Throughout winter DFMC staff visited suppliers in all production regions.

Southern Region

Echuca and Milawa, Victoria

Both these lunch meetings were well attended with suppliers hearing Chairman Andrew Burnett and EO Mark Kebbell give some insights into how the milk price negotiations with Lion are conducted and the processes involved in arriving at the current price.

Along with other topics much discussion was created with Mark and Andrew answering a slew of questions from suppliers present.

Feedback was extremely positive with comments suggesting that these were some of the more informative meetings suppliers had attended.

DFMC member Peter Behrens Leitchville said, “This was really one of the better supplier meetings I have attended – very informative and gave a real insight into how pricing is formed”.

Normanville & Mt Barker, South Australia

The Normanville meeting was an evening dinner meeting that again was well attended and gave suppliers the opportunity to socialise over dinner before hearing from Mark and South Australian director Adrian Dauk . While not fielding as many questions as in Victoria, feedback suggests that suppliers had heard what they needed to from DFMC and were largely satisified.

Mount Barker was a much smaller meeting with only three suppliers attending yet threw up some of the most interesting questions and subsequent discussion of all the meetings giving Mark, Adrian and Dom plenty to think about.

Northern Region

Seven Northern Region supplier meetings were recently held during the month of July.  Seventy percent of our members attended meetings in the three regions covering NSW, SEQ and FNQ.

Our meetings covered a range of topics:

• Pricing updates in local and international markets.
• Pricing principles and negotiations with LDD.
• Farm numbers and supply across the regions.
• Our milk supply agreement with Lion Dairy & Drinks Pty Ltd.
• Our role in the ACCC inquiry.
• Some details around our logo change.
• Changes to the milk payment system in NSW and SEQ.
• An open forum in FNQ in regards to the AFD system.

Whilst each region has slightly different issues the drought is having a severe impact on all areas throughout the north. High purchased feed costs combined with increasing energy prices is having a major impact on farm profitability. In all meetings we had great robust discussions on the long term profitability of the dairy supply chain and DFMC and Lion are well aware of these increased costs and the associated impacts on individual farm businesses.

As Australia’s dry conditions worsen, dairy farmers affected by feed shortages are encouraged to seek support for both their livestock and themselves.

Dairy Australia managing director Dr David Nation said high demand for fodder coupled with escalating water prices and uncertainty of supply was creating pressure for some farmers.

“The most important message is to act now to best prepare your business for the coming year,” David said in a media statement.

He said Rural Development Programs (RDPs) would focus on delivering tools and resources to guide on-farm feed planning and management as part of their extension role.

“I encourage farmers to reach out to the RDP in their region and work with the team to maximise home-grown feed in late winter and spring,” David said.

Fodder is becoming increasingly difficult to source in the east-coast states in particular.

A poor autumn across much of eastern Australia and ongoing drought in NSW, Queensland and East Gippsland in Victoria have already had a serious effect, and the Bureau of Meteorology has forecast a one-in-two likelihood of an El Niño event forming in the coming spring and summer.

Dairy Australia’s new Feed Shortage 2018 resource hub points farmers to relevant information including hay and grain reports, a farm inputs monitor and feed budgeting tools.

This campaign builds on the work of previous seasonal responses such as feed.FIBRE.future in 2006–07 and Tactics for Tight Times.

It comprises seven components:

• Seasonal update information sessions
• Feed budgeting and purchasing risk management
• Dairy discussion groups
• Engagement and signposting
• Regional planning, co-ordination and communication
• Taking stock
• Access to feedstuffs.

The latest details are available online at dairyaustralia.com.au/feedshortage.

The Rural Financial Counselling Service provides primary producers including dairy farmers with free and impartial financial information, options, decision-making support and referral services – phone 1800 686 175.

The National Farmers’ Federation has compiled a list of drought support services and published this on its Facebook page.

And Lion Diary & Drinks offers a comprehensive Personal Support Program to assist its dairy farmers – including all DFMC members – in meeting the challenges and demands of work and personal life.

There’s nothing but good news swirling around the milk pipeline at Malanda, Queensland, where Lion Dairy & Drinks’ processing plant has just entered its 100th year of operation and is powering along.

The factory is the town’s biggest employer, with 100 staff, and draws from 48 Dairy Farmers Milk Co-operative (DFMC) supplier properties on the Atherton Tableland, just south of Cairns.

Its milk ends up in the hands of consumers between Cape York, Mackay and Mount Isa.

Lion processes roughly 47 million litres a year at Malanda under the Dairy Farmers label among more than 60 milk and milk-based products.

More than 180 Malanda district residents – including DFMC members and current and former factory employees – gathered on 23 May to celebrate the approach of the iconic institution’s centenary.

Commercial dairy farming began at Malanda in 1904, when the first factory was built at Atherton. In 1919 the Atherton Tablelands Co-Operative Butter & Bacon Company moved its operation to Malanda, establishing processing on the site occupied today – almost a century later – by Lion.

In its early days processing was run by a farmer-owned cooperative. After a succession of takeovers and mergers it made its way into the hands of Lion, one of the world’s biggest food and beverage manufacturers, and its Japanese parent company, beer brewer Kirin Holdings.

Since 1996 Lion has invested more than $25 million in capital works and facilities upgrades at the Malanda factory and in 2014 it was named as the company’s ‘plant of the year’. Lion also partners with DFMC to run dairy farmer training programs in the region.

In 2014 it rebranded Dairy Farmers milk from the Malanda factory as Malanda Original Milk, generating an immediate two per cent boost in retail sales of the locally farmed and processed product.

The following year Lion and DFMC honoured nine Malanda district dairy farming families who had been supplying to the Dairy Farmers brand for 100 years or more. The third- or fourth-generation farmers were John Bevan, Ravenshoe; Cherie Davis, Millaa Millaa; Lex Emerson, Jaggan; Greg and Bronwyn English, Malanda; Peter and Veronica English, Malanda; Tom Hamilton, Jaggan; Bob Kelso, Evelyn Central; Max Neal, Butchers Creek; and Steve Soley.

Holstein breeder and DFMC dairy farmer Ian Willcocks has been recognised by Genetics Australia as part of its 60th anniversary festivities.

Ian, who runs Manna Farm Holsteins at Yankalilla on South Australia’s Fleurieu Peninsula with his wife, Nicki, was inducted onto the organisation’s national roll of honour along with his brother Peter for the pair’s achievements in bull breeding. The announcement was made during Genetics Australia’s celebration at its headquarters at Bacchus Marsh, Victoria, in April.

The Willcocks were among 16 inductees from eight families in South Australia, Victoria and Tasmania.

“They’ve made an outstanding contribution through the provision of elite genetics,” Genetics Australia’s breeding, genetics and production manager Peter Thurn said.

Ian and Peter set up Manna Farm’s registered herd in partnership in 1983. With Nicki, Ian later bought out Peter’s share, and the couple now milk 150 cows on 115 hectares.

In their herd they focus on selecting for traits including high fertility and kilograms of milk solids, sound health and good temperament suitable for the commercial sector. They typically submit a hair sample from all heifer calves at about four weeks of age for genomic testing and use the resulting data to make informed breeding decisions for the future of their business.

In 2013–14 Ian and Nicki’s Manna Farm Apollo Dee was Holstein Australia’s cow of the year for all-round excellence in production, classification, breeding and contribution to the Holstein breed. At the time, judge Johan Fourie, Honeymoon Holsteins, Western Australia, described Apollo Dee – then newly retired at 16 years of age – as “the sort of cow everyone would want”, “the whole package” and “a great model for the Australian breed”.

The following year Manna Farm was recognised for being the highest-ranked herd in SA on Balanced Performance Index and in late 2017 Ian was given a Holstein Australia Fleurieu Peninsula Sub-branch Service Award.

So successful was Apollo Dee that among the roughly 320 animals on Manna Farm at present, only half a dozen do not carry her family bloodline, Ian says. One of the best performers among them currently is a red cow, Cardinal Deonna VG 89, which he describes as “the matriarch of the herd”and herd favourite.

More than 70 young Manna Farm bulls have entered the AI industry over time, with Dalek, Wilcoy, DelSanto, Farmdealer, Ditmar and Darnet graduating to the proven lists. Current young genomic bulls are Gamechanger and Rowlane.

The Willcocks are happy to share their experience with the broader industry and have hosted events including an Australian Dairy Herd Improvement Scheme farm walk.

Ian and Nicki say selling young bulls into the AI industry and local dairies, along with elite females, dovetails perfectly with their dairying operation.

DFMC has adopted a new logo which links with our past and yet demonstrates our status as a strong, independent co-operative that delivers secure milk contracts to our members.    

“After considering a number of options, the Board chose the new logo because it carries with it similar colours from our old logo but modernises our look and helps us to continue to build our own identity,” said John Bywater, Independent Director for DFMC.

DFMC was formed to represent farmers in 2004, establishing at the time a ten-year milk supply agreement with Dairy Farmers Ltd. Since then a lot has changed. Dairy Farmers Ltd was acquired and became National Foods, which then became Lion Nathan National Foods – now known as Lion Dairy & Drinks.

“The old logo was deliberately chosen to show the link between Dairy Farmers Ltd and DFMC,” said John.

“At the time, there was no thought of selling milk anywhere other than Dairy Farmers Ltd.

“While we still have a strong connection and milk supply agreement with Lion, we are a separate entity and the Board recognised it was important for us to demonstrate this through our logo.”

DFMC has agreed in principle to a new milk supply agreement with Lion that will maintain the clause that allows DFMC to call an independent body if a fair milk price cannot be agreed.

“To deliver ongoing security to our members and drive value for them, we need to continue to build on our independent position as a 300-member strong co-operative,” he said.

The term of DFMC’s current Milk Supply Agreement (MSA) with Lion Dairy & Drinks (Lion) runs through until June 30, 2019.  Over the past few months, DFMC, led by former chair Duncan McInnes, has had very productive and positive discussions with Lion about a new MSA. Importantly, the DFMC Board wanted to advise that an in principle agreement was reached late last year with the final agreement still being worked through. New DFMC chair Andrew Burnett said, “Reaching agreement was clearly important and provides certainty and security for our farmers.

“The key areas of the agreement from a DFMC perspective have been addressed and we look forward to continuing the partnership with Lion and communicating the details with members.

“Next season’s pricing discussions are yet to commence but co-operative members can confidently re-sign what will again be competitive offers in each region.”

Murray Jeffrey, Lion Agricultural Procurement Director, agreed.

“The key aspect of the new MSA agreement is to provide security between DFMC farmers and one of Australia’s leading branded dairy businesses. The discussions are continuing to move forward in good faith and we look forward to finalising the new MSA agreement in the coming months.,” he said.

Kathy Karabatsas, Lion Dairy & Drinks Managing Director, who has been involved in all the MSA discussions said: “We’re really pleased to have reached high-level agreement with DFMC and look forward to continuing the important partnership.”