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Assume the shackles are off! Take away the barriers of time, money, history etc. and think about what’s possible. What, specifically, needs to change to get dairy to a better place in the next five years?
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4 months ago
I feel Dairy Australia is telling dairy farmers what they need, and not asking the farmers what is needed. We need ideas from the bottom up, not dictated to by someone that thinks they know what is needed. Too much money is wasted at the office, too many staff been employed, and dairy farmers not seeing value for the leviy that they pay.
I am part part of this industry .....
I am an Australian,
I am a consumer of Australian milk!
The solution is simple:
The dairy farmers must get paid more for their milk, it is a no brainier!!!!
This additional cost must then be borne by both the processors, the retailers and yes me the consumer.
A liter of milk sells for less than a liter of petrol!
The price of petrol is not fixed, it fluctuates (goes up) with so called costs to supply the product why shouldn't this be the case with milk?????
I believe we need an independent regulator like a milk commission ombudsman that reviews the price being paid to all the stake holders from production to the consumer in different geographical areas, this watch dog needs discretionary powers to implement penalties and or claw back. The knowingly unconcerned attitude from any sector impacts on the lively hoods of the least powerful in the supply chain . Maybe this would force more cohesive community values that are being eroded in the modern Australian society .
The ACCC would seem that it may have a conflict of interest as its charter ...
Secure sufficient water for dairy by getting water out of the commercial market where non-farmers are speculating with this essential farming resource. Can the government set up a core volume of water to one side for dairying? Also secure underground water by making sure key dairying areas are not subject to any drilling for gas.
One thing that strikes me as a pox on this industry is the way the production payment system is skewed toward the very top end of the tree, which in reality, constitutes a subsidy from the bottom to the top.
Let me illustrate with the following hypothetical situation:
Farmer Joe Blow P/L is a corporate, and has bought up 6 farms of average production each of 200,000 kg MS, making a million KG MS when combined, with production payment bonus of
Now consider the case of ten farmers, each owning separate farms but with average production of 100,000 kg MS per farm, for a combined production of ...
Expecting the Public to pay any more than they absolutely have to for our product requires that we each never look for best value in sourcing everything we buy for personal or business use, or face the risk of being labelled hypocrites. They don't owe us a living and they will only pay the price they have to, weighing quality and value hand in hand, as they juggle their weekly budgets and family needs, and who can blame them?
Well our advocacy is now completely and fundamentally broken and ineffective now that the ADF has lost the processor funding with state bodies unable to make up the short fall . How do we now get some unity a plan? What will be the starting point for the change? Who will give ground and how much is the question. If history is any guide nothing will change no one will be willing to give ground in a meaningful way. Old grudges will get in the way unless some leadership is show by someone.
My thoughts are that to get unity started and to actually get farmers to want to engage and be part of thi...
We need to change from a reactive production driven industry to a proactive market driven industry with the ability to manage price risk. If we look at the way the current payment structures work then it is an annual auction where the farmers don't really know what price they are being paid and the milk processors don't know how much milk they are buying, with the end result that the milk producer manages the price risk for the whole supply chain. In a capital and labour intensive industry, surely this needs to change in order to attract and retain new entrants.
For a proactive market driven...
The consumer of dairy products has little transparency over the link between the price they are paying for the end product and the price that the dairy farmer receives. Consumers who are willing to spend more for products where the farmer is paid a fair price currently do not have the information required to make informed choices. Is there a way that the end consumer could be better empowered to support a sustainable dairy industry?
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