Our History

Since the 1900s

Supporting Australian dairy farmers

Dairy Farmers Milk Co-operative has a long and proud history representing dairy farmers in Australia. It was born out of the legacy of Dairy Farmers, which dates back to the 1900s.

1900

In 1900, Dairy Farmers Co-operative Milk Co. Limited is established by dairy farmers in New South Wales. It’s a true farmer-owned co-operative marketing its members’ products to customers in the city.

1980s

In the late 80s, mergers and acquisitions sees the formation of Australian Co-operative Foods (ACF).

2004

In 2004, Australian Co-operative Foods renames itself Dairy Farmers Limited (DFL) and sets itself the goal to sell or become a publicly listed company. As a result of that decision, Dairy Farmers Milk Co-operative (DFMC) is created to represent the farmers. At this time, DFMC has 1,423 farms producing 1.2 billion litres of milk.

DFMC elects its first Board of Directors. The inaugural members are: Ian Zandstra, Alan Mathers, Eddie Wallwork, Duncan McInnes, Peter Ness and John Bastian (independent director) with Ian Zandstra becoming DFMC’s first chairman. DFL and DFMC enter into a 10 year milk supply agreement.

2008

2008 is the year of the sale: National Foods acquires Dairy Farmers for 1 billion dollars. Australian Co-operative Foods’ shareholders receive more than $5.85 a share and DFMC shareholders receive $1.68 a share.

DFMC enters into a new 10 year milk supply agreement with National Foods. The majority of farmers are required to enter into a supply contract to secure the sale.

Two weeks later the global financial crisis hits.

2009

DFMC employs its first staff member – Executive Officer, Greg Griffith. The milk supply agreement is rolled over for a further 10 years. DFMC suppliers enter into new Define Volume contracts – 2 and 3 years in length; minimum volume increases from 600 to 800 litres; and, DFMC reduces capital and returns 7 out of 10 shares, which means it returns more than $30 million back to members.

2010

National Foods becomes Lion Nathan National Foods and by 2011 the company is known as Lion. The dairy divivion becomes known as Lion Dairy & Drinks. LD&D does not rollover the milk supply agreement with DFMC – the agreement is now set to end in 2019.

2011

DFMC suppliers are offered variable contracts with a variable price or flat contracts with a flat price.

A new supply management model is introduced as a result of the milk supply agreement ending in 2019. Regional Anticipated Full Demand and pro-rata is introduced and Tier 2 milk is imposed on DFMC members.

The large supermarkets begin the $1 milk war.

Alan Mathers and Jeff Ballon resign from the DFMC Board, making way for Scott Sieben, Andrew Burnett and John Bywater (who becomes the second independent director).

2013

All milk for DFMC suppliers is announced as Tier 1 for the 2014-15 financial year (except in Far North Queensland)

2019

DFMC and Lion Dairy & Drinks renew the Milk Supply Agreement for a further 3 years.

Following the demise of Murray Goulburn and an enquiry by the ACCC the Dairy Code of Conduct was introduced on January 1, 2020. Amongst other things all processors and buyers of milk must publish minimum prices for raw milk to be bought from producers by June 1 each year.

2021

Bega Cheese announces acquisition of Lion Dairy & Drinks in November 2020

In January, 2021 the acquisition is completed, transferring LD&D to Australian ownership.

The deal doubles Bega’s size and combines LD&D brands with Bega (incl. Vegemite and dairy products)

2024

The Milk Supply Agreement is renamed the Milk Aggregation Supply Agreement and renewed for for a further 3 years.

Today

DFMC has 220 members from 112 farms in Far North Queeensland, South East Queensland, New South Wales, Victoria and South Australia. We supply approximately 130 million litres to Bega and a pool of organic farmers in Victoria supply Australian Sustainable Dairies and their five:am brand.