Dairy farmers call for quick resolution of VFF/ADF levy stoush

They said the VFF must continue to pass on levies collected from dairy producers to Australian Dairy Farmers.

VFF president Emma Germano has written to ADF saying the state organisation would no longer pay what she said were "exorbitant" annual fees.

In an email, last October, she flagged the VFF's intention to reduce future payments to the ADF.

"We wish to open immediate discussions in relation to the above and request that the ADF provide the VFF with a sustainable funding model that must include solutions and reforms that are under, or may be required, for consideration," she said in the email.

Currently, the VFF pays $360,000 in affiliation feeds to the national body.

It also pays membership fees to other affiliated farming groups like Sheep Producers Australia, Cattle Australia and Grain Producers Australia.

ADF president Rick Gladigau said in the best interests of Australian dairy farmers, especially those from Victoria, his organisation resolved the matter.

"Under the ADF constitution the VFF is a member of ADF through its state member the UDV, and as a member is required to pay subscription fees to ADF," he said.

Mr Gladigau said the VFF collected more membership levies from dairy farmers than any of its other commodity groups.

It kept approximately two-thirds of dairy farmer levies.

"The amount of levy funding contributed by each ADF state member, including the VFF, is dependent on the size of the dairy industry in each state," Mr Gladigau said.

"As a result, VFF collects approximately $1 million a year in dairy levies, of which it keeps approximately $650,000 and passed through approximately $350,000 to ADF".

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And Victorian dairy farmers have questioned the move to reduce levy payments to the ADF, urging the two groups to talk out a solution.

They said it was important to continue paying levies to the ADF, having resolved to increase the amount from six cents to eight cents a litre, at the United Dairyfarmers of Victoria 2011 conference.

Moe dairy farmer and former ADF president Chris Griffin said there was a bigger issue at play.

The ADF was the group that "did the fighting for us", at a national level.

"The VFF seems to have dumbed down the effectiveness of even the UDV - they have cut the staffing and are using one policy officer across a number of commodities," Mr Griffin said.

"Individual commodities have specific issues, at times, that need a strong voice for that specific commodity."

Mr Griffin questioned what he said was the level of transparency, from the VFF, over contributions made by commodity councils like the UDV,

He said he believed the VFF was under "some sort of financial pressures themselves - but that doesn't mean you drag everyone else down with you".

Mr Griffin said he "suspected" the UDV was paying its way.

"Without transparency, nobody knows - why are they [VFF] hiding those figures from us in the annual accounts?" he said.

"I can't seem to find them anyway".

Mr Griffin said the late Max Jelbart, the farmer who brought put the proposal to increase the levy to the 2011 conference, would be "turning in his grave, I think".

John Keely, Cohuna, a Victorian representative on the ADF's national council, seconded the 2011 proposal to increase the levy.

"We have a national peak dairy body and we chose to support that organisation by increasing our levy back then," Mr Keely said.

"Dairy organisations do require a lot of work, they are not the same as other commodities.

"I think that's reflected in not only UDV fees - what we pay - but also what we need to contribute.

"That's not to say there areas the ADF could trim back on too."

He said he wasn't surprised by the position taken by Ms Germano.

"I still think we need our national body - this action means potential compromise in being able to support it".

Crossley farmer Karrinjeet Singh-Mahil said there was always more to the story than met the eye.

"It's hard for anyone outside to know what's going on - as the UDV I think we have been doing more than our share for a long time," she said.

"Are we getting value for money from ADF, as a dairy farmer? That doesn't mean we are not, it means I don't know".

At the same time, Ms Singh-Mahil said she didn't know if farmers were getting value from the VFF.

"But it's not their money, it's our money - it was set up so that money was paid," she said.

"For them not to pay it now, is wrong.

"You might have issues but you sort them out by sitting down and working through them - you certainly do not suddenly withhold dairy farmers' money".

Mr Gladigau said the subscription fee paid by the VFF to the ADF had not changed since 2018 and Mr Gladigau said it represented better value today than more than a decade ago.

"Victoria accounts for the majority of Australian dairy production, at approximately 64 per cent - therefore, Victorian dairy farmers through their levies naturally contribute more to ADF than other states," he said.

Mr Gladigau said the ADF had a strong track record in representing, and advocating for, the industry.

The ADF was the first port of call in the industry, for the federal government, in the event of a disease outbreak.

It had also established DataGene to improve productivity and profitability of the dairy herd and represented farmers on trade negotiations, such as the European Union Free Trade Agreement and Indonesia-Australia Comprehensive Economic Partnership Agreement, Mr Gladigau said

ADF had led the development of a Mandatory Dairy Code of Conduct and brought an end to $1 milk, in 2019, he said.

Ms Germano has been contacted for comment.