Dairy processors are in talks with Dairy Australia about their contribution towards the cost of the industry body.
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The Australian Dairy Products Federation is in talks with Dairy Australia about funding arrangements.

Currently, Dairy Australia is funded through the dairy service levy, which is deducted from payments made to farmers by milk processing companies, and funding from the Australian Government.

In 2019-20, dairy farmers paid $31.6 million to Dairy Australia, representing 56 per cent of funding. The government kicked in $21.8 million, 39 per cent of the body’s funding.

In a statement, the Australian Dairy Products Federation said the discussions were part of a commitment to a thriving, profitable and sustainable dairy industry.

“We are working with Dairy Australia on a due diligence project to understand the value of their ‘whole of supply chain’ program to dairy processors. The outputs aim to guide the potential financial contribution from ADPF and/or dairy processors – and is part of a broader scope of work on industry organisational reform,” the statement said.

“This will build on ADPF/processors’ existing contributions to Dairy Australia that support marketing initiatives and data provision – for example provision of milk production and dairy sales data; providing insights to feed into Dairy Australia market analysis, policy and trade programs and marketing; as well as assisting Dairy Australia in terms of communications with farmers.”

In 2019-20, the rate of milk levies was 2.87 c/kg milk fat and 6.99 c/kg protein.

Based on national average milk composition, these combined levies were equivalent to approximately 4.73 c/kg milk solids.

Dairy Australia funding is distributed via a ‘triple bottom line’ approach, with 55 per cent of funding going towards economic goals, 27 per cent towards social goals and 18 per cent towards environmental goals.

Anik Dairy, owned by dairy major Lactalis Group, has named SubhashisBasu as its new chief executive officer.

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