DEAR SIR:

I got feedback, both directly to me and indirectly through others, to the dairy industry comment piece (p28,29 on 12 August) and I want to clarify some points.

I was challenged following publication that I did not give the industry credit for how well it is currently managed, how payment is timely and secure and how all new growth was absorbed and paid for at the same rate as “old milk”.

I never implied otherwise, but I fully accept and fully agree with all these points.

My motive? This is easy – it is to ask the question and hopefully stimulate debate about working more cohesively and collectively as an industry to secure the maximum margin for the primary producer for the next wave of milk.

What is the fear of discussing this? At best we can improve and at worst we remain the same.

I don’t want to rewrite the article, but to be absolutely clear, I am not attacking or want to be negative about the industry. I’m suggesting that we have much more milk to come and ask how should we organise ourselves to best use it.

I’m suggesting that we are “stronger together” to take on the myriad of challenges that lie ahead. I am not talking about mergers or dismantling any current entities.

I was asked where I got the 3c/l figure from. This is a best estimate figure used from the results of numerous consultant reports to indicate the benefit of more integration of thought and deed.

The breakdown is 1c/l to be got from more efficient milk assembly, 1 c/l on better processing and product selection, and 1 c/l on improved investment in marketing and policy.

We are now at a growth phase in our industry, a stage long passed by others.

We should study what they did and see can we learn anything.

The burning question is how to best prepare for this exciting stage in our industry. Can we, as farmers, do anything now to improve the margin we will get in the future?