Tag Archives: Dairy Australia

Dairy Australia directors need to roll up their sleeves

daemail

It’s sad to say but, clearly, Dairy Australia is scared of farmers.

I returned from a few hours in the paddocks to find screens and screens full of comments on Twitter from fellow farmers on the leaked DA email above.

It’s been explosive because DA is accused of protecting its own turf first rather than being transparent with and accountable to the farmers it serves and who pay compulsory levies to fund its operation.

Contrary to Barnaby Joyce’s wishful pronouncements, farmers are still in a world of pain and the DA levies amount to tens of thousands of dollars per year for many of us. It’s no surprise then, that the way DA spends farmer funds is highly scrutinised.

I’m a believer in the work DA does. The knowledge I’ve gained from DA programs has made an enormous difference to our farm and we’d be a lot worse off without it. But not everyone agrees.

Some farmers are even pushing hard for a halt to the DA levy, irate that the opportunity for a routine poll on whether the levy should be maintained, changed or scrapped altogether was passed up by a committee.

That committee had farmer members and the DA board has farmer members, too. You might think that something run by farmers for farmers would be great at communicating with farmers, but it’s not.

I’m embarrassed to say that, until I Googled them, I couldn’t even recall the names of DA’s long-standing farmer directors. And there are only one or two visible DA HQ staffers on Twitter. While DA maintains its silence, it’s hard to understand how it can accuse upset farmers of spreading misinformation.

It’s time DA’s farmer directors rolled up their shirt sleeves and had frank conversations right from the start. There was a time we had a director on Twitter who knew how to take the sting out of almost any issue by being ready to chat, quick to crack a joke and unfailingly real.

DA can never control the message but, if it wants farmer respect and understanding, it must first join the conversation.

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Theo was too right…

keep-calm-let-s-cut-the-cake-and-eat-it

Here’s an unpalatable truth: when Fonterra head Theo Spierings said the milk price was unsustainable back in August last year, he was right. He also said the way milk prices are set needs to change. Correct again. Then he started talking about the need for, “a good debate with farmers … about how are we going to share – how are we going to cut the cake.”.  That’s what really matters right now.

At the time, Fonterra Australia head, Judith Swales responded to Milk Maid Marian’s request to clarify what Theo had meant by “sharing the cake” and said:

“We have always said that the best dairy industry model is the one where everyone can get a sustainable return. Farmers need to be able to make money, processors need to make money and so do customers, like retailers. And that’s what he means by sharing the cake.”

It’s hard to disagree with that sentiment. The problem is that we’ve learnt one more lesson in the last couple of months: if you’re stranded on a desert island with a hungry gorilla and a small cake, you’re in very big trouble indeed.

This post is not intended as an attack on Fonterra. After all, things are no better at Murray Goulburn. The reality is when there are thousands of small businesses selling a highly perishable product to a handful of large corporates and multinationals, the playing field is anything but even.

Just 12 months before Theo was talking about cake, the majority owner of Warrnambool Cheese and Butter, Lino Saputo, was quoted as wondering:

“…what will it take for the dairy farmers to be optimistic about the dairy industry and investing in their farms and what kinds of programs can we put in place that will assist them.”

At the time, I summarised my answer as “reliable profitability”. I posted the charts below showing just how far dairy farmers’ terms of trade had slipped and the wild fluctuations in profitability.

DairyTermsTrade

DairyBusinessProfit

“Productivity in the Australian Dairy Sector”, ABARES, September 2014

There’s one more factor I missed: confidence.

Writing for the latest edition of The Australian Dairyfarmer magazine, Dairy Australia managing director Ian Halliday notes that :

“In 2015, confidence among dairy farmers was at 75 per cent. In February this year, confidence had fallen to 65 per cent reflecting the dry seasonal conditions and also what milk prices were looking like for 2016-17 when considering the global price outlook.”

“Following the sudden milk price cuts in late April, which affected up to 65 per cent of all dairy farmers, we conducted another survey to get an understanding of changes in farmer confidence. This sample, although smaller, indicated confidence nationally had droppedd to 45 per cent.”

I’m willing to bet that confidence has fallen to historic lows after the Murray Goulburn opening price announcement.

What’s needed now is:

  • Transparency
  • Risk management strategies to deal with volatility
  • A more level playing field that provides farmers with real choices when dealing with processors.

These are the ingredients of reliable profitability and, without it, we’ll be continually wrestling the gorillas for the crumbs of a perpetually shrinking cake.

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Filed under Farm, Fonterra, Murray Goulburn

Meet the dairy farmers aspiring to the DA board room

You’re about to meet Lisa Dwyer and Michael Spitse. In weeks, one of them will be among the most powerful dairy farmers in Australia, occupying a spot on the Dairy Australia board. Continue reading

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Devondale’s new TV ads spread the love, but who to?

Well, you saw it here first. MG’s new ads will air on TV from tonight but they’re already up on its Devondale website.

I can’t help but wonder if this ad is a direct consequence of the much-despised Dev and Dale commercials that presented the co-op’s own farmer-shareholders as bogans. The deeply unpopular ads set MG directors’ phones alight and were pulled early in response.

Watching it reminds me of Dairy Australia’s own embryonic Legendairy campaign and even the Dodge “God Made a Farmer” Super Bowl ad that unashamedly pandered to a despairing target audience in desperate need of some moral support.

What do you think? Will this ad sell more Devondale cheese, milk and butter? Is it just too cynical of me to suggest that perhaps I and my fellow dairy farmers are the real targets? Or maybe it’s not me they have in mind but the NSW suppliers MG needs to woo in order to meet its Sydney Coles contract.

While you’re having a think about it, check out another new Devondale product ad!

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Filed under Dairy Products

Help for our dairy farmers and their cows

There certainly is light at the end of the financial tunnel for dairy farmers but many are still finding the going incredibly difficult.

I’m a tough old stick but there have been times in the last few months where things unravelled a bit before I could piece myself together again, so I know how it feels first-hand. For me, the saving grace has been to get help from our expert farm consultant, Neil, and build an action plan to insulate the cows from the fodder shortage.

It’s gone beyond that for some farmers who are in desperate positions. I asked Dairy Australia’s issues manager, Julie Iommi, what the dairy farming representative bodies are doing to help.

1. Anyone wishing to donate fodder or funds to buy fodder – please contact the UDV/VFF on 1300 882 833. Want to help but have no hay of your own? Farmer mental health dynamo, Alison Fairleigh, has linked her handy blog to “Buy a Bale“, an initiative of Aussie Helpers, where anyone can donate time or money for fodder to go to people who are in dire straits.

2. VFF, supported by ADF, is pushing the state government to immediately review the resourcing to the Rural Financial Counselling network to ensure they have the capacity to deal with current demand.

3. VFF, supported by ADF, has asked the state and federal governments to introduce the low interest loan support program immediately.

4. The state and federal governments have also been requested to review other forms of emergency support immediately.

5. VFF and ADF are also pushing the state and federal agriculture Ministers to meet the bank sector to encourage them to continue to take the long-term view when assessing their support of farm businesses.

Dairy Australia is promoting the Taking Stock program, which can help dairy farmers review their individual situations and create their own action plans – Julie says there are still around 50 spots available.

DA also has good info on its site about coping with fodder shortages.

Last of all, if you know someone who might be battling to stay afloat, why not drop them a line, phone or do the good old-fashioned thing and turn up with a cake? It might be just the lifeline they need without you ever knowing it.

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Stealing the calf’s milk

There’s an urban myth that dairy farmers rear calves away from the herd so we can harvest the special buttercup-yellow milk that comes with the first milkings after calving called colostrum. The irony is that one of the main reasons we collect calves early is to ensure they get plenty of colostrum.

According to a Dairy Australia fact sheet on colostrum management:

“Unlike humans, the placenta of the cow keeps the maternal blood supply separate from that of the unborn calf. This prevents the transfer of antibodies from the cow to the calf before birth and the calf is born with no ability to fight disease.”

“Colostrum is the substance that provides the antibodies that form the main protection from infectious diseases for the calf in the first 6 weeks of life, until the calf can develop antibodies of its own. Without colostrum, a calf is likely to die.”

What’s more, calves need it immediately, as DA goes on to explain:

“It is important to be clear about two key facts relating to colostrum:
• The calf’s intestine absorbs the large IgG molecules easily straight after birth
• The intestine’s ability to absorb antibodies decreases after birth—it decreases by 30–50 % within 6 hours of birth
• It stops completely between 24 to 36 hours after birth”

Yes, it’s vital to our calves.

We don’t sell a drop of the precious stuff (few farmers do, which is why it’s so expensive) and we’re not allowed to mix it with the rest of the milk because it goes off quickly. “Stealing colostrum from calves” is certainly not why we raise the calves away from the herd.

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Filed under Animal Health and Welfare, Calves, Cows

Legendairy stuff or just fluff?

There’s little doubt Australian dairy farmers are feeling a little demoralised and that’s not good for business. The first symptom displayed by farmers lacking confidence is a stubborn refusal to open their cheque books.

And here we are, hunkered down in survival mode, deaf to our leaders’ calls to invest and grow so that Australia can realise its dream of becoming a vital piece of the Asian food bowl.

With all this in mind, then, take a look at the “farmer-side” launch of the new Dairy Australia campaign, Legendairy.

Ad agency, CumminsRoss is to be congratulated for the stirring execution.

In a media release, DA project leader Isabel MacNeill, says Legendairy is “not just a branding exercise” but a singular rallying point that will help develop pride among dairy people, and increase community appreciation for the industry and demand for its products.

The Legendairy platform will be translated into an initial three-year integrated marketing and communication plan focusing on three core audiences:
• Farmers and farm communities
• Consumers, especially parents of young children
• Societal shapers such as policy makers, authorities and health professionals.

According to MacNeill, it’s all about the dairy community telling its own stories about what makes us legendary.

After sleeping on it, I’m guessing Legendairy will polarise farmers. One camp will say, “Yeah, it’s great to get a pat on the back” and the other camp will say “Don’t spend my levy on expensive ads telling me how great I should feel while I’m struggling to pay the bills”.

I must admit I have a foot in each camp. When you’re going through a rough patch, the last thing you want is a pat on the head and this strays dangerously close to that. I’m really looking forward to seeing what comes next.

EDIT: As I walked away from the computer after writing this post, one BIG thing occurred to me: What does DA want out of the farmer-side campaign and how will it be measured? Fewer exits from the industry, greater farmer investment? Lower depression rates among farmers? Sadly, no, I suspect not because no mere communications strategy could realistically hold such worthy objectives. Not now, in any case. Perhaps it would be better timed to build confidence when the tide has truly begun to turn.

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