a qualified consultant, discounted NLIS tags, irrigation system efficiency testing, electricity pricing comparison to get the best deal and one of our partners can provide advice on a solar system to give you the quickest payback not just the most expensive system. Perhaps the most important is our team can assist in identifying funding opportunities and assisting in completing the forms correctly for disaster relief and other government grant programs.
Our key projects at the moment that often follow on from direct services in the form of grants are the Digital Activity Monitoring Program (cow collars), Farm Business Resilience Program (drought preparedness including infrastructure grants) and Energy Savers Plus which includes grants for improving energy efficiency after the audit of systems.
In coming weeks many of you will see our new membership packs out in the dairy community and all I can say is being a member of eastAUSmilk will bring a bucket load of value to your dairy business.
Matt Trace - President eastAUSmilk
Input costs are squeezing dairy margins again
With the end of the drought and an improvement in farm gate milk price the dairy industry has been increasingly positive about its future. But just when everything seems to be aligning the record increase in fertiliser, chemical and steel prices have dampened the mood.
While each individual has varying usage, efficiency and agronomy practices there is no doubt that the astronomical increases are chewing into the bottom line significantly.
I asked one of our Scenic Rim members Ross McInnes to have a look at the numbers. Some of the calculations of involving farm usage multiplied by the increase in urea prices on farm are showing an increase to cost of production of more than 3.5 cents per litre.
This does not take into account the price increases to many chemicals such as Glyphosphate or the significant increase to the price of steel for infrastructure and maintenance. It’s quite realistic and not overstated to say on farm we are looking at an increase to the cost of production in excess of 5 cents per litre.
This is unprecedented outside of a natural disaster such as drought and it seems there is little relief in sight.
We are told this is a market reaction due to the increased price of gas used for urea production. We are also told local production won’t make a difference as the urea price is set internationally. Some are even suggesting this is a result of the new low carbon economy. While we are investigating all of these issues at eastAUSmilk one thing is very clear for our farmers. To continue to produce milk at current levels they will need good access to affordable fertiliser and chemicals very soon, or an increase to the farm gate milk price.
Matt Trace, President eastAUSmilk
Looking forward and a little looking back
What a year of contrasts it has been in the northern dairy industry. From drought and empty silage pits to a widespread improvement in seasonal conditions combined with increasing milk prices mid- year, things have turned around very quickly. In recent months the record increases in fertiliser and fuel prices have taken away some of the confidence, but overall things are looking up.
Yes, we have seen and continue to see exits post drought and I have no doubt the strong beef price is allowing for a smooth transition for some. But where to from here? Do we as individuals and as industry just take a breath and solidify our current position, or do we look to the future and invest in our business and grow?
Looking at the cycles of our industry since deregulation I believe now is the time for those who are keen to grow their business and look to the future. We have a solid demand for milk from the major processors and have seen this drive prices up this year. With the latest retailer increase to generic milk pricing $1 a litre milk is now absolutely dead. In part, thanks to consumers and the past efforts of QDO and Dairy Connect. All of this means we have no downward pressure on farm gate milk price in the short to medium term in QLD and NSW.
Yet we still face challenges ahead. With the new consumer and retailer focus on ESG (environmental, social and governance) requirements that includes traditional environmental concerns as well as emissions, animal welfare and general social licence to operate we must be prepared to adapt. As in the past advocacy must step up and ensure the transition to new practices is done in a way and with enough assistance to have a net positive effect on the farmers hip pocket.
With the newly formed eastAUSmilk there has been a renewed optimism around the northern dairy industry and what advocacy can do to help farmers get back on the front foot. We have a positive agenda and will be focussed on not just survival but developing a thriving and prosperous dairy industry that we can be proud of.
Matt Trace, Chair eastAUSmilk
eastAUSmilk outlines its priorities
The leadership of former QDO president Brian Tessmann was acknowledged at eastAUSmilk's first board meeting last week.
New dairy lobby group eastAUSmilk has outlined its priorities, with an emphasis on fresh milk producers.
The organisations board of directors held its first meeting last week.
This provided an opportunity for the new group, representing eastern seaboard dairy producers from the southern border of NSW to the tip of Queensland, to meet to discuss issues challenging the industry.
President Matt Trace said the opportunities arising from the merger of Queensland Dairyfarmers' Organisation and the Dairy Connect Farmers Group were profound.
"They represent a strong platform from which to represent dairy producers with a unity of purpose before government, retailers, processors and industry stakeholders," he said.
"The inaugural eastAUSmilk board meeting illustrated that we had far more in common than what a 'false border' represents across agriculture generally and dairy specifically.
"Fresh milk producers face many common issues and we will be putting forward strong policy positions on issues including 'truth in labelling'; standardised milk sampling, testing and calibration of equipment; environmental and climate sustainability and enhancing the industry mandatory code of conduct.
"All of which will lead to eastAUSmilk seeking strong farmgate prices to ensure a viable dairy industry now and into the future."
Advocacy and lobbying will play a vital part of achieving positive and pro-active policy outcomes in those areas of concern to dairy farmers.
eastAUSmilk co-CEO Shaughn Morgan said the Federal election next year would provide an opportunity to seek commitments from the government, opposition and independent senators to commit to the recommendations of recent Senate and State Parliamentary Committee Inquiries.
"The Australian industry continues to confront issues that date back to dairy deregulation and now is the time to prepare for the future growth of the industry generally," he said
"The NSW Government and Opposition accepted the recommendation from the NSW Parliamentary Inquiry into the sustainability of the State's dairy industry in 2018 for the establishment of a NSW Dairy Advocate, a similar commitment federally to the establishment of a Federal Dairy Advocate, with statutory powers and an independent office to oversee the industry, with Australian Competition and Consumer Commission support and guidance, would send a strong message of political will for future dairy growth and sustainability.
"The commissioner would be a 'one stop shop' for the industry and would be an advocate with government as well as safeguarding the welfare of the dairy industry in conjunction with the mandatory dairy code."
The board also acknowledged the commitment, drive and passion that the former QDO president Brian Tessmann had provided to the dairy industry.
Mr Trace said Mr Tessmann's leadership assisted in the creation of eastAUSmilk and "was the catalyst that brought fresh milk producers together to be united and to grow the business of dairy".
"Together, we will move toward a collaborative dairy farmer cohort cooperating collectively for the good of the dairy industry generally."
Fond farewell to long serving QDO President Brian Tessmann
With the formation of eastAUSmilk the QLD dairy industry is saying farewell to not only the QDO name but also the long serving President Brian Tessmann. Having previously stated he would step down from state duties after finalising the recent QLD/NSW merger, he has as we have become accustomed been true to his word.
Brian was elected to the Wide Bay Burnett District Council of QDO in 1995 serving as District secretary until 2003. In 2000, Brian was elected to State Council serving first as Vice President before being elected President in 2009.
President Brian has seen the highs and lows of dairy advocacy and the industry in general across QLD.
From the devastation of deregulation, the millennium drought, 2011 floods, cyclones Yasi and Debbie, discount $1 a litre milk and the most recent drought there has always been something belting the QLD dairy industry while Brian has been at the table.
I know he feels that leaving at this time with the death of $1 a litre milk and a now solid farm gate milk price combined with buoyant seasonal conditions, there is a fresh hope and optimism of growth and prosperity for the QLD dairy industry.
Having been on the board with Brian the last five years I’ve gained an appreciation of his efforts that I could not have seen previously. Some of you may not know that Brian is an avid reader of history of to name a couple of things religion, war and conquest. He also has an exceptional memory to recall previous meetings, discussions and debates over dairy industry policy. The combination of these traits has meant that Brian has a tremendous depth of knowledge and understanding of what is the right policy position for the farmers he represents and also the smartest way of achieving that.
While his intellect has been a strength perhaps his greatest asset has been his will to fight hard for those he represents. If it’s in the interest of farmers he will never back down.
So on behalf of QDO and the now eastAUSmilk board, our members and the QLD dairy industry in general, I say thank you Brian for your service and commitment and to the personal sacrifice you and your family have made for the QLD dairy industry.
Matt Trace, Chair eastAUSmilk
eastAUSmilk: The hard work starts now
The first meeting of the eastAUSmilk board of directors was held this week providing an opportunity for the new dairy farmer industry body, representing eastern seaboard dairy producers from the southern border of NSW to the tip of Queensland, to meet to discuss issues challenging the industry.
President of eastAUSmilk, Matt Trace, said the opportunities arising from the merger of Queensland Dairyfarmers’ Organisation and the Dairy Connect Farmers Group are profound.
“They represent a strong platform from which to represent dairy producers with a unity of purpose before government, retailers, processors and industry stakeholders,” Matt said.
"The inaugural eastAUSmilk board meeting illustrated that we had far more in common than what a 'false border' represents across agriculture generally and dairy specifically.
"Fresh milk producers face many common issues and we will be putting forward strong policy positions on issues including 'truth in labelling'; standardised milk sampling, testing and calibration of equipment; environmental and climate sustainability and enhancing the industry mandatory code of conduct.
"All of which will lead to eastAUSmilk seeking strong farmgate prices to ensure a viable dairy industry now and into the future."
Advocacy and lobbying will play a vital part of achieving positive and pro-active policy outcomes in those areas of concern to dairy farmers.
Co-CEO of eastAUSmilk, Shaughn Morgan, said today that the Federal election next year would provide an opportunity to seek commitments from the government, opposition and independent senators to commit to the recommendations of recent Senate and State Parliamentary Committee Inquiries.
"The Australian industry continues to confront issues that date back to dairy deregulation and now is the time to prepare for the future growth of the industry generally," Shaughn said
"The NSW Government and Opposition accepted the recommendation from the NSW Parliamentary Inquiry into the sustainability of the State’s dairy industry in 2018 for the establishment of a NSW Dairy Advocate, a similar commitment federally to the establishment of a Federal Dairy Advocate, with statutory powers and an independent office to oversee the industry, with ACCC support and guidance, would send a strong message of political will for future dairy growth and sustainability.
"The Commissioner would be a 'one stop shop' for the industry and would be an advocate with Government as well as safeguarding the welfare of the dairy industry in conjunction with the mandatory dairy code."
The Board also acknowledged the commitment, drive and passion that the former President of QDO, Brian Tessmann, had provided to the dairy industry.
Matt Trace said that "his leadership assisted in the creation of eastAUSmilk and was the catalyst that brought fresh milk producers together to be united and to grow the business of dairy".
"Together, we will move toward a collaborative dairy farmer cohort cooperating collectively for the good of the dairy industry generally."
Matt Trace, Chair eastAUSmilk
Shaughn Morgan, co-CEO eastAUSmilk
Work begins for eastAUSmilk
Merged advocacy body eastAUSmilk began operation on Wednesday, promising a new era of direct representation for NSW and Queensland dairy farmers.
I am honoured to have been elected as inaugural chair and I look forward to working with the other members of the board and staff of eastAUSmilk to achieve a positive outcome for dairy producers in coming weeks, months and years.
The new industry body aimed to represent dairy producers from southern NSW to the tip of Queensland.
The significance of eastAUSmilk will be its strength in numbers and a unity of purpose that will be underpinned by the new organisation while bringing into play the best of the QDO and NSW's Dairy Connect Farmers' Group.
There are many issues needing to be addressed.
We must ensure that when increases in dairy prices occurs, such as that recently announced by the supermarkets for home-brand milk, that a part of that increase will be passed down the dairy value chain to ensure a win-win for all those involved in the dairy process.
Supermarket customers have shown a strong willingness to support dairy farmers due to the high nutritional produce that dairy farmers supply to their processor but they need to be assured that when they pay that extra price at the supermarket checkout, the dairy farmer is receiving a fair share of that increased price.
eastAUSmilk's stronger cross-state representation would allow it to advocate more strongly to government, stakeholders and other interest groups about the importance of the dairy industry.
Other directors on the eastAUSmilk board are James Geraghty, Gary Wenzel, Waylon Barron, Ruth Kydd and Graham Forbes.
I am proud to have Graham Forbes, a dairy farmer from Gloucester, NSW, as the vice-chair and I look forward to working with all of the board members.
Matt Trace – eastAUSmilk President
Merged dairy body eastAUSmilk hasn’t minced words in its first policy foray
Supermarket operators on the eastern seaboard have been warned that milk-price increases should be passed down the supply chain so dairy farmers get their fair share.
A statement from the newly-formed eastAUSmilk, the brand adopted by the newly merged Queensland Dairyfarmers Organisation and NSW’s Dairy Connect, suggests the body will be taking a more prominent role in advocacy moving forward.
EastAUSmilk chair Matt Trace, the former VP of the QDO, said the significance of the body will be its strength in numbers and a unity of purpose.
Among the issues he singled out that the organisation will be pursuing is the fairness of consumer milk pricing.
“We must ensure that when increases in dairy prices occurs, such as that recently announced by the supermarkets for home-brand milk, that a part of that increase will be passed down the dairy value chain to ensure a win-win for all those involved in the dairy process.
“Supermarket customers have shown a strong willingness to support dairy farmers due to the high nutritional produce that dairy farmers supply to their processor but they need to be assured that when they pay that extra price at the supermarket checkout, the dairy farmer is receiving a fair share of that increased price,” said Trace.
“That is why eastAUSmilk, with increased unified membership and stronger cross-state representation, can put forward strong policy advocacy to government, stakeholders and other interest groups about the importance of the dairy industry and its future to the Australian economy in the long-term.”
The merged body has elected a board comprising members of both predecessor state organisations.
Gloucester NSW dairy farmer Graham Forbes was elected vice-chair and will be joined on the board by James Geraghty, Gary Wenzel, Waylon Barron, and Ruth Kydd.
“The Australian dairy industry is a crossroads and being united and speaking with one voice will ensure long-term sustainability and a viable dairy industry for future generations of dairy farmers,” said Forbes.
‘eastAUSmilk’ – a new dairy era begins
The industry start-up today of merged advocacy body ‘eastAUSmilk’ is a landmark event for dairy farmers in NSW and Queensland and a new era for direct dairy farmer representation on much of Australia’s eastern seaboard.
Recently elected chair of eastAUSmilk and former vice-president of Queensland Dairyfarmers Organisation, Matt Trace, has welcomed this new industry body to represent dairy producers from southern NSW to the tip of Queensland.
"The significance of eastAUSmilk will be its strength in numbers and a unity of purpose that will be underpinned by the new organisation while bringing into play the best of the QDO and NSW’s Dairy Connect Farmers Group,” Matt said
"I am honoured to have been elected as inaugural chair and I look forward to working with the other members of the board and staff of eastAUSmilk to achieve a positive outcome for dairy producers in coming weeks, months and years.
"Many issues remain to be addressed and I look forward to working towards finding the solutions necessary to move the industry forward and to ensure a strong and sustainable dairy future.
"We must ensure that when increases in dairy prices occurs, such as that recently announced by the supermarkets for home-brand milk, that a part of that increase will be passed down the dairy value chain to ensure a win-win for all those involved in the dairy process.
"Supermarket customers have shown a strong willingness to support dairy farmers due to the high nutritional produce that dairy farmers supply to their processor but they need to be assured that when they pay that extra price at the supermarket checkout, the dairy farmer is receiving a fair share of that increased price.
"That is why eastAUSmilk, with an increased unified membership and stronger cross state representation, can put forward strong policy advocacy to government, stakeholders and other interest groups about the importance of the dairy industry and its future to the Australian economy in the long-term.
Matt will be joined on the eastAUSmilk board of directors by James Geraghty, Gary Wenzel, Waylon Barron, Ruth Kydd and Graham Forbes. 2 Graham Forbes, a dairy farmer from Gloucester NSW, was elected vice-chair of eastAUSmilk.
"I am looking forward to working with Matt and the other members of the board to achieve positive and collaborative outcomes for dairy producers from the 6 district council regions of eastAUSmilk,” Graham said.
"The opportunities for the new organisation to address the systemic issues that remain within the dairy value chain will be immense as will the challenges that we will confront.
"Over the coming weeks and months, we will be speaking and meeting with members and other dairy farmers about the opportunities that eastAUSmilk will provide and the way that we can move the industry forward collaboratively.
“Engagement with government, processors and supermarkets will be vital to find the pathway and a mechanism to ensure that we achieve collegiate outcomes which are in the best interests of the dairy industry.
“The Australian dairy industry is a crossroads and being united and speaking with one voice will ensure long-term sustainability and a viable dairy industry for future generations of dairy farmers.