Apr 17 2012

Dairy Connect Limited

by admin in

Formation of a new Dairy Industry Peak Body

The NSW Dairy Industry Conference (DICON) is the current peak body of the Dairy Industry in NSW and reports to the Minister for Agriculture, either directly, or through the Food authority and the Dept of Primary Industries. DICON is looking at restructuring its activities to become more relevant in today

Currently, we have a number of interest groups:Milk Processors, Dairy Farmers, Milk Vendors, Retailers and other groups who form part of the overall industry chain.

A Steering Committee has been set-up to progress the DICON restructuring. This committee consists of:

  • Adrian Drury (Chair), NSW Dairy Industry Conference (dairy farmer)
  • George Davey, Milk Marketing (NSW) Pty Ltd
  • Ian Hollindale, Parmalat (milk processors)
  • Bob Paton, Amalgamated Milk Vendors Association (milk distributors)
  • Bill Inglis, (Dairy Research Foundation)

We are in the process of establishing a not for profit company that is proposed will operate as the new peak Dairy Industry body within NSW. This new company will eventually replace DICON and will act as a single voice of the NSW Dairy Industry. Preliminary details are:

  • The proposed body will be a Company Limited by Guarantee.
  • Company Name: Dairy Connect Limited trading as Dairy Connect.
  • Registered Address and Place of Business: 66 Devonshire Street, Surry Hills, NSW, 2010.

Objects of the new peak body are:

  • Establishment of a unified peak dairy organisation in NSW.
  • Active promotion of the NSW dairy industry.
  • Protection and enhancement of the economic sustainability of the NSW dairy industry over the short, medium and long term and to promote industry growth, both in supply and consumption.
  • Service the needs of all dairy industry sectors (producer, processors and distributors).
  • Promote strategic and operational cooperation between all stakeholders (producers, processors, distributors,
    governments, retailers, unions and consumers).
  • Provision of services to the dairy industry.
  • Provision of industry development and support through participation and active facilitation of programs including research and training and education.

Membership of the new Company will be available to:

  • Producers (Dairy Farmers)
  • Milk and/or Dairy Processing Companies
  • Milk and/or Dairy Distributors
  • Related Organisations (NSW Farmers, AMVA, Dairy Australia, etc.)

Initial Funding for the new Company will come from existing industry sources:

  • Milk Marketing
  • Graham Park Trust

Membership fees (amount to be determined) will be an ongoing source of funding. It is also anticipated that funds from other industry organisations will be redirected to the new peak body.

The new peak body, Dairy Connect Limited, proposes to foster strong and collaborative relationships with Government, Department of Primary Industries (DPI), NSW Farmers Association and other similar organisations.

DICON briefed the Minister for Primary Industries in August 2011 and subsequently the Steering Committee has updated the Minister

At the present time the entire dairy supply chain is under pressure because of reduced returns as a result of discounting practices in the market place. All sectors, processors, dairy farmers and milk distributors are all operating under reduced margins and many are experiencing a loss of income. As an industry we need to embark on practices to meet the requirements and expectations of our customers if we are to remain relevant for the future. All sectors need to work together to re-establish strong brand loyalty to add value to the entire supply chain. This will assist processors achieve better results that will flow on to dairy farmers, distributors and the community.

The Steering Committee organised an Industry Meeting on 9 December 2011 to update and brief all DICON members and key industry personnel.

More information will be provided as circumstances allow.

(Bob Paton)