ADPF Policy Paper: Industry Reform and Co-Funding Whole of Supply Chain Programs

Background

The Australian Dairy Products Federation’s (ADPF) policy development is aligned to Commitment One from the Australian Dairy Plan; reform industry structures to create a more cohesive dairy industry and strengthen our influence with key stakeholders.  A pathway to an increased ability to advocate across the industry was the leading issue to emerge from the Australian Dairy Plan workshops.

The ADPF executive committee has agreed to pursue three principles.

1. Reform of the Australian Dairy Industry Council (ADIC) to deliver a strengthened advocacy body representing the common interests of both dairy farmers and processors, which includes independent leadership and transparent governance.This will provide confidence to both dairy farmers and processors that policy and any representations are balanced and represent their common interests, and transparency to all parties who provide funding. We remain open as to how this may be achieved – with an independent Chair being a logical option.

2. A mandatory processor levy to fund an ADIC-led whole of industry strategy and provide co-investment into what have been Dairy Australia (DA) led whole of supply chain programs.This provides for a fair, transparent and sustainable funding model. We do not anticipate any government matched funding and are cognisant of the levy limitations on advocacy activities.

3. An interim voluntary processor levy, co-ordinated via ADPF. 

   The intent is for voluntary processor contributions to commence in the 2023 financial year, to fund delivery of ADIC-industry initiatives and co-investment with DA in specific whole of supply chain programs and projects, dependent on sound strategy and governance.

Status

The ADPF has been in discussions with Australian Dairy Farmers (ADF) since October last year to create a stronger, well-resourced ADIC and find a mechanism for ADPF members to contribute funding to whole of supply chain programs and projects alongside DA.

Work is progressing on identifying whole of industry program areas and specific projects for voluntary processor financial contributions, to co-invest with DA, with member consultation to follow.

The ADPF continues to work collaboratively with our industry partners on ADIC reform to deliver a more sustainable dairy industry, aligned with commitment one of the Australian Dairy Plan.

For more information: Janine Waller, Executive Director, janine.waller@adpf.org.au