INDUSTRY groups have welcomed the Coalition government’s $13.8 million Farm Co-operatives and Collaboration Pilot Program to be delivered by Southern Cross University at Lismore in north-eastern NSW.
Acting Prime Minister Barnaby Joyce announced the multi-million national program on Thursday, which was first unveiled in the $4 billion Agricultural Competitiveness White Paper to give help producers capture greater supply chain value.
Now, SCU will roll out dedicated education tools and resources and customised expert support to back farmer groups looking to explore the potential of co-operative business structures.
Mr Joyce said the program would deliver expert information to up to 2000 farmers and 100 farmer groups across the nation and run until June 30, 2018 and included $3.8m earmarked for new farmer group projects.
“Groups of farmers will be able to submit proposals for new collaborations to a panel of industry experts, with successful applicants receiving funding support and a dedicated case worker to get their project off the ground,” he said.
But Mr Joyce was also forced to defend accusations from the ALP of pork barrelling in the marginal Page electorate of local Nationals MP Kevin Hogan who also featured at the announcement.
Mr Hogan won the seat he won at the 2013 federal poll by a slender margin and will face his ALP predecessor Janelle Saffin again at this year’s election.
Mr Joyce said Mr Hogan was involved in the Pilot program’s design and the choice of location was “obvious” given the region’s strong farm co-operative culture.
He said the Rural Industries Research and Development Corporation (RIRDC) which was originally assigned to deliver the program in the White Paper also had a “full book”.
“It was undisputed that the Northern Rivers had the expertise that was so abundant in the cooperative model,” he said.
“We are also going through the process of moving the RIRDC to Wagga Wagga and with the jobs that they have to do in rice and (chicken meat) and other sections of industry - they have a full book.
“I want to make sure that we’ve got the best bang for our buck in an area that had those prominent skills already started and the Northern Rivers is the obvious choice.
“I gave charge for Kevin to come forward with a proposal because I knew he was in the area where cooperatives are most pre-eminent and he’s done an excellent job - he’s really shown the credentials.”
Mr Hogan said his part of the country excelled at cooperatives where some of the oldest ones in the country are located and new and emerging entities.
“Why should we not be the centre for excellence to push the model of co-ops throughout this nation?” he said.
“This is an exciting announcement for every organisation in this country that wants to start the co-op model because we are going to help them succeed throughout the whole nation.
“And why do we support the co-op model? Because the co-op model supports the little person.
“The co-op model supports the group of people who want to get together and grow a business and want to do it and have a further link down the supply chain then rather than just be the producer.”
Deputy Labor leader Tanya Plibersek joined Ms Saffin yesterday to campaign in the electorate and also welcomed the co-ops program but questioned it merits against the government’s $60m funding cut to SCU.
Ms Plibersek said anything that invested in the farming or agricultural sector was “a good thing bit it was ironic the government wasn’t restoring a quarter of the funding that had been lost from the University.
“It is one thing to cut around $60m and then to replace $13m and expect a pat on the back,” she said.
“It's a great project, no doubt, it will provide some benefit - but in the face of $60m also of cuts, it really doesn't cut it.”
Ms Plibersek said Page had always been an important seat and was one that “helps us form government”.
In praising the announcement, co-operative groups said working co-operatively would be the fastest pathway to capitalising on the enormous opportunities coming out of Asia.
The one-of-a-kind Cooperatives Alliance was set up last year by six key businesses in the region which represent a combined turnover of more than $700m, a membership base of more than 28,500 and employs 2500 people.
Alliance spokesman and Chair of farmer-owned dairy co-operative Norco, Greg McNamara, said co-operatives were something the agriculture sector desperately needed to build on the very favourable opportunities presenting in Asian markets.
Mr McNamara said the education support that the pilot program would provide was the first, crucial step.
“The challenge we recognise is that rather than be generator of reports and academic information, this program needs to deliver on increased trade and higher farmgate returns,” he said.
“That is something our alliance will be active in making sure occurs.”
Chair of the Northern Co-operative Meat Company in Casino John Seccombe said co-operatives had formed in many agricultural sectors but was largely untapped in beef.
However, Mr Seccombe said there was “big potential right along the beef supply chain” and also on farm, in terms of reducing costs to individual producers.
“Working collaboratively is the future of the beef industry,” he said.
“We are seeing the development of very good brands and marketing campaigns but having the critical mass to support them is going to be the crucial part.”
Steven Lee, general manager of the Macadamia Processing Company near Lismore, owned by close to 200 macadamia growers, said there was strong encouragement by governments on a global scale for the development of co-operatives as a means to place more power, and profit, back into the hands of primary producers.
Mr Lee said the co-operatives’ initiative kept Australia at the forefront of that trend.
“Co-operatives are the best way for producers to have input into the processing and marketing of their crops and products,” he said.
“They are all about optimising returns to the grower by developing markets and supply chains that will provide long term profitability and sustainability to a particular sector.”
The program was also welcomed by the Business Council of Co-operatives and Mutuals which said where family farming was under threat co-operatives can provide a way for smaller producers to unite and gain access to markets that favour larger players.
BCCM CEO Melina Morrison said co-operatives help farmers compete in global markets and improved farmgate returns.
“Ag co-ops cut out the middle guy so all the benefits flow back to the producers,” she said.
“This improves the level of reinvestment on the farm and strengthens the local economy since profits don’t leak out of the region.”
Mr McNamara said concern for the communities they operate in was one of the key values that set co-operatives apart.
“The agriculture co-operatives in the alliance see it as essential to create pathways and remove obstacles so that businesses can thrive and prosper in the region in order for our children and their children to be able to see a future and remain here,” he said.
Regional Development Minister Fiona Nash said as a primary producer she understood farmers were price takers and not price makers.
She said the co-ops program aimed to give farmers tools to control their own destinies and could ultimately improve farmgate returns for farmers “right across Australia”.
