DA tightens expenditure

Dairy Australia will tighten its belt in 2016/17 to accommodate lower than projected income levels.

“The dairy industry is facing one of the most challenging years it has experienced for some time,” said Dairy Australia managing director Ian Halliday.

“This is having an impact on everyone in the industry and Dairy Australia is no exception.”

Overall the industry research, development and extension organisation has budgeted for a 14 per cent decrease in income over the next three years.

Dairy Australia originally anticipated an annual income of $61 to 63 million, but with lower milk prices and expected lower milk volumes it is now budgeting on $52 to 53 million a year.

The reductions in Dairy Australia expenditure will primarily come from significantly reduced expenditure in consumer marketing, where TV advertising linked to the Legendairy campaign will cease.

Mr Halliday also said he had told staff that he could not guarantee there would not be job losses. He has committed to staff that announcements on any job losses will be finalised by the end of July.

In revised plans developed over the past two months, Dairy Australia management and the board have adapted current programs to focus even more strongly on farm profitability, farmer capability and the core issues facing the industry around its license to operate.

“We talk with farmers from all regions every day and we have a fairly good idea what they are going through,” Mr Halliday said.

“Supporting dairy farmers is the key focus of our immediate programs. Our investment in services and resources to guide and assist dairy farmers in the immediate term has been ramped up.”