31-Oct-2011
Dairy farmers to vote on level of research funding |
Dairy farmers will vote next year on the future of industry-owned research and marketing organisation Dairy Australia.
Dairy Australia is funded by a compulsory levy on every litre of milk sold, currently at .32 of a cent, or $3,400 per million litres.
Under the options for the Dairy Poll, growers can choose to pay no levy, increase the levy by 10 per cent or increase it by 15 per cent.
The levy hasn't been raised since 1997.
Dairy Australia chairman Max Roberts says the dairy industry supports a 10 per cent rise in farmer contributions.
He says farmers could vote to abolish the research body if they want, and the option is required by law.
"This is the second time, and only the second time, that farmers have had the chance to have a say on that levy," he said.
"Every five years we have to go to our levy payers and give them at least three options on what they want to do with the levy.
"And one of those options must be zero, the end of the levy altogether."
Farmers currently pay $29 million a year in levies, matched in part by the Federal Government's $19 million.
Last year, Dairy Australia's budget was $52 million.
He says 60 per cent of the total spend is on research and development with most going to pre-farm gate research.
Keywords:Dairy Australia levy Max Roberts R & D research,
ABC Rural |
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26-Oct-2011
UDP buys Lion’s Murray River cheese plants |
The Victorianbased milk trader and processor United Dairy Power (UDP)
has purchased the Murray Bridge and Jervois cheese factories
in South Australia from Lion for an undisclosed sum. The
plants that were formerly part of the National Foods and
Dairy Farmers businesses respectively, have now merged into
the Lion dairy division of the Japanese-owned processor. The
plants have formally been on the market since Lion
completed a review of the future of its cheese business
earlier in 2011.
UDP says that it will take over the factories in November and plans to increase capacity at Jervois. As part of the sale of the two
sites, UDP has acquired the Caboolture (a regional town in Queensland) brand, and it will also contract pack a number of Lion
products at the sites, including Le Rice, Pura Sour Cream and Mozzarella cheese. David Basham, president of the South
Australia Dairyfarmers' Association, said that the sale was a win for dairy farmers as it would “increase competition in the South
Australia dairy market”.
Dairy Globe
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30-Sep-2011
Fresh milk being flown to China |
Fresh milk is being flown to China as part of a feasibility trial to test export demand.
The best way to store milk during the 13-hour journey is still being worked out.
Chairman of Warrnambool Cheese and Butter, Frank Davs, says although it's expensive to fly milk to China, demand for dairy is exploding, and if the airlift succeeds, Australia could benefit.
"They are prepared to pay a sizeable premium for fresh milk in China," he said.
"You know, the number of cows in Australia (has fallen) from something like over 12 million to round about 9 million, and I think it's time we started to get a reversal of that, and start to look at ways of growing the industry, because I think the market will pay us handsomely for that sort of effort."
ABC Rural |
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8-Aug-2011
ACCC extends collective bargaining rights to dairy |
THE Australian Competition and Consumer Commission (ACCC) has extended the exemption allowing dairy farmers to collectively bargain with processors for a further 10 years.
Australian Dairy Farmers Ltd was first granted authorisation by the ACCC in 2002.
Since that time dairy farmers have formed 18 collective bargaining groups. These groups represent about 500 farming families.
"This is an important example of how the ACCC can assist small businesses, particularly those in the agricultural sector, to achieve better outcomes in their
negotiations with processors," ACCC chairman Rod Sims said.
This is the second time the ACCC has undertaken a comprehensive review of the ADF arrangements. It is clear from submissions received that collective bargaining by dairy farmers is both supported and well understood by the industry.
The ACCC considers collective bargaining by dairy farmers has the potential to deliver better access to information and resources as well as improved input into
contract negotiations.
Collective bargaining does this by providing an effective
mechanism through which productive contractual discussions can be achieved.
Collective bargaining can also reduce the transaction costs associated with negotiating supply arrangements for both dairy farmers and processors.
The ACCC may authorise collective bargaining arrangements when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer
Act 2010.
Alternatively, small businesses can obtain immunity from legal action under the Act for such arrangements by lodging a collective bargaining notification.
Australian Competition and Consumer Commission |
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28-Jul-2011
Dairy dissatisfaction |
DAIRY farmers have expressed dissatisfaction at the Australian Competition and Consumer Commission’s (ACCC) announcement last week that it uncovered no evidence during a recent inquiry, to prove Coles was in breach of the Competition and Consumer Act, by selling home branded milk products at $1 a litre.
ACCC Chairman, Graeme Samuel, said the major impact of the milk pricing reduction “seems to have been a reduction in the supermarkets’ profit margins on house brand milk”.
The milk war started on January 26, when Coles dropped its home branded prices to $1 a litre and other retail grocery chains, including Woolworths, follow soon after.
A Federal Senate inquiry was held to investigate the issue amid concerns for the impact ton dairy farmers.
A public was held hearing in Canberra on March 26, leading for calls to disaggregate Coles and Woolworths’ 80 percent duopoly of the Australian retail grocery market.
In taking the unusual step of commenting on the milk pricing war last week due to its high public profile, Mr Samuel said the price reductions had benefited consumers who purchased house brand milk.
“It is important to note that anti-competitive purpose is the key factor here,” Mr Samuel said.
“Price cutting, or underselling competitors, does not necessarily constitute predatory pricing.
“Businesses often legitimately reduce their prices and this is good for consumers and for competition in markets.”
But ADF Vice President, Adrian Drury, hit back saying the damage done to the dairy industry by Cole’s “unsustainable discounting” meant he could only agree with Independent Senator Nick Xenophon’s statement that the ACCC was “a toothless Chihuahua”.
Mr Drury said it was impossible for Coles to buy, transport, store and sell milk in remote areas of Australia, like the top End, for $1 a litre.
He said the consumer watch-dog was also silent on the issue of whether Coles had undertaken deceptive and misleading conduct by claiming in its “Down-Down” advertising, that the milk pricing strategy was not affecting dairy farmers.
Mr Drury said it was clear that small retailers and vendors had suffered and lost business as a result of the discounting war, with farmers also directly impacted.
He said dairy farmers “certainly do not believe that Coles has been absorbing the cost of its marketing stunt”.
“There are over 20,000 products in Coles stores and we believe Coles has been using milk as a loss leader to draw in customers while fleecing them on other products,” he said.
“The ACCC has obviously conducted a very narrow inquiry that did not look at issues around false advertising, any long-terms impacts of this cynical marketing tactic on farmers, corner stores, independent service stations and milk vendors or what the cost is to Coles at the checkout.
“The ADF is disappointed that the ACCC did not publicise its terms of reference or actually discuss this inquiry with farmers.”
Coles public affairs manager, Robert Hadler, told Rural Press his company had “fully cooperated” with the ACCC review of his company’s milk discounting campaign and was “pleased they have confirmed there was no beach of the law”.
Mr Hadler said the clear winners from the marketing campaign were customers who get “a better deal as well as milk processors and farmers who are also selling more milk”.
“That has to be a good thing,” he said.
Mr Hadler said Coles would now make a supplementary submission to the Senate Inquiry, due at the end of August, pointing out the ACCC decision and the number of farm gate price increases this year.
He said there were at least four farm gate prices increases “at last count” which showed the Coles price campaign on private label milk had had “no adverse impact on the sector”.
Mr Hadler said it was unclear what the Final Senate Committee report in November would conclude or recommend.
“An independent report by Steve Spencer from Fresh Logic shows that excess production has caused price pressure in fresh drinking milk markets and that the change over of the Woolworths private label contract from National Foods to Parmalat has caused more disruption to the Qld and NSW dairy industry than anything else,” he said.
Tasmanian Liberal Senator, Richard Colbeck, said he was not surprised by the ACCC findings.
Senator Colbeck said some would find the ACCC’s report disappointing but stressed it was “significant” that the ACCC actually conducted the pricing investigation and continued to monitor practices.
He said it was “even more significant” that the ACCC recognised the need to make public comment on the matter as “they rarely do”.
“What the ACCC has confirmed - and what Coles have denied and continue to deny - is that the discounting of generic branded milk is a part of a marketing campaign to gain market share as we have said all along,” he said.
“In one sense the attention the Senate Economics Committee has thrown on this issue ensured there is some transparency in the oversight of the market
“It is also of note that the ACCC has seen fit to extend the collective bargaining right of dairy farmers for another ten years - this is acknowledgement of the need to fairly balance power in the market.”
Senator Colbeck said it was likely the milk pricing issue would receive further attention when a new Senate Select Committee on Food Production started conducting hearings in the coming months.
The ACCC’s enquiry also found that a significant variation existed between respective costs of supply and operating margins among supermarket operators.
“As to the relationship between dairy farmers and milk processors, it is the case that some processors pay some farmers a lower farm gate price for milk sold as supermarket house brand milk”, Mr Samuel said.
“However on the evidence we’ve gathered over the last six months it seems most milk processors pay the same farm gate price to dairy farmers irrespective of whether it is intended to be sold as branded or house brand milk.
“On that front, the ACCC has recently issued a draft decision proposing to allow dairy farmers associated with Australian Dairy Farmers Ltd to continue to collectively bargain with milk processors for a further 10 years.
“This strengthens the position for farmers when negotiating with processors over milk prices.”
COLIN BETTLES
FarmOnline
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20-Jul-2011
Judd to leave ADF, return to dairy farm |
AUSTRALIAN Dairy Farmers (ADF) president Wesley Judd has informed the ADF board of his decision not to seek re-election for the position of president at the mid-August ADF board meeting.
At this time, Mr Judd will step down from his industry representational duties, including those of Australian Dairy Industry Council (ADIC) chair and Australian Dairy Herd Improvement Scheme (ADHIS) president, due to the need to attend to his farming business full time.
The Judd family farm near Millmerran on Queensland's Darling Downs and was among the worst impacted by the Queensland floods and ongoing wet weather has set back recovery.
A long-term vice president as well as president of ADF, Mr Judd departs following over a decade of service at a national level to dairy farmers on critical national issues such as international trade agreements, animal health and welfare, water, carbon and regulatory reform.
He has been involved in many key industry events, including the formation of Dairy Australia and the restructuring of the Australian Dairy Farmers Federation (ADFF) and the Australian Dairy Industry Council in 2003.
On behalf of all dairy farmers, the ADF board and staff thanked Mr Judd for his tireless service on behalf of dairy farmers nationally.
"We are pleased to note that Wes will maintain his position on the Queensland Dairyfarmers Organisation (QDO) board of which he is a past, long-serving president, and in this way remains very much part of the ADF family," the statement reads.
Australian Dairy Farmers |
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20-Jul-2011
Environmental mastitis increasing |
LARGER herds, higher stocking rates, heavy traffic areas on laneways and around troughs, and the use of calving pads are all contributing to an increasing incidence of environmental mastitis caused by Streptococcus uberis bacteria.
Dairy Australia’s Countdown Downunder project leader Dr John Penry said mastitis caused by Strep. uberis had been increasing in Australia and New Zealand to the point where 60 to 70pc of mastitis infections where a pathogen can be cultured in the lab are caused by the bacteria.
"Strep. uberis is found in cattle manure and can survive for up to two weeks in fresh dung or contaminated mud and straw," Dr Penry said.
A number of factors are contributing to the growing prevalence of Strep. uberis infections.
"The management of dairy herds has changed significantly in recent years, creating an environment where cows have increased exposure to Strep. uberis," he said.
"Farms are running larger herds on bigger farms and using higher stocking rates, resulting in heavy traffic areas such as laneways, gateways and around water troughs. Management changes also now include calving pads and loafing areas on some farms.
"Transition management now means we can have cows dripping milk before calving. The teat canal is open when the cow lies down to calve and can be exposed to mud and manure."
The key to controlling Strep. uberis involves minimising environmental exposure and controlling the cow to cow transmission.
Dr Penry said Strep. uberis needed to be controlled across three stages of the lactation – at drying off, over the transition period and during lactation.
At drying off cows should be treated with an antibiotic dry cow therapy to remove existing infection and prevent infections early in the dry period before the teat canal seals.
During the second stage – transition and calving – the aim is to minimise the exposure of susceptible cows to faecal material and maximise cow immunity. Most infections occur within the first few weeks of calving when a cow’s natural defences are low and the udder has been in contact with mud and manure during calving.
"It’s important to ensure that cows are milked as close to calving as possible and to monitor closely for signs of clinical mastitis," Dr Penry said.
During the third stage –lactation –the aim is to minimise teat end damage and reduce the incidence of bacteria on the teat skin. Important practices for preventing the spread of infection include putting cups on clean dry teats and taking cups off carefully, post milking teat disinfection and milking machine maintenance.
"It’s worth talking to your advisor about environment mastitis as an effective control program can take more than a year. Each control program needs to be tailored to an individual herd as exposure to infection varies between farms," Dr Penry said.
The Countdown fact sheet What are the keys to controlling Strep. uberis mastitis in dairy herds is available at dairyaustralia.com.au or contact Countdown Downunder on 03 9620 7283.
Dairy Australia |
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19-Jul-2011
Fonterra finishes with a flourish |
– Fonterra has
announced its second highest closing price in finalising the
2010/11 season, with a final step-up of 15 cents/kg fat
and 38 cents/kg protein for its suppliers in Victoria and
Tasmania. This brings Fonterra’s assessment of its
average weighted milk price for the 2010/11 season to
$5.70 per kilogram of milk solids at farm gate (inclusive of
incentives, net of volume charge).
Fonterra has also completed its first scheduled pricing
review for the 2011/12 season and has confirmed a milk
price increase of 12 cents per kilogram of fat and 30 cents
per kilogram of protein. This payment will be backdated to
1 July 2011 and will be paid to current Fonterra suppliers
in Victoria and Tasmania on 15 August, and it takes Fonterra’s estimate of the 2011/12 average
announced prices to date to $4.85/kg milk solids. General Manager Milk Supply, Heather Stacy,
also announced a new growth incentive payment program, called “Boo$t”, designed to support
Fonterra suppliers in Victoria and Tasmania who are growing milk volumes.
Dairy Globe |
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18-Jul-2011
Plan ahead for dairy fertility: InCalf |
FORWARD planning is essential when it comes to getting cows in calf and maintaining a well managed calving pattern.
Dairy Australia’s InCalf project leader, Dr Barry Zimmermann, has some tips to help dairy farmers get organised for joining.
“Preparation in the lead up to calving and joining has a major impact on herd fertility,” Dr Zimmermann said.
Herd fertility centres on having a short interval between calving and joining. A well-managed nutrition program is central to achieving this, to ensure the cows are in good condition in the lead up to, and after, calving.
The first step is to review body condition and adjust herd nutrition if needed.
“You’ll need to develop a feed budget and a transition feeding program in the lead up to calving.”
As well as nutrition, planning should involve preparing for heat detection and artificial insemination (AI).
“Think about the tasks involved, who will be responsible for them and the timing. And don’t forget to give everyone a brush up on signs of heat and AI practices,” said Dr Zimmermann.
For more information, refer to the website or contact InCalf email: enquiries@incalf.com.au or ph (03) 9620-7283.
Dairy Australia |
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12-Jul-2011
Dairy industry says carbon tax will cut farm milk prices |
Research and development group Dairy Australia that fears the dairy industry will lose international competitiveness under a carbon tax.
Dairy Australia's Chris Phillips says community incomes will fall in dairy regions as farm gate prices drop, because of a 10 per cent rise in electricity costs for both farmers and processors.
"Dairy manufactures are big users of electricity and natural gases, and those prices will go up as well under a carbon tax," he said.
"But because of the export nature of the industry, and because some of our competitors like Europe have given free permits to their dairy industries, we don't think that the companies will be able to recover those costs out in the export market, so those costs are going to have to be worn within the dairy chain, and ultimately lower farmgate prices."
ABC Rural |
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