What’s next? Insight into QDO’s next steps to increase the farmgate price.

In March this year, QDO achieved a significant success with removing $1 litre milk from supermarket shelves.

This was not our end game; it was our start.

The campaign was intended to remove the artificial floor price created by marketing $1 milk. The incremental price increase that farmers have received as a result of this campaign is by no means enough.

Over the last few months we have had a few members ask what QDO is planning to push for a higher, sustainable farmgate price.

Our first campaign capitalised on consumer awareness and support for farmers facing drought conditions to spearhead the push to increase the farmgate price. While over 65% of Queensland is still drought declared consumers, those who live in our major population centres are receiving steady rain and don’t see that the drought continues and continues to put the future of our industry in jeopardy.

Is it fair? No. Is it logical? No. Unfortunately for us all, it is simply the fact that we are faced with.

While they may seem far removed from the negotiating table that we are used to, the first campaign showed us that the 24 million odd Australians consuming our product daily, are powerful allies for our industry.

Educating consumers about the impact that their purchasing behaviour has, is vital to negotiating a higher farmgate price and this is our first step.

QDO is working with other state organisations to develop the strategy. A lot of planning, meetings, consultations etc are taking place in the background as we develop the next campaign to increase the value across the whole dairy cabinet.

We will be consulting with processors, supermarkets, relevant politicians and government bodies over the coming months so that the campaign has the best chance of lasting success.

Simply put, there is no quick fix. Drought and many other factors continue to put pressure on farm production costs, and these won’t end any time soon. But to ensure that we get farmers a sustainable price, we need to work smarter and we need to work together.

If you would like to help once the campaign kicks off, please get in touch with the QDO office.

QDO President – Brian Tessmann

 

Coles faces further backlash for refusal to lift the price of milk.

A fourth-generation dairy farmer says he would prefer to give his milk away for free than sell it as a loss for the benefit of the major supermarket.

Dairy farmers are so “angry and disappointed” with Coles for refusing to hike its milk price he is threatening to tear up his contract with processor Norco.

Woolworths announced earlier this week it will add an extra 10 cents per litre to benefit struggling farmers who would receive “every cent” of the price increase.

But Coles resisted calls to follow its rival, citing cost of living pressures on customers when defending the company’s decision.

Paul Weir, a fourth-generation dairy farmer in northern NSW, is in the top 10 per cent of Norco’s producers with a supply of 2.5 million litres of milk a year, the ABC reported.

The cooperative is contracted to process milk for Coles.

“Full credit to Woolworths for doing it, but words can’t describe how angry and disappointed we are with Coles’ stand,” he told the national broadcaster.

“We’re in one of the worst droughts in history, milk’s dropping down to one of the lowest records in a long time, and everyone around here is doing it tough, feed costs have gone through the roof.

“The fundamental problem is that it’s well under the cost of production, and if this industry is going to be sustainable we need a price rise across the whole dairy cabinet — milk, cheese, yoghurts, butter, the whole lot.”

Mr Weir told the ABC he had contacted Norco asking for an early release from his contract unless the major supermarket changes its tune on the price of milk.

“Their business values and mine just don’t agree, I choose not to do business with people like that and I don’t want any of my milk going through a Coles for them to make profit out of it while I’m sitting here making a loss on it.

“I would much prefer to give my milk away in front of a Coles shop then actually let Coles sell it as a loss just for them to profiteer on it.”

Rather than lift the price of milk, Coles said earlier in the week it would be collecting donations for dairy farmers and matching every dollar raised from Monday.

“One thing I can’t do as CEO of Coles is disadvantage our customers at a time when clearly they’re under household budget strain,” said Coles chief Steven Cain after handing down the company’s first half-year result on Tuesday.

“We’ve been one of the main supporters of farmers, we’ve distributed nearly $16 million so far, but it’s important that we don’t disadvantage Coles customers.”

"Woolworths is getting rid of $1 milk. It’s time Coles and Aldi got behind dairy farmers and did the same.

Federal Agriculture Minister David Littleproud on Tuesday took the drastic step to call on shoppers to boycott both Coles and Aldi for refusing to lift the price of its budget milk.

He accused the supermarket chain of “pretending” to be a decent corporate citizen and Aldi of “hiding under the stairs”.

Dairy farmers struggling with drought needed an end to Australia’s “$1 milk disaster”, he said, a price war that began eight years ago and has been blamed for sending some farmers to the wall.

“Publicity stunts like (Coles) asking shoppers to donate at the counter to help struggling farmers are just a smoke screen to hide the fact they pay bugger-all for milk,” Mr Littleproud said.

“The farmers wouldn’t need donations from the public if Coles and Aldi paid fair prices.”

A Coles spokesperson told news.com.au that it continues to support the dairy farming industry.

“Coles has been exploring additional options in relation to how to best support Australia’s hard working farmers, including how we ensure that drought assistance initiatives are as efficient and effective as possible,” the spokesperson said.

“Coles is committed to finding a better model that can be adopted by the industry to assist Australian farmers, and intends to liaise with relevant parties including government and the ACCC.”

Source: News.com.au

In the News: Dairy farmer’s online campaign to end $1 milk draws attention.

Damien Tessman.jpg

A DAIRY farmer’s online campaign urging Coles and Aldi to abandon their cheap milk prices is gathering speed.

Fifth-generation dairy farmer from Kingaroy, Damien Tessmann, started the campaign to get Coles and Aldi to end $1-per-litre milk prices “through the power of social media”.

After Woolworths ended its $1 milk prices last week, there has been a strong call for the other big supermarkets to follow suit.

Kingaroy dairy farmer, Damien Tessmann, has started an online campaign urging Coles and Aldi to end $1-per-litre milk. Picture: contributed

Mr Tessman started the Facebook group C’mon Coles, where he shared a video calling for other dairy farmers to share their stories, and urged consumers to boycott Coles and Aldi.

Across all media platforms, the video has been viewed hundreds of thousands of times.

“I think it’s one of these things where it’s important to be grassroots and farmer driven,” Mr Tessmann said.

“I want to do something to communicate with consumers and to make sure they vote with their wallets.

“It really is that David-and-Goliath battle.

“It’s (the response) really been overwhelming and it’s really about keeping that pressure on. I think people really do want to help farmers, I don’t buy into that city/country divide.”

The Likes on the C’mon Coles Facebook page have been growing organically, according to Mr Tessmann.

“It’s started off here in Kingaroy and I often look at (Facebook) notifications of where people are coming from. There was one this morning from Western Australia.

“It’s really great that we’ve got this far from just a farmer posting a video.”

Mr Tessmann and a group of other dairy farmers took a cow and stood outside Aldi in Kenmore, talking to consumers.

Damien Tessmann, Susan McDonald, Craig Brook, and Brad Teese with Dianne the jersey cow outside Aldi in Kenmore. Picture: contributed

Damien and co.jpg

“All demographics had positive things to say about the dairy industry and our cause,” he said.

“It really warms my heart that consumers in metropolitan Australia want to help us out.”

Mr Tessmann has been in the dairy industry all his life.

“It’s something that consumes you,” he said.

“When you’re on the land in a particular industry, you become really passionate about it.

“Dairy farmers are renowned for being on the shy side, so it’s great to see farmers getting passionate and involved and that’s what’s keeping me going.”

The C’mon Coles Facebook page has received 1600 Likes so far.

Kilcoy dairy farmer, Ashley Harrison, has also gotten behind the campaign and shared a video on the page.

But Mr Tessmann said other diary farmers had been hesitant.

“There has been some reluctance from Norco suppliers,” he said.

“It’s horrible that they think there will be a backlash from Coles if they openly jump on this campaign.

“That’s been the feedback from half a dozen farmers.

“I think that’s really sad about the state of the dairy industry.”

Mr Tessman said the next step in the campaign was to keep the momentum going.

“It’s about keeping that pressure on, but it all comes down to consumers. They’re our biggest weapon in this battle.

“It’s been a deafening silence from Coles. We’ve been tagging them in all our posts.

“Woolworths responded and said ‘thank you for your support and we understand how important the dairy industry is’.

“Coles can’t even return a tweet to say ‘this is what we’re doing’.”

Source: CASSANDRA GLOVER, Rural Weekly