By RICK GLADIGAU, PRESIDENT, AUSTRALIAN DAIRY FARMERS
Since 1942, Australian Dairy Farmers (ADF) has been representing and advocating for the dairy farmers of Australia. That’s 80 years of lobbying for their rights across trade, milk pricing, supply chain transparency and animal welfare issues, and more.
It all started with a meeting at the Victorian Dairymen’s Association in Melbourne, with an aim to promote dairy farming in the Australian dairy industry, and crucially – the national economy. The outcome was the official formation of the Australian Dairy Farmers’ Federation (ADFF).
One of the first acts of the ADFF was working with the Curtin government to develop producer incentives that would guarantee a minimum return on butter. In the 1950s, the Bureau of Agricultural Economics started a survey of dairy farms. ADF assisted with collating this information, continuing its collection into the 1960s. ADF also represented the interests of dairy farmers in the 1959 inquiry into the dairy industry under the Menzies government. Our recommendation for a reconstruction scheme was taken up in 1967.
The Kerin Plan, introduced by the Hawke government in 1986, linked domestic prices to international market returns. While this created disruption with many smaller producers forced to amalgamate, these larger cooperatives ensured dairy farmers would have a say in the market for milk.
Tackling big challenges in economics and trade
Australian dairy farmers have faced many challenges in economics and trade.
In 1973, preferential tariff arrangements for Australian dairy to the United Kingdom ended. This was followed soon after with the government ‘bounty’ supplement for butter returns being phased out.
At this time, ADF was instrumental in the creation of the Australian Dairy Herd Improvement Scheme (ADHIS), to improve herd genetics. Finally, an independent source of genetic evaluations was available. ADHIS officially transitioned into the independent organisation called DataGene. By 2016, ADHIS had generated an estimated $200 million in net benefits to Australian dairy farmers at a cost of about $10 million.
In the 1980s, ADF helped Australian dairy onto the international stage by securing stronger export deals for butter, milk powder, casein and cheese. These premium products began making their way as far afield as the USA, Yemen, Mauritius, Japan and beyond.
When the major retailers cut their price for home brand milk to $1 per litre in 2011, ADF and state member organisations stepped up, gathering stakeholder and consumer support, on behalf of farmers, to seek a return to more sustainable milk pricing.
In 2014, ADF was negotiating the China-Australia Free Trade Agreement. Then president, Noel Campbell, described the deal as “good for growth, for jobs, for the economy and a boon for our export market.”
But 2016 came to be another challenging year for the industry. Difficult climate conditions, global market volatility and milk pricing shocks resulted in unprecedented circumstances. The timing and retrospective nature of pricing decisions made by some processors, during an already dry season put many farmers under strain. ADF, together with state member organisations, worked hard to ensure farmers would never be put in that position again.
In 2021/22, trade deals with the United Kingdom, India and the Europe Union (EU) and the cost-price margin squeeze on farms have been advocacy priorities in economics and trade. ADF has campaigned to protect Australia’s right to use common cheese names as part of any free trade agreement (FTA) with the EU. The EU’s demand to restrict dairy product names, including Parmesan and Feta, could put at risk local products that generate $650 million in sales.
Hard-fought assistance, recognition along the journey
In 2000, ADF helped negotiate a $1.7 billion compensation package to help dairy farmers in the transition to a deregulated fresh milk sector. However, the removal of price supports still meant Australia dairy had to become an exporting sector if it was to survive.
From 2001-2009, Australia’s millennium drought saw farmers struggling, with the Murray Darling Basin hit hardest. The situation soon became desperate, and ADF petitioned for government relief. Ultimately $4.5 billion worth of drought assistance was delivered, but for many farmers and farming communities it was not enough.
In 2007, the Howard government announced a $10 billion plan to improve water efficiency, and introduced the Water Act (2007), requiring a new approach to water extraction from the Murray Darling.
In 2019, ADF and the Australian Dairy Industry Council (ADIC) delivered an ambitious federal election policy platform, resulting in the dairy sector receiving $22 million in federal government funding.
Since 2020, ADF has been working to address current workforce shortages. This includes lobbying to visa prioritisation, advocating for changes to the Dairy Industry Labour Agreement, and instigating a COVID-19 response team – to ensure that any border closures have minimal impact on the dairy workforce. We have also contributed to development of the National Agriculture Workforce Strategy and will assist with implementation. Already, ADF has successfully worked with DA to secure $715,000 for the Dairy Farm Induction Program during COVID-19.
Collaboration, unity across the dairy value chain
Since 1993, the Australian Dairy Products Federation (ADPF) has represented the domestic and international interests of dairy processors, manufacturers, and traders. Together, as members of ADIC, ADF and ADPF have worked to advocate on behalf of the Australian dairy industry.
In 2015, as a member of ADIC, ADF shared in the Banksia Food for Sustainable Thought Award for the Australian Dairy Sustainability Framework. In 2016, the United Nations Association of Australia awarded ADF, ADPF and DA with a World Environment Day Award for the framework.
In 2017, ADF and ADPF, in consultation with state member organisations, farmers and processors, developed a voluntary Dairy Industry Code of Practice for Contractual Arrangements to help ensure greater transparency and fairness in milk supply and Pricing. A major achievement, the Code was publicly released by the ADIC on Friday 30 June 2017, and signed by all state member organisations and major processors.
In 2020, ADF, together with ADPF, Dairy Australia and the Gardiner Foundation launched the Australian Dairy Plan. The plan aims to drive a significant turnaround in the industry’s outlook via a range of bold initiatives targeting increased profitability, confidence and unity over the next five years and beyond.
The initiatives stemming from the Australian Dairy Plan aim to reform industry structures, attract and support new people and investment into dairy, increase marketing efforts, increase focus on farm business skills, and to restore trust and transparency between farmers and processors.
These achievements are but a few of the many from a long and storied history at ADF. What unites them is a single goal shared by the organisation’s leaders – to look out for Australian dairy farmers.