Throughout winter DFMC staff visited suppliers in all production regions.
Echuca and Milawa, Victoria
Both these lunch meetings were well attended with suppliers hearing Chairman Andrew Burnett and EO Mark Kebbell give some insights into how the milk price negotiations with Lion are conducted and the processes involved in arriving at the current price.
Along with other topics much discussion was created with Mark and Andrew answering a slew of questions from suppliers present.
Feedback was extremely positive with comments suggesting that these were some of the more informative meetings suppliers had attended.
DFMC member Peter Behrens Leitchville said, “This was really one of the better supplier meetings I have attended – very informative and gave a real insight into how pricing is formed”.
Normanville & Mt Barker, South Australia
The Normanville meeting was an evening dinner meeting that again was well attended and gave suppliers the opportunity to socialise over dinner before hearing from Mark and South Australian director Adrian Dauk . While not fielding as many questions as in Victoria, feedback suggests that suppliers had heard what they needed to from DFMC and were largely satisified.
Mount Barker was a much smaller meeting with only three suppliers attending yet threw up some of the most interesting questions and subsequent discussion of all the meetings giving Mark, Adrian and Dom plenty to think about.
Seven Northern Region supplier meetings were recently held during the month of July. Seventy percent of our members attended meetings in the three regions covering NSW, SEQ and FNQ.
Our meetings covered a range of topics:
- Pricing updates in local and international markets.
- Pricing principles and negotiations with LDD.
- Farm numbers and supply across the regions.
- Our milk supply agreement with Lion Dairy & Drinks Pty Ltd.
- Our role in the ACCC inquiry.
- Some details around our logo change.
- Changes to the milk payment system in NSW and SEQ.
- An open forum in FNQ in regards to the AFD system.
Whilst each region has slightly different issues the drought is having a severe impact on all areas throughout the north. High purchased feed costs combined with increasing energy prices is having a major impact on farm profitability. In all meetings we had great robust discussions on the long term profitability of the dairy supply chain and DFMC and Lion are well aware of these increased costs and the associated impacts on individual farm businesses.