Dairy industry moves to regain united voice

By LIAM DANN primary industries editor

The dairy industry has taken a step back to the future with the inauguration of a new association to fill the gap left by the demise of the Dairy Board.

The Dairy Companies Association of New Zealand (DCANZ) is comprised of representatives from Fonterra, Tatua, Westland Milk Products, Mainland Products and New Zealand Dairy Foods.

In a rare meeting of the clans, leaders from the five groups gathered in Wellington on Friday to formally constitute the group which will advocate for dairy farmers on domestic and international public policy issues.

Members will pool resources for policy analysis to enable the association to engage with authorities in New Zealand and overseas. Policy issues could include anything that affects manufacturing, trade and marketing of dairy products, including issues affecting the public perception of dairy products.

Fonterra director Earl Rattray will chair the association.

"The great strength of the old structure was that the manufacturing, marketing and export sector was always able to act in a unified way. That disappeared with the Dairy Board," he said.

"Shareholders of all the companies should take comfort from the fact that the industry is recognising the need to preserve the very best features of our old structure - because they worked for us."

The association would liaise with the Government and regulatory authorities, he said. It would represent the dairy industry on issues like trade reform, food safety and the environment.

Despite Fonterra's size, it was not its role to represent the industry, Rattray said.

"Fonterra needs to do these things but it can't presume to be acting on behalf of the entire industry."

The association would represent the industry on matters where there was a common view.

"It doesn't override the autonomy of individual companies," said Rattray.

"If there are matters where DCANZ is not united then companies are perfectly at liberty to express their own view as they always have," he said.

Fonterra chairman Henry van der Heyden said the association would work closely with other dairy organisations like Dairy Insight and Federated Farmers.

Dairy Farmers of New Zealand chairman Kevin Wooding said it was a good move from a farmer's perspective.

Handling broader industry issues had fallen between the cracks since the end of the Dairy Board, he said.

"We just didn't want to see a big bureaucracy built up around it and they're endeavouring not to do that," said Wooding. "It's going to be good for our organisation. We'll be able to dialogue with all the companies at once."

The chairman of dairy company minnow Westland Milk Products, Ian Robb, said the aim was to try and get all New Zealand's 150 registered dairy entities on board.

"We are keen to see a broad membership so all views are represented," he said.

A membership subscription will cover administration costs, while specific projects will be funded on a pro-rata basis.

Rattray said the association's government and trade team was well placed to advise DCANZ members on policy developments.

"My role is to ensure that the resources are in place to do the job and that we're doing the right things in the right way."