More than 180 farmers and industr y representatives came together to discuss the lessons from last year and how the industry can work together to rebuild. It is this team work and ‘can do’ attitude of our farming families that sets the dairy industry apart from the rest of agriculture.

Last month, I highlighted the importance of keeping sight of KPIs for profitability and this was again highlighted by the young-gun New Zealand Study Tour participants when presenting at the Conference Young Farmer Breakfast:

“Production is Vanity, Profit is Sanity!”

Congratulations to all six participants for their engaging and informative presentations that drove home some key messages very early in the day!

A congratulations and thank you also has to go to the 100+ active, engaged and passionate UDV members that attended Conference and provided such informed debate on the 18 UDV Conference Resolutions.

These resolutions cover a broad range of issues, demonstrating the increased level of engagement of the UDV branches and members and help form the policy direction for UDV.

UDV President’s Conference Report The last 12 months will in no doubt be firmly entrenched in the Victorian dairy industry psyche for many years to come for all the wrong reasons.

However, one of the positives to come out of last year is that agriculture and food production is back in the minds of the Australian people and clearly has interest from both Federal and State governments.

Over the past year hundreds and hundreds of members have contacted me, the UDV Policy Councillors and UDV staff. These conversations were difficult, trust had been broken and farmer anger and confusion was clear.

Newsletter of the United Dairyfarmers of Victoria

WINTER |JUNE 2017

HOTLINE

41st Annual Conference Success The theme of the successful 41st UDV Annual Conference and Meeting held on May 12 focused on ‘drawing a line in the sand’ and the industry moving forward together.

Like us on facebook United Dairyfarmers of Victoria - UDV Follow us on Twitter @VFF_UDV

Overwhelmingly members asked two things. Can we stop what has happened? And can we make sure it never happens again? That became the focus for the UDV response.

We gathered legal advice that indicated there was no quick way of legally undoing what had been done. UDV then focused on working together with other industry stakeholders to ensure we minimise these types of events happening again.

We worked hard to make sure ACCC & ASIC had direct access to the information and farmers that would allow a thorough and independent assessment. It was important for UDV that any investigation be conducted by independent, experienced and well-resourced bodies.

The responseThe industry should be very proud of the way it worked together under very difficult and challenging circumstances. The UDV played an important role in the development of the Victorian Task Force that was initiated by the Victorian State Government Agriculture Minister Jaala Pulford within a week of the “Dairy Crisis” unfolding.

UDV worked closely with the State Government, Dairy Australia, Gardiner Dairy Foundation and Australian Dairy Farmers to determine the type of resources that were needed and how they would be delivered and managed.

One of the positives to come out of the crisis was the Dairy Farmer Central Website. This platform provided an excellent avenue for farmers and rural communities to access information regarding initiatives to help farmers in tough times. Dairy Farmer Central continues to act as a hub for information on support for farmers.

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Left to right: Gardiner Dairy Foundation - UDV 2017 NZ Study Tour Group at the Young Farmer Breakfast: Ashlee Hammond, UDV Policy Officer, Janelle Fisher, Oonagh Kilpatrick, UDV Policy Councillor, Evan Campbell, Mary Harney, Gardiner Dairy Foundation CEO, Bruce Kefford, Gardiner Chairman, Alistair Harris, Denise Jones, Nick Minogue & Lauren Peterson.

In this edition

Ü 41st Annual Conference Success

Ü South West UDV Members Recognised

Ü UDV Conference Photos

Ü A Dairy Convert Says Thank You!

Ü 2017 UDV Conference Resolutions Results

Ü ACCC - “We’re not done yet”

Ü #BQFeverAware

Building Industry ToolsThe August Dairy Symposium allowed the UDV and other state dairy farming organisations to take centre stage and provide first hand evidence of the impact farmers were having after the price correction and the commitment from the federal government to launch a project into the development of a dairy Price/commodity Index.

It also saw the announcement of the second ACCC inquiry into the whole dairy supply chain and it allowed the industry to begin the conversation around the voluntary Code of conduct.

September 27th 2016 was another significant milestone for the UDV and other State Dairy Farming Organisations. It was the first time all the processors and farmer representatives, coordinated by ADF, had come together to discuss the way forward for our industry.

There was a clear directive to work on solutions together for a better pathway for Australian dairy. That is exactly what we did and the result is the voluntary code of conduct in its final stages, and tenders being called for the dairy price/commodity index.

Back to BusinessWhile last year’s events were playing out, the UDV had to also maintain an element of “business as usual” and ensure that we carry on advocating for our members on a whole range of fronts.

Advocating strongly and developing projects in energy, water and maintaining our influence and providing guidance to government on the change in planning laws and the debate around whether dairy is an intensive or extensive industry.

We have had tremendous feedback regarding your 3 regional staff and their engagement and support for our regional members. This is an ongoing project area that we want to continue to build and develop so that we have enhanced communication.

Over the past 18 months we have been inviting more and more members to our policy council meetings. This is to expose more members to what we do in our commitment to be transparent, but also providing an avenue of leadership development.

We will continue to develop our young people at every opportunity and our ongoing partnership with the Gardiner Dair y Foundation and work on the NZ scholarship tour is testament to the industr ies commitment. Over the next year we will commit to de veloping Junior pol ic y Councillors and tapping into the regions to broaden our engagement and build our leadership succession plan for the future.

Thank youI would like to give a big thank you to Cath and the kids. Without your support over the past year I wouldn’t have been able to spend the time off farm that was required to properly represent UDV members.

I would also like to thank all the members, staff and stakeholders for their ongoing support for this very testing period. I look forward to strengthening the relationships to ensure we capture the positive opportunities for the Victorian dairy industry.

Until next time, happy farming.

Adam Jenkins President, United Dairyfarmers of Victoria

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South West UDV Members Recognised

One of the key elements of the Victorian Dairy Task Force was the initiation of the Dairy Industry Leadership Groups consisting of the RDPs, Regional Development Victoria (RDV), DEDJTR, Rural Financial Councillors (RFC’s), Department of Human Services (DHS) and the local Shires. UDV and the local farmers played a significant role in providing input into these groups that monitored the effectiveness of the support rollout and highlighted any emerging issues or gaps, which allowed programs to be adjusted swiftly.

The UDV Policy Councillors, regional staff, UDV members and the RDPs worked closely together to roll out many “Look over the Farm Gate” events in conjunction with other stakeholders. There was a key focus around health and wellbeing for farmers and supporting businesses and the feedback and review of these events has shown they were overwhelmingly successful.

Congratulations to Ecklin South dairy farmers Max & Pam Wines for winning the Colac, Corangamite and Wannon UDV Branches Natural Resource Management Sustainability Award and Boorcan dairy farmer Lauren Peterson who won the Fonterra Runner-up Young Farm Leader of the Year at the 2017 Great South West Dairy Awards!

Lauren Peterson, UDV Policy Councilor & award winner

Adam Jenkins, UDV President

Left to right: Craig Dettling, Wannon Branch President, Janelle Fisher, UDV Region 8 Policy Councillor, Max & Pam Wines, UDV Members & award winners, Adam Jenkins, UDV President, Cath Jenkins, Corangamite Branch President and Alison Lee, UDV Regional Membership Coordinator.

2017 Conference & Annual Meeting

Left to right: UDV Regional Membership Coordinators Peter Costello, Alison Lee & Ebony Arms.

UDV members voting on resolutions.

Left to right: Ann Louise, Dairy Australia, Tania Luckin & Simone Renyard, UDV Members.

More than 180 attended the 41st UDV Conference & Annual Meeting in May.

Left to right: UDV Policy Councillor, Oonagh Kilpatrick & Wannon Branch Vice-President Bruce Knowles.

Left to right: UDV Vice President, John Versteden and UDV Policy Councillors Daryl Hoey & Gordon Nicholas.

Left to right: UDV Policy Councillors for Region 5, Paul Mumford, and Region 6, Damian Murphy, debating resolutions.

Left to right: New UDV Policy Councillor for Region 9, Lauren Peterson and outgoing Councillor for Region 9, Nick Renyard.

UDV - Gardiner Dairy Foundation Young Farmer Breakfast.

Thank you to Ron Paynter for event photography.

I have spent the past six and a half years actively involved in the dairy industry. Mostly, that time has flown quickly by. But not always. Sometimes it was like time stood still. I have learned that is the ebb and flow of the dairy industry.

A Dairy Convert Says Thank You!

As I finish my time at the UDV I reflect with pride on the influential and important role the UDV is once again playing in the dairy industry. I reflect with great pride on the wide range of issues UDV has influence in, and the reach of the representation being provided to Victorian dairy farmers. I believe UDV is doing the job members want it to do.

Such is the access and influence of UDV that some farmers, including some members, take that access and influence for granted. They shouldn’t. The open doors and the influence have been earned. Hard earned from years of professional, considered, consistent and determined representation.

“Through these past six challenging years, the UDV has provided an

important voice for Victorian dairy farmers. Governments, industry and

others have learned they can deal with the UDV with confidence and trust.”

At the farm level challenges have been plentiful . Floods across the north in consecutive years were devastating for some. At the other end of the scale, lack of stock and shed water threatened businesses in south Gippsland and the west for a time just last year. For irrigators in the north the scarcity of water forced prices beyond the reach of dairy. And the combination of low milk price and high (poor) season induced input costs in 2012/13 made life incredibly difficult for most.

Different challenges required different responses from the UDV. Last year was clearly the toughest time in that six and a half years.

Farmer confusion grew when Murray Goulburn, then Fonterra, introduced never seen before milk price changes then they attempted to provide farmers with cash flow to cover the changes. The company explanations on how these arrangements would work were lost in the farmer anger.

The state and federal governments looked on wondering what, if any, response they could make.

This situation was unprecedented. It wasn’t a drought or a flood. It wasn’t the economic Armageddon of the Global Financial Crisis. This wasn’t market failure. In soccer parlance this looked like the dairy industry had scored an ‘own goal’.

UDV talked to them about providing support. They listened and they acted.

“The priority for the UDV was to focus on the needs of the farming

families because the anxiety being felt across the state was real no

matter how it started.”Dair y farmers have an organised and professional representative structure to call on. And contact the UDV they did. In their hundreds and hunderds. By phone calls, emails, text messages and contacts by Twitter and Facebook.

The leadership of the UDV through this time was very important. Effective farmer led advocacy was crucial to the state and federal government’s responses. Also crucial was the support of others in the industry, especially Gardiner Dairy Foundation and Dairy Australia.

The UDV worked hard to ensure the levels of government and other support for dairy farming families was appropriate, relevant and targeted. The response provided was comprehensive. It proved beneficial to many families.

Meanwhile UDV was busy with the regulators and the unprecedented scrutiny the ACCC and ASIC applied to the dairy industry.

Al l the while the UDV maintained a professional, considered, consistent and determined approach to dair y farmer representation.

Sometimes it is hard to articulate the work of the UDV.

That is because of the massive number of different issues where UDV represents farmers.

A number of years ago, Deputy Prime Minister, Barnaby Joyce, declared that decisions are made by those that are in the room. UDV is very much in the room. Not always getting what the members want, but in the room with a chance to influence the outcome.

As I finish my time at the UDV I reflect with pride on the influential and important role the UDV is once again playing in the dairy industry. I reflect with great pride on the wide range of issues UDV has influence in, and the reach of the representation being provided to Victorian dairy farmers.

“I am proud of what UDV has achieved.”

I am disappointed my time at UDV is over. I am comforted that the UDV Policy Council, many members and also those in the industry are also disappointed. Thank you to the many, many people that took the time to educated and inform me on dairy. Thank you to the many farmers who give up their time to support the work of UDV. And thank you for the friendship extended to me through my time.

I don’t know what my future holds but I firmly hope it is in dairy.

Vin DelahuntyManager, United Dairyfarmers of Victoria

Vin Delahunty, UDV Manager & Dairy Convert.

The UDV Annual Conference and Meeting deals with resolutions submitted by UDV branches and their members. By submitting resolutions and having an informed debate at the Annual Meeting, UDV branches and members can directly influence the UDV policy direction.

2017 UDV Conference Resolution Results

Energy

Wannon BranchResolution CARRIED1. That the UDV demand a review of the

impact of Feed in Tariffs and the UDV demand ex ist ing agreements are maintained and are not changed to the financial detriment of the user, even when additional/new forms of power generation changes are made.

Wannon Branch Resolution CARRIED2. That the UDV call upon COAG to prepare

and action an energy supply and delivery plan to support the dairy industry and all other Australian industries and rural communities and economies. Ensuring that infrastructure is upgraded to not only meet and protect our current needs but also provide the foundation for future thriving rural communities and economies for the next 50 years.

Wannon BranchAmendment CARRIED3. That the UDV express condemnation of all

political parties and politicians in these parties due to their lack of action in regard to the delivery of secure electricity.

Ken McSween (Terang)Resolution DEFEATED4. The UDV to investigate the possibility of

setting up a wholesale power company.

Wannon BranchResolution CARRIED 5. That the UDV continually lobby the

Federal Government to reser ve an appropriate amount of Australian drilled gas for use in Australia.

Q-Fever

Macalister BranchResolution CARRIED6. The Macalister branch calls on the State

and Federal Governments to take the issue of the impact of Q Fever in the dairy industry seriously by working together to:

a. provide funding for a state wide program of pre -screening and vaccination clinics for dairy farming families and their employees and

b. to list the Q Vax vaccine on the Pharmaceutical Benefits Scheme

Corangamite BranchResolution WITHDRAWN7. For the UDV to lobby government to

introduce a program that enables farmers and employees to access low cost testing and immunisation for Q-Fever.

Various Issues

Colac & District BranchResolution CARRIED8. That the UDV lobbies the Minister for Local

Government to mandate that all rural shires have wards to ensure better representation for dairy farmers.

Colac & District BranchAmendment CARRIED9. That the dairy industry embark on an

educational campaign to inform the ge n e ra l p u b l i c t h a t p l a n t- ba s e d beverages, eg; soy and almond drinks, are in fact juices, not milk.

Ken McSween (Terang)Resolution CARRIED10. The UDV to look into an overhaul of the

current agriculture education; with the view to facilitate the needs of our future generations.

Corangamite BranchResolution CARRIED11. The VFF develop a membership option for

dairy farm employees.

Colac & District BranchResolution DEFEATED12. That the UDV lobby the State Government

to acknowledge the value of the dairy industry, and ensure that necessary upgrades to infrastructure - electricity, water & roads - are undertaken to enable the industry to expand.

Milk Price

Wannon BranchResolution DEFEATED13. That the UDV call on all milk processors to

offer suppliers fixed term supply contracts for a minimum of a 12 month period and ensure that end of year step-ups are paid provided the fixed term is honoured.

Wannon BranchResolution CARRIED14. That the UDV call upon processors to

announce their opening prices by the 10th June each year.

UDV Policy CouncilResolution CARRIED15. That the UDV Policy Council calls for the

milk price paid to farmers by milk processors, including step-ups, reflect the actual market prices including the true value of protein & fat.

Karrinjeet Singh-Mahal (Wannon)Resolution CARRIED16. That UDV explicitly condemn Fonterra’s

conduct on 5 May 2016 as unethical, we ask that their continuing unethical behaviour cease and that reparations be made to farmers.

Resolutions from the Floor

Region 1 (DC1)Resolution CARRIED17. D C 1 d e m a n d s t h e i m m e d i a t e

reinstatement of the UDV logo to UDV Staff identification (like business cards, emails, name badges) and seeks a commitment from VFF that dairy related activities always be branded with the UDV logo.

Noel Campbell (Cardinia)Resolution CARRIED18. That the UDV Policy Council be given the

support of Conference to actively pursue a review of the UDV structure to give best practice advocacy for optimum use of finite member funding.

Chris Griffin, UDV Member

Disclaimer: This publication is provided in good faith and as a guide only. It may be of assistance to you, but the VFF/UDV does not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or consequence that may arise from you relying on any information in this publication.

United Dairyfarmers of VictoriaFarrer House 24-28 Collins Street Melbourne 3000 | ABN 67 079 980 304Ph. 1300 882 833 | Fax. 03 9207 5500 | E-mail. vff@vff.org.au | www.vff.org.au

ACCC – “We’re not done yet”

#BQFeverAwareIt’s spreading, it’s serious, and every livestock worker is at risk.

UDV is campaigning for more affordable Q-Fever vaccinations and testing, but you can act to protect yourself and your staff now.

Reduce the risk by wearing gloves in the shed and covering any cuts and abrasions.

Eliminate the risk by getting tested and if you’re not already immune getting vaccinated.

Talk to your GP, or for more information go to VFF.or.au/QFever or call the Q Fever Register on 1300-QFEVER to find out where you can get vaccinated.

#BQFeverAware and get vaccinated.

Agricultural Commissioner Mick Keogh told the UDV Annual Conference in May that although the Australian Competition and Consumer Commission (ACCC) did not find the actions of Fonterra last year to be unconscionable as part of a separate investigation into Fonterra and Murray Goulburn, they are not off the hook yet.

“The dairy inquiry will allow the ACCC to look more broadly at contracting practices, and their effects on competition, even if they don’t strictly constitute a breach of the act, in a court of law,” Mr Keogh said.

“That means the sorts of actions that were taken by Fonterra will certainly come under a fair bit more consideration, as part of the broader inquiry, into the dairy industry.”

In October last year the Federal Treasurer instructed the ACCC to look at the competitiveness of prices, trading practices and the supply chain in the Australian dairy industry. This second inquiry report is due back to the Treasurer in November.

Mr Keogh reported on a range of issues being investigated as part of the broader industry inquiry including; the trading of raw milk between processors and whether it reduces competition at the farmgate, supply contracts that have dates that overlapped, loyalty bonuses, long notice periods, fears farmers will be “blacklisted” by certain processors if they moved and the overly complex farmgate milk pricing

Other issues emerging from the ACCC investigations included value-chain analysis such as the distribution of profits and private-label milk and cheese, as well as contracting practices. The latter included the balance of power and allocation of risk as well as the timing of price announcements, transparency and collective bargaining.

Mr Keogh said it was “fairly obvious” a lot of processors’ agreements with dairy farmers had not evolved since the market was deregulated and if they had evolved they created greater risk or disadvantage on the dairy farmer.

In April 2017 the ACCC lodged proceedings in the Federal Court against Murray Goulburn (MG), and former executives Gary Helou and Bradley Hingle, on counts of misleading and deceptive conduct and unconscionable conduct.

He said the ACCC’s Federal Court action was intended to deter similar conduct from occurring in the future, and hold MG, Mr Helou and Mr Hingle accountable.

It was also hoped to encourage MG to maintain a higher degree of milk pricing transparency, so its farmers were more likely to be more informed into the future.

Mick Keogh, ACCC Agricultural Commissioner.