![VFF president Emma Germano has announced the organisation is pulling out of seven national commodity groups. File photo. VFF president Emma Germano has announced the organisation is pulling out of seven national commodity groups. File photo.](/images/transform/v1/crop/frm/5Q2j7ezUfQBfUJsaqK3gfB/1a87b3cf-e2fc-42b7-85ce-dca77d0cf320.png/r0_9_791_454_w1200_h678_fmax.jpg)
The Victorian Farmers Federation has sensationally quit seven national farmer commodity councils.
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In a statement sent to members on Tuesday afternoon VFF president Emma Germano said the VFF would make savings of $700,000 a year by withdrawing from a number of groups across the agricultural sector.
These groups are:
- Cattle Australia
- The Goat Industry Council of Australia
- Grain Producers Australia
- National Farmers Federation Horticulture Council
- Sheep Producers Australia
- Wool Producers Australia
- Australian Dairy Farmers
The move has created shockwaves across national commodity circles.
The VFF has traditionally been one of the larger state farmer organisations and a key contributor to commodity councils.
Ms Germano said the decision to relinquish membership of the peak organisations had been made due to concerns about the model of national farmer advocacy.
"We will not force Victorian farmers to continue funding an unsustainable and ineffective model than delivers duplication and fails to meet the needs of Victorian agriculture," she said.
"Furthermore the cost to the VFF in many cases is much higher than the contributions made by other organisations, it is patently unfair to expect our members to carry this burden."
The VFF has endured a tumultuous twelve months, with Ms Germano seeing off a vote of no confidence and several of its own commodity groups, such as the powerful grains and dairy organisations, investigating pulling out from the federation.
While it was not stated in the VFF letter to members, several sources familiar with the situation said that the organisation was struggling financially.
Several sources told ACM-Agri that the VFF was also considering the sale of its only substantial asset, a real estate holding that is the base of its operations in Farrer House, located in a prime location in Collins-St, Melbourne.
A long-running dispute over payment of VFF levies to Australian Dairy Farmers has also headed to court after talks failed to resolve a dispute over the non-payment of $500,000 of ADF member fees by the VFF.
The VFF also recently liquidated its Grain Group's almost $10 million investment fund nest egg to pay down organisational debt, while the Grain's Group subsequently carried a motion to set up a trust fund separate to the VFF passing unanimously.
Meanwhile, stakeholders slammed the process surrounding the VFF letter being distributed to commodities at around 12:30pm on Tuesday afternoon when a podcast that was assumed to be pre-recorded with Ms Germano intimately detailing the move was aired at 1pm and added insult to injury.
The supposed consultation process was also met with derision, with members claiming an offer to meet and discuss the decision in the letter was seen as lip service, given no discussions about pulling out of the commodity groups had been raised with general members prior to the announcement..
The VFF board was also accused of not raising the matter with its NFF counterparts prior to going public, with ag leaders privately questioning why the details of the plan were not discussed face-to-face at an NFF meeting held last Friday week.
An agenda item at that meeting was down to discuss future structures of membership bodies.
There were some, however, who said the move would allow the industry to forge ahead with the full and frank discussions needed to find a sustainable advocacy model.
If not, they said the VFF move could signal a domino effect and a diminishing of commodity group funding and influence and, by extension, the voice of agriculture in the public narrative.
"People may not know who we are or what we do, but they would notice if we are not there," one leader said on condition of anonymity.
Questions were raised about the current VFF board's mandate to take the action given the woes of the past year and that Ms Germano's presidential term is due to expire at the end of the year.
Several commodities were contacted for comment.
WoolProducers Australia chief executive Jo Hall said agri representation structural reform has been on the agenda for many years and that all agricultural representative groups had a role to play to improve efficiencies in representation "in an increasingly challenging environment".
"The decision by VFF today was not unexpected given their financial situation and recent significant loss of members," she said.
"However, I was disappointed in how the process unfolded given we were not given the courtesy of a heads up - we'll continue to work with all members and other industry bodies to find the best way forward."