Australian dairy can only be successful if the entire industry works together. But this hasn’t always happened as well as it should.
We’re now having the hard conversations to ensure that current and future generations have confidence to invest in the Australian dairy industry, and we work collectively to create a valued, profitable, innovative and world-class industry.
ADPF takes its role as the voice for dairy processors very seriously. We are committed to focusing on the good, and spreading the word of the economic, social and health benefits dairy processors bring.
ADPF is committed to holding politicians, industry leaders and media to account, and communicating effectively to ensure the best possible outcomes for our members and the future of the dairy industry.
The Australian Dairy Plan aims to drive a significant turnaround in the industry’s outlook via a range of bold initiatives targeting increased profitability, confidence and unity over the next five years and beyond.
For the first time, Australian Dairy Farmers, ADPF, Dairy Australia and Gardiner Foundation, have come together representing the whole dairy supply chain to develop a national strategic plan.
The Plan was informed by nationwide consultation with over 1,500 participants.
The Australian Dairy Plan promises to deliver on five key commitments:
As the voice of Australia’s dairy processing sector, ADPF has the responsibility to be a key champion for the Australian Dairy Plan.
There’s no denying, it has been a hard slog for processors in recent years. Increasing input costs combined with stagnant retail prices have left dairy manufacturing margins wafer-thin, which has eroded profitability and confidence. This has led to a downturn in capital investment and investment in innovation at a time when we should be taking advantage of free trade agreements, growing international demand and responding to fundamental shifts in consumer attitudes to food.
In addition, processors are contending with a reduced supply of raw milk. Manufacturing plants around the country have been forced to spread overheads across lower volumes putting further pressure on margins and curtailing the ability to invest in the industry.
The Australian Dairy Plan outlines how we will rectify this and enhance profitability throughout the supply chain, through industry reform and tools that support better business practice and risk management.
And we are starting to see this change, with milk production volumes growing off the back of favourable conditions and reduced input costs such as water and feed.
ADPF has a critical role to play in the delivery of Commitment 5 – restoring trust and transparency between farmers and processors to strengthen industry confidence.
To deliver on this commitment, ADPF – with the support of dairy processors, both ADPF and non-ADPF members – is leading the development of the Milk Value Portal, a tool designed to demystify farm-gate milk pricing and explain the average value of raw milk at a particular time of the year.
Reform of industry structures and advocacy arrangements was one of the key themes that emerged during the nationwide consultation phase of the Australian Dairy Plan. A Joint Transition Team (JTT) was appointed as part of the Dairy Plan process to consider options for the reform, and includes ADPF’s Grant Crothers, Janine Waller and John Williams.
The JTT’s subsequent report and recommendations is now undergoing industry consultation through an engagement and design process led by the Organisational Reform Steering Committee, including Ernst & Young and David Palmer.
ADPF welcomes the call for industry reform and a new single organisation that aspires to deliver a stronger, more united voice for the dairy industry and meaningfully represents the strategic priorities of dairy processors.
There are many aspects of proposed organisational reform that fit into ADPF’s existing strategy, including trade, sustainability and economic viability, as well as delivering on Commitment 5 of the Australian Dairy Plan – restoring trust and transparency between farmers and processors to strengthen industry confidence.
The ADPF works to reflect processors contribution in a new operating model. The proposed model would help processors to harness industry-wide insights and the benefits of collaboration.
A one-stop shop designed to provide farmers and analysts data and insights to better understand the milk market and get the most value out of their raw milk