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Australian Dairy Farmers in chaos: Eight Victorian councillors ousted

The Australia Dairy Farmers peak lobby group is in chaos, after eight of its Victorian councillors were ousted in the lead-up to its annual general meeting today.

ADF has been forced to postpone the election of a new national president until Friday, but it’s unlikely the eight Victorian councillors will be replaced in time.

United Dairyfarmers of Victoria president Bernie Free, who was only confirmed in the role on Monday, led the push to oust eight of his own state’s ADF councillors, notifying them via email on Wednesday that their positions had been “revoked”.

“Most of them had a conflict of interest, so we decided, with advice from the VFF president (Emma Germano), that we remove them all,” Mr Free said.

He said that “conflict was in being Dairy Farmers Victoria members”, plus “most of them had already served their two year terms”.

But former UDV president Mark Billing, who spearheaded the formation of DFV as a new state lobby group, said he and the other councillors were still “UDV members and are all ADF business members”.

“(Fellow ADF councillor) Bruce Knowles and I went through an election to represent the south west (on ADF national council),” Mr Billing said. “We were all democratically appointed, but summarily dismissed.”

As for their terms being up, Mr Billing said that was not the case for two of the ousted councillors and that ultimately UDV had the discretion to vary terms.

Mr Billing said Victorian dairy farmer representation on ADF was already under scrutiny, given the Victorian Farmers Federation had not paid any subscriptions to the peak dairy lobby for more than 12 months.

The loss of eight Victorian ADF councillors leaves the ADF council with just seven from other dairying states.

Peter Hunt, The Weekly Times, 23 November 2023.

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Milk tanker strike ends, but Saputo, Fonterra, Peters, Lactalis factory workers still out

Saputo’s Gippsland milk tanker drivers have returned to work, ending their 48-hour strike that began Tuesday at 3am.

Dairy Farmers Victoria president Mark Billing said some farmers had been forced to dump milk, but much of the impact had been offset by drivers and middle management from Western Victoria heading to Gippsland to help out.

Transport Workers Union state secretary Mike McNess said the strike action ceased at 3am today, with drivers due to meet Saputo representatives for discussion tomorrow morning.

Mr McNess has previously stated the dispute was over reasonable hours of work and job security, given Saputo’s recent plant closures and announcements of further plant axings.

Meanwhile 1400 United Workers Union dairy factory workers continue to strike at Saputo, Lactalis, Fonterra and Peters plants, which may soon be unable to store more milk, raising the prospect of processors having to dump on site.

The union is calling for a 15 per cent pay rise over three years, with specific demands of Saputo to confirm the future of its operations in Australia.

Alex Sinnott and Peter Hunt, The Weekly Times, 19 October 2023.

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Court appeal: milk meter finding upheld

Milk hauliers using a milk measurement system without permission collected millions of litres of milk during a seven-year period unbeknown to farmers and milk processors, a court has found.

The Federal Appeals Court recently upheld a 2018 decision in favour of milk collection engineering company Flo-gineering against five milk haulage companies — Blu Logistics SA, Wastell Milk Haulage, Wadene, JR Bulk Liquid Transport, and Jurss Robertson — for misleading both processors and producers between 2013 and 2020.

The haulage companies – whose customers included Fonterra, Parmalat Australia Pty Ltd and, at the time, Murray Goulburn – were found to have used an approval number originally given to Flo-gineering, which guarantees the integrity and accuracy of Flo-gineering’s measurement systems for its clients.

In July this year, Blu Logistics and four other hauliers appealed the initial 2018 court ruling, which ordered the hauliers to pay Flo-gineering $465,477 plus agreed interest of $271,498.12.

Tankers visited farms in NSW, Queensland, South Australia, and Tasmania. In the initial ruling, the judge found 26 of the hauliers’ tankers collected milk using an approval number allocated to Flo-gineering without approval, with the judge finding the hauliers had “engaged in conduct that was misleading or deceptive”.

It is understood Blu Logistics and the other hauliers employed an independent certified calibrator, who applied the approval numbers to each of the flow meters on the 26 tankers. Court documents show the terms of the approval required the approval number be used only by individuals authorised by Flo-gineering.

Speaking in court in 2018, former Fonterra senior executive Antony Miller said the accuracy of flow meters was important for the dairy industry, being “the basis upon which farmers are paid” and “is part of an integral system for the milk processors to control inbound milk volumes”.

Madeleine Stuchbery, The Weekly Times, September 28, 2023.

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Agricultural powerhouse: China’s homegrown food boom

Thousands of dairy heifers have been raised in China to lift the nation’s milk production to 40 billion litres.

 

China has become an agricultural powerhouse, as it winds back imports and strives to boost food security for its 1.4 billion residents.

 

Growth in Chinese milk production has been staggering, surging from 14 billion litres in 2002 to 40 billion litres today – twice New Zealand’s output. Market analysts say that growth in combination with a slowing Chinese economy has played a big part in the 45 per cent slump in global dairy prices over the past 18 months.

 

Fonterra NZ chief executive Miles Hurrell recently told Kiwi suppliers that “Chinese processors have been left with no choice but to spray dry their surplus milk, leading to high in-market stocks of whole milk powder.”

China’s cutback in dairy imports has led Fonterra to cut Kiwi farmers’ farmgate prices to unsustainable levels and flood the Australian market.

 

Peter Hunt, The Weekly Times, 22 September 2023.

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VFF exodus: UDV leaders resign in anger and frustration

United Dairyfarmers of Victoria president Mark Billing and most of his policy council have resigned. Here’s why.

The leadership of the United Dairyfarmers of Victoria has resigned en masse, in frustration at what they say are the ongoing failures of the Victorian Farmers Federation to staff and fund their commodity group.

UDV president Mark Billing and nine of his fellow policy councillors have resigned to form the new lobby group, Dairy Farmers Victoria.

Mr Billing said the group had held off launching DFV for weeks, in the hope the VFF leadership would listen to their pleas for more of the $950,000 in dairy farmer levies to go to dairy advocacy and for greater co-operation on engaging members.

“We gave them ample opportunity to talk, but they wouldn’t sit down with us (policy council),” Mr Billing said.

Peter Hunt, The Weekly Times, 26 September 2023.

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Milk price comparison: Fonterra beats Bega and Saputo

Fonterra leads on farmgate price ahead of rivals Saputo and Bega, but all dairy processors are struggling. See the latest milk price comparison.

New Zealand dairy giant Fonterra has beat its major rivals to top the milk price pool, despite embattled Canadian processor Saputo’s recent 10-cent step up.

Milk2Market’s latest milk price comparison has Fonterra offering $9.52 a kilogram of milk solids for farmers delivering two million litres, followed by Bega Cheese on $9.45/kgMS, with Saputo on $9.40/kgMS.

Competition among processors for farmers’ milk was already strong heading into this season, but La Nina-driven floods and heavy rain swamped pastures and drove national milk production down 6.5 per cent to the end of October.

If the trend continues Australian dairy farmers will produce just 7.99 billion litres this season, compared to 8.55 billion in 2021-22 and 9.8 billion seven years ago.

Processors have not been able to run their processing plants at anywhere near capacity and have also been hard hit by the global energy crisis.

Diesel price hikes have driven up transport costs, while gas, used in evaporators to make milk powders, has soared to record levels.

While Saputo, Bega Cheese and Fonterra negotiate their own contract gas prices with suppliers, recently gazetted standard contract rates show AGL has lifted its weighted average small business tariffs by 22 per cent, Energy Australia by 35.9 per cent and Alinta Energy by a whopping 67.9 per cent.

Saputo has already rationalised its transport fleet and announced the closure of its Maffra plant and its bulk powders production at Leongatha, both of which use huge amounts of gas in their evaporators.

Source: Peter Hunt, The Weekly Times, 8 December 2022

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Dairy Australia staff surge as milk production slumps by a billion litres

As national milk production slumps by almost a billion litres, Dairy Australia has boosted staff numbers to 178.

 

Dairy Australia’s staff numbers have surged almost 30 per cent in the past five years, despite national milk production slumping by almost a billion litres.

 

DA’s annual reports show it had the full time equivalent of 139.65 staff in 2016-17, with 91.3 FTEs at its Southbank headquarters, plus 48.35 FTEs spread across its eight regional development program sites.

 

The latest 2021-22 annual report shows that number has grown to 178 FTE staff, but gives no breakdown of how many work at Southbank versus the RDPs.

As DA’s staff numbers increase national milk production wanes, from 9 billion litres in 2016-17 to a forecast of just on 8 billion litres this season.

 

The wages bill reflects the hike in staff numbers, having grown from $14.9m in 2016-17 to $18.34m in 2021-22.

 

DA managing director David Nation said employee numbers “fluctuate over time based on the significant increase in the delivery of services to farmers and the industry and the reduced dependency on consultants to deliver these services.

 

Dairy Australia managing director David Nation responded to questions on increased staffing by stating he plans to enhance farmer engagement.

 

“There are also plans to enhance Dairy Australia services and engagement with farmers through our 8 regional locations. Which includes the bolstering of expertise and capacity to support farm businesses.”

 

The wages hike comes despite DA losing a bid earlier this year to gain a 20 per cent increase in the levies farmers contribute to its research, development and marketing efforts.

 

At the time the Australian Dairy Farmers Board urged the nation’s 5000 farmers not support any increase in the levy, given dairy processing giants – such as Fonterra, Bega and Saputo – refused to contribute, despite enjoying the benefits of the R&D body’s $10 million investment in post farmgate manufacturing research, market access and development.

 

Woolsthorpe dairy farmer Glenn Britnell said the question DA needed to answer was “What value have we got from employing more staff while producing less milk?”.

 

“I don’t mind if they step up their staffing, but are they creating value down the chain?”

 

Cohuna dairy farmer Steve Henty said DA had delivered value to his own operation over his lifetime, but could not attribute anything to its R&D that had helped him over the past five years.

 

However he said “when there’s an emergency they (DA) do really step up, calling to ask what we need, and when things are tight.

 

As for the decline in milk production Mr Henty said “everyone has to take a little bit of blame”, from those with big numbers of cows who “had not been able to find the right balance”, to “those of us of a certain age who are thinking of running beef”.

 

Source: Peter Hunt, The Weekly Times, 29 November 2022

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Norco flood loss: $27.5m loss for northern dairy co-operative

Norco may have been hit hard by the Lismore floods, but $46m in government grants is helping it rebuild farmer equity.

 

Lismore’s February floods have cost Norco dairy co-operative $41m in damages, as revealed in its 2021-22 annual report released to farmers this week.

 

By far the greatest loss was the damage to the co-operative’s Lismore ice-cream factory, which was undergoing a $30m upgrade at the time.

 

All up Norco recorded losses of:

 

•             $24.5m to its ice-cream business

•             $9m in stock losses

•             $7.5m in employee expenses and clean-up costs

 

Those losses led to Norco recording a $27.5m net loss - before recognition of tax loss benefits.

 

However, the co-op recently won $46m in NSW and Federal Government grants to help rebuild its flood-damaged ice-cream factory.

 

The total cost of the rebuild is $59m, which should revive Norco’s equity position, which had slumped from $80.7m prior to the floods, down to $61.2m in its aftermath.

 

“The 28 February 2022 will be a date that will go down in history for our co-operative, our members and many of our staff due to the impacts of a devastating natural disaster,” Norco chairman Michael Jeffery said in his report to farmers.

 

“While our sites in Lismore could withstand a one-in-100-year flood event, with some short-term minimal impact, this flood event was more than two metres higher than any other flood in recorded history and it caused significant damage and losses at many of the co-operative’s facilities.”

 

Despite the floods, Mr Jeffery said Norco was still able to inject $4.5m to boost the farmgate milk price during the year, to aid members’ recovery from the floods and cover surging costs of production.

 

Norco chief executive Michael Hampson said the co-operative had built-in resilience over recent years, by reducing “net debt to $4.7m at 30 June 2022, the lowest level in many years”. “This is a considerable improvement on the 2019 financial year end, where net debt was $36.5m – this clearly points to the resilience now created in the co-operative, and the benefits of the change to our new operating model that we commenced in 2020,” he said.

 

He said the Norco brand continued to grow in Queensland and NSW, with an annual national retail sales growth rate of 5.3 per cent in 2021-22.

 

“When considering the white milk category declined at 2.1 per cent, this growth shows the focused activity of the sales and marketing team to communicate the point of difference of the Norco brand to consumers.

 

“It also shows that consumers do understand that supporting a 100 per cent farmer-owned co-operative is a unique value proposition.”

 

Source: Peter Hunt, The Weekly Times, 4 November 2022

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EPA fines: Farmers must register silage tyres

Farmers will no longer need EPA licences when using 5000 or more tyres to weigh down silage — the tyres must be registered instead.

 

Dairy farmers must register all tyres used to weigh down silage on their properties by July 1 next year, under regulations being drafted by the Environment Protection Authority.

 

The registration requirement is part of a compromise deal negotiated by the United Dairyfarmers of Victoria and Dairy Australia, to avoid farmers having to spend $15,000 or more to gain an EPA license when using 5000 or more waste tyres on their properties.

 

The compromise deal took two years to negotiate and was triggered by a case in which the EPA ordered a Gippsland dairy farming family to remove every one of the 6800 tyres they used on their property to hold down silage stack covers or face a $396,000 fine.

 

The Whittaker family’s treatment led to a public outcry, which forced the EPA to the negotiating table.

 

The Department of Environment, Land, Water and Environment followed up by undertaking a survey of 122 farmers to understand the extent of their silage usage, which found:

 

  • 69 per cent used less than 2500 tyres

  • 6 per cent used 2500 - 5000 tyres

  • 12 percent used 5000 - 12,500

  • 5 per cent used 12,500 - 25,000

  • 8 per cent using 25,000 or more

 

The fact that 25 per cent of surveyed farmers used more than the licenced threshold of 5000 tyres led the government to develop a range of alternatives that were then subject to a regulatory impact statement, which recommended the move to a simple registration process.

 

Victoria’s Environment Minister Lily D’Ambrosio this week finally issued a notice recommending regulations be made to declare “using five cubic metres or more of waste tyres as weights during silage production, including storing waste tyres for that purpose” is a “prescribed permission activity” that must be registered from July 1, 2023.

 

The minister’s ruling means all dairy farmers who use more than about 60 tyres must register the number of tyres they use on the property and their location.

 

Registration will be free through an online process, which the EPA is yet to establish.

 

The EPA is also developing guidance notes in partnership with the United Dairyfarmers of Victoria and Dairy Australia on how silage tyres are stored, including buffer distances from buildings, to minimise fire risks.

 

UDV president Mark Billing said moving to registration was a good outcome.

 

“UDV and DA have been negotiating from more than 12 months to get a balanced situation,” Mr Billing said.

 

“While the EPA requires registration, we’ve been able to wind back other requirements.”

 

He said avoiding licensing was invaluable to dairy farmers, especially those in the state’s north, who were cutting and carting and storing large quantities of silage.

 

Source: Peter Hunt, The Weekly Times, 15 September 2022

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Fonterra commits to fund Dairy Australia: Farmers applaud Kiwi giant

Dairy farmers have applauded trans-Tasman dairy giant Fonterra’s commitment to pay a “proportionate financial contribution” to Australia’s research and development corporation – Dairy Australia

 

Australian Dairy Farmers president Rick Gladigau said Fonterra’s commitment “was a very positive step” and it “is a fantastic and timely example for all dairy processors to consider”.


 

Federal Agriculture Minister David Littleproud said “if the dairy industry is unified about wanting a processor levy, I am prepared to work with the industry to explore the options.”

 

Labor agriculture spokeswoman and Tasmanian MP Julie Collins failed to respond.

 

Fonterra Australia managing director René Dedoncker said “we support the notion of processors making meaningful contributions – both financial and time – to ensure that Dairy Australia has the resources it needs to address the industry’s priority areas, and we commit to making proportionate financial contributions.

 

“This is not a once-off, short-term contribution. As a major processor, we are committed to setting up a long-term co-investment arrangement which needs consultation and alignment.”

 

Farmers, who contribute $31m in levies on their milk to DA each year, have been appealing to processors for months to chip in about $5m to cover half the R&D body’s post farmgate work in promotion, manufacturing research and market access.

 

Fonterra Australia’s share of that $5m would equate to about $900,000, based on it bringing in 1.4 billion litres this season as part of the 8.8 billion-litre national milk pool.

 

On that same basis Saputo would contribute $1.27m, Bega Cheese $970,000, Lactalis about $450,000, Bulla $340,000, while Burra and ACM each chipped in about $230,000, plus $130,000 from NORCO, leaving about $470,000 to be recovered from smaller players.

 

Neither Bega Cheese nor Canadian giant Saputo responded to repeated calls, texts and emails on whether they supported making a direct contribution to DA, via a mandatory processor levy.

 

Mr Dedoncker said Fonterra preferred a voluntary levy, but said “it’s too early to say what our financial contribution will be, as the next step is to work with Dairy Australia to align on priorities for co-investment, while making sure appropriate governance and accountabilities are in place to transparently report the benefits of our contribution”.

 

Fonterra’s commitment follows last week’s announcement of the Dairy Levy Poll results, in which an overwhelming majority of farmers voted to oppose any increase in their levy payments to DA.

 

As the nation’s peak dairy lobby group ADF called on its 5000 farmers to oppose an increase, given processors ongoing failure to contribute.

 

Yet as things stand dairy processors contribute virtually nothing to Dairy Australia, but are granted a seat on its 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, from $32 million to more than $38m.

 

Source: Peter Hunt, The Weekly Times, 12 April 2022

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Australian Dairy Levy Poll result: Voters say no to levy hike

5000 dairy farmers have said no to paying higher levies to Dairy Australia. See how farmers voted by state.

 

An overwhelming majority of dairy farmers have voted against any increase in the levy they pay their peak research and development corporation – Dairy Australia.

More than 72 per cent of valid voters voted to keep the levy at its current level, with about 16 per cent of voters opting for the recommended 20 per cent increase.

 

Dairy Levy Poll - Overall result

 

The levy has remained at the same rate since 2012, with farmers paying 2.8683 cents per kilogram of milk fat and 6.9914 cents per kilogram of protein.

 

A 20 per cent rise was recommended by the Levy Poll Advisory Committee (LPAC) earlier this year but the low to negligible contribution by processors has generated controversy.

 

In the end the Australian Dairy Farmers Board urged the nation's 5000 farmers not support any increase in the levy, given dairy processing giants – such as Fonterra, Bega and Saputo – refused to contribute, despite enjoying the benefits of the R&D body’s $10 million investment in post farmgate manufacturing research, market access and development.

 

Dairy Australia managing director David Nation said: “we value and appreciate every dollar of the dairy levy, and we will continue to invest it in ways that deliver tangible benefits to farmers.

 

“It was also pleasing to see 36 per cent (of primary voters were cast) for an increase in levy, indicating support for the key areas identified for continuing investment – labour, regional services, climate and policy development.

 

“We will need to consider how we address these key areas and now work to prioritise investment and services with these areas in mind, along with our current investment mix.”

 

Dairy farmers were denied the right to vote for a cut in the levy rate in the poll.

 

In February, United Dairyfarmers of Victoria president Paul Mumford gave “an ultimatum to dairy processors to stump up or piss off” – out of Dairy Australia.

 

Yesterday, Fonterra Australia managing director René Dedoncker said his organisation was willing to make a proportionate financial contribution to DA.

 

“Fonterra recognises the value of processors and farmers working together and the mutually beneficial outcomes that can be achieved by doing so,” he said.

 

“We support the notion of processors making meaningful contributions – both financial and time – to ensure that Dairy Australia has the resources it needs to address the industry’s priority areas, and we commit to making proportionate financial contributions.”

Dairy Levy Poll result – by state

Source: Alex Sinnott and Peter Hunt, The Weekly Times, 6 April 2022

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NSW flood-ravaged dairy farmers battling to rebuild in ongoing wet

Fodder donations are flowing into farms across Northern NSW as farmers battle ongoing rain and poor herd health.

 

ONGOING rain is hampering the NSW Northern Rivers Region’s flood recovery, with dairy farmers battling mastitis, soggy silt-covered paddocks and a shortage of spare parts.

 

Casino dairy farmer Terry Toohey, who is co-ordinating rural support, said “mastitis is running rampant” and appealed to veterinary drug companies to donate treatments.

 

“There’s just one company getting some mastitis treatments out there at the moment,” he said,

adding that ongoing rain also meant the country remained wet, compounding the stress of animals.

 

“Hay is available and a nutritionist has come in, plus a hoof trimmer to help with lameness,” Mr Toohey said Lismore dairy farmer Paul Weir finally got mains power back on this week, after a fortnight relying on a generator.

 

Mr Weir said BlazeAid volunteers had been out to help him clean up fences and builders had stripped the plasterboard out of the lower level of his home to let it all dry out.

 

“There’s plenty of mastitis, but we’re getting on top of it, drying cows,” he said. “We’re getting there.”

As for his cow losses, Mr Weir said 62 were dead with another 34 still missing.

 

“There was a picture of one of mine on facebook last night, as people get back in as the (Richmond) River drops,” he said.

 

Mr Toohey said one sugar cane grower on the lower reaches of the river was feeding 150 cattle “and he doesn’t own them”, which is a challenge given he’s not set up to run cattle.

 

Tatham dairy farmer Maureen McDonald, whose farm was completely inundated, said she and husband Steve were taking the recovery “one day at a time”.

 

“You can’t roll over,” she said. “You have to keep on moving forward.

 

The McDonalds have had BlazeAid and defence force crews out on the property helping with the clean up and fencing, while the couple focus on herd health, milking and feeding out.

 

“(Fodder) donations have come in and we’re expecting a load of silage today(Monday),” Mrs McDonald said.

 

Mr Toohey added that one of the biggest issues was difficulty sourcing spare parts for all the dairy and farm machinery that had been inundated.

 

“Lismore is the hub for all the industries on the North Coast,” Mr Toohey said. “Something as simple as a bearing that used to take about half an hour to get now takes three or four days.”

 

As for financial assistance NSW farmers are getting support from their NORCO dairy co-operative to lodge application forms to obtain flood recovery grants of up to $75,000.

 

Donations or offers to volunteer with BlazeAid can be made HERE.

 

Other groups offering support include Drought Angels, with farmers able get relief payments of $1500 by calling 07 4662 7371 or by filling in the form HERE, while donations can be made HERE.

 

The Queensland and NSW Government is also asking farmers to fill out damage assessment forms to help them direct assistance, they can be found:

 

Click HERE for Queensland farmers

 

Click HERE for NSW farmers

 

Support lines also operate in Queensland on 13 25 23 and NSW on 1800 814 647

Source: Peter Hunt, The Weekly Times, 15 March 2022

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Rural Australia rallies to support NSW and Queensland farm flood victims

Floods have swept farmers’ cattle, fodder and fencing down rivers, destroyed homes and smothered pastures, but the community support is strong.

 

Floods have swept Northern NSW and Queensland farmers’ cattle, fodder and fencing down rivers, destroyed homes and smothered pastures, but the swift flowing water failed to erode the spirit of rural communities that have rallied support.

 

“We’ve been overwhelmed with offers of support from farmers near and far - the Atherton Tablelands to Shepparton and King Island,” Lismore dairy farmer Paul Weir said, who watched half his 300-cow herd swept away by the floods last week.

 

“I’m humbled. It’s been an emotional rollercoaster.”

 

At a local level farmers have stepped in to milk neighbours’ herds and offer fodder, while even townspeople rustled up missing cows, with one even found outside Bunnings.

The short-term focus of most farmers has been getting the power back on or generators installed, disposing of dead cattle, rebuilding fences and sourcing fodder.

 

Tatham dairy farmer Maureen McDonald, whose property was inundated, saved her greatest praise for electrician Brett Hardwick, who spent three days getting her flooded dairy operational, even cleaning out a feed silo to boot.

 

“Without him we would not be operating,” Ms McDonald said.

 

Others, such as Casino dairy farmer Terry Toohey, used his broad network to keep in touch with hard hit farmers and co-ordinate the airlifting of generators, pumps and electricians into properties.

 

He said about 20 dairy farmers had been severely affected in the hardest hit parts of the Northern Rivers Region of NSW, with one even forced to pitch a tent on the dairy roof last week, while he waited for the water to subside.

 

Across the border in Queensland EastAUSMilk president Matthew Trace said the damage was generally not as severe, but there was still producers who lost 10 to 20 cows, needed fodder and help re-fencing.

 

He said his own region of Gympie was hardest hit, along with parts of the Lockyer Valley and Beaudesert region.

 

“We’re able to get plenty of fodder from South Burnett and the Darling Downs, but we’re not in the same critical situation as northern NSW,” he said.

 

Australia’s largest farmer owned meat processing co-operative in Casino, half an hour’s drive from Lismore, was in the midst of co-ordinating fodder donations and deliveries this week.

 

By early Monday Casino Food Cooperative livestock manager Heidi Hayes, said about 60 farmers had called for help in sourcing fodder. She also asked that anyone wanting to donate hay or silage call her on (0429) 640-047.

 

“We’ve had people just turning up with fodder on the back of trucks and just been unloading it on the hay pad and then we’re dispersing it,” Ms Hayes said.

 

But sourcing fuel is still a problem.

 

“It’s a bit like Mad Max up here, you have to wait hours for fuel,” Mr Weir said.

 

When friends ring to ask how they can help, Mr Weir said “I ask if they can bring a jerry can of diesel over with the scones”.

 

BlazeAid operations manager Melissa Jones, daughter of the volunteer organisation’s founder Kevin Butler, has already set up a fencing camp in Casino and is looking for sites at Gympie and the Lockyer Valley.

 

She said they had 12 volunteers setting up at Casino, but had room for 50 and appealed for more help, given she already had 100 farmers seeking help to re-fence. (Contact 0418 990 267)

 

Mrs McDonald and husband Steve, have already enlisted BlazeAid’s help, after losing nearly all their fencing.

 

She said the damage was made worse by the floods sweeping tonnes of the exotic aquatic weed water hyacinth up against fences, flattening them.

 

“We did lose half the herd, which was swept away, but they were back the next morning,” Ms McDonald said. “But they were back the next morning.”

 

However the couple say they lost 60 springing heifers, after the flood peaked 1.5m above the 2008 level they had planned for.

 

Ms McDonald said she and Steve thought they had prepared the farm for the worst case flood, installing a large cement feed pad, building mounds in the dry-cow paddock to keep cattle out of harm’s way and storing silage on their highest country.

 

NORCO director Heath Cook took one of the most startling images of the floods as he drove into Lismore last Friday morning to visit the dairy co-operative’s headquarters, showing the bloated carcass of a dairy cow that had been washed onto the veranda of a Lismore auto business at the flood’s peak.

 

Mr Cook said every Australian needed to see the extent of the damage, from which he feared some residents would never recover.

 

As one of the town’s biggest employers NORCO is reeling from the impact of four to five metres of water washing through critical processing lines in its ice-cream factory, which was undergoing a $30m upgrade and the decommissioning of its feed mill.

 

In the meantime the NSW, Queensland and Federal Government are offering flood-affected farmers grants of up to $75,000 to help with the recovery.

 

But EastAUSMilk vice-president Graham Forbes said farmers needed “major assistance, not just the $75,000, if they’re going to stay in the industry. Otherwise they will exit.”

 

Mr Weir said one of the big issues would be regaining affordable insurance.

 

“I don’t’ want to put my insurance (payout) into a sinking ship,” Mr Weir said.

 

Donations or offers to volunteer with BlazeAid can be made HERE.

 

Other groups offering support include Drought Angels, with farmers able get relief payments of $1500 by calling 07 4662 7371 or by filling in the form HERE, while donations can be made HERE.

 

The Queensland and NSW Government is also asking farmers to fill out damage assessment forms to help them direct assistance, they can be found:

 

Click HERE for Queensland farmers.

 

Click HERE for NSW farmers

 

Support lines also operate in Queensland on 13 25 23

 

NSW on 1800 814 647

 

DAMAGE TO CROPS:

 

Vegetable crops have been severely damaged or simply washed away after the week of intense flooding across NSW and Queensland.

 

With flood waters still high in some places, the full extent of crop, livestock and farm damage is not yet known.

 

Queensland vegetable grower Steven Moffatt said some of the paddocks on his Tarome property would reach just 50 to 60 per cent of their yield capacity this season.

 

“We’ve been affected, not to the extent of what the Lockyer Valley has been, and those closer to the coast,” Mr Moffatt said. “Our crop losses are realised at the time (of the floods), but also when we should be planting, and we will have gaps in our production. The other part is we’ve got crops in the ground, which haven’t been washed away … but their full yield potential, we were hoping for about 93 per cent, and that’s now about 50 to 60 per cent.”

 

Queensland Agriculture Minister Mark Furner said the flooding has significantly affected producers across 17 local government areas.

 

“We’ve had reports of significant loss of fences, impacts to infrastructure and supply chains, lost cattle, crop losses, and severe erosion and soil loss,” Mr Furner said.

 

“Department of Agriculture and Fisheries staff have also been on the ground assessing the damage to farm infrastructure, crops and livestock where it is safe to do so. Some areas are still covered in water.”

 

Pulse Australia chief executive Nick Goddard said about 25 per cent of Australia’s soybean crop may have been affected by the floods.

 

“We were looking at having a very good soybean crop, but a lot of it around Lismore has been badly hit,” Mr Goddard said.

 

“The Northern Rivers area has a large area of soybeans, about 50 per cent (of the national crop), and of that about 50 per cent has been hit by the floods.”

 

Source: Peter Hunt, The Weekly Times, 9 March 2022

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NSW and Queensland floods: Dairy herds swept away in floods

Paul Weir, who lost half his 300-cow herd in the floods, discovered 100 beef cattle had joined his remaining dairy cows – and he has no idea where they came from. Live updates here.

 

Food, fuel, electricity and fodder for livestock are the top priorities for flood-affected farmers across southeast Queensland and NSW’s Northern Rivers Region today.

 

“Getting out to make sure people have the basics available is the priority,” EastAUSMilk co-chief executive Shaughn Morgan said.

 

A phone hook-up last night with farmers and Emergency Management Minister Bridget McKenzie led to more helicopters being ferried in to airlift generators, pumps and electricians into properties to restore electricity.

 

The Weekly Times understands Senator McKenzie is working on an assistance package that she is due to announce in Canberra tomorrow.

 

Coraki dairy farmer Terry Toohey, who is helping co-ordinate the local relief effort, said one of the biggest issues was finding electricians and other tradies to help setup generators and pumps so that cows can be brought into milk.

 

“We have three farmers who still don’t have generators,” Mr Toohey said.

 

“It’s hard for people to imagine the destruction out here.”

 

Fuel shortages have also hit the NSW Northern Rivers region, with diesel and petrol purchases being limited to $50 a tank in Lismore.

 

Milk tankers and fodder trucks are also facing problems getting into farms after flood damage forced road authorities to cut bridge load limits to five tonnes.

 

Some farmers are also looking to source feed, for not only their own but other producers’ livestock that has simply swum in to join their herds.

 

Paul Weir, who lost half his 300-cow herd in the floods, went out to feed his heifers and dry cows to discover an extra 100 beef cattle had joined them.

 

While he had no idea where they came from, Mr Weir now faces the problem of feeding far more cattle on one of the few high point on the property, which has already turned into a quagmire.

 

Mr Toohey said looters had also appeared in Lismore.

 

“One employee walked into his house with flatmates where they found these blokes going through the house and the house next door,” Mr Toohey said.

 

Disposing of cattle carcasses has also become a priority as floodwaters subside, with the NSW Environment Protection Authority working with farmers and the state’s Department of Primary Industries.

 

Further north in Queensland, farmers in the state’s southeast are seeking support to clean up properties and fencing.

 

BlazeAid national operations manager Melissa Jones said she was trying to set up camps in the Lockyer Valley, Gympie and the Beaudesert regions, having already secured a site in Casino, NSW, which would be sending out fencing teams on Monday.

 

“We need volunteers and donations, which have really dropped of with Covid” Ms Jones said.

Donations can be made to BlazeAid HERE.

 

Other groups offering support include Drought Angels, with farmers able get relief payments of $1500 by calling 07 4662 7371 or by filling in the form HERE, while donations can be made HERE.

 

The Queensland and NSW Government is also asking farmers to fill out damage assessment forms to help them direct assistance, they can be found:

 

HERE for Queensland farmers

 

HERE for NSW farmers

 

Support lines also operate in Queensland on 13 25 23

 

NSW on 1800 814 647

 

MARCH 2: FLOODWATER BACK UP

 

Floodwaters are backing up at the junction of the Richmond and Wilsons Rivers in NSW, inundating the Coraki region all the way downstream to Ballina, after parts of the region recorded 1250 mmm in five days.

“That’s 10 inches a day for five days,” EastAUSMilk dairy farmer advocacy group vice-president Graham Forbes said.

 

“Floodwaters are receding at Lismore, but it’s the lower section of the Richmond River to Ballina that’s being hit now, with one farmer losing at least 50 cows. The lower floodplain is completely inundated.”

 

Upper Richmond River farmer Terry Toohey, said floodwaters were backing up at Coraki, where the swollen Wilsons River from Lismore met the Richmond River.

“One fella milks 450 Jerseys, who hadn’t lost many by last night, but his generator had taken water, so they’re flying in another generator and electrician to wire it up so he can milk,” Mr Toohey said.

 

“One of the main concerns in the lower catchment is that water is going to be sitting there for days (as it slows down and spreads out)”

 

He said the farmers most immediate needs were gaining access to power, fodder and workers.

 

“I have three staff, but none of them are here,” Mr Toohey said. “We need experienced people to help.”

 

“I hope there’s some retired farmers in the Casino, Lismore areas who might be able to help.”

 

EastAUSMilk is already working with NSW and Queensland primary industries departments to co-ordinate support.

 

At Dalwood, about 20km southeast of Lismore, NSW Farmers branch chair and macadamia farmer Warren Elvery said the biggest issue affected people was a lack of fuel and food.

 

And with the Princes Highway cut off in a number of locations, the already strained road freight system is struggling to access townships which need supplies.

 

“It hasn’t even peaked yet,” Mr Elvery said.

 

“There’s been people who have lost their dairy herds, their beef cattle … they’re really feeling it, and whole livelihoods have been lost.

 

“Cattle has been lost from Lismore, and they’re finding them washed up by the side of the river in Ballina.”

Mr Elvery, who runs a macadamia farm at Dalwood, said he was still in the midst of surveying the damage to his own property, with a number of his staff unable to attend work due to being affected by the floods.

 

“We couldn’t go in via the ute, we had to go in on tractor, because of the damage, and because of the water,” Mr Elvery said.

 

He estimated a crop loss of about 25 per cent.

 

“The hardest part is we’ve spent hundreds of thousands of dollars increasing the quality of the soil, building up the soil carbon … basically we’re looking at bare dirt, it’s gone.”

 

The biggest issue immediately facing people in flood affected regions, Mr Elvery said, was a lack of fuel and food.

 

“The highways are blocked, the trucks can’t get in, but once they do come in, we’ll need not a normal amount, as everyone’s run out,” Mr Elvery said.

 

“We need about four to five times the amount.”

 

A NSW Emergency Response Hotline 1800 814 647 has been set up to assist farmers with immediate support and deal with animal welfare issues, but Mr Forbes said he received a recorded message when he called at 7:30 this morning stating it only operated from 8am to 8pm.

 

EastAUSMilk co-chief executive Shaughn Morgan told The Weekly Times he had contacted NSW Agriculture Minister Dougald Saunders this morning and was assured the hours would be extended.

 

In the meantime Drought Angels founder Tash Johnston said the group was offering farmers $1500 emergency relief grants, which could be accessed by calling 07 4662 7371.

 

“We have up to $100,000 currently available for $1500 relief payments, (but) that's 66 farmers at the moment we can help,” Ms Johnston said. “With our flood appeal we hope to be able to help a lot more.”

 

Tax deductible donations can also be made to the Drought Angels by visiting their website.

 

In the meantime Mr Forbes said the flood damage bill was soaring from what are regarded as the worst floods to hit the NSW Northern Rivers on record.

He said Lismore-based NORCO dairy co-operative’s feed mill had been decommissioned and its local ice-cream factory flooded to a height of four to five metres, washing through critical processing lines that were undergoing a $30m upgrade.

 

“It’s the largest commercial employer in Lismore, with 400 workers,” Mr Forbes said.

 

He said further north in Queensland floodwaters have subsided in most of the hard hit areas – the Lockyer Valley, Beaudesert and Gympie – with milk tankers getting back in to pick up milk.

 

“There’s still some road slips that tankers have to get around and the Lactalis factory opened up again in Brisbane yesterday.”

 

MARCH 1: DAIRY HERD SWEPT AWAY

 

Dairy farmers are counting the cost of the rain bomb that hit southeast Queensland and northern NSW, with whole herds swept away by floodwaters.

 

Lismore dairy farmer Paul Weir watched in despair late yesterday as half his 300-cow herd was swept away by floodwaters that partly submerged his dairy, peaking two metres above the previous all-time record.

 

“My son (Matthew) swam across to the shed to get his jet ski off the trailer and evacuated the wife and I across the river,” Mr Weir said.

 

“He then went to the tenants house and got them, then town to get his younger brother and mates off a roof.”

 

But there was some good news for the Weirs, with Paul and his sons finding 150 of their cows had survived the night, which he was able to feed.

 

“Our cows are fairly distinctive with heat detection collars and I put a message out last night to people if they found them.

 

“I’ve had a few people respond and they found one near Bunnings (in town).”

 

As for help Mr Weir said he had already received three or four calls from other farmers offering fodder and another who offered to take part of the herd to milk.

 

He said there were other farmers further downstream he was worried about, but yet to hear how they had fared.

 

“It’s a major catastrophe for Lismore, (with) water up to the roof on more than 1000 houses.

 

“Where are they going to live until their houses are deemed safe to live in.”

 

EastAUSmilk vice president Graham Forbes and NORCO dairy farmer supplier said the Wilson River had flooded the Co-op’s Lismore ice-cream factory, which employed 400 locals.

 

As the dairy advocacy group for the region EastAUSmilk helped co-ordinate a meeting of about 30 people from various government agencies to assess the flood impacts across Queensland and NSW Northern Rivers.

 

A NSW Emergency Response Hotline has been set up for farmers – 1800 814 647, to assist farmers with immediate support and deal with animal welfare issues.

 

Mr Forbes said saving lives was the immediate priority as rain continued, then it would be a matter of assessing the damage and ensuring fodder was made available.

 

This morning’s briefing heard that milk tanker access to farms was a major issue in Queensland’s Lockyer Valley, at Beaudesert and one of the hardest hit regions – Gympie.

 

EastAUSmilk Co-chief executive Shaughn Morgan said some farmers were already dumping milk, but its hoped roads could re-open soon to get tankers in.

 

He said at this stage reports were coming in of two to three herds being lost, while Mr Forbes said he had heard early reports of others being lost.

 

In NSW the hardest hit areas outside of Lismore are the Casino and Taree.

 

Source: Peter Hunt and Madeleine Stuchbery, The Weekly Times, 3 March 2022

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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.

 

Source: Peter Hunt, The Weekly Times, 16 February 2022

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Woolworths to end 10-cent drought relief levy on own-brand milk

Woolworths drought-relief milk will shortly disappear from its shelves following the easing drought conditions.

 

Woolworths will remove drought relief labelling from its own-brand two and three-litre milk from March 1, which is supplied by Fonterra, Lactalis and Bega.

 

But the supermarket giant will continue to collect the 10-cent drought levy on its milk until June 30, which will be passed onto 450-odd dairy farmers still receiving support.

 

For consumers the price will remain the same at $2.60 for Woolworths own brand 2-litre milk and $3.90 for 3-litre bottles.

 

Since it was introduction in 2018 the levy has raised $100 million in drought support for dairy farmers.

 

But as drought conditions have eased Woolworths Dairy Commercial Director Jason McQuaid said farmgate milk prices had lifted by about 15 per cent, prompting the retailer to phase out the special drought levy ahead of the new milk year in July, with a return to regular milk purchasing arrangements.

 

“In the coming months, we’ll be updating the on-pack label for our 2L and 3L own-brand milk to remove the drought relief banner,” Mr McQuaid said.

 

“We will continue to pay processors the 10 cents per litre on each of these products until the end of June 2022 and each processor has committed to continue passing those funds through to farmers over this period.”

 

EastAusMilk co-chief executive Shaughn Morgan said the lobby group would be keeping a close eye on processors to ensure the 10-cent levy continued to be passed through to farmers.

 

“It’s important dairy farmers are not hurt by this decision, given input costs are soaring,” Mr Morgan said.

 

Woolworths’ own brand milk accounts for about 5 per cent of Australia’s total milk pool.

 

In a letter to about 450 dairy farmer recipients of the levy Mr McQuaid said “there will be no immediate change to the total payment you currently receive.

 

“From the beginning of the new milk year in July 2022, the farmgate price will continue to be reviewed by processors in line with their usual practices.”

 

“We’re mindful that the industry may again face extreme conditions like those seen in 2018, and have developed a new mechanism to be built into our processing contracts to enable us to provide more timely support for farmers through existing milk purchase arrangements.”

 

Source: Peter Hunt, The Weekly Times, 4 February 2022

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Dairy farmers demand Fonterra, Saputo and others pay up or leave DA

Farmers have had enough, warning processors to pay their share of Dairy Australia’s research, development and marketing costs.

Farmers are mounting a campaign to oust dairy giants Fonterra, Saputo and other processors from the industry’s peak research, development and marketing body, unless they pay their fair share of Dairy Australia’s costs.

 

United Dairyfarmers of Victoria president Paul Mumford said the nation’s largest dairy state was backing “an ultimatum to dairy processors to stump up or piss off” – out of DA.

 

Currently, dairy processors contribute virtually nothing to Dairy Australia, but are granted a seat on its 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, from $32 million to more than $38m.

 

Mr Mumford said the UDV had already agreed to back the national council of the Australian Dairy Farmers lobby – representing Victoria, Tasmania, South Australia, NSW, Queensland and Western Australian – to demand processors contribute at least $5 million to DA, given its post farmgate work was worth close to $10 million.

 

“Over the last 20 years dairy farmers and tax payers have contributed close to $1 billion to Dairy Australia, while processors have effectively contributed nothing,” he said.

 

Forcing processors out of DA would require amendments to its constitution at a general meeting, which could be called by 100 farmer members.

 

Farmers say the big question is will the national council and ADF follow through and act on an ultimatum if processors refuse to contribute.

 

ADF has been calling on processors to contribute to DA since 2019, when it lodged a submission to the Federal Government’s inquiry into modernising research and development corporations.

 

At the time ADF stated DA’s post farmgate program was valued at $9.7m and it believed “government should mandate processors to pay levies for post farm gate programs delivered by their RDC (Dairy Australia)”, highlighting that Australia’s red meat processors already faced a mandatory levy.

 

In May last year the Australian Dairy Products Federation, representing processors, said it was engaged in a due diligence project with DA to understand the value of its work to Fonterra, Saputo and others.

 

But as of last week ADPF stated it was still working through their approach and it was not the right time to discuss any processor contribution.

 

Source: Peter Hunt, The Weekly Times, 9 February 2022

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Fonterra pays NZ farmers record milk price

Fonterra New Zealand has lifted Kiwi farmers’ milk price to a new record. And Aussie farmers are asking what it means for them.

 

Kiwi dairy giant Fonterra has lifted the 2021-22 forecast milk price paid to its New Zealand farmers by 50 cents to a new mid-point of NZD $9.20 per kilogram milk solids.

 

The move is set to capture the attention of Australian farmers keen to know if Fonterra’s Australian arm will follow its parent company’s lead.

As it stands southeast Australian dairy farmers are being paid about $7-$7.30/kgMS in Australian dollars, equal to about NZD$7.40-$7.70.

 

A Fonterra Australia spokeswoman said at this stage the company was sticking to its current schedule and would not be reviewing Australian farmgate milk prices until next month.

 

The Weekly Times is trying to contact other local milk processors for comment.

 

Fonterra NZ’s decision follows a tightening of global supply dairy supplies, which lifted last week’s Global Dairy Trade index to 1397, a level not seen since March 2014.

 

The NZ Fonterra Co-operative Group issued a statement today declaring it had lifted this season’s forecast farmgate milk price range from NZD $8.40-$9.00/kgMS to NZD $8.90-$9.50 per kgMS, up from NZD $8.40-$9.00 per kgMS.

 

It’s the highest price Fonterra has ever paid farmers, since it was formed in October 2001.

 

NZ Fonterra chief executive Miles Hurrell said the price lift was “the result of consistent demand for dairy at a time of constrained global milk supply.

 

“In general, demand globally remains strong – although, we are seeing this vary across our geographic spread.

 

“Overall, global milk supply growth is forecast to track below average levels, with European milk production growth down on last year and US milk growth slowing due to high feed costs.

 

“It’s a similar supply picture in New Zealand. Earlier this month we reduced our forecast milk collections for 2021-22 from 1525 million kgMS to 1500m kgMS due to varied weather and challenging growing conditions.

 

“While the higher forecast Farmgate Milk Price does put pressure on our margins in our consumer and foodservice businesses, prices in our ingredients business are favourable for milk price and earnings at this stage. As a result, we remain comfortable with our current 2021/22 earnings guidance of 25-35 cents per share.”

 

Mr Hurrell said there are a number of factors the Co-op is keeping a close eye on, including growing inflationary pressures impacting on operational costs, the increased potential for volatility as a result of high dairy prices and economic disruptions from COVID-19, particularly as governments respond to the .rapid spread of the Omicron variant.

 

GDT results from last week show butter prices have risen from US$4458 in July last year to US$6158 last week.

 

Whole milk powder have also risen by 5.6 per cent in the two weeks leading up to last Tuesday’s auction, while skim milk powder jumped 5 per cent.

 

Source: Peter Hunt, The Weekly Times, 25 January 2022

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VFF income crashes: Peak farmer body suffers $305,450 operating loss

The Victorian Farmers Federation is staying silent despite financials it lodged with ASIC showing a significant operating loss.

 

VFF president Emma Germano refuses to comment on the federation’s 2021 finances.

 

The Victorian Farmers Federation recorded an operating loss of $305,450 in the 12 months to September 30 last year, a slight improvement on the $445,162 loss of 2020.

 

However a $1.6 million gain on the revaluation of its assets, including the VFF’s Collins St headquarters, allowed the federation to claim an overall surplus of $1.35 million for 2021.

 

The VFF’s books show the value of Farrer House rose by $598,414 over the year to reach $30.88m despite a major slump in demand for rental space in Melbourne’s CBD.

 

But while the asset revaluation delivered a surplus, the VFF’s total income fell from $10.4m in 2020 to just $6.7m in 2021.

 

While the revenue loss may seem severe, most of it was made up of government grants that simply flowed into the VFF’s coffers and back out the door again to farmers – in the form of quadbike roll bar and cattle underpass rebates, as well as biosecurity and safety program grants.

 

It has meant that while government grant revenue fell from $5.34m in 2020 to just $2m in the 12 months to September 30 last year, it had little impact on the federation’s core finances.

 

All up the VFF handed out just $116,976 in rebates last year, compared to $4.33m in 2020.

 

Farmer member levy and subscription revenue remained relatively stable at $3.501m in the 12 months to September last year, compared to $3.545m in 2020.

 

The VFF did suffer a significant drop in revenue from commercial agreements, which fell from $1.3m to $851,905.

 

Rental income from Farrer House fell from $1.8m to $1.4m as Covid restrictions suppressed demand for office space in Melbourne’s CBD.

 

But these losses were offset to some degree by Covid stimulus funding of $280,032 last year, plus a one-off injection of $350,525, generated from the sale of the National Farmers Federation’s Canberra offices, in which the VFF held a stake.

 

VFF president Emma Germano refused to answer questions on the financials, stating “we want to ensure our members have the first opportunity to hear directly from the VFF at next month’s (Feb 23) AGM”.

“As a courtesy to our members, we will not be releasing further information until this date.”

 

However the VFF financials are available to the public, after being lodged with the Australian Securities and Investment Corporation on December 20.

 

All up over the past two years the VFF has received $849,532 in what it’s financials describe as “Covid stimulus” funding – mainly JobKeeper payments.

 

An absence of Covid support payments and VFF’s loss of a majority of its largest chicken-meat farmer members — who each paid an average of more than $3000 in membership levies annually — are expected to place further pressure on finances this year.

 

Communication expenses have already been halved from $233,057 in 2020 to $122,738.

 

But IT support costs have surged from $243,111 to $350,797 in 2020, while over the past two years, while in the past, while consultants fees jumped from $739,344 to $916,467 and Promotional, newsletter and project expenses rose from $110,905 to $365,133.

 

Source: Peter Hunt, The Weekly Times, 18 January 2022

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Boardroom rebels

NSW farmer and NORCO director Heath Cook, who milks a 320-cow herd at Dorrigo, along with South West Victorian self-proclaimed outsider Ben Bennett, were elected to the Australian Dairy Farmer Board last week.

 

Both men say they want to bring greater transparency to ADF, which has been widely criticised in recent years for initially opposing the introduction of a mandatory dairy code, undermining attempts to establish a benchmarked milk price index and then supporting an Australian Dairy Plan that has hit a dead end.

 

“It’s a generational change,” Mr Bennett said.

 

“We’ve made it very clear this (being elected) is about making sure grassroots farmers’ voices are heard.”

 

Mr Bennett was widely regarded as an outside chance for a seat on the board, but quietly worked away in the back- ground during recent months to recruit new ADF members and the votes he needed to get across the line.

 

Mr Cook said the biggest issue the industry faced was re-building unity and proving the value of ADF. “There’s a lack of farmer engagement, with 90 per cent seeing us as irrelevant,” he said

 

Mr Cook’s strength of conviction even led him to resign from the Dairy Levy Poll Advisory Committee, after a majority of its members refused to give farmers the right to vote for a reduction in the $32 million, they pay their national research, development and marketing body each year — Dairy Australia.

 

Mr Bennett has also argued “farmers should be given choice”, while personally supporting an increase in the DA levy.

 

Both men have extensive commercial backgrounds.

 

While Mr Bennett is widely known for his colourful sense of humour in his role as United Dairyfarmers of Victoria Corangamite chairman, he points out that both he and Mr Cook bring plenty of commercial nous to their new ADF roles.

 

Mr Bennett has graduate and post graduate qualifications from New Zealand’s Massey University, developed meat industry training pro- grams and worked in technical, consultancy and managerial roles in New Zealand, Australian and even an Indian (buffalo) meat works.

 

Mr Cook brings almost 20 years’ experience as a technician, engineer and mine manager responsible for up to 250 employees and budgets of up to $250m in the Australian gold processing sector to the ADF role, before turning to dairying in 2007.

 

The ADF’s new chairman Rick Gladigau, who has been on the board since 2019, said: “If you think you’re going to change the world by getting on to the board, (then) you haven’t been on a board before.”

 

Mr Gladigau is a fifth-generation dairy farmer in the Adelaide Hills, milking about 90 cows. He left school 40 years ago to come back to his parent’s property, before buying his own place in 1993.

 

As for the future, Mr Gladigau said climate change, labour shortages and how to more effectively manage bobby calves were key issues the ADF needed to pursue.

 

A controversial resolution by some ADF board members to block NSW rivals from registering to vote at future annual general meetings was lost. The resolution would have amended ADF’s constitution to demand in the future farmers could only register to vote if they joined the recognised state body in which they operated, excluding rivals’ groups from joining the national lobby group.

 

Source: Peter Hunt, Weekly Times, 1 December 2021

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