ISSUE 4: Industry engagement for organisational reform underway

6 August 2020

Dear Industry Stakeholder,

The industry engagement phase for organisational reform is now well underway and I’m pleased to provide you with further detail regarding the engagement and design process, along with the phased approach to reform.

You will recall that a Joint Transition Team (JTT) comprising both dairy farmers and industry service providers was appointed to consider options for reform. The JTT recommended the creation of a single, whole of industry national dairy organisation providing industry services including policy, advocacy, research and development (R&D) and marketing.

Industry engagement is seen as critical to informing the design of reform operating model options. David Palmer is leading this engagement through a series of listening sessions with leaders across the industry, and regional industry representatives.

While there is strong support for reform, there are a number of key challenges that require exploration, particularly in the areas of governance, advocacy and funding. The Organisational Reform Steering Committee* is fully focused on these challenging issues.

To support this process, working groups have been established as follows:

  • Processor involvement: to consider the potential involvement of processing companies in a single industry body, including how a fully transparent financial contribution may work for mutual benefit.
  • Governance: to consider how decisions should be made in a reform model that is representative of all sides of industry.
  • Representation: to consider how to strengthen advocacy without compromising delivery of RD&E via a single levy, while still ensuring there is a strong capacity to proactively participate in cross-commodity issues at both a state and federal level.

The working groups include a cross-section of skilled industry representatives and the outcomes of these discussions will be circulated for comment and refinement. 

For further detail on the next steps to the recommended organisational model – refer to the reform phases:

# Organisational Reform Phases   Date
 1 Exploring reform (work of the Joint Transition Team)   2019
 2 Establishing the pathway to reform   2020
 3 Industry and government engagement on reform challenges 
 4 Design of reform operating model options 
 5 Industry consultation on reform model options 
 6 Industry vote on reform model and final outcome determined   2021

I look forward to continuing to work through this complex task with industry, and appreciate the many views provided.

Kind regards,

Terry Richardson
Chair of the Organisational Reform Steering Committee

Contact

* Organisational Reform Steering Committee comprises of two Directors from the following Dairy Plan partner organisations: Australian Dairy Farmers, Australian Dairy Products Federation and Dairy Australia.

All communications from this committee will be distributed to the subscriber database of this email. For questions or input contact the Organisational Reform Steering Committee contact@dairyreform.com.au.