QUESTIONS have been raised about how new lobby group, Ag-Biz Alliance, plans to improve farmgate prices for its members.
The group represents anyone who earns an income from agriculture or has an interest in food production and was launched last week.
Victorian Farmers Federation president Andrew Broad said he would like to know how the new group would improve returns to farmers, given much of the state's agricultural market was dictated by world markets.
"If you think you can drag a better price out of government by lobbying, you don't have a full understanding of how trade and markets work," he said.
Mr Broad said the VFF lobbied the government on taxation, research and development, freight and logistics.
While he said it was not up to the VFF to dictate how farmers or businesses should align themselves for representation, the government responded to organisations with a history of providing a "fair and balanced" argument.
Disputing claims that the VFF was a farmer-only body, Mr Broad said sharefarmers and other agricultural business could join the VFF as associate members.
Ag-Biz Alliance chairman Doug Chant hit back at doubts the new group could impact farmgate prices.
He said the group had already had an inquiry from overseas about accessing Australian dairy products.
Improving returns to farmers and regional businesses was more than just lobbying the government, he said.
There were inroads which could be made around expanding markets and decreasing costs.
Building support and numbers was still the key to growing influence in these areas and with the government.
