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Disaster response a state-by-state proposition

July 3, 2025

With around half Australia’s dairy farmers either battling a crippling drought or rebuilding after floods, there’s a lot to unpack when it comes to governmental responses around the country.

The most recent estimates of significant decreases in the Australian milk pool in regions impacted by drought and flood demonstrate that it is even more imperative that government’s get the response right.

Yet, that’s not what we’re seeing across the board.

While states like South Australia have done a great job engaging with dairy farmers and delivering fit-for-purpose support, unfortunately the response in other locations isn’t as inspiring or useful.

The South Australian government has taken a swift and coordinated approach to drought relief as conditions continue to worsen across the state.

It’s a positive example of how government and industry can work together to support farming communities during crisis. In contrast, many dairy producers in Victoria have expressed concern over the timeliness and delivery of assistance available in that state.

The South Australian Government has worked constructively with the agricultural sector to deliver meaningful, practical support to communities facing severe feed shortages, water insecurity and mental health strain.

Key elements of South Australia’s drought response include:

  • $55 million in targeted drought relief announced in April 2025, encompassing infrastructure grants, mental health services, and fodder freight subsidies.
  • $18 million in support announced in December 2024, focused on on-farm needs and longer-term drought resilience.
  • Freight assistance for fodder has provided critical cost relief for farmers transporting feed long distances, with hay prices exceeding $700 per tonne.
  • Consultation with regional stakeholders has ensured that policy decisions are informed by local conditions and farmer feedback.

South Australia has shown that when governments engage early and work closely with industry, the results are practical and immediate.

However, across the border, dairy farmers in South-West Victoria, Gippsland and Northern Victoria continue to face mounting challenges, with many now operating under drought conditions for two consecutive seasons.

New South Wales faces two challenges – the state’s southern dairying regions are dry, while on the northern coast dairy farmers are rebuilding after one-in-500-year flooding.

The State Government’s flood response was another good example of how governments can act swiftly to help farmers.

A natural disaster was declared quickly and financial support flowed swiftly to dairy farmers. It wasn’t perfect, and ADF publicly raised the need for increased support, but it was relatively efficient.

With farming organisations and the NSW State government now applying to the Commonwealth for ‘Category D’ Disaster Recovery Funding assistance, it is hoped the Federal Government will act quickly and decisively in granting this recovery funding for primary producers and dairy farmers in Northern NSW.

Meanwhile in South-West Victoria, the drought is the worst since records began.

While the $37.7 million Victorian Drought Support Package announced last month is a welcome development, concerns remain around its effectiveness on the ground.

There are several challenges in Victoria. Firstly, an absence of targeted fodder freight support is placing significant financial strain on farmers already facing elevated input costs.

Processing delays at saleyards and abattoirs intensified pressures to manage livestock, further compounding the drought’s impact.

An overarching issue is the limited engagement with dairy farmers during the package development phase, which raises questions about how well the programs reflect on-farm realities.

ADF encourages the Victorian Government to consider greater collaboration with local agricultural sectors, and to ensure that delivery of support is both timely and tailored to the needs of regional communities.

Both South Australia and Victoria are home to some of Australia’s most productive dairy regions – now among the hardest hit by prolonged dry conditions.

The drought conditions, however, are not unique to Victoria or South Australia.

Across many farms in southern dairying regions, pasture-based feeding has been abandoned entirely, replaced by expensive supplementary feeding strategies.

Input costs, especially for hay and feed, have risen by more than 50% year-on-year. Farmers are reporting weekly feed bills exceeding $25,000–$30,000.

Milk production is dropping, while stress and fatigue among farming families continues to grow.

Drought is a national issue, but the response shouldn’t depend on which State you farm in.

South Australia and NSW have set strong examples, and I encourage all governments to match that level of responsiveness and partnership.

I also urge the Victorian Government particularly to enhance its approach – by increasing coordination with both the sector, introducing targeted freight relief, and working with the Commonwealth on greater Disaster Relief Funding.

By Ben Bennett, President, Australian Dairy Farmers
Column originally published in ACM Agri publications.

Economics & Trade

Dairy weathering a perfect storm

June 5, 2025

Australia’s dairy farmers are facing an unprecedented dual crisis and need urgent, meaningful support from governments.

Nearly half of the nation’s dairy farmers are grappling with drought conditions. For some, it’s the worst since records began.

Meanwhile, more than 100 dairy farmers in New South Wales are cleaning up after a 1-in-500 year flood.

The devastation left by these extreme weather events, combined with lacklustre new season milk prices and high input costs, creates a perfect storm of challenges that threaten farm viability and Australia’s food security.

Dairy farmers in South Australia and South West Victoria are battling the worst drought on record. It’s also hitting hard in northern Victoria, Gippsland and extending into NSW.

Traditionally high rainfall zones are now parched, leaving farmers struggling to feed and water their cattle.

The economic toll on farmers is staggering.

Those affected by drought face exorbitant costs to secure feed and water for their cattle. Hay prices have surged by up to 54% year-on-year.

Meanwhile, flood-affected farmers have lost cattle, fodder, fencing, infrastructure, electricity, communications, and access to their properties.

In both instances, there is an immediate need for support and it’s critical to ensure farms survive.

Milk production is declining as farmers are forced to de-stock and reduce herd sizes due to the lack of feed and water.

The backlog at abattoirs and saleyards means some farmers are waiting weeks to offload cattle, despite not being able to feed them at home.

The ramifications of decisions being made over the coming weeks and months will be felt for years to come, as herds take time to rebuild.

Meanwhile the emotional toll on farmers cannot be overstated.

The pressure to keep their cattle healthy amid these crises is immense, leading to increased stress and mental health challenges.

The shortage of feed, fodder, and hay has forced farmers to source supplies from as far away as Queensland, adding to their logistical and financial burdens.

No price respite in site

Despite these multiple disasters, milk prices remain low, largely due to supermarket pricing strategies.

Dairy processors have just revealed their modest prices for the new milk supply season.

To borrow the catch phrase the processors used last year, we continue to see domestic prices disconnected from international markets – and not in a good way – as this year Australian processors’ prices lag well behind international markets and competitors such as New Zealand.

We also recognise they’re hamstrung by our big supermarkets.

When a cyclone hits, the price of bananas rises within weeks. Yet when nearly half Australia’s dairy farmers are hit by drought or floods, milk sells for the same low price every day in the supermarket.

Time to show up

What really grinds farmers’ gears when they’re facing such immense pressures is the government’s narrative that such natural disasters are unpredictable, yet farmers should be “prepared” and “resilient”.

It’s nonsense. What they’re really being asked to do in this instance is prepare for both a 1-in 500 year flood and the worst drought in memory.

What is unpredictable is whether our governments will show up when the people who feed them are on their knees.

You can’t manage climate change with media spin and a loan scheme no one can access.

If you want self-reliance, give us policies that actually work in the paddock – not just in Parliament.

The dairy industry is calling for immediate and meaningful support from the government to help farmers navigate these extreme conditions.

There are several key actions that can be taken in both the short- and long-term to provide relief and build resilience.

In the short term, we’d like to see the activation of “Category D” disaster support under the National Emergency Management Agency’s arrangements.

This measure would pave the way for farmers to receive low interest loans or cash grants to help with the costs of bringing in water and feed.

Additionally, the government can boost the supply of feed available by underwriting the import of feed from overseas to boost supply and help farmers get through the spring.

We’re not asking them to buy the feed – just to provide some certainty to importers and give them the confidence needed to direct ships our way.

The industry sees palm kernel extract (PKE), as one good alternative feed source. It’s already shipped in great quantities to New Zealand.

In the longer term, we seek support to address the root causes of the challenges we face this season.

One urgent need is action on water infrastructure projects such as stock and domestic water pipeline for South-West Victoria.

This is a proposal we’ve been taking to government for almost a year now, and for which we have seen funding to renew work on the existing business case

However, what industry really need from both state and Federal Governments is a genuine public commitment to co-funding the project.

If government is genuine about national food security, preparedness and resilience, this is one infrastructure project that will give hope and confidence to farmers to keep investing in the largest dairy producing region in Australia.

By Ben Bennett, President, Australian Dairy Farmers

Column originally published in ACM Agri publications.

Farming operations

Secure our water, secure our future

May 2, 2025

As a dairy farmer and President of Australian Dairy Farmers (ADF), I know our industry is under significant pressure on many fronts.

Australian milk production has tumbled from about 11.3 billion litres in 2001–02 to just 8.3 billion in 2023–24. That’s a 26 per cent decline.

Over that time, the number of operating dairy farms has decreased from around 13,800 to just 4500 – a 67% decrease.

This dramatic reduction reflects mounting pressures on the industry – including water shortages, rising input costs, regulatory burdens, and volatile milk prices.

We need investment to stop this decline and support our dairy farmers and the rural communities that depend on us.

ADF recently released five investment priorities to help our industry, and while each priority is important, water security is the most urgent for so many right now. Without reliable water, none of our other efforts can succeed.

Across South Australia and Victoria, dairy farmers are enduring a crippling water crisis. Parts of South Australia face unprecedented drought conditions – the worst in living memory​.

Previously green areas now suffer empty dams and scorched paddocks, with major reservoirs down to about 38% capacity.

This drought has already wiped billions from the South Australian economy and is ravaging parts of Victoria, particularly in the South West.

While farmers are making do – purchasing feed and taking other measures – support is crucial to sustain this vital sector.

A lifeline for farmers

In response, ADF has released its election priority ask, championing a $200 million Dairy Industry Water Offset Program – a three-year initiative to secure water specifically for dairy farms​.

This program would fund practical measures to help farms adapt to drought and competing water demands.

It focuses on using recycled water and aquifer recharge to diversify water supply, ensuring water from buybacks is returned to dairy farmers, building better infrastructure to reduce losses, and supporting adoption of more efficient technology.

By boosting efficiency and tapping new water sources, we can maintain milk production without praying for rain.

This is effectively an insurance policy for our industry’s future – strengthening drought resilience and supporting the rural communities around them.

Act before it’s too late

Despite recent State Government assistance, current policies are not keeping pace with the crisis on our farms.

Drought relief has been slow and modest – and farm aid claims have taken weeks to process. We must cut through this red tape. When a farm has only a few weeks of water left, support needs to arrive in days, not months.

If we fail to act, we risk Australia’s food security and the social fabric of rural towns.

Every dairy farm lost means less local milk on our tables and fewer jobs in country communities.

Our leaders must recognise these stakes – now is the time to commit to real support.

I’m not here to point fingers – we need action and investment, not just words. With strategic support, our industry can remain resilient and continue to bolster Australia’s food security​.

Less water means less milk

Change is also needed in the Murray-Darling Basin, where water policies may be well-intentioned, but are leaving dairy farmers in the lurch.

More water buybacks are looming, promising to further shrink the pool of water from which dairy farmers can produce milk.

We can’t keep removing water from production without offsetting the loss.

Programs like ADF’s proposed Water Offset initiative fill that gap by giving farmers the tools to cope with less water.

Our message to government is clear – secure our water, and we secure our future.

By acting decisively now through funding the Dairy Industry Water Offset Program and cutting needless obstacles we can keep the milk flowing for generations to come.

This means Australian dairy on family tables, farms passed to the next generation, and vibrant rural communities.

It’s time to step up – our nation’s food future depends on it.

By Ben Bennett, President, Australian Dairy Farmers

Column originally published in ACM Agri publications.

Economics & Trade, Farming operations, People & Community

Calls for government to invest in dairy future

April 7, 2025

Just as dairy farmers naturally look to change as an opportunity to innovate, Australian Dairy Farmers (ADF) this week launched its suite of shovel-ready commitments for the Federal Election.

With Australia’s dairy industry at a critical juncture, ADF calls on the Federal Government to reinvigorate dairy production, help modernise farm operations and strengthen regional dairy communities.

Dairy farming is a cornerstone of regional economies, driving jobs, innovation, and sustainability through modern farming practices.

Despite consumer demand for our nutritious product, farmers are battling declining production, high input costs and operational barriers.

ADF’s 2025 funding priorities provide targeted investment to secure the industry’s future, ensuring farm succession, efficiency, water security, and digital innovation.

With strategic government support, Australian dairy can remain competitive, sustainable, and resilient. This will help to boost national food security and strengthen rural communities.

ADF’s cohesive policy priorities recognise that dairy farming is more than just milk production—it provides essential nutrition, drives jobs, supports service industries, and fosters innovation through new technologies and modern workforce practices.

Attracting new farmers and encouraging reinvestment in the sector will help lead to greater productivity, enhanced sustainability, and stronger regional economies.

As dairy production prospers, so do the towns, businesses, and services that rely on it.

To make this vision a reality, ADF is calling on government to invest $399 million across five election priorities detailed below.

ADF 2025 Election Priorities

Australian Dairy Farm Fund is a $120 million initiative aimed at supporting the next generation of dairy farmers. This fund will help new farmers purchase their first farm, transition into family operations, and invest in modern, sustainable infrastructure.

The fund specifically targets those with limited access to capital or cash reserves. Without this support, generational renewal will continue to fall, farm closures will continue, threatening Australia’s national milk supply and regional economies.

Australian Dairy Farm Efficiency Rebate offers up to a 70% rebate on eligible on-farm reinvestments aimed at improving resilience and adopting sustainable, energy-efficient technologies. Costed at $50 million program over three years, rebates will be applied to renewable energy systems (solar panels, wind and battery storage systems), energy-efficient equipment and machinery.

This tackles one of the biggest barriers to dairy farm sustainability and profitability—energy inefficiency. Rising energy costs are a major contributor to reduced sustainability adoption.

Supporting on-farm reinvestment ensures a more competitive, efficient, and future-proof dairy industry.

Dairy Industry Water Offset Program is a $200 million, three-year program dedicated to addressing water scarcity. This is a growing national challenge that poses significant risk to Australian dairy farmers, particularly in the Murray-Darling Basin and other drought-prone regions.

Key initiatives include investing in alternative water sources like aquifers, recharge systems, and recycled water to diversify supply. Strategic water entitlement returns from buybacks to farmers will ensure dairy farms in high-impact regions receive equitable and reliable water access. Developing dairy specific pipelines, pumping stations, and shared infrastructure will reduce losses and boost drought resilience. This program will also fund advanced water capture, storage, high-efficiency irrigation, and smart monitoring.

Dairy Farm Digital Adoption Program is a $15 million small grant initiative designed to fast-track the adoption of farm automation and digital solutions in dairy farm operations. Research shows 70% of dairy farms lack automation. This program provides grants for smart technology adoption, robotic milking, herd monitoring, and digital workforce tools.

These digital tools enhance workforce management, can improve on-farm safety, and help address critical labour shortages.

Australian Dairy Farmers Industry Services is a $14 million three-year program to strengthen ADF’s ability to deliver vital services to dairy farmers, including biosecurity, workforce support, and industry investment initiatives. As farmers face rising costs, labour shortages, tightening regulations, environmental pressures, and biosecurity threats, ADF’s industry good services and leadership is more vital than ever. With farm numbers declining and investment shrinking, strengthening ADF’s capacity to support dairy farmers is crucial.

For more information on our election package, click here.

By Nathan Pope, Policy Manager, Australian Dairy Farmers.

Economics & Trade

Watchdog delivers dairy advocacy win

March 6, 2025

One of the dairy industry’s major long-held wishes was realised last week, at least in part, with an announcement from Australia’s competition watchdog.

Increased scrutiny of supermarket conduct will be in the Australian Competition and Consumer Commission’s (ACCC) crosshairs next financial year.

That welcome announcement was included in the organisation’s compliance and enforcement priorities for the coming financial year, announced at a business event in Sydney.

It’s an outcome Australian Dairy Farmers (ADF) has long advocated for.

The focus comes at a crucial time as dairy farmers grapple with increasing costs of production and declining farmgate milk prices, while supermarket profit margins remain strong.

With Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) forecasting a $740 million decline in milk production value, driven mainly by lower farmgate milk prices, the need for equitable treatment across the supply chain has never been more urgent.

The ACCC’s 2025–26 priorities include addressing anti-competitive behaviour and misleading pricing in the supermarket sector. This directly aligns with ADF’s call in the mandatory Food and Grocery Code of Conduct consultation.

ADF’s submission to the Treasury’s Grocery Code Review highlighted the inherent power imbalance between supermarkets and suppliers.

We successfully argued that a mandatory code would provide greater price transparency, enforce accountability on retailers, and protect farmers from unfair trading practices.

The ACCC’s commitment to now addressing supermarket market power confirms that our advocacy is delivering real outcomes for Australian dairy farmers.

ADF has long called for regulatory intervention to prevent major supermarkets from wielding excessive influence over pricing and supply arrangements. Our submission highlighted several key recommendations, including:

  • Making the Grocery Code mandatory to ensure compliance from retailers;
  • Preventing supermarkets from using milk as a ‘loss leader’ to unfairly attract consumers while squeezing supplier margins; and
  • Ensuring that retail pricing strategies do not result in further reductions in the price of raw milk paid to farmers, which risks accelerating the decline of Australia’s dairy industry.

The ACCC’s newly stated priorities validate ADF’s position.

The regulator has committed to investigating misleading supermarket pricing practices.

With Coles and Woolworths controlling around 65 per cent of Australia’s grocery market, their dominant position has long created uncertainty for dairy farmers trying to plan their businesses in a volatile environment.

The farmgate milk price has declined while production costs remain high, putting immense pressure on producers.

The ABARES report confirms that lower milk production values are primarily a result of falling farmgate milk prices, underscoring the urgent need for supermarket accountability and fair distribution of profits across the supply chain.

ADF will continue to work with the ACCC, Treasury, and government to ensure regulatory reforms benefit dairy farmers and secure a more sustainable future for the industry.

We remain committed to ensuring supermarkets engage in fair pricing practices that do not disadvantage dairy farmers.

We do this while also advocating for stronger enforcement mechanisms that hold retailers accountable for market manipulation, allowing dairy farmers to get on with delivering nutritious products to Australian consumers.

The ACCC’s shift in focus is a testament to the strength of strong, targeted advocacy.

However, this is just the beginning.

We urge policymakers to move swiftly in implementing good policy, done well. This will ensure all players in the dairy supply chain receive a fair share of returns.

For dairy farmers, fair competition is not just a policy goal – it’s a necessity.

By Paul Mumford, Trade & Economics Policy Advisory Group Chair, Australian Dairy Farmers

Animal Health, Animal Health, Farming operations

Dairy beef: a growing market for Australian farmers

February 21, 2025

By Ben Bennett, President, Australian Dairy Farmers

The Australian dairy industry stands to gain more than $550 million per year at a conservative estimate, thanks to a promising growth opportunity being pursued by industry leaders.

That opportunity comes from increased profit and yield through developing the dairy beef industry and expanding into premium markets.

It was the hot topic at Australian Dairy Farmers’ (ADF) recent industry breakfast at International Dairy Week (IDW), where Professor Jane Quinn from Charles Sturt University and Dairy Australia’s Andy Hancock shared their insights.

They proved surplus dairy calves are no longer an issue to be managed, but an asset with substantial economic potential.

For too long, male dairy calves have been undervalued, often sold at low prices as vealers.

However, the CalfWays Sustainable Dairy Calf Management Roadmap aims to change this by facilitating the development of opportunities for Australia’s surplus calves to enter commercial supply chains by 2035.

The shift is already happening, and with the right structures in place, dairy beef has the potential to significantly enhance farm profitability.

Rising international demand

One of the most compelling opportunities for Australian dairy beef lies in export demand from the United States, where dairy-sourced beef plays a crucial role in the production of ground beef and burger patties.

The US beef industry relies on lean beef trim from dairy cattle to mix with fattier cuts, producing a high-quality, consistent product for food service and retail markets.

Currently, Australia exports a significant volume of lean beef to the US, but much of it comes from grass-fed cattle.

With dairy beef offering similar lean characteristics and a predictable supply chain, there is a clear opportunity for Australian dairy farmers to tap into the well-established US demand for ground beef.

The US market has already embraced vertically integrated dairy beef supply chains, processing around 90,000 calves per year under structured feeding and finishing programs.

New Zealand also exports significant quantities of dairy cattle for beef consumption to the US.

These systems provide farmers with stable pricing and a guaranteed market – a model that Australia can replicate to secure long-term demand.

Strong margins, viability

The financial potential of dairy beef is large.

Research presented by Professor Quinn at IDW shows that integrating surplus dairy calves into beef production has the potential to deliver $550 million per year through increased profit and yield.

Currently, many surplus calves are sold at around $35 per head as vealers, but with proper finishing, they can be grown out to reach carcass weights of 300 kilograms or more, with market values ranging between $1500 and $1800 per head.

The numbers clearly illustrate that dairy beef is not just an ethical solution – it’s an economically viable one.

A key factor in this shift is the Meat Standards Australia (MSA) grading system, which has shown that well-finished Holstein and Jersey cattle can produce beef of comparable eating quality to traditional beef breeds.

Consumer sensory trials show that dairy beef, when raised with the right nutrition and growth pathways, performs well in terms of tenderness, juiciness, and flavour, making it a valuable addition to the beef supply chain.

At IDW, Professor Quinn said trials conducted in western Victoria and the Riverina had proved that Holstein cattle can achieve growth rates and carcass characteristics on par with traditional beef breeds when finished in feedlots.

This means that with the right investment in breeding, feeding, and processing, dairy beef can meet both domestic and export market standards.

Building the supply chain

To capitalise on this opportunity, a coordinated effort is needed across the supply chain.

Programs like CalfWays, which has engaged over 150 stakeholders including dairy and beef processors, Meat and Livestock Australia (MLA), and major retailers, are helping to build stronger connections between producers and buyers.

The long-term goal is to develop a structured, profitable dairy beef industry that provides stability for farmers while addressing broader sustainability and animal welfare concerns.

Lessons from international markets, particularly the vertically integrated model from the US, show that with the right partnerships and investment, dairy beef can become a valuable and predictable revenue stream for Australian farmers.

The future is dairy beef

The dairy beef industry is at a turning point. Demand is growing, margins are strong, and global markets – particularly in the US – are actively seeking supply.

This is no longer a theoretical discussion; dairy beef is already proving to be a workable and profitable possibility for farmers willing to invest in structured growth programs.

At IDW breakfast it was clear: the future of dairy beef in Australia is bright.

By treating surplus calves as a business opportunity rather than a byproduct, farmers can unlock significant value, increase resilience, and contribute to a more sustainable and profitable dairy industry.

Now is the time to act. With the right partnerships, market connections, and investment in quality production, Australian dairy farmers can take full advantage of this growing sector.

 

Policy & Advocacy

Canberra gives cause to celebrate

January 13, 2025

By Ben Bennett
President
Australian Dairy Farmers

When this magazine lands in your letter box it’ll be the middle of summer and many in Canberra will be taking a break.

While that’s not so easy for dairy farmers to do, we can rest a tad easier knowing agriculture had two wins at the end of the Parliamentary sitting year.

In the Parliament’s last sitting week, a government move to tax ‘unrealised gains’ failed to pass the Senate.

Another key win, and something ADF had been a vocal proponent of, came when the beefed-up Food and Grocery Code passed Parliament – also in its final week.

Firstly, the unrealised gains tax was of significant concern to ADF for a number of reasons. Not least because it was unfair to dairy farmers and set a dangerous precedent.

The legislation would’ve reduced superannuation tax concessions for individuals with balances exceeding $3 million.

For farmers, whose assets are typically tied up in land and machinery, this could’ve meant selling off parts of their livelihood just to pay a tax bill on paper profits that don’t translate into cash flow.

ADF joined the National Farmers Federation and many other organisations in highlighting that taxing unrealised gains could have unintended consequences for investment and retirement planning, particularly affecting those who are asset-rich but cash-poor.

The collective advocacy efforts gained significant traction in the media and among policymakers, and clearly had an impact.

The core issue was in the nature of farming and small business assets.

Unlike liquid assets, such as stocks or cash, the value of farmland, equipment, and infrastructure is not easily accessible without selling the asset.

For many farmers, their superannuation is intrinsically linked to the value of their farm.

Taxing unrealised gains would have forced them to liquidate essential assets, disrupting operations and threatening the long-term viability of their businesses.

Mandatory code legislated

The other key win we noted in Parliament’s last days for 2024 was the passing of the changes to the Food and Grocery Code (FGC).

We knew earlier in the year that the Government had committed to implementing all 11 recommendations contained in the independent review of the FGC, led by Dr Craig Emerson.

But to see the changes make their way into legislation is satisfying, to say the least.

Throughout the review process, ADF called for the FGC to be made mandatory, to help create a level playing field for all suppliers.

The mandatory code promises significant benefits for dairy farmers by ensuring fairer trading practices and enhancing protections within grocery supply chains.

While there are moves afoot with the Dairy Code of Conduct, as you’ll read in my other piece in this edition, the Dairy Code of Conduct remains in place as an independent code and continues to regulate conduct between dairy farmers and processors.

It’s important the Dairy Code prevails as the standalone code regulating processers and dairy farmers.

It’s always pleasing to end a year with such good news. With both a review of the Dairy Code and a Federal Election ahead this year I hope I can be in the same position again when 2025 draws to a close.

Economics & Trade, Farming operations

Processors profiting from low prices

January 2, 2025

By Ben Bennett, President, Australian Dairy Farmers

As a dairy farmer, it’s infuriating to witness the blatant disregard processors have for the backbone of this industry – us, the dairy farmers.

Recently, some processors announced modest increases in their farmgate milk prices. For Fonterra, as an example, this is less than a two per cent increase.

It’s a move the company’s dairy farmers in Australia were right to celebrate.

But there’s a blatant double standard at play in how processors set prices, which is clearly evidenced by the discrepancy between farmgate prices in Australia and New Zealand.

Across the ditch, last month Fonterra upgrade its mid-point milk price forecasts for suppliers in New Zealand to a record NZ$10 per kilogram of milk solids.

This equates to around AUD$9/kgMS in our currency. The co-op says this “reflects strength in the global market”.

As I write this, Global Dairy Trade’s (GDT) price index is up almost 14pc since early July.

Yet other processors drag their feet, refusing to pass on any benefits to the people who work so hard each and every day to produce the milk that keeps their operations afloat.

This is a complete double standard when compared to the lead-up to the current milk supply season.

In early 2024 the Australian Dairy Products Federation (ADPF) and processors were going to lengthy efforts to collectively manage market price expectations that prices should decrease in line with overseas prices.

They warned that milk price decreases were necessary due to lower overseas prices and pointed to New Zealand and the GDT as evidence.

Ironically, now as prices start increasing overseas in NZ and on the GDT we do not hear the same rhetoric or willingness to increase prices accordingly.

Instead, ADPF stated the need to “work together” and the importance of unity within the industry. But where’s this camaraderie when it comes to fair compensation?

Their rhetoric about collaboration rings hollow when processors prioritise their profits over the livelihoods of farmers. It’s a classic case of all talk and no action.

I have been vocal about the challenges we dairy farmers face, pointing out supermarkets’ aggressive pricing strategies, like slashing home-brand milk prices and the immense pressure on farmers, squeezing us out of business while retailers boast soaring profits.

Yet, processors seem content to let dairy farmers bear the brunt without offering any relief.

Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) reported in its December Agricultural Commodities Report a staggering forecast of a $760 million loss in dairy production value in the current season.

Most of that drop directly relates to lower farm gate milk prices.

This isn’t just a number; it’s a devastating blow to our incomes, our families, and our communities.

While we’re left grappling with these losses, processors maintain their stranglehold on the industry, dictating terms and prices with little regard for farmers’ welfare.

If a loss of three quarters of a billion dollars was forecast in a financial year for any major Australian company, it would be all over the news and there would be calls for an investigation.

Yet this came and went with only Australian Dairy Farmers voicing concerns.

The power imbalance is glaring. Processors are the price-setters making decisions that impact our community’s livelihoods without any transparency or accountability, while farmers remain the price-takers.

Their reluctance to adjust farm gate prices, even modestly, underscores their market power and dominance.

Looking at the fundamentals that underpin this situation, the ABARES report suggests growth in global demand for dairy products will outpace global supply growth. Slowing production in China contributes to this picture.

Regardless of the cause, Australia’s dairy farmers know how supply and demand works.

It’s high time processors put their money where their mouth is. If they truly believe in working together, they must start by ensuring fair compensation for farmers.

Empty words won’t pay our bills or sustain our farms. We need tangible actions that reflect a genuine commitment to the wellbeing of the entire dairy industry, starting with those who are its very foundation.

Farming operations

Code at risk of rewarding those it shields us from

December 18, 2024

By Ben Bennett, President, Australian Dairy Farmers.

When the Dairy Code of Conduct was introduced on January 1, 2020, it wasn’t because everything in the dairy industry was working smoothly.

It was because farmers had suffered under a system that allowed processors to wield disproportionate power – leaving us vulnerable to retrospective price cuts, unfair contracts and a complete lack of transparency.

The Code wasn’t a gift from processors; it was a necessary response to their unscrupulous behaviour.

Fast-forward to today, and now the processors whose actions resulted in the need for the Code are suggesting changes to it. The irony isn’t lost on us farmers.

A Code designed to protect us from unfair practices is now under threat of being rewritten to better serve the processors. It’s not right, and it’s certainly not fair.

The Code was born out of years of hardship and frustration.

For many of us, the 2016 price clawbacks by major processors like Murray Goulburn and Fonterra are still fresh in our minds.

Coming off the back of the $1 milk wars, those unilateral price cuts devastated farm incomes, forced many out of the industry, and eroded trust, many would say forever.

In the wake of that crisis, the ACCC launched an inquiry that exposed the power imbalances between processors and farmers.

The mandatory Code was introduced to fix these issues by implementing:

  • Transparent milk supply agreements with minimum standards,
  • Clear pricing information published annually,
  • A prohibition on retrospective price changes and unilateral contract variations, and
  • Dispute resolution mechanisms to address conflicts fairly.

The Code was a step forward, but it’s far from perfect.

Farmers still face challenges, but at least we know there are rules to prevent the worst abuses of the past.

Over the past few years, dairy farmers have finally started to see some decent returns for their hard work.

Many of us have been able to reinvest in our farms, pay back loans, improve efficiencies, and breathe a little easier.

But now, as processors feel the pinch, they’re suddenly pushing for changes to the very rules that helped create some balance.

Let’s be clear: the Code exists because processors couldn’t be trusted to play fair.

Yet, they are the ones now trying to dictate changes to it.

Their proposed amendments—such as delaying pricing deadlines, increasing their flexibility to adjust prices mid-season, and weakening dispute resolution—are all designed to benefit them, not industry and certainly not farmers.

This push to move the goalposts is particularly frustrating because processors already hold the reins when it comes to pricing.

Processors decide the farmgate milk price, and as we’ve seen recently with a cut of 10-15 per cent in opening prices, they set those prices with little regard for how it impacts farmers.

Processors argue these cuts reflect global market realities, but farmers don’t have the luxury of such flexibility.

We have fixed costs, long production cycles, and depend on stable prices to keep our operations viable.

The Australian Dairy Products Federation’s argument for greater pricing flexibility sounds reasonable on the surface. They claim it would allow processors to respond better to market conditions.

But what does that really mean for farmers? It means more uncertainty. It means prices could be slashed mid-season, leaving us scrambling to make ends meet.

Farmers don’t have the luxury of adjusting our costs to match a processor’s new pricing structure.

Once a contract is signed, we commit to producing milk at the agreed price.

We invest in feed, herd management, and labour based on that commitment.

Changing the price during the season would leave us carrying all the risk while processors protect their margins.

The same goes for their push to delay pricing publication deadlines.

Currently, processors must publish minimum pricing by June 1 each year, giving farmers time to compare offers and make informed decisions.

Pushing this deadline back would only benefit processors, reducing competition and leaving farmers with less time to negotiate better deals.

Farmers are price-takers in this relationship, and we’re the ones who bear the brunt of market fluctuations.

When times are tough, it’s farmers who suffer. When times are good, as they have been for the past couple of years, processors seem unhappy that farmers are finally seeing a fairer share of the pie.

Let’s not forget farmgate prices this season are down 10-15pc, but international markets are up.

Farmers endure droughts, floods, increased cost of living and ever rising production costs. We’ve adapted, innovated, and kept this industry alive through sheer determination.

The Code isn’t perfect, but it’s a lifeline for farmers trying to build a sustainable future.

Giving processors even more flexibility and power would only push farmers further into uncertainty.

They shouldn’t get to rewrite the rules to suit themselves – especially when those rules were created to curb their past excesses.

To those that are doing the rewriting, walk a mile in our gumboots, make the decision to send cows you can’t feed to slaughter, watch them loaded on the truck, then see how writing Code changes from your desk feels.

The consultation on the Code will be a pivotal moment.

We can’t let processors dictate changes that benefit them at our expense.

The Code exists because of their behaviour, not ours. It’s there to protect farmers and ensure fairness in the supply chain.

The government must prioritise farmers’ voices in this process.

Strengthen the Code. Enforce the rules. And ensure that the dairy industry is a place where hard work is rewarded, not exploited.

Farmers deserve stability and fairness, not shifting goalposts designed to keep processors happy, while keeping farmers on the knives edge.

Economics & Trade, Farming operations, People & Community, Policy & Advocacy

Strengthening ADF for Dairy Farmers

December 5, 2024

By Ben Bennett, President, Australian Dairy Farmers

It is an honour to continue to serve on the Australian Dairy Farmers (ADF) Board and to remain as President.

I was re-appointed by members at ADF’s Annual General Meeting (AGM) last week, along with fellow directors David Beca and Heath Cook.

Together, we stay committed to standing for the interests of dairy farmers across Australia and ensuring that their voices shape national policy decisions.

The AGM highlights the power of our united voice and the strength of our farmer-led organisation.

I would like to thank Andrew Aldridge, a Policy Advisory Group (PAG) chair and National Councillor, who stepped up to contest the election, making it a competitive process through his candidacy.

Dairy farmers like Andrew, who actively contribute their time and expertise, ensuring that ADF focuses on key issues impacting dairy farmers across Australia while also providing a succession pathway through the organisation.

PAGs undergoing a refresh
ADF is in the process of refreshing its Policy Advisory Groups (PAGs) to ensure they meet the evolving needs of dairy farmers.

This process aims to strengthen the PAGs so they can more effectively translate on-farm concerns into actionable policies.

PAGs have been, and remain, a vital link between the grassroots issues dairy farmers face and the national policies ADF advocates.

Through this refresh we’ve seen strong interest from the farming community, with a number of nominations received.

This response shows the value dairy farmers place on having their voices heard and shaping the direction of the dairy industry.

These nominations bring great perspectives and reinforce ADF’s foundation as a farmer-driven organisation.

This refresh also focuses on improving collaboration between PAGs, State Dairy Farmer Organisations (SDFOs), National Council and industry stakeholders.

By streamlining processes and improving communication, ADF strengthens its ability to respond to the big challenges the industry faces, from regulation to climate resilience and securing fair farmgate prices.

Tackling big issues in 2025
The year ahead presents significant priorities for ADF.

The review of the Dairy Code of Conduct stands out as a critical task.

Ensuring fairness across the supply chain remains essential to supporting trust and transparency between dairy farmers, processors, and retailers.

With a Federal Government election on the horizon, ADF continues advocating for policies that support the sustainability, innovation, and profitability of Australian dairy farms.

These priorities reflect the need for long-term solutions to address the challenges dairy farmers encounter daily.

ADF also focuses on supporting the global competitiveness of Australian dairy.

Rising production costs, access to reliable water supplies, and the need for clear labelling laws require immediate attention.

Labelling laws in particular play a vital role in protecting the integrity of dairy products and ensuring consumers can trust what they buy.

Encouraging dairy farmer engagement
At the core of ADF’s work lies a commitment to the dairy farming community.

ADF relies on farmers, advisors, and advocates to actively take part in shaping the industry’s future. ADF encourages all dairy farmers to get involved.

Join your local SDFO, take part in PAG discussions, and share your voice. ADF’s strength comes from the collective effort of the farming community.

By working together, we amplify the voice of Australian dairy farmers and tackle the issues that matter most.

Moving forward together
As ADF enters 2025, I remain committed to leading with determination.

The challenges we face as an industry are significant, but so is the resilience and ingenuity of dairy farmers.

The Board, National Council and PAGs, combined with the strong participation from dairy farmers, sets a solid foundation for addressing the road ahead.

Together, we ensure that ADF stays focused on delivering real outcomes for farmers.

Whether it’s addressing rising costs, advocating for fair prices, holding processors accountable or ensuring a seat at key policy tables, ADF continues to represent the interests of every dairy farmer in Australia.

Here’s to a productive and purposeful 2025.

By standing united and actively taking part, we strengthen our industry and secure a strong future for Australian dairy.

Policy & Advocacy

ADF Notice of Annual General Meeting

November 8, 2024

Australian Dairy Farmers (ADF) members eligible to participate in its 2024 Annual General Meeting (AGM) should check their email inboxes for a Notice of Meeting (and enclosures).

The AGM will be held on Thursday, November 28.

Eligible members were sent a Notice of Annual General Meeting by email on Thursday, November 7 from Vero Voting.

The email from Vero contains all the information you’ll need to access the meeting pack and voting system.

Members having difficulty finding the email should check their junk or spam folder. If you are still having difficulty, please contact operations@australiandairyfarmers.com.au.

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