The 2016 Feeding the Genes study, conducted by Dr John Morton, for ADHIS, investigated interactions between sire genetics and feeding systems on:

• milk solids production;
• and the cow’s chance of lasting in the herd.

The milk production results were clear. The study found that in all feeding systems, the daughters of high index (BPI, HWI or TWI) sires produce more milk
solids than daughters of low index sires.

In terms of survival, the daughters of high index (BPI, HWI and TWI) sires last longer than daughters of low index sires in all pasture-based feeding systems.
The scale of effects of sire index vary by index and feeding system:

The HWI has larger effects on longevity than BPI or TWI.

In low bail feeding systems the daughters of high BPI and HWI sires last longer than daughters of low index sires.

In moderate to high bail feeding, partial mixed ration (PMR) and hybrid feeding systems, the daughters of high index (BPI, HWI and TWI) sires last longer.

In total mixed ration (TMR) systems the daughters of high HWI sires last longer.

The findings support the take-home message that herd managers should select high index sires whose ABVs are aligned with the breeding objectives for their
herd, regardless of their feeding system.

Read more about the results of this exciting research in this factsheet or contact Michelle Axford on 0427 573 330 or maxford@adhis.com.au for more information.

Many in the dairy industry feel under enormous pressure at the moment. Farmers not
only have the challenge of adapting their business plans to recent price shocks – we also pick up the paper to read about it every day. With more processors’
opening milk prices due in coming weeks, following Warrnambool Cheese and Butter’s (WCB) announcement today, no doubt some will feel the pressure begin
to mount once more.

We recognise that the announcement from WCB will come as a shock to many, given it is well below the cost of production. Despite the disappointing low
price, we must recognise that they have heeded calls for early price signals and provided much needed certainty to their suppliers.

While we are an industry under pressure, we are also an industry that has the know-how and motivation to overcome these adversities and thrive in the long
term. No one is alone in this scenario and we need to ensure that all farmers feel supported during tough times.

ADF, together with our state members and Dairy Australia is fighting for our farmers. We can’t solve all of the issues farmers are currently facing, but
we can work to relieve some of the immediate pressures and accelerate change to ensure this doesn’t happen again.

We have welcomed the promises made by State and Federal Government, now they must stop playing politics and deliver. Farmers need certainty as to their
options right now.

While we await Government decisions, there are industry resources available to help farmers manage the impact of recent events. It’s important to make
the time to take up these opportunities. Dairy Australia’s Taking Stock provides free one-to-one
business analysis that can help you prepare for the season ahead.

The Dairy Farmer Central website launched this week by the Victorian dairy industry, lists all of these
tools and more. It also signposts events – some of these events will inform and help you plan for the season ahead, others provide an opportunity to
take time out from the farm and get some perspective. We are working to make this website applicable Australia-wide.

These tools are not a silver bullet to restore our businesses but they will help navigate the challenges, so we can move toward a stronger, fairer and
more sustainable future.

David Basham

ADF Acting President

Since heavy rains and wild winds hit the south east cost on 5 June, flooding has significantly affected dairying regions in Queensland, New South Wales
and Tasmania. These floods have added further issues to the industry which is already dealing with significant strain and instability.

The Australian dairy industry has mobilised quickly to provide farmers with support. 48 hours on from the damaging events, recovery assistance is the primary
focus. We are working to understand the full impact of the floods to ensure targeted assistance for farmers. 
We are working to ensure farmers have adequate access to clean water and power to enable them to keep milking. Farmers are working to protect and
care for their animals during these extreme events. Unfortunately, there have been reports of cows being lost to the floods and we empathise with farmers
having to face this difficult situation.
Fencing is also an immediate concern, with the high water speed having destroyed many farm fences, as well as loss of pasture and newly sown crops. 
Please see below for information on seeking flood recovery assistance, further updates will be made as the information is made available: 
If my property has been affected, what should I be doing?

• Try to focus on your priorities by writing a quick checklist of all the jobs that come to mind – classifying them by what needs to be done today, this
  week and later in the month. Download your Dairy Australia ‘recovery priority list’ here.
• Take photos of the damage on your property to build up an inventory of losses (i.e. pumps, fencing, feed, etc).
• Keep records of damage on your property until Helplines become available. Accurate and timely information will help the relevant departments secure
  the best possible level of disaster assistance.
• Keep all your receipts associated with recovery efforts.
• Remember to ask for help. 

What other support is there to assist me?

• Find out about the options for milking without electricity supply here. 
• Find out how to manage the health and welfare of cows during floods here.

The industry has bid farewell to dedicated
dairy advocate, Max Jelbart who sadly passed away in June.

Mr Jelbart, who farmed successfully in Gippsland and Caldermade, was an admired intellectual who shared his time and knowledge freely.

During his career in dairy, Max served on various industry boards and committees and was a supplier of Murray Goulburn for 38 years – and a director
since 2012.
A Director on the ADF Board for seven years and a past President of the United Dairyfarmers of Victoria’s South Gippsland Branch, Mr Jelbart was this
year presented with an Order of Australia medal for his services to the dairy industry and the community.
A Nuffield Farming Scholar and member of the Nuffield Australia Investment Committee, Mr Jelbart was renowned for seeking out new ways to develop his
capacity as a farmer as well as opportunities to give back.
“Max was extremely passionate about helping to foster the next generation in dairy, and ensuring they had the right tools to grow their businesses,”
ADF President, David Basham said.
“His readiness to share his expertise with industry and the community alike was inspirational – he was a tireless advocate and will continue to be
remembered very fondly.”
On behalf of staff and representative leaders past and present, ADF expressed its deepest sympathies to Mr Jelbart’s family.

Dairy industry leaders are united around a clear objective: to ensure every Australian dairyfarmer has the capability, tools and support to fully understand
their individual business position, and to make decisions about their future based on sound evidence.

The release of Dairy Australia’s Situation and Outlook report last week reinforced that there are tough times ahead – but also that with collaboration,
empathy and leadership, measured policy responses and effective support from government, consumers and our own supply chain, we can work towards
a stronger future.

To prepare for the next season farmers must have earlier and clearer pricing signals, with a more equitable pricing system that better balances risk
along the supply chain of farmers, processors and retailers. Without this, farmers and allied businesses will remain vulnerable. ADF and our state
members continue to urge processors to urgently communicate their opening price as soon as possible.

Commonwealth and State Government support in Tasmania, Victoria and South Australia has bolstered programs to strengthen pathways for dairyfarmers
and enhanced our ability to support the health and wellbeing of our own. We need detail on these announcements as soon as possible and have been
pressing governments to release the criteria for the Dairy Recovery Concessional Loans scheme immediately.

As the industry’s peak body, our longer-term resolution includes significant policy ambitions. We need a more equitable pricing system that better
balances risk along the supply chain of farmers, processors and retailers.

To help farmers here and now it is crucial that the full suite of support measures be available to farmers across all dairying regions, as processors
begin the process of setting milk prices to be paid from July 1. All dairyfarmers, not only Murray Goulburn and Fonterra suppliers, must have access
to these measures. ADF has made this clear in our discussions with Government.

We are aware that the current challenges concern sharefarmers and dairy farm employees too. Dairyfarmers who have previously been ineligible for government
assistance due to their permanent residency status are also on our radar. Ensuring our industry can retain skilled, experienced employees is key
to safeguarding our future – a message we are taking to Canberra, to ensure all aspects of our workforce, and their needs in this unprecedented
circumstance are not forgotten.

As the details are made more clear we will contact our members. We encourage you to keep reaching out to ADF, as well as your state dairy farming organisation
and regional development programs to access support.

David Basham

ADF President

Throughout 2015 and early 2016 Animal Health Australia (AHA) has been conducting a review
of Bovine Johne’s Disease (BJD) management in Australia. The review has progressed with consultative forums, meetings of a review panel, discussion
papers and a draft framework document.

Information on the AHA Review of BJD can be found via http://www.animalhealthaustralia.com.au/news/latest-information-about-the-national-bjd-strategic-plan-review/

Dairy farmers were represented on the Review Panel by ADF and Dairy Australia and State Dairy Farmer Organisations have had input through the consultations.
Farmer representatives have been present at both the forums and at the consultation meetings held.

AHA released the final framework document in February 2016 – BJD – Where to from here? A Fresh Approach to the Management of Johne’s Disease in Cattle: Management Plan for Cattle Production Conditions.

Major changes in the management of BJD outlined in the final framework document include:

The removal of zoning;

• Reliance on producers to protect themselves from disease (a biosecurity approach);
• A market driven approach where producers undertake practices dependant on market requirements;
• An evaluation of the CattleMAP; and
• Development of tools and education material.

The dairy industry has provided collective input and feedback throughout the process. The final framework document is a very high-level document and dairy
industry representatives have indicated that further work is necessary to provide detail on how any revised scheme would be implemented.

A Communications Plan and an Implementation Plan for the new BJD approach are being worked on and industry representatives are involved in this work. As
a result of the above, in consultation with State Dairy Farming Organisations, recommended revisions to the Dairy Score developed by ADF and DA have
been endorsed.

The National Dairy Industry BJD Assurance Score will continue to be an important tool for dairy farmers but some refinements may be needed to facilitate
an alternative to Cattle MAP for dairy farmers.

The draft revised Dairy Score is based on the current criteria that supports risk-based trading and provides an extension tool to help farmers understand
how they can achieve higher levels of assurance. The draft revised Dairy Score focuses on biosecurity measures, particularly hygienic calf rearing,
with incorporation of herd tests at the higher levels to monitor and verify the integrity of the Score.

Work is also happening on making the Johne’s Disease Calf Accreditation Plan (JDCAP) available across Australia. The JDCAP is currently only implemented
in Victoria and recently New South Wales.

The JDCAP is a voluntary comprehensive audited program that has been implemented on some dairy farms in Victoria and has been a compulsory part of participation
in the Victorian Test and Control Program since 2003.

For further information, please do not hesitate to contact the ADF Office via (03) 8621 4200.

As debate rages about milk price shock in the public sphere, it is essential
that we don’t let the facts about the current challenges our industry is facing go astray.

The decisions made by some major processors, in particular Murray Goulburn and Fonterra, in recent weeks have hit Australian dairy farmers hard.

We can’t change what has happened, but we can work to take charge of the things within our control – that means providing support to equip farmers with
the tools they need to help manage their current situation and finding ways to prevent this issue in future.

Australian Dairy Farmers (ADF) in collaboration with state members and Dairy Australia is providing targeted assistance. I encourage you all to take advantage
of these resources by contacting your Regional Development Program (RDP).

Industry efforts will continue to support farmers during these challenging times, but in order for farmers to get through the short term ADF is seeking
commitments from all parties to back our farmers during this financial crisis.

Ongoing discussion with all political parties, both state and national has delivered positive commitments from State government, particularly in Victoria
and South Australia, to help farmers continue to operate.

We have met with Federal politicians this week to discuss support measures we need here and now, including one off grants for dairy farmers in exceptional
circumstances, increased funding for the Rural Financial Counselling resources and streamlining access to existing government programs. A bipartisan
approach to these solutions is essential.

Our priority remains delivering support for the short term but that doesn’t mean we aren’t considering solutions to prevent this issue from occurring again.

ADF has always advocated that there needs to be a better balance between retailers, processors and farmers. We are working with the Australian Competition
and Consumer Commission (ACCC) to address these concerns. We were pleased to see that the ACCC’s Agricultural Engagement Unit heeded our call to investigate
the processors actions in recent weeks and we will assist with that investigation where possible.

ADF is working with financial institutions to ensure farmers are treated fairly. The ANZ’s announcement is very encouraging, and we are confident other
banks will take a balanced approach, if not provide a similar assistance package.

Farmers have been hit with a number of challenges but with the resilience we know this industry has, and the right support we will work through this and
build a stronger future.

Simone Jolliffe

ADF President 

The past few weeks have presented unprecedented step-downs and claw backs to many farmers. The decisions made by our major processors are extremely disappointing
and many farmers must now make difficult decisions about how to best navigate the current market conditions and support their farm.

Across the industry farmers are angry – and they have every right to be. The situation processors have put them in is completely unacceptable. Farmers
are resilient and they love what they do. But they need certainty to be able to plan and to be able to trust that the prices they are budgeting on
are realistic.

Australian Dairy Farmers (ADF) is working hard on behalf of farmers to signpost help for the short term and find solutions for the long term. This includes:

• Listening to farmers to make sure we understand what they need most right now. We are working across the industry with our state farming members as
  well as national service provider Dairy Australia to deliver support, whether it be one-to-one financial guidance or mental health services.
• Talking to processors, to urge them to help suppliers understand the implications for their businesses and to be accountable for this decision. ADF
  is pressing the manufacturers to provide early price forecasting. Farmers cannot plan for their businesses without reliable forecasting.
• Making daily contact with both sides of Parliament, to explain the current and future challenges farmers face, and to seek commitments for targeted
  assistance.

There are no easy solutions to the challenges we face, but we are examining all options and are considering innovative solutions to build an industry with
a stable, long-term future.

Central to this is finding ways to better manage price volatility across the sector, and urging processors to give greater certainty about milk price in
a fair timeframe.

The support of government will be essential in better understanding the current situation and in delivering an effective response. As an industry, we need
to ensure that we are realistic in expectations and that the solutions we put to them are in the best interests of our farmers and our communities
for the long-term.

Our first priority is to provide practical support for farmers facing difficult decisions right now, to ensure that they can take control of their situation
and make the best choice for their business and family.

Now is the time for our industry to unite, support one another through the tough times, and collectively consider innovative and practical solutions to
help us achieve our vision of sustainable profitability.

Simone Jolliffe

ADF President

For information on programs available through Dairy Australia to help you through the short term challenges click here.

The challenges many dairy farmers will face as a consequence of downgraded
milk prices and ongoing market volatility are of great concern and extremely disappointing.

Many farmers are already experiencing a challenging season due to dry conditions and high water prices – these announcements add further distress.

The health and wellbeing of our farming families and their staff is our number one concern. We encourage farmers to share and seek information among your
networks. Start talking: to your bank, to your accountant, to your field services officer, to your partner, to your staff, to your neighbour.

If you are not a farmer, contact the farmers you know and ask them how they are coping.

The Australian dairy industry is working on a coordinated response for measures to help farmers make informed decisions and cope with their situation.

Discussions with Government, processors and banks are underway to ensure that the short and long term implications of the current situation are understood
and considered.

Already, Dairy Australia is rolling out the Tactics for Tight Times program through its Regional Development Programs (RDPs), which helps provide clarity to farmers about settings and seasonal conditions, and supports
key decision making on farms.

Local RDPs will deliver support programs, and put farmers directly in touch with other services, including mental health organisations.

Programs include one-on-one business assessment and support; technical workshops focused on business analysis and planning, feed and water budgeting, climatic
outlook and cropping/forage strategies; and social and community support programs – including expanding the “Look over the farm gate” program.

Dairy Australia has prepared a guide for Building Emotional Resilience,
listing support resources and also some key tips to help get you through difficult periods (available here: http://www.thepeopleindairy.org.au/announcements/emotionalresiliencefactsheet).

Now is the time for farmers to focus on the things that can be controlled, take a step back, and make informed decisions based on current circumstances.

If you or your dairy business is facing challenging times, help is available from your representative bodies, your state dairy farming organisation and
Australian Dairy Farmers (ADF), as well as Dairy Australia and your local RDP.

For more information on the programs delivered by your local RDP contact the relevant individual listed here.

Please continue to look out for one-another in these tough times.

ADF will continue to provide regular updates on industry initiatives to support farmers through this difficult period.

Simone Jolliffe, ADF President

Implementing formal occupational health and safety plans on farm is not just the right thing to do, it can also benefit businesses, guests heard at the
Australian Dairy Industry Council’s (ADIC) Business Breakfast in April.

Addressing an audience of dairy farmers, manufacturers and industry leaders at the event themed ‘Protecting what matters: ensuring the health, safety and well-being of our workforce’,
an expert panel explored the opportunities for dairy to improve its workforce safety and well-being.
The panel included Dairy Australia’s Program Manager for Industry Workforce Planning and Action, Bill Youl, Worksafe Victoria’s Bruce Gibson, Lion’s Leader
for Safety and Well-being Josh Norton, Field Services Manager at Fonterra Robyn Mitchard and Director of the National Centre for Farmer Health, Dr
Susan Brumby. Mr Youl observed that, as well as being the right things to do, safeguarding the workforce makes sense for farm profitability.

“A safe work environment will ensure accidents are minimised, productivity is enhanced and the full benefits of farm and manufacturing facilities realised.
Our physical and mental well-being is intrinsically linked to our industry’s success,” Mr Youl said.

ADIC Chair, Simone Jolliffe encouraged the industry representatives in the room to take leadership and drive a culture shift to safeguard the sustainability
of the industry’s workforce.

“Dairy farms are not typical workplaces. There are many potential risks, and stressful situations – particularly because we are often operating in a family
environment, where there is the added pressure of the day-to-day challenges of running a small business,” Mrs Jolliffe said.

“Dairy Australia is already working with state safety regulators and dairy manufacturers to provide farmers with the tools and training they need to operate
safely. As an industry we need to work more collaboratively to ensure uptake and implementation, to move the workforce from ‘knowing’ to ‘doing’.”

The Dairy Industry’s Sustainability Framework has set targets for the industry to achieve by 2020. One of the targets is 100% of on-farm and manufacturing
workers to have completed Occupational Health & Safety training by 2020. A further target is zero workplace fatalities. Mrs Jolliffe said the industry
is falling behind on both accounts.

“Tragically there have already been two confirmed workplace fatalities in our industry this year. Workplace injuries have also risen. Across Australia,
one in five people suffering with mental health challenges. This is not acceptable. We need to lead the industry in prioritising health, safety and
well-being – for the benefit of our industry.”

The ADIC made a commitment at the breakfast to drive change across the industry through improved collaboration between service providers, processors and
industry representative bodies. For information about occupational health, safety and well-being see www.thepeopleindairy.org.au

The expert panel from left to right, Bruce Gibson, Susan Brumby, Josh Norton, John Versteden, Robyn Mitchard and Bill Youl.