The Agribusiness Outlook Australia event will explore the strategies for primary producers to access and leverage the global demand for Australian produce.
With sessions exploring how to access overseas markets, how to establish a reputable brand, and how to strategically position your organisation for
success, this event will provide a platform to share best practice examples, innovative approaches and other strategic ways to secure a profitable
and productive future.

The Water Amendment Bill 2015 makes positive strides toward improving the Murray Darling Basin Plan, providing much needed flexibility.

It is essential that the Australian Senate passes the Bill when it returns to Canberra for its sitting starting 18 April. If the Bill does not pass before
the election it will face significant delay, to the detriment of communities and industries in the Murray Darling Basin.

Without the flexibility the Bill provides, the States and Commonwealth will be locked into decisions in June that will likely lead to even more water being
removed from agriculture and the communities that depend on irrigated industries like dairy.

In particular, the proposed amendments deliver more flexible timelines for reviews of the Basin Plan and related changes to the Sustainable Diversion Limit
(SDL), which determine how much water can be extracted from the rivers for human consumption, including agriculture.

The Bill also provides greater trading flexibility for the Commonwealth Environmental Water Holder (CEWH).
This flexibility will deliver positive environmental outcomes while simultaneously giving the community, farmers and manufacturers more certainty on
their access to water supplies.

The dairy industry has strongly lobbied for these changes, and supports their implementation.

Dairy farmers in the Murray Darling Basin have proved flexible users of water, steadily adapting their practices to produce more milk with less water over
the last 20 years.

We need the Murray Darling Basin Plan and the law that sits behind it to have the same flexibility. The Basin Plan is already having a significant impact
on farmers, manufacturers and the rural communities they support, with more to come as recovery deadlines approach.

If we are to continue to adjust to the inevitable changes in water availability and affordability we need a plan with clear, appropriate targets and approaches,
that can also adjust. This will help deliver positive outcomes for the environment, community and industry.

Passing the Water Amendment Bill will provide the Murray Darling Basin community with the confidence that Canberra politicians are willing to improve the
Plan in advance of considering decisions in June.

At this time, the Commonwealth and State Governments will either make or break the Basin Plan. We need the Water Bill to pass to ensure the pending decisions
under the Basin Plan this year are based on a foundation of flexibility.

Let your representatives know the importance of supporting the passage of this Bill through the Senate as quickly as possible by contacting your local,
state and federal parliamentarians. See here to get the details of parliamentarians for your region.

2016 is proving to be a challenging year for dairy farmers. Australian Dairy Farmers (ADF) recently visited members in New South Wales, South Australia and Western Australia, and across the country farmers are confronted with low milk prices,
increased input costs, and dry weather conditions.
This continued volatility is a reminder of how dependent farming is on a lot of things which are outside our control.

Simone Jolliffe
ADF President

After 20 years of declining dairy cow fertility, the genetic trend has turned around and improved every year since 2011. It is now about 5% higher than
cows born in 2011, and similar to cows born in 1996.

This finding and others are reported in the latest Herd Improvement Report, published recently by the Australian Dairy Herd Improvement Scheme (ADHIS)
and the National Herd Improvement Association of Australia (NHIA).

The Australian Dairy Industry Council (ADIC) has acknowledged the revised country of origin labelling system,
announced by the Federal Government yesterday, as a positive move toward providing consumers with a clearer understanding of where their food comes
from.

ADIC Chair, Simone Jolliffe said the industry provided significant feedback to the proposed system to Government, some of which is reflected in the
announced laws.

“We are pleased to see the revised laws will allow for a minimum transition period of two years. This will ease implementation for manufacturers, allowing
stocks of existing labels to run out and help ensure that unreasonable regulatory costs are avoided,” Mrs Jolliffe said.

“It will also allow for the development of an education campaign to properly inform consumers about interpreting the new system, so that they can make
sound choices.”

The ADIC also expressed its appreciation for the opportunity to state the percentage of Australian product under the revised labelling system.

“The increased flexibility of the sliding scale system as well as the accompanying descriptions of Australian ingredient content on packaging is a positive
improvement.”

The ADIC looks forward to reviewing the full detail of the proposed changes to fully understand the impact on Australian dairy products and ensure implementation
of the system works for consumers, customers and the Australian dairy industry.

Australian Dairy Farmers’ (ADF) Policy Advisory Group (PAG) first round of meetings took place in March, identifying priorities for the election year with
in depth discussion about issues continuing to affect farmers’ productivity and profitability.

Markets, Trade and Value Chain PAG Chair, Adam Jenkins said the group has come back refreshed and invigorated about the next 12 months of work.

“2015 saw considerable progress in the Markets, Trade and Value Chain policy focus area, with the implementation of the China-Australia Free Trade
Agreement as well as developments in Competition policy which will foster a stronger business environment for farmers,” Mr Jenkins said.

“Yet the conditions are always volatile for dairy, and we must continue to find ways to build an even more competitive marketplace for farmers to ensure
they can be productive and profitable.”

To set the scene for the key policy issues ahead, Rabobank’s Michael Harvey presented the Markets PAG with the outlook for 2016-17. PAG Chair, Adam
Jenkins, said addressing technical barriers to trade will continue to be a focus of the Markets PAG this year.

On the natural resources front, the Natural Resource Management PAG discussed key issues for the year ahead. A focus of the meeting was the industry’s
climate change policy, with discussions at the meeting engaging both the Climate Change Authority and Minister for Environment, Greg Hunt’s office
respectively.

Water policy will also remain a major focus for 2016. PAG Chair, Daryl Hoey said 2016 is ‘crunch time’ for the Murray Darling Basin Plan.

“Despite the challenges it is faced with, the Murray Darling Basin is a region filled with opportunity for Australian dairy,” Mr Hoey said.

“We need the government to make sound, well-considered decisions to ensure the viability of dairy businesses in this region can continue long into
the future. This remains a top priority for the Natural Resources PAG for the year ahead.”
ADF has five policy focus areas, each with a dedicated PAG comprised of elected farmer members. These groups are led by a farmer appointed Chair, working
in collaboration with ADF policy officers to discuss priorities and strategic direction.

PAGs recommend policy settings to ADF via the National Council and also act in an advisory capacity providing feedback to Dairy Australia, state dairy
farmer organisations (SDFOs), and other bodies like the National Farmers Federation and the Australian Dairy Products Federation.
Stay tuned to the ADF Update for more information about ADF’s PAG meetings as they roll out over 2016.

After extensive lobbying against the proposed ‘backpacker tax’ and significant concern as to its effect on Australian agriculture, the Federal Government

has undertaken a review of the measure in consultation with affected stakeholders, including ADF.

ADF representatives joined industry partners including the National Farmers’ Federation at a consultation meeting in Sydney on 21 March.

ADF President, Simone Jolliffe said the meeting acknowledged deep concerns across the agriculture sector surrounding the impact of the tax on rural and
regional Australia.

“By undertaking this review of the tax the government has recognised our concerns that the backpacker tax could have an adverse effect on our industry’s
access to a secure and reliable alternative workforce,” Mrs Jolliffe said.

“We believe it is reasonable for backpackers to pay some tax, but the government’s 32.5c tax is too high and will deter backpackers from travelling to
Australia. We look forward to ongoing consultation with government to find a solution that ensures dairy farmers can operate productive and profitable
businesses.”

For further information on the proposed backpacker tax see here.

The announcement in March 2016 of an ‘effects test’ will strengthen competition across the grocery supply chain. ADF has advocated strongly for the change
since 2011, which will be included in section 46 of the Competition and Consumer Act 2010.

The provision will be a further tool to help the Australian Competition and Consumer Commission (ACCC) address the current unequal distribution of market
power and encourage transparency to the benefit of producers, consumers and retailers.
ADF President, Simone Jolliffe said she looked forward to working with the government to ensure that the legislation prevents firms with significant market
power from engaging in conduct that has the purpose, effect or likely effect of substantially lessening competition.
“The effects test is another tool to help provide integrity and transparency regarding the impact of retailer actions on suppliers,” Mrs Jolliffe said.
“In conjunction with the government’s introduction of the Food and Grocery Code, which included a large number of ADF’s recommendations, this is a constructive
step toward fostering a more competitive business environment.”
“Further, the appointment of Mick Keogh OAM as the ACCC’s first Agricultural Commissioner and an Agricultural Engagement and Enforcement Unit, highlights
that the government is committed to strengthening competition across the supply chain.”
Mrs Jolliffe said the reforms will support consumers’ interests as well as dairy farmers.
“Moving toward a more objective measure to assess the impact of anti-competitive behaviour will build a more open and transparent marketplace.”

ADF is hopeful that this will assist in preventing damaging practices, including predatory pricing in future.
ADF thanked the Prime Minister, Deputy Prime Minister, the Treasurer, the Minister for Small Business and the National Party for their strong support and
action on this important reform.

 

Dairy farmers know that providing a safe, nutritious product starts and ends with caring for cows and their calves. This includes providing them a healthy
diet, regular medical care and the right living conditions.

Part of keeping dairy cows and calves healthy involves separating calves from cows within their first 12 to 24 hours. This is to ensure the calves receive
adequate colostrum, are protected from illnesses, which can be spread by manure from adult cows for example.
Once removed from the cow, calves are raised under shelter with suitable bedding in a clean, safe and warm environment.
In cattle the placenta of the cow keeps the maternal blood supply separate from that of the unborn calf. This prevents the transfer of antibodies from
the cow to the calf before birth. For this reason, the calf is born with limited ability to fight disease.
By bringing the calves indoors, the farmer can make sure they receive at least two litres of colostrum at the first feed and another two litres within
the first 24 hours of life. This ensure the calf can build its immunity. Calves left to suckle are less likely to build up their immunity.
Individual care is the key to a healthy and content calf.
Although many dairy farmers would like to raise male calves on farm, there are currently very limited alternative markets to sell the male calves to. The
most common option for farmers, is to sell them as ‘bobby calves’ between 5 and 30 days of age. Another option is to rear the calves and sell them
as dairy-beef. This option requires significant investment by farmers with the need to provide additional housing, feed and labour.
Our industry is always searching for alternatives, including through sexed-semen to reduce the number of male calves born but this does mean we need to
have a market for the additional female calves. Further, we continue to explore market options for the sale of male calves.
Dairy farmers and the dairy industry understand that the practice of killing calves for the dairy-beef market is confronting. We take care of all animals
on-farm to the best of our ability and in line with best practice; no calf is ever treated as a low-value by-product. Once calves leave the farm, we
expect that they will be cared for and treated in a humane way.
The Australian dairy industry supports the draft Australian Animal Welfare Standards and Guidelines for Cattle as well as the Land Transport Standards and Guidelines.
These were developed in partnership with animal welfare groups and Government, and provide industry with clear animal health and welfare standards.
The dairy industry expects that all persons managing livestock abide by these standards and it is committed to working with farmers to ensure best practice
is observed on farm.
ADF, in collaboration with Dairy Australia, and other industry partners continues to work closely with transporters and the meat industry to ensure our
cows and calves are well looked after. We also continue to work with industry, Government and animal welfare groups such as the RSPCA to ensure the
wellbeing of our herds in all farming systems.
For further information on the Animal Health and Welfare Standards and Guidelines, click here. To view the publication, “Rearing Healthy Calves – How to raise calves that thrive”, click
here.

The Dairy Levy Poll process is set to be streamlined following the passing of legislation in March 2016 to alter review procedures while retaining
a strong democratic process for farmers.

The passage of the Bill provides certainty around the process for the 2017 levy review process and future reviews. Australian Dairy Farmers (ADF) has
welcomed the passage of the Bill, re-emphasising that this is not about removing Dairy Australia from scrutiny, but instead about streamlining
the process and making sure every levy dollar invested delivers value back to farmers.

ADF thanked the Minister for Agriculture and Water Resources, the Hon. Barnaby Joyce and the Department of Agriculture for championing the Bill on
behalf of dairy farmers, who voted to make the changes to the process in November 2015.

The changes mean that instead of a mandatory poll, every five years, an industry advisory committee will review whether there is a need to change the
levy or conduct a poll. If no change in the levy is recommended, there will not be a poll. However, a poll must be held if it is recommended there
be a change in the levy.

The changes also provide a mechanism to allow dairy farmers to request a poll with the support of at least 15 per cent of levy votes.

Now that the legislation is passed ADF will oversee the development of more in-depth procedures for the revised process.

For further information regarding the Dairy Levy Poll process review, visit www.dairylevypollreview.com.au

There is a rising demand worldwide for companies and industries to meet the needs of people today without compromising the ability of future generations
to meet their needs.

Australia’s dairy farmers and manufacturers are proud to be part of a global movement which aspires to meet this demand, whatever understanding people
have of sustainability.

One of the ways we demonstrate our whole-of-industry commitment to increasing prosperity for industry and communities, our care for people and animals,
and minimising our environmental footprint is through the Australian Dairy Industry Sustainability Framework.

Established in 2012 to help guide Australian improvement against 11 targets and 41 performance measures the Framework is lead by the Australian Dairy Industry
Council, managed by an industry Steering Committee, and supported by Dairy Australia.

Our 2015 Progress Report shows our improvement, but also our challenges. During 2015 there were several
areas of improvement including:

• The industry’s efforts in helping the Government to secure Free Trade Agreements with China, Japan and Korea, will help increase our competitiveness
  and profitability;

• The intensity of waste sent to landfill by manufacturers, which has dropped 46% since 2011, exceeding the target for 2020 several years ahead of schedule;

• The proportion of farmers with nutrient management plans, which at 58% is on-track to achieve the 2020 target of 80%, having almost doubled since 2013;
  and

• The reduction in the use of routine calving induction – 88% of farmers do not use it compared to 80% in 2014.

Although we made good progress against some targets, there are others where more progress is needed, such as increasing the proportion of dairy farmers
who are aware of, and implement, the recently agreed (January 2016) standards and guidelines for animal welfare. Currently, awareness stands at 56%
and our target for 2020 is 100%.

There are other areas where the industry’s performance has declined, such as the proportion of people who recognise dairy as a quality product, which slipped
to 69% from a baseline of 72% (the 2020 target is 80%).

To ensure our industry remains current, relevant and accountable in the context of changing global and domestic conditions and expectations, a review of
all the targets, indicators and performance measures in the Framework will be undertaken during 2016.

The review will take into consideration a broad range of emerging issues, stakeholder views, industry priorities, political agendas and global trends.

The ADIC is excited to share our progress thus far – it demonstrates just how powerful dairy can be when the whole supply chain works together toward its
common goals.

We encourage you to take the time to have a look at the key areas that interest you in the online report and look forward to hearing your thoughts.

A snapshot of the Australia dairy industry and our sustainability progress…

Looking for a way to build your leadership capabilities in preparation for further involvement with the industry, and your community? The Emerging Dairy Leaders Program (EDLP) could be the perfect opportunity for you.

The recently announced EDLP provides an outstanding opportunity for potential and current leaders across the sector to build their leadership skills and
capacity to contribute to development of the Australian dairy community.
Australian Dairy Farmers and Dairy Australia have established the program to invest in the development of the industry’s people by further expanding on
existing leadership programs available. 

The program will run over the course of a year, commencing April 26 and concluding April 2017 in Adelaide. The aim of the EDLP is to help emerging leaders
to better understand themselves and others and therefore how to improve their communication skills and teamwork.
The program will feature a variety of learning and networking opportunities—including exposure to leaders and experts as well as challenging assignments.
This provides a rich development experience with long-lasting practical outcomes for participants and the community.
Participants in the program will earn a Diploma of Agribusiness Management from the National Centre for Dairy Education/TAFESA using a variety of learning
tools such as online self-paced study, webinars, peer discussion, workplace and mentor discussions. The EDLP participants will also be eligible to
take part in the Developing Dairy Leaders Program afterward if interested.

All costs associated with education enrollment, travel, accommodation and meals while away from home will be covered by the program.
To apply or for further information head to the People in Dairy website or contract Program Coordinator,
Karen Conrad via 0488 099 891. Applications open on Thursday 10 March 2016 and close on Monday 28 March 2016.