Some other regions of Australia are piloting new approaches to enhance efficiency in delivery services to meet regional needs. These pilots include some significant changes to the roles and responsibilities of the organisations involved but the goal of delivering services and value to farmers remains the same.
Please join us for a meal with your local dairy group and discuss the changes.
Input Session Dates and Locations
Please register your attendance at one of these upcoming evolution meetings to assist with complimentary catering purposes:
- Nowra: January 28 – RSVP HERE
- Forbes: February 3 – RSVP HERE
- Singleton: February 5 – RSVP HERE
- Taree: February 6 – RSVP HERE
- Bega: February 17 – RSVP to Jane Woolacott via, janew@dairynsw.com.au
- Wagga: February 18 – RSVP to Jane Woolacott via, janew@dairynsw.com.au
Please find pre-reading below, prior to your attendance at these dinner meetings.
Dairy NSW & Dairy Australia evolution
The following is to give background and guidance to the meetings that Dairy NSW is holding in conjunction with local regional dairy groups regarding potential changes to Dairy NSW.
Background
Dairy Australia (DA) is the industry services body, funded by the Dairy Services Levy and eligible matching federal government funding. Dairy NSW (DNSW) is one of the eight Regional Development Programs (RDPs) working together with Dairy Australia. The RDP’s deliver services to understand and meet the needs of local dairy farm businesses and drive local industry activities.
DNSW receives most of its funding and services from DA. The services include HR, finance, IT, motor vehicles, extension programs, organisational infrastructure, and resources. DNSW also attracts some external funding through grants and contracted delivery for other organisations.
DNSW staff are employed by DA, but operational decisions are largely made by the regional manager who reports to the DNSW board.
The RDP’s currently:
- Determine the number of local staff and their location.
- Build a regional operational plan for years activities.
- Identify regionally based priorities for research and extension.
- Coordinate the delivery of local extension activity.
- Are a local contact for dairy farmers and industry in the region.
- Have a regionally based governance board.
- Provide director development for future industry leaders e.g. Paul Roderick, James Neal, Simone Jolliffe.
- Apply for external funding for state-based activity.
- Sponsor and/or support local dairy events/organisations e.g. Shows, Regional dairy groups.
The core funding to each of the regions from DA has been reducing and is forecast to continue to decline. While some costs have been offset DNSW is increasingly utilising reserves to deliver services.
Financial Year |
DNSW Core funding ($000') |
FY23 |
647 |
FY24 |
590 |
FY25 |
535 |
This is not sustainable and DNSW can operate at current levels until end of June 2026. At that point it would need to significantly restructure, source additional funding, or consider winding up in advance of hitting minimum reserve requirements.
There are also other issues to consider:
- Lack of clarity for farmers on levy value and services when multiple organisations involved.
- Inefficiencies created by 9 separate organisations (DA and 8 RDP’s).
- How to maintain local representation, knowledge, and services with diminishing budget.
- Areas of high risk between DA and RDPs, e.g. WHS.
Piloting new approaches
New approaches to enhance efficiency, while tailoring services to regional needs, are being piloted in some RDPs. The pilots involve some significant changes to the roles and responsibilities of the organisations involved but the goal of delivering services and value to farmers remains the same.
Key features of pilots:
- Local staff in relevant locations as local contact, employed and managed by DA to:
- Deliver local extension services
- Develop region operational plan
- Identify and deliver on regionally based priorities for research and extension Staff will have DA email, clothing etc (not RDP), so clear to farmers they are from DA. RDPs remain a separate entity to DA, with own branding and communications.
- The role of the RDP will change and need to be determined
- In DNSW region, Regional Dairy groups are members of Dairy NSW Ltd, not DA (as they are today)
- Regional governance board supporting director development
- Receive funding towards governance costs, i.e. pay for Executive Officer and Board costs RDP employs an executive officer to support board operations. RDPs and DA partnering on key initiatives. RDPs responsible for identifying strategic needs in regions and feeding this into DA to inform regional priorities.
The DNSW Board have decided to take a Wait, Watch and Learn approach.
This means they:
- Understand advantages of proposed changes and are cautious about weaknesses, in particular service delivery/voice within regions.
- Will focus on “pilots” to learn, refine, and improve prior to committing to changes.
- Seek feedback from members and consider a path forward
Way forward
Dinner meetings will be held with each regional dairy group to capture the feedback of NSW dairy farmers. This is to understand:
- What does DNSW do that is important for you.
- What about the changes do you want to learn more about
- What are some of your key issues and opportunities
Please consider the above and come along to a meeting to provide your feedback or reach out to your contact at Dairy NSW.
Paul van Wel
Dairy NSW Regional Manager
0407 434 073