THE issues plaguing the grass-fed cattle production sector as it attempts to carve out a new single, strong national advocacy body are challenging and there won't be a simple solution.
So says John Peacock AM, chief executive officer of Associations Forum, the main network in Australia which advises associations and industry groups in governance, operations, membership and finances.
Associations Forum works with a full range of industries and professions, from teachers and doctors to industrial, manufacturing and agricultural sectors.
Agricultural associations have special challenges such as levies, federal structures and multiple bodies, Mr Peacock said.
The fact producers pay compulsory levies, which are directed to research and development corporations which have become very influential bodies in their industries, makes agriculture different to other industry peak bodies, he said.
"Levies are an aspect of agricultural industry associations that other sectors don't have to contend with," Mr Peacock said.
"Potential members already paying a compulsory levy are less inclined to give another discretionary $1000 or $2000 a year to their representative association.
"Regardless of the important value of membership-voice associations as well as RDCs, farmers think they are paying twice."
Mr Peacock said direct membership was advantageous to an ongoing sustainable funding stream for such a body.
"Associations are pleased to receive membership funds themselves, yet usually reluctant or occasionally resentful to pay subscriptions to peak federations," he said.
Successful associations usually have a diversity of income streams that includes membership, conferences, events like field days, training programs or competitions that turn a profit, corporate sponsorship and investments, he said.
Spoilt for choice
Another scenario in the primary production sector is that producers have many representative groups they may potentially join, some of which overlay each other.
"If you're a mixed farmer, for example, you might potentially be a member of your state farming organisation, Grain Producers Australia, Cattle Council of Australia and even a breed society," said Mr Peacock.
"It's hard for people to know where their money is best spent. You have to ask yourself where your number one loyalty is. It seems difficult in ag for a sector specialty group to fly."
On the topic of good governance and board composition, Mr Peacock said it was an art to craft the right board to run an organisation.
"A good trend in association boards is a mixture of democratically-elected and board-appointed directors," he said.
"A good formula is six fully democratically-elected directors and then two appointed by the board, in order to cover areas where there is an imbalance such as a geographical bias, or gender or skills."
Less than ten board members is the ideal, with more than that difficult and large boards dysfunctional.
Overall, associations were doing very well in Australia because they performed a service seen as valuable to their members and accumulated reserves, Mr Peacock said.
"Every year, most make a profit so that equity accumulates" he said. "This allows the association to train the board on their role, hire more and better staff and hence deliver impressive services."
Reform or replace?
A steering committee of people involved in representing producers via various state and national groups is working on the development of a new peak industry council for grass-fed cattle producers. It would effectively replace Cattle Council of Australia.
How it will be funded, and whether it's board will be entirely directly-elected as opposed to the current structure of CCA, have been contentious issues.
Whilst not privy to the grass-fed representation challenges, Mr Peacock said it may be worthwhile trying to reform CCA rather than replacing it.
"There are advantages of keeping an established name and brand. Whatever structural solution comes from the steering committee might be able to be applied to CCA unless its brand name is damaged," Mr Peacock said.
He emphasised the importance of strong, influential and member-respected associations.
"As the son of western NSW farmers, I'm very supportive of having successful agricultural associations," Mr Peacock said.
"How such success is achieved is both an art and science."
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Shan Goodwin
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
