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
Membership of your advocacy body
The importance of any industry advocacy body is the breath of its membership. This is particularly so when you are discussing issues of policy with politicians and other stakeholders. To be able to represent a broad spectrum of the dairy industry from the southern border of NSW to the tip of Queensland is vitally important as it substantiates those policy matters that we wish to progress. The upcoming federal election and state elections to be held thereafter will provide a platform from which policy issues can be annunciated with those in government and opposition and those who have a way to influence policy outcomes.
Over the coming months, the members and district councils of eastAUSmilk will be called upon to provide support to not only influence outcomes in the political arena but also provide advice and guidance on issues of policy that need to be considered for further discussion. Your membership entitles you to be involved with those discussions. We encourage you to continue to support eastAUSmilk as we continue to grow and represent your views before government, opposition and other industry associations.
We encourage you to assist non-members in becoming a member of the dairy industry body that best represents your views before those who make the decisions that impact upon your dairy farming enterprise. Information regarding membership can be obtained by contacting the eastAUSmilk office.
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