Australian dairy leaders unite over deregulation
By Boyd Champness
AUSTRALIAS six state dairy farmer presidents have made a united commitment to support deregulation of the industry if Victorian farmers vote to end regulation over the coming week.
The Australian Dairy Farmers Federation leaders reassured Victorian farmers they were all in agreement that deregulation was inevitable.
ADFF chairman Pat Rowley told The Weekly Times that there were some people running around saying the states were retreating from their commitment to deregulate.
“But thats not what Im hearing. In Queensland, weve had meetings all over the state, and weve taken the view that deregulation is going to happen and the best way to manage it is through the restructure package,” he said.
Although Victoria is the only state likely to gain from deregulation – and even that is debatable – the other states are fearful that if they dont tow the party line the Federal Governments A$1.7 billion (£670m) restructuring package may be rescinded by the time their hand is finally forced.
New South Wales Dairy Farmers Association president Reg Smith told The Weekly Times as much when he said his biggest fear was that state politicians might listen to the few groups of farmers opposed to deregulation and try to hold on to the regulated market milk premiums.
“Sure they might stop it for a year or 18 months, and then when it falls over wed end up with deregulation without a package and thats the worst case scenario for New South Wales,” he said.
“We wouldnt support continuing regulation unless we had an absolute guarantee from the processors that they would supported it for seven to eight years, and that isnt going to happen.”
Some 9262 postal votes have been sent to Victorian farmers, who effectively are responsible for shaping the countrys dairy industry.
Voting opened on Monday, 6 December and will close on Monday, 20 December.
Industry leaders are also mindful that at least four major processors have warned they will start sourcing milk from interstate after 30 June next year.
The Domestic Market Support Scheme sunsets on 30 June and Milk Marketers Federation chairman Jim Forsyth, whose comments were reported in the Stock and Land, told 700 farmers at a meeting in northern Victoria last week that any continuation of the scheme would depend on the goodwill of processors.
“At least four (processors) will not support ongoing negotiations past 1 July.
If only one does not support it, that is enough to bring down regulation. I believe there are others who have not indicated yet but will also do so,” he said.