Levy money "well spent": dairy boss

Monday 09 January 2012 | From Dairy Australia

Australian Dairy Farmers Ltd (ADF) president
Chris Griffin wants to support the aspirations
of the industry.

“It’s our industry, our investment and our future,” the Victorian farmer said about the 2012 Dairy Poll.

Next February Australian dairy farmers will decide how much they want to invest in their industry through a dairy poll to fund dairy services through Dairy Australia, which provides ADF with science, economics, trade and human nutrition information.

ADF president Chris is backing a recommended 10 per cent increase in the levy.

“There has not been any increase in the levy rate since 1997,” said the Gippsland supplier. “The Consumer Price Index (CPI) has risen by more than 36 per cent since that time. The effect of inflation over the years has significantly eroded the buying power of levy funds raised.”

Milking 360 cows at his farm at Westbury, in Gippsland, Chris is facing an extra $45 coming out of his milk cheque each month. He considers it money well-spent.

“Keeping the levy at the same rate for 20 years is not sustainable. If the levy rate was left unchanged again it would compromise the delivery of Dairy Australia’s programs and services as well as severely constrain its ability to respond to emerging challenges.”

What are those challenges? “While the demand outlook is positive, markets will be more volatile because of non-food related factors that affect income growth and demand,” he said.

“Grain supply and availability is growing nationally but volatility in pricing will remain due to international supply and demand. For example, production of biofuels still looms as a threat to dairy.

“Australia’s farming systems can manage most climate change scenarios, but policy decisions need to be flexible to allow those systems to adapt further.

“Likewise prices and export returns remain subject to policy changes in major producer countries (like the EU) and to fluctuations in currency and finance markets

“And we all know that water policy will continue to be a key driver of dairy viability and success and the financial implications of an Emissions Trading Scheme and carbon tax remain to be quantified.”

At the last levy poll in 2007, the levy remained unchanged based largely on drought and financial conditions facing industry at that time. “At the time it was acknowledged that the levy would need to be reassessed when conditions improved,” said Chris. This year, he chaired a 24-member committee made up of representative bodies that reviewed industry needs and examined the activities of the Dairy Australia levy spend.

The committee recommended either a 15 per cent increase, which would allow Dairy Australia to fund new activities and meet unforeseen challenges, or a 10 per cent increase, which would allow the company to maintain present activities but limit its ability to take on new initiatives. The third option for zero levy is required by legislation.

Dairy Poll 2012 voting will open in early February when farmers will receive their voting pack containing a ballot paper, and closes on March 16.

Dairy farmers received their voting entitlements in December.

More information? Visit www.dairypoll.com.au