Dairy Australia’s value to farmers DAIRY NEWS OCTOBER 11, 2016
The current farmers to a single in which milk levels while the the Productivity WORLD financial interest in ON BEHALF of //trend 17 meeting! production has fallen profit margins of Commission for a for farmers to exit Farmer Power, which the outcome. Since its formation, from 11 billion litres the manufacturers truly objective review the industry (by The last levy poll, represents dairy Dairy Australia has to just over 8 billion increase. of Dairy Australia and selling their farms which reportedly farmer members received around litres (while New This has led the value it delivers to to other producers cost Dairy Australia in the south-west $500 million from Zealand’s production to significant farmers as well as the or converting to around $750,000, of Victoria, we government. resulted in only applaud the stand more profitable beef What farmers an estimated 600 taken by Senator production) should “What farmers witness are their funds witness are their David Leyonhjelm in dairy farmers ring alarm bells for funds (typically opposing the changes attending workshops being spent on lavish events and offices, the government, $5,000-$7,000 per to the five year poll of nationwide. annual forecasts consistently predicting but instead Dairy farm) being spent Dairy the dairy levy.*MILK processorAustralian improved milk production with no at our site in AUSTRALIAN Lion milk from WA farmers Australia spreads the on lavish events who howeverstrategies We are concerned we... decided to is resuming the sale of whiteFarmers, milk in Bentley; for achieving this, and a message that all is and offices, annual all licensed our white milk range under Western under the contacted Masters relaunch that thisAustralia is just the failure to advise the government about the Masters brand. forecasts consistently well. dairy farmers callingbrand. There will be some latest illustration of the true state of the industry.” Pura branding to help consumers in the Lion Dairy & Drinks managing As the number predicting improved for farmers to how Dairy Australia director Peter West says the Masters transition.” milk production support these change, of farmers declines fails to represent Also to be launched will be a new brand is what its dairy farmers and the with no strategies for a limited the interests offor. dairy did so with further, Dairy compulsory levies on has doubled over the disillusionment Masters Extra Creamy milk for coffee; community asked achieving this, and a budget of around farmers and is an farmers in addition same period) and amongst the Australia will “We listened to what the WA it has improved stability and frothing, failure to advise the $3,000-$5,000, attemptsupplying to eliminate contenttoand standardised farmers our dairy milk 4.3% fatwhich around $300m the number of dairy remaining dairy presumably need to to removein seasonal variances. and WA people wanted and have a protein government about elicited response farmer’s democratic government farmers has shrunk farmers about how continually ramp up has said it will spend $43 million responded. from only a Lion small rights to have a say. funding (with no from 23,000 to 6,500. their industry is run, the true state of the the levy even more “Masters has... been produced over three years on modernising and industry. minority of farmers. The panel direct financial The board of as is well illustrated in order to secure its locally at the Bentley site for 50 expanding its Bentley milk plant in Australia’s dairy We believe they do that developed Dairy Australia by the fast declining its growth in from the years, so we understand the strong Perth to underpincontribution own survival. exports used to reflect the views the proposals dairy manufacturers appears to be heavily membership of the Western Australian market. community connection to thenot brand.” Chris Gleeson, account for about of the majority, forWest changing the had repeatedly their presence influenced by dairy Australian Dairy “Thisand signals despite our commitment says farmers Western Australia dairy for the asked Japanese-owned company to to are 50% of milk produced Crossley VIC the results tainted levy the process was on the board). manufacturing Farmers as well as On behalf of term,” West says, “for profitable resume making but this has fallen by a the failedlong process. Far from advancing interests, and has state bodies. dominated bywhite milk under Home-made Masters range of milk is Masters brand, and WA consumers said growth in milk-based beverages, Farmer Power to around 25%, and Farmer Power, which the interests of watched farmgate We repeat our people who are not preferred by Westthe Australians. they didn’t think Lion’s Pura White white milk and our other key dairy *Ed note: The changes dairy farmers, price for milk previous calls made Australia could well independent of Dairy has no funding categories.” Milk was locally made. have beenpublished passed Dairy Australia hasmarketbeing at well to the Minister for of 54.7c/L. be a net importer has been Australia whomilk soldbase, Lionable will have 29 dairy farms supply at thekept Bentley site. It will pay average milk price dairyoffarmers thesince highest “All freshand white under overseen an industry below sustainable Agriculture and milk in 10 years’ time. into law. to attract over 600 therefore have a “We are proud to be paying our price in Western Australia,” West says. the Pura brand in WA was made using milk for products made for the WA these suppliers a competitive weighted
Public pressure forces Aussie processor to backtrack on brand
Bega to retire GOThead SOMETHING ON YOUR MIND?
BEGA CHEESE chief executive Aidan Coleman will retire in January 2017. Coleman, a former Fonterra GOT SOMETHING on yourBrands mind about the latest issues affecting Australia executive, served Bega’s chief our dairy industry?asPut your pen to paper or your fingers to your executive for five years. keyboard, and let our readers know what you think. Bega executive chairman Barry Irvin Don’t forget to put your name and address. says Coleman has done a wonderful job. Note: Letters may be edited. “His focus on business and people can be witheld from publication on request.) development(Names has been a great asset to the company. Everybody who knows and works with Aidan respects his leadership skills and personal qualities. “We wish Aidan all the best in his retirement. Bega Cheese is well advanced in the recruitment process and Aidan will work Aidan Coleman. with us to ensure the transition to new leadership is seamless.” Six weeks ago, Bega announced its 2016 respond to volatile market circumstances results; net profit rose 132% A$29 million. reflected our values and strategy [in maintaining] commitments to our dairy farmers Revenue was up 7.5% to A$1.2 billion. The company says big increases in while achieving strong revenue and profit global dairy production, softening in growth,” Irvin says. Bega Cheese produced 238,000 tonnes demand in China, sanctions in Russia and a highly competitive Australian market chal- of dairy products in 2016, a 6% increase on lenged dairy farmers and companies. This the previous year. The company operates in four market all turned tumultuous when Fonterra and Murray Goulburn announced retrospec- sectors: dairy ingredients, food service tive price cuts to their suppliers, says Irvin. and consumer packaged goods, nutrition“Bega Cheese’s... stability and ability to als and bio-nutrients. EDITOR@DAIRYNEWSAUSTRALIA.COM.AU
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