MEETING INDUSTRY REQUIREMENTS AND EXPECTATIONS During the past year, Dairy Australia underwent its first Independent Three Year Performance Review, and its main funding base, the Dairy Service Levy, was subject to a levy poll. While both resulted in welcome outcomes for Dairy Australia, it is useful to return to the objectives of the reform process that created Dairy Australia through the merger of the Australian Dairy Corporation and the Dairy Research and Development Corporation. These objectives were to: o Streamline and simplify the structure of the delivery of industry services; o Improve co-ordination and integration of research, development, trade policy,economic and promotional activities; o Enhance capacity to respond to market changes; o Efficiently transfer the assets and liabilities of the statutory corporations to the industry; and o Be accountable to levy payers and to the Commonwealth for the expenditure of levy funds and matching R&D grants. The outcomes of the performance review and the Dairy Service Levy Poll demonstrate that the Company is delivering on these objectives. The performance review found that the Company had met or exceeded the original expectations of industry and the Australian Government. It reported that members and key stakeholders considered Dairy Australia to be professional, positive, well-informed, co-ordinated and effective. In particular, the Company’s planning process, used to align its strategies to industry and government priorities, was regarded as flexible, collaborative and comprehensive, and would allow it to reach its full potential. The review recommended the Company continue its efforts to better demonstrate the value and on-farm relevance to farmers of levy funded activities. ENDORSEMENT OF INDUSTRY COLLECTIVE ACTION The Dairy Service Levy Poll returned two thirds of first preference votes (68 per cent) in favour of either keeping the Dairy Service Levy at its current rate (64 per cent) or increasing it (4 per cent). This indicates the confidence dairy farmers have in their industry and their recognition of the services funded by the levy. Farmers understood that their collective investment enables them to be innovative and internationally competitive and they recognised instinctively the need for the dairy industry to be promoted and protected. DEVELOPING CAPABILITY TO TACKLE EMERGING ISSUES With the second major drought in five years testing the resilience of some farmers, it is no surprise to find that climate concerns have overtaken milk price as the most important challenge facing Australian dairy farmers (see page 26). While general information about climate change is available, individual farmers need to know what climate change means for their farm and how it will affect their growth plans. Dairy Australia is working collaboratively with governments, the research community and other agricultural industries to help build a dairy industry that is more resilient to climate shocks and is actively reducing and/or offsetting its emissions.
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