ADPF Policy Position: Co-Funding Supply Chain Programs and Industry Reform

The Australian Dairy Products Federation (ADPF) today provided an update on progress towards an agreed mechanism and governance structure to co-fund whole of supply chain programs with Dairy Australia.

ADPF president Grant Crothers said the organisation had been in discussions with Australian Dairy Farmers (ADF) since last October to agree a sustainable and robust funding contribution and governance model based around the Australian Dairy Industry Council.

“Those discussions with ADF have not been fruitful, but ADPF members remain committed to finding a solution that would strengthen the industry,” Mr Crothers said.

“After all, a pathway to an increased ability to advocate across the industry was the leading issue to emerge from the Australian Dairy Plan workshops,” he said.

The ADPF executive committee has agreed to 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 FY23, to fund delivery of ADIC-industry initiatives and co-investment with DA in specific whole of supply chain programs and projects (business case and value dependent).

“We are encouraged by members support of the ADPF process that should see the commencement of co-investment initiatives in the 2023 financial year,” Mr Crothers said.

“ADPF members are willing to invest, but members also seek sound strategy and governance to ensure funds committed by both processors, and DA, are invested wisely.

“We have started work on identifying whole of industry projects and specific areas for voluntary processor financial contributions, to co-invest with DA and look forward to keeping the industry updated,” Mr Crothers said.

ENDS