A push to remove the Australia Dairy Products Federation (ADPF) as a Class B shareholder of Dairy Australia has failed — but might be revisited next year.
The other Group B member, Australian Dairy Farmers (ADF), acting at the request of United Dairyfarmers of Victoria (VFF UDV), submitted a special resolution to the Dairy Australia annual general meeting in Warrnambool on November 27 to remove ADPF as a Group B member.
However, the Dairy Australia board opposed the resolution and it failed to garner enough votes. The resolution required at least 75 per cent of votes in favour.
Outgoing Dairy Australia chair James Mann said the outcome of the vote was “very comprehensive”, with 87 per cent of farmers voting against removing ADPF as a Group B member of Dairy Australia, demonstrating a strong desire across the industry for farmers and processors to work together.
Mr Mann said the board had a strong preference that farmers and processors work together, but recognised that there was insufficient investment from processors.
He gave notice that if the resolution failed this year, it could be revisited in 2025 if investment wasn’t formalised.
“The board believes that an important demonstration of working together is for processors to invest in Dairy Australia services that benefit the whole supply chain,” Mr Mann told the AGM.
“At present, we recognise that there is insufficient investment from processors.”
Mr Mann said the board would welcome progress towards formalised processor co-investments within a year.
“Should this not be achieved, the board is likely to support a resolution to replace Australia Dairy Products Federation as a Group B member at the 2025 AGM.”
ADF president Ben Bennett told the meeting that the organisation needed to act on its members’ concerns.
He said the structure of the dairy industry had changed significantly and was no longer dominated by farmer-owned cooperatives but by multinationals.
“Farmers consider that there are a range of marketing activities that Dairy Australia invest in, that are of benefit to the processors, including generic milk advertising,” the ADF claimed.
“Farmers believe that processors should contribute to the funding of these programs.
“As a Group B member of Dairy Australia, Australian Dairy Products Federation (ADPF) has the power to influence and provide input into the programs and activities contained in Dairy Australia’s Strategic Plan and Annual Operating Plans.
“Dairy Australia should consult with all stakeholders including ADPF — but consultation should not extend to having the power to impact how farmers levy funds are expended.”
ADPF president John Williams said he was extremely disappointed to see the resolution notice.
“ADPF’s goal is for a thriving and profitable dairy industry that keeps manufacturing local and attracts people and investment,” he told the meeting.
“For decades ADPF has worked side-by-side with dairy farmers and every dairy farmer organisation at every level to ensure our dairy industry thrives.”
Mr Williams said removing the ADPF was not just a matter of funding but a challenge to the unity and strength of the sector.
“The Australian dairy industry is strongest when farmers and processors work together to tackle challenges and maximise opportunities.
“The commitment of ADPF to the industry’s success has been steadfast over the decades and has not wavered, regardless of ownership structures of individual member companies.”
The ADPF says it and its members provide direct investment to Dairy Australia through initiatives such as the Australian Milk Pool Trajectory Research to 2030, water security, plant-based labelling, waste management, animal welfare and sustainability, and also contribute invaluable in-kind technical resources.
Mr Mann said the Dairy Australia board did not want to see a weakening of farmers and processors working together at this time.
“It is the expectation of the Dairy Australia board that farmers and processors will work together with Dairy Australia to create a suitable shared funding model in the current financial year.”
He said Dairy Australia received about $170,000 plus in-kind contributions from processors but believed the industry should be contributing between $3 million and $5 million. He added that this should come from profits and not impact on the prices paid to farmers.
In response to questions about why processor contributions hadn’t been formalised over the past five years of the Dairy Industry Plan, Mr Mann said there had been ongoing discussions “but we’re now setting a transparent line in the sand that we need to have action on this”.