Processor funding

The Australian Dairy Industry Council (ADIC) is supported by Australian Dairy Farmers’ resources and funding from Australia’s major dairy processing companies. The 11 largest Australian dairy processors have committed to make an annual payment to the ADIC processor fund for three years (2015 – 2018) of $120 per million litres of milk collected the previous calendar year.

The ADIC funding agreement requires the use of funds “for the purposes of providing advocacy, policy development and communication services for the benefit of the dairy industry in Australia on a national or international basis”. Funds employed for these purposes must be used for projects which are in the mutual interests of farmers and processors.

Policy and project proposals are presented to the ADIC Board in November each year in the form of an ADIC Annual Investment Plan (AAIP). The policies contained in the AAIP are first approved via the governance process of ADF and the ADPF respectively, prior to their proposal to the ADIC Board. In order to be successful the AAIP must be approved by 75 per cent of the ADIC Board.

Under the terms of the funding agreement, implementation of the plan is carried out by ADF. The parties agreed that ADF’s long standing history and expertise as the peak body for dairy farmers makes it the appropriate choice to implement the plan. ADF provides bi-annual performance reports to the ADIC to keep the organisation abreast of its progress against key performance indicators and to ensure that project expenditure is in line with the plan. This report is provided to the 11 contributing processors and ADF’s State Members.

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