DA looks ahead after resolution fails, ADF says vote is not a total loss
Dairy Australia chair Paul Roderick said with the proposition voted down it is now time to move past this issue and focus on making the industry stronger. Picture by Denis Howard
The annual general meeting (AGM) of Dairy Australia (DA) included the usual formalities of reviewing financials, operational reports, and strategy updates, however, a large part of the attention was squarely fixed on the Australian Dairy Farmers proposition to remove the Australian Dairy Products Federations (ADPF) Group B membership from Dairy Australia.
The current arrangement grants ADPF, the processor representative, formal governance oversight of DA and effective control over the use of dairy farmer levy funds.
This influence is exerted through their ability to affect DA's board selections, strategic direction, operating plans, and policy direction.
Some farmers have questions around ADPF's ongoing membership, mainly because processors' financial contributions are much lower than those made by farmers.
The proposition was voted down and DA chair Paul Roderick said it's now time to move past this issue and focus on making the industry stronger.
"It's (the result of the vote) going to have some ripples both with ADF and ADPF," Mr Roderick said.
"Regardless, we're going to continue those conversations with ADPF.
"We've got a task force set up that was working towards a resolution.
"Now I'd really love to put it to bed and not talk about this. Let's not waste our energy.
"The farmers have rejected that motion, and they've rejected it twice.
"So let's look now about how it can work together. There are heaps of things ADF and ADPF can do together to advance productivity and DA's going to support them on that."
Mr Roderick said the three bodies can continue to work together.
"Generally speaking, we do a lot of communicating as groups," he said.
"I don't think it needs the three of us to sit down together.
"We'll talk to them, but they need to be able to work a way forward and they've got plenty of things in common, plenty of things that they can take together and get the Australian Dairy IC functioning and we'll support them on that."
Australian Dairy Farmers president Ben Bennett stated that the resolution was proposed due to the stark disparity between the limited operational funding processors contribute to DA and the tens of millions of dollars supplied by farmer levies.
"The resolution was designed to give farmers greater influence over how their levy funds are governed as the primary funders of DA, where processors refused to substantially contribute." Mr Bennett said.
"As was revealed at the AGM by DA Chair Paul Roderick, the resolution has been successful in eliciting an eleventh-hour proposal from ADPF for a funding contribution."
Mr Bennett said he viewed DA continuing to work with ADPF and processors towards a sustainable ongoing funding model as a partial success for ADF's resolution.
"It has finally got ADPF to the negotiating table with a proposal for DA funding, however details are scant and I know dairy farmers will look forward to learning what exactly has been offered by ADPF," he said.
"The processors will retain their governance rights for now, however it is clear from Mr Roderick's comments that they are some way off a true, sustainable, co-investment model."
NSW Farmers Dairy Committee Chair Malcolm Holm questioned the need for the proposition.
"I am at a loss as to why ADF put this resolution up, it didnt go through the constituted processes of ADF," he said.
"Given how the vast majority of dairy farmers who voted, overwhelmingly voted to keep ADPF in as a Group B member for two years in a row, the board of ADF have kicked an own goal.
"I do hope that ADPF continue discussions with DA so that the processing sector makes a material contribution to DA for the industry good.
"This is why the NSW Farmers Dairy Committee didn't support the removal at this stage as we see reasonable progress is being made."