Fonterra's move to supply free milk to schools was "bold and courageous", says the health executive who kicked off debate about milk pricing last year.

Australia's milk production is making a steady climb with total output for 2011-12 forecast to be between 9.4 and 9.5 billion litres, up on last season's total of 9.1 billion litres.

Federated farmers regularly fires out media releases offering opinions on all sorts of spurious matters but it has been strangely silent on what is, for Fonterra suppliers at least, the biggest challenge for their cooperative since its formation.

After its Dairy Council meeting in Palmerston North earlier this month the Federation said it had "spent some time on TAF (trading among farmers)" and that it is "a very big decision and will be a defining point in Fonterra's evolution."

But that was it. Four paragraphs for, to use Feds' own words, a defining point in Fonterra's evolution. This after the Dairy Council had heard from, and questioned, Minister David Carter and Fonterra chairman Henry van der Heyden over TAF and DIRA.

The media statement said Feds would be meeting with Fonterra's board in the next few weeks to go through points raised at the Dairy Council meeting. With DIRA submissions closed February 24, that's too late.

Dairy News understands there was a much more detailed media release planned, but a last minute deal was done with Fonterra's top brass to keep Feds' concerns out of the media on the grounds it would be damaging for Fonterra's image.

Granted, that's probably true, but how else are 10,500 suppliers, not to mention all those associated with them, going to hear how the Federation will be representing them? Will Feds be e-mailing all its dairy members with the detail? Doubtful. Will Fonterra put it out on FencePost. Not a chance.

Federated Farmers is ideally, if not uniquely, placed to relay an independent concensus of opinion on this pivotal issue, but it failed to do so. Federated Farmers Dairy members should be asking why.

As it was, the letter from Feds Dairy chairman, Willy Leferink, to Fonterra, was leaked to media, prompting a belated statement from the Federation.

The fact it was leaked suggests some within Feds Dairy Council were far from happy with the agreement to keep things quiet.

The Feds had been surprisingly quiet on TAF despite discontent among some Fonterra farmers. It has finally sat up and taken notice. Sadly, it took a leak from within the organisation to get things going.

It seems to me that we've moved beyond a time when anyone seriously argues with the vital importance of high-speed broadband for economic growth and better outcomes.