Future of the Dairy Industry

 

Agriculture missing from election, farmers say

As Australia heads to the polling booths to vote this coming Saturday, farmers are very concerned about the lack of attention being given to Agriculture and strategic planning. Rob McIntosh a third generation dairy farmer from Berry, NSW (only 20 minutes away from us) spoke last night on the ABC news. He talked about the challenges that farmers are facing and the lack of attention being given to the important role that farmers play in our economy and feeding our people. Agriculture is facing great challenges from climate change, competition for land and water resources from mining and low prices for milk from the supermarket price wars. You can watch the news story from last night at:

http://www.abc.net.au/news/2013-09-03/agriculture-missing-from-election-farmers-say/4932920?section=nsw
We have invited Rob to come and talk to us next week about just how tough it is to be a dairy farmer.

Rob McIntosh

Berry

"'Woodside Park' is a really special farm. We're heritage listed with National Trust and a recognised flora and fauna reserve. I always wanted to work in agriculture and took over the farm. As the 3rd generation at Woodside Park I am proud to be a Dairy Farmers' farmer - carrying on the tradition of sharing full cream, full flavoured milk made the way it should be so you get the same farm quality milk that we do".

Another great little video that features Rob "A day in the life of a dairy farmer" shows you what a day on the farm involves for him.

http://vimeo.com/63371140

Some dairy farmers are happy to see an Australian-owned cooperative take on the fresh milk market, a market that has been dominated by foreign-owned entities since deregulation.

THIRD generation NSW dairy farmer Robert McIntosh does not sell his milk to the Victorian-based Murray Goulburn Co-operative but admits he will certainly consider it when his supply contract expires. Mr McIntosh, who has a herd of 190 cows in Berry in NSW, has a contract to supply about 3500 litres of milk a day to Dairy Farmers Milk Co-operative, which sells it to processor Lion. But he is heartened to see an Australian farmer-owned co-operative take on a major processing role in the fresh drinking-milk market, which has been dominated since deregulation in 2000 by foreign-owned entitites Fonterra, Lion and Parmalat, The Australian Financial Review reports. "Even though I don't supply them (Murray Goulburn, also known as Devondale), I'd be looking hard at it when our contract expires," he said. "It's a direct link to farmers for milk pricing and that makes a lot of sense." The deal that Coles has struck with farmer-owned processors Murray-Goulburn and Norco received a generally positive response from farmers, though some were awaiting more details on pricing structures. Murray Goulburn managing director Gary Helou has said the company will seek to recruit new farmers to increase its milk volumes. Mr McIntosh said milk discounting by Coles and Woolworths since January 2011 had put downward pressure on the price paid to farmers. Before the retailers' discounting war began, he was paid 50c to 55c a litre for his best milk. Now he received 47c a litre and, for tier two milk, just 16c a litre, which Mr McIntosh said was "so far below the cost of production it was unsustainable". This trend was worrying, he said, particularly given his sons were interested in carrying on the family business. "In the current environment, it is very discouraging for young farmers to consider entering the industry," he said. He believed the Murray Goulburn Co-operative deal with Coles would involve the higher tier one pricing and that the company was looking at how to manage supply through the year so there was not a surplus of milk in certain seasons. The decision by Murray Goulburn to build a processing plant in Sydney, costing about $60 million, has mollified the concerns of NSW farmers that cheaper milk from Victoria, which normally goes to the export market, could cut their prices. Mr McIntosh said there had been assurances that only NSW milk would be processed in the state.

© AFR

 http://adf.farmonline.com.au/news/magazine/industry-news/general/farmers-takes-heart-from-dairy-deal/2653922.aspx

Australian Dairy Farmers are a national body of farmers that are the national voice of Australian Dairy. They release a blog and share information about markets, research, technology for all farmers to keep up to date with. We found this article on their blog:

Australian Dairy Farmers call on all parties to look to an agriculture based future

Wednesday, August 07, 2013

Australian dairy farmers are calling on all political parties to see agriculture as the
new economic powerhouse for the nation.

The dairy industry is highly valuable to Australia, contributing over $13 billion to Australia’s economy and employing over 140,000 people on farms, processing plants, and wider industry support services. And dairy is just one of the many agricultural sectors that have been key contributors to the Australian economy for many years.

Australian Dairy Farmers (ADF) President Noel Campbell is calling on all parties to place dairy firmly on the national agenda.

“The Australian dairy industry is constantly investing, adapting and innovating for a sustainable future. We are proud of our industry and confident in its future.”

“Given that all sides of politics seem to be looking for the next big thing that will lead to economic certainty and boost prosperity it seems only logical that dairy takes-up this baton.”

“Australian dairy is one of the few agricultural sectors that fully integrate from the farmgate to manufacturing to produce to a wide range of high quality, value-added products which we sell in the Australian market and throughout the world,” said Mr Campbell.

“This Federal election, we call upon all parties to announce, and then deliver, policies that will help our industry to grow and prosper and achieve our goal of helping Australia become a world leader in innovation, sustainability and food production,” said Mr Campbell.

Key policy priorities for the next federal government should be:

• Markets and trade: Establish a mandatory Supermarket Code of Conduct and appoint an Ombudsman with teeth to ensure compliance; modify the ACCC Collective Bargaining to provide balance in market power to dairy farmers; sign Free Trade Agreements with key markets China, Japan and South Korea.

• People and workforce: Help farmers staff their properties and extend the duration of 417 and 462 visas from six to 12 months as well include dairy on the list of eligible industries for the Seasonal Worker Scheme and on Schedule 1 of the Skilled Occupation List. Encourage people into careers in agriculture by including related courses under the National Priority Band for compulsory HECS-HELP repayments.

• Sustainability: Commit funding for grants to assist dairy farmers in undertaking energy efficiency assessments, and to transition to renewable energy technology and energy efficient equipment on farms under an Energy Efficiency Package; level the international playing field and accord dairy processors Emissions-Intensive, Trade-Exposed (EITE) status until all major dairy competitors are subject to similar emissions schemes.

http://www.australiandairyfarmers.com.au/media-releases