Victorian dairy farmers say they'd support plans for a new group, representing NSW and Queensland fresh milk suppliers.
NSW lobby group, Dairy Connect, has backed a new non-for-profit NSW-Queensland fresh milk association.
It would represent the entire value-chain, including producers, processors, distributors, vendors and consumers.
Dairy Connect President Graham Forbes - a producer from Barrington, NSW - said there were special synergies between the fresh milk industries in New South Wales and Queensland.
"A single not-for-profit value chain organisation representing fresh milk production in the two States would ensure consistency in advocacy with government, stakeholders and other interest groups," Mr Forbves said.
"There remains a dairy production dichotomy between northern states and those in the south.
"This particularly relates to Queensland and New South Wales which share much in common, including markets and farming systems and which largely produce fresh milk compared with more commodity-focused production in the south."
"The Australian Dairy Plan, which is out for further consultation nationally now, provides a unique opportunity for NSW and Queensland to look at forming a structure which reflects the best interests of the industry as a whole."
United Dairyfarmers of Victoria president Paul Mumford said a new group could only be a good thing.
"What it is showing is that dairy farmers are banding together for a common good, they have been negotiating for quite some time, because their synergies align," Mr Mumford said.
"In order to get real outcomes for their members they have to band together for a common voice."
Victoria exports more than two thirds of its milk production.
Mr Mumford said there were similarities between contracts and farming systems, across NSW and Queensland.
"I look forward to what plans any new organization develops and how that feeds into the national industry."
Mr Mumford said there were some commonallities for Victorian farmers, supplying the liquid market.
"The drinking milk market is very important to Victoria," he said.
"Milk generated in northern Victoria feeds most of the eastern seaboard - so, where we can assist and find synergies between ourselves and a new organisation, there may be ways that can benefit both."
Dairy Connect chief executive Shaugn Morgan said he saw any new body as playing a complimentary, not adversarial, role.
"The concern is when you have several different organisations, you have a split voice and a split membership, whereas a single entity can probably bring together all the players, under one umbrella," Mr Morgan said.
"The falling number of dairy farmers in NSW and Queensland is of deep concern and needs to be addressed."
Colin Wientjens, Nerenna, near Leongatha, said the issues facing NSW and Queensland had very little bearing on Victorian producers.
"I think the biggest issue with dairy advocacy, in the past 10-15 years, is that they have been trying to be all things to everyone, and it's not going to work," Mr Wientjens said.
"It's hard enough to keep everyone in Victoria on the same page, let alone NSW and Queensland."
While direct fresh milk contracts with the supermarkets had made a difference in NSW and Queensland, they had little impact in Victoria.
"There are almost no dairy farmers left in Queensland and NSW - they just have to look after themselves, they are in the minority now.
"I don't think what is good for the majority is going to be good for them."
Craig Dwyer, Bullaharre, said Queensland needed NSW to fill its fresh milk deficit.
"But if the decline in farmers in NSW and Queensland continues, they'll need Victorian milk eventually, to fill the void," Mr Dwyer said.
"I can see why they would be doing it but I see it as 11th hour stuff."
While there wouldn't be much milk going over the border from Victoria in spring, it would be a different story, after Christmas.
Mark Billing, Larpent, said the NSW and Victorian milk pools were different, although there was also a fresh milk market in the south.
"Anything that gives farmers the opportunity to get the best price for their milk is a good thing," Mr Billing said.
"From my point of view, the industry is shrinking and we need to do everything we can to make sure all farmers are profitable."
Nick Renyard, Timboon, said he would prefer the sector to work as one.
"While Queensland and parts of NSW have most of their exposure to the domestic market, pricing of that market is strongly influenced by international markets, which the southern regions are more exposed to," Mr Renyard said.
"Indeed I believe some Victorian milk makes it into the northern market.
"It is a positive that Dairy Connect recognises the benefits of an "all of chain" approach to advocacy, it is not dissimilar to what is proposed by Dairy Plan's Joint Transition Team."
Mr Morgan said while the recently released Australian Dairy Plan had many points in its favour, there were clear differences between fresh milk production and dairy product manufacturing across state borders.
"A New South Wales-Queensland fresh milk value-chain association would mean that pressing challenges could be addressed more effectively by those who have 'skin in the game'," he said.
"It is time that those dairy stakeholders who wish to be involved with an organisation specifically addressing the concerns of fresh milk producers act to establish a special platform and act urgently.
"Stakeholder organisations should reflect all parts of the industry as well as including research, development and extension to ensure consistency for dairy producers who need support in relation to fresh milk issues.
Mr Morgan said there would be obstacles along the path, but nothing that could not be overcome.
"For instance, matters relating to the farmer levy can be discussed and a way forward developed to ensure RD&E that is specific to producers of fresh milk can be addressed," he said.
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