The Australian Dairy Farmers (ADF) challenges Coles to prove that the recent milk price cuts will not affect farm gate milk prices for Australian dairy farmers.

ADF Vice President Chris Griffin said, ‘Coles is selling milk at an unsustainable price and it is not only dairy farmers who believe this is the case.’

In the Herald Sun on Thursday 27 January Woolworths said ‘we don’t feel this is a sustainable outcome for the dairy industry.’

On the same day in the Courier Mail Woolworths also said, ‘this is certainly not a sustainable price level for milk and it will inevitably lead to pressure at the farm gate.’

In the Australian newspaper on Friday 28 January Franklin’s Managing Director Roni Perlov is quoted as acknowledging the prices were ‘unsustainable’.

In the Adelaide Advertiser on Thursday 27 January the National Association of Retail Grocers of Australia, Chairman, John Cummings, said, ‘in the case of milk pricing, the dairy farmer who was getting little will now get nothing.’

The ADF has calculated that the cost to Coles of this marketing tactic if, as they claim, they do not pass on the price cut will be over $30 million per annum.

It defies logic to think that Coles will ‘fully absorb’ this amount of money. It is inevitable that it will be passed on to either consumers through higher prices on other products in Coles’ stores or to dairy farmers through lower prices for their milk.

In light of all these major industry players saying the pricing is unsustainable the ADF challenges Coles to show why they alone believe it is sustainable.

ADF Vice President, Chris Griffin, asks Coles, ‘Why do they alone believe they can absorb the cost?’

Home brand milk represents milk volume through-put for milk processors, however profits are derived from their branded milk. Coles’ aggressive promotion of home brand milk at the expense of the diverse range of branded milk products represents a threat not only to consumer choice but to the dairy supply chain. Dairy farmers will feel the squeeze as milk processors lose profits.

‘How can Coles avoid passing the cost of this tricky marketing tactic on to consumers or dairy farmers?’

‘Which is it to be? Slugging consumers through higher prices on other products in Coles’ stores or gouging dairy farmers by paying them even less for their milk.’

Media Contact:

Adrian Drury, ADF Vice President

M: 0428 569 245

Chris Griffin, ADF President

M: 0402 846 239

Australian Dairy Farmers (ADF) Vice President Chris Griffin today expressed concern on behalf of dairy farmers following Coles’ decision to slash the price of their home brand fresh milk by up to 33%.

“ADF is concerned that Coles is selling milk at an unsustainable price. This marketing tactic is apparently made without any concern for dairy farmers who work hard to produce a high quality, nutritious food for Australian consumers,” Mr Griffin said.

“The impact of this pricing decision will ultimately flow on to hit dairy farmers at a time when they are struggling to respond financially to years of drought and now floods.”

The dairy industry is pulling together as a community to assist those farmers that have suffered during this devastating flood crisis.

“Our aim is to get dairy farmers quickly back on their feet in an effort to prevent cost increases for consumers,” Mr Griffin said.

“However, we fear that Coles’ decision will come as a blow to many dairy farmers battling towards recovery.”

ADF considers that consumers understand the devastation that the floods have caused to all farmers and are appreciative of the efforts of dairy farmers to maintain production levels and thereby prevent the need for milk price rises.

“We are at a loss however, to understand how setting a new low for the retail price at a time when the price of other commodities is rising, is of benefit to the industry,” Mr Griffin said.

Media Contact:

Media Contact:

Chris Griffin, ADF Vice President

M: 0402 846 239

Adrian Drury, ADF Vice President

M: 0428 569 245

Young dairy leaders with the vision and passion to guide the dairy industry are being called to apply for the new ‘Developing Dairy Leaders Program’.

The program, developed by Dairy Australia and Australian Dairy Farmers (ADF), aims to build on the leadership skills of people aged 18-30 who are committed to the dairy industry.

Two applicants from each major dairying region will be selected to participate in the all-expenses paid program, which runs from February to May 2011. Program participants will:

take part in a four-day residential skills development program in Melbourne
a two-day residential policy and media development program in Canberra
gain formal accreditation towards the industry’s learning and development career pathway work with an industry-leading mentor
learn to contribute to the development of policy.

The program has been developed in response to the Australian Dairy Industry Council (ADIC) Dairy Leadership – An Industry Blueprint 2010-15, which identified 200 leadership roles are required across the industry – 40 new people each year.

Dairy Australia Managing Director Ian Halliday is pleased to support this initiative as a part of the industry’s commitment to developing its leaders.

“The Australian Dairy industry has overcome many challenges in recent years with the guidance of its dedicated leaders,” Mr Halliday said.

“Dairy Australia recognises the importance of supporting our leaders in every stage of their development and I encourage our next generation of leaders to participate in this program and building the future of the Australian dairy industry.”

ADF President Wes Judd believes the Developing Dairy Leaders Program is a key activity in supporting the development of its state level leaders.

“This program will suit young people who have taken steps down the leadership path and want to further develop their knowledge and career. It provides a fantastic opportunity for participants to learn from current industry leaders,” Mr Judd said.

“I urge young people out there to apply and have a go for themselves and the dairy industry.”

Visit www.dairyaustralia.com.au/leadership to download an application form or for more information. Applications close on 10 December 2010.

Media Contact:

Felicity Gallagher, Dairy Australia External Communications Manager

M: 0417 540 059

E: fgallagher@dairyaustralia.com.au

THE Australian Dairy Farmers (ADF) has welcomed the common sense approach shown by the Murray Darling Basin Authority (MDBA) in yesterday’s announcement of a pre-release of Basin plan Guidelines in August.

ADF President, Wes Judd said, ‘ADF has for sometime communicated to government the need to review the draft Basin Plan before it’s finally released’.

‘This early review process will now give the dairy industry, agricultural irrigators and the community an opportunity to consider what’s proposed and provide vital feedback into the draft Basin plan’, he said.

Mr Judd said, ‘that although this does provide some level of reassurance on early consultation, it does not remove or weaken the industry message to the MDBA and the Commonwealth Government, that any reduction to irrigation water allocations will have a significant impact on dairy farms in the Basin region’.

‘If allocations are reduced, it will not only harm the dairy industry and irrigated agriculture, but all sectors of the community across the Basin region. It is important that everyone understands this,‘ he said.

Media contact:

Wes Judd, ADF President

M: 0407 132 854

THE Australian Dairy Farmers (ADF) President Wes Judd today welcomed the Senate Economics References Committee report into competition and pricing in the Australian dairy industry.

“Low milk price is always a grave concern for dairy farmers, and the last 18 months have seen an almost unprecedented downturn. While prices are now improving, it is important that food pricing and returns to farmers are transparent to everyone in the supply chain, including consumers” said Mr Judd. “In this environment, it is important that government and industry continue to work together to ensure market power is shared by all.”

Mr Judd confirmed that ADF had worked closely with milk processing companies and would continue to do so. His firm message is that dairy farmers should get returns for their milk at the farm gate as high as the market can yield, saying “as a global price taker, processers need to mirror global milk prices to be competitive in both our domestic and export milk markets. At the same time, farmers need a return that keeps their business viable.”

Mr Judd singled out collective bargaining arrangements as a highlight of the report. “In our market-oriented industry, we rely heavily on a robust system that allows market forces to operate, whilst increasing dairy farmers’ ability to access more balanced market power through tools such as collective bargaining. Strengthening these provisions is one of the recommendations of the Senate Committee that ADF would support. Obviously we would need to further explore the detail of how this is achieved.”

ADF recently welcomed the more positive outlook for milk price forecast by Dairy Australia. After one of the toughest years on record, dairy farmers are proceeding cautiously in the hope that 2010 will be a year of recovery.

Media Contact:

Wes Judd, ADF President

M: 0407 132 854

Adrian Scott, Chief Executive Officer

M: 0437 057 022