Addressing the meeting in Melbourne, Dairy Australia’s managing director Mike Ginnivan said dairy farmers had shown great resilience in dealing with high business costs brought on by extremely difficult weather conditions this year.

He said Dairy Australia has helped unite the industry behind a constructive and timely response to the drought and has made significant investments in the past year to increase farm margin.

"Some examples were providing pertinent and reliable information and support through short-term activities such as workshops, information packs, service provider meetings, regular reports on grain and hay, regional drought response co-ordinators and one-on-one consultations with experts.”

While it was important to deal with the drought quickly in order to fully benefit from a strong world market, Dairy Australia remained focussed on long term challenges to the industry, Dr Ginnivan said.

"One of the ways we are doing that is by working with governments, the research community and other agricultural industries to help build a dairy industry that is more resilient to climate variability."

Dairy Australia invested $54.8 million in levy funds, matching government funds and other income in the 2006/07 financial year. Farm productivity was a focus of the investment with 42 per cent allocated to a range of initiatives to increase farm margin through addressing input costs and productivity issues. The investments also helped build farmers’ capacity to sustain productivity under extremely variable seasonal conditions.

Another 29 per cent went to research and development as well as work to maintain and secure access to existing and new markets.  This included an investment to establish Dairy Innovation Australia, the country’s premiere centre for dairy manufacturing science and technology to rapidly commercialise innovation.

The remaining 29 per cent went to promoting dairy products by managing the industry’s reputation, creating a preference for Australian dairy in key markets and ensuring regulatory support for sustainable dairy production and marketing.

Australian Dairy Farmers president Allan Burgess said it was important to remember that Dairy Australia was owned by farmers and had been established to develop and drive industry services ultimately for the benefit of dairy farmers.

“Last year, Dairy Australia continued to work closely with the industry to ensure it invested appropriately and responded to the issues affecting dairy farmers and the industry.

“I believe that dairy farmers’ collective investment in Dairy Australia through the Dairy Service Levy has achieved far more than could have been achieved by individual farmers in the past year,” Mr Burgess said.

Elections were held at the AGM for three vacant positions on Dairy Australia’s Board. Barry Kitchen retired by rotation while Max Roberts and Stephen O’Rourke were re-elected and a new candidate, Len Stephens, was elected.

Members also upheld resolutions to simplify the election process and increase the total amount available to be paid in directors’ fees. The board did not intend to increase directors’ fees in the short term given current industry conditions.

An Annual Review and full Annual Report containing a summary of Dairy Service Levy investments has been sent to all Dairy Australia members.

The Annual Review can be downloaded from www.dairyaustralia.com.au