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Pressing pause on the Basin Plan

October 31, 2015

The Australian Dairy Industry Council’s (ADIC) has expressed concern in a submission to the
Senate Inquiry into the Murray-Darling Basin Plan, regarding the impact of the Basin Plan on dairy business viability.

In the submission the ADIC states its support for a plan with clear and appropriate targets to recover water for the environment provided farms remain
viable. So far, more than 1160GL of a possible 1500GL transferred from irrigation to the environment through buybacks.
Dairy farmer and Chair of the ADIC Water Taskforce, Daryl Hoey said in its current form the Basin Plan isn’t achieving the right balance, setting unrealistic
timelines as well as a lack of planned transition and structural adjustment.
“A significant pain of adjustment is already being felt in the dairy industry, even if no more water is transferred from the irrigation pool across
to the environment,” Mr Hoey explained.
“We can clearly see the impacts on dairy farming systems through exposure to higher water prices, a more volatile temporary water market; reduced viability
of some irrigation districts; and overall, difficulty in growing our milk production.”
Dairy Australia analysis indicates that, based on conservative estimates, the 120GL of high reliability water entitlements dairy farmers in the Goulburn
Murray Irrigation District sold to the Commonwealth as buybacks, could have resulted in the production of an additional 289 million litres of milk
if those entitlements were still owned. That 289 million litres of milk would be worth approximately $144 million at the Farmgate.
Farmers in the same district are now sourcing around 275 GL a year from the temporary market to meet their needs (due to reduced ownership of entitlements)
have added a cost impost of $41million at $150/ML. On 12 October 2015 temporary water was trading at $300/ML.
The ADIC is calling for Government to “press pause” on the Basin Plan to ensure it can achieve the right balance, and therefore achieve genuine outcomes.
“To get the Basin Plan back on track we need more realistic timelines and a clearer picture of socio-economic and environmental effects before more
water is taken from the irrigation pool,” Mr Hoey said.
“This includes a clearer understanding of the water market and more appropriate approach to the 450GL “upwater”. We are also seeking greater flexibility
to trade environmental water and an appropriate sustainable diversion limit adjustment mechanism.”
The ADIC has welcomed the Commonwealth Environmental Water Holder’s decision to sell 20 GL of temporary water in the Goulburn system, which will enable
more trading of temporary water. However, the ADIC said it is vital producers in the region benefit from the availability of this water through
a fair process to trading the water.
Representatives from the dairy industry are seeking to attend the Murray Darling Basin Plan Senate Inquiry hearings scheduled in November. To see the
full recommendations from the ADIC submission see http://www.australiandairyfarmers.com.au/submissions
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Stronger competition laws remain on agenda

October 30, 2015

Australian Dairy Farmers (ADF) is calling upon the Coalition Government to adopt stronger
misuse of market power laws to foster a more competitive business environment.

While some business groups have suggested that stronger laws about the misuse of market power may have negative impacts on competition and innovation,
these claims don’t withstand scrutiny.
ADF President, Noel Campbell said concerns that the introduction of an effects test could put consumers at risk were unfounded.
“These changes are about protecting consumers and competition from actions that substantially lessen competition in a market. These reforms are in
consumers’ interests,’ said Mr Campbell.
“The Harper Review made it clear, the law as it stand is inadequate. The Government must not let self-interested businesses and organisations with
excessive market share further limit competition to the detriment of consumers, farmers and the Government.”
ADF strongly supports the Harper Review’s recommendations for any updated competition and consumer law to include an effects test. ADF is advocating
for certainty that the legal process is able to provide integrity and transparency regarding the impact of retailer actions on suppliers.
Almost all OECD countries already have an ‘effects test’ within their legislative schemes and there should be no trouble in drafting an appropriate
test that protects the integrity of Australian market. ADF is hopeful that this will prevent damaging practices, including predatory pricing in
future.
Addressing the misuse of market power is crucial in determining the Australian dairy industry’s future profitability and sustainability. Farmers need
every opportunity to improve their negotiating power for profitability and returns at the farm-gate to be achieved.
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October President’s Message

October 30, 2015

After months of debate and uncertainty, on 21 October 2015 Federal Government and opposition
committed to passing the China-Australia Free Trade Agreement (ChAFTA) before the end of the year. As an industry, dairy is pleased that both sides
of politics have recognised the opportunities ChAFTA will provide Australia’s dairy industry.We welcome this collaborative, bipartisan approach to
ensure clear passage of the agreement and entry into force as soon as possible.

The Australian dairy industry is particularly well-placed to take advantage of the enormous opportunities that will flow from our historic trade deal with
China. The tariff cuts that the ChAFTA delivers once it enters into force will enhance the competitive position of Australian dairy. This is good for
growth, for jobs, for the economy and a boom for our export market.
The dairy industry, led by the Australian Dairy Industry Council (ADIC), has fought hard for ChAFTA implementation. We have lobbied Parliament, and explained
to the media that if the ChAFTA is ratified this year, the dairy industry will see a growth in job creation across the value chain, both on farm and
in processing plants. It will also see further growth in confidence to invest in productivity. ADF expects that around 600-700 jobs will be created
within the first year of ratification. The flow-on effects of this growth will undoubtedly benefit the rural and regional communities where dairy plays
an important role.
The message has clearly been received, acknowledged and acted upon. I wish to thank all of you who have taken up this fight to ensure the ChAFTA is ratified
as quickly as possible. This deal is a once-in-a-generation opportunity to grow our businesses and our communities. On behalf of our industry, I look
forward to the swift passage of the enabling legislation through Parliament so that dairy can take advantage of the financial benefits and see the
whole value chain continue to grow sustainably and profitably over time.
Noel Campbell
ADF President
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Voting for Levy Poll Process Now Open

October 30, 2015

Voting to change the levy poll process has now opened and it is time to have
YOUR say. As the dairy industry’s peak policy and advocacy group Australian Dairy Farmers (ADF) is encouraging all dairy farmers to vote yes on their
ballot papers, which were mailed last week to all dairy levy payers.

Voting yes means a Levy Poll would only be held when a change to the levy or its procedures is proposed. In short, no change, no Levy Poll.
After the last poll in 2012, the clear message from dairy farmers was that the efforts and funds dedicated towards the poll process could have been better
spent delivering dollar value to dairy farmers. The change makes complete sense, saving at least $750 000 that will be redirected to industry programs.
Dairy farmers have made it clear in regional meetings across Australia that the industry should make the change. Now, we need to ensure that the Federal
Government is confident that’s the view of levy payers by voting yes or no.
A yes vote will not remove Dairy Australia from scrutiny. Dairy Australia will still be required to undergo an independent performance review at least
every five years, which will then inform an independent committee of industry representatives on whether or not a levy poll is required. If farmers
believe a poll is necessary, there is a failsafe mechanism for a group of levy payers representing at least 15 per cent of levy votes to propose a
poll.
The Dairy Levy Poll Process ballot can be completed by post, email, fax or online at www.computershare.com.au/dairylevy2015. Voting
will remain open until midday (AEDT) Friday 27 November. For details on upcoming information sessions near you see www.dairylevypollreview.com.au
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An extra week of Artificial Insemination can be worth thousands $$$

October 28, 2015

For dairy farmers who plan on spring calving, the next few weeks are a crucial time not only
for their herds, but also for their business and profit plans, especially if they are using Artificial Insemination (AI) techniques on-farm.

Dairy Australia program manager for Genetics and Data Management Matthew Shaffer, and Michelle Axford of the Australian Dairy Herd Improvement Scheme
(ADHIS) recommend farmers ensure they have enough replacements sired by AI bulls from the Good Bulls Guide. This may mean extending their AI program
by a few days before allowing bulls into the paddock to naturally join with their cows.
“Don’t fall short with your AI program and give it that extra bit of time as the upfront costs will pay dividends for over the lifetime of the cow.
”Improving the genetics of your herd will benefit your business bottom line and ultimately your profits even when times are tight,” said Mr Shaffer.
“In 2014, for example, AI bred Australian Holsteins produced 22kg of more fat and 23kg more protein than those naturally bred creating an additional
annual production value of about $271.80 per cow.
“And that means if you have 100 more AI bred Holstein cows in your herd you can expect an extra $27,000 of production value every year,” he added.
Ms Axford said that ADHIS and NHIA research for 2014 showed the total number of herd-recorded Holstein cows in Australia was 317,290, of which about
70% are AI bred. The extra value of annual production (based on $6.04/kg MS, source Dairy Farm Monitor Project 14/15) if the other 30% of cows
were bred by AI rather than by the herd bull was approximately $25 million.
“The reason we do research on better genetics for our cows is that it produces healthier cows who produce better quality milk and make better profits
for our dairy farms,” said Ms Axford.
For more information contact Michelle Axford, ADHIS Extension and Education Manager, ph 0427 573 330 email maxford@adhis.com.au or www.adhis.com.au.
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What the TPP means for dairy

October 19, 2015

The 12 nations involved in negotiating the Trans Pacific Partnership (TPP) free trade agreement
concluded negotiations in Atlanta on Tuesday 6 October 2015, delivering modest but important gains for the Australian dairy industry.

As the whole of value chain representative body, the Australian Dairy Industry Council (ADIC) acknowledged the conclusion of the agreement as a good result
for Australian dairy farmers.
ADIC Chair, Noel Campbell said that the deal, in conjunction with the recently concluded China-Australia free trade agreement, would give farmers the confidence
that if they are going to grow their businesses there are markets to match their growth.
“As an industry our future growth will be on the export market, as domestic growth has matured. The TPP provides improved access to markets such as Japan,
where demand for our high quality, safe product is expected to increase in coming years,” Mr Campbell said.
“The industry is currently examining the agreement in its entirety to assess what the full extent of the benefits will be for Australian dairy. Early analysis
indicates however that the TPP will enable more Australian cheese to be exported to Japan tariff-free. We’ve also got greater access for butter and
skim milk powder than ever before.”
Mr Campbell said the industry appreciated the dedication of the Minister for Trade and Investment, the Hon. Andrew Robb MP and his team of negotiators,
in continuing to seek trade agreements that benefit the Australian economy.
“On behalf of the Australian dairy industry I would like to extend my thanks to Minister Robb and the Australian negotiators for maintaining strong communication
with industry throughout the TPP negotiations. They have done their utmost to balance the competing interest of industry and government across the
12 nations involved throughout a challenging process,” Mr Campbell said.
“The conclusion of the TPP continues a historic period of increased trade liberalisation over the past few years. The ADIC looks forward to reviewing the
agreement in its entirety to fully quantify the benefits for dairy.”
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World Food Day – A Day of Action Against Hunger

October 15, 2015

Friday 16 October 2015 is World Food Day – a day of action against hunger observed by more than 150 countries each year.

It is held to acknowledge the chronic hunger experienced by many, and act as a lightning rod for people to declare their commitment to eradicate hunger in our lifetime.

Globally, one in nine people – or 795 million people – are undernourished, with most living in developing countries.

Asia has the most hungry people, with two-thirds of the total, while in Sub-Saharan Africa, projections for 2014-2016 indicate a rate of undernourishment
of almost 23%.

Hunger is a growing problem in Australia too, with a rising number of low-income families struggling to afford minimum daily requirements.

Low-income families are the biggest group seeking food relief, according to Foodbank.

Foodbank is a non-denominational, non-profit organisation which connects the food industry’s surplus food with the welfare sector’s need.

Foodbank released a Hunger Report that revealed 516,000 Australians rely on food
relief from Foodbank’s agencies each month, with over one-third of recipients being children.

Australian dairy’s leading manufacturers, including Devondale Murray Goulburn, Fonterra Australia and Lion Dairy & Drinks, support Foodbank. Donations
of milk, cheese, spreads and yoghurts help make nutritious meals every day for families and school children that would otherwise miss out.

However, food insecurity in Australia is worsening, as demand for food relief outpaces supply. Each month, more than 60,000 Australians seeking food relief
are unable to be assisted.

The Sustainable Development Goals recently released by the United Nations includes a goal to
eliminate hunger by 2030.

This goal includes a target to ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and
production, as well as help maintain ecosystems.

The Australian dairy industry is committed to enhancing livelihoods and improving wellbeing, and has established an industry-wide sustainability framework to help achieve these goals.

The framework’s targets include ensuring dairy contributes to improved health outcomes for all Australians, as well as ensuring the rich source of nutrients
dairy provides continues to be produced in an environmentally sustainable way to the benefit of all.

The world does not necessarily need to produce more food to alleviate hunger. The World Food Program has stated that
hunger is entirely solvable

Instead, it needs nutritious food delivered to those missing out.

Dairy – comprising nutrients critical for growth and development – will play an important part in any solution to this problem.

Eliminating world hunger in our lifetime will require a committed approach by all and the Australian dairy industry is proud to play its part.

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Canberra celebrates dairy innovation

October 14, 2015

Over 100 parliamentarians, advisors, departmental members and industry stakeholders gathered in Canberra on Wednesday 14 October, in celebration of Australian
dairy’s innovative and dynamic value chain. Hosted by the Australian Dairy Industry Council (ADIC) the dinner centred on the theme of Australian Dairy,
Thinking Beyond the Box.

An exciting opportunity for parliamentarians and industry to discuss the role innovation plays in helping the industry grow, the event saw key agricultural
leaders including Minister for Agriculture and Water Resources, the Hon. Barnaby Joyce and Shadow Minister for Agriculture, the Hon. Joel Fitzgibbon
identify the importance of collaboration in achieving a more sustainably profitable future.
Minister Joyce said the Coalition Government shared the industry’s commitment to innovation as a way of improving dairy farmer productivity and profitability.
“Through our Agricultural Competitiveness White Paper, the Coalition Government is delivering a range of initiatives across a number of key areas to
strengthen dairying in Australia such as boosting funding for R&D, biosecurity and water infrastructure, developing more innovative and collaborative
business models for farmers and establishing an ACCC Commissioner for Agriculture.
“In addition to the White Paper measures, the conclusion of free trade deals with Korea, Japan and China, as well the recent Trans-Pacific Partnership
Agreement will help to significantly grow demand for Australian dairy products well into the future,” Minister Joyce said.
Mr Fitzgibbon commended the industry on working to progress the Dairy Industry Vision for 2025.
“Dairy is increasingly part of Australia’s economic future and it is great to join so many industry participants who share a vision for a more innovative,
efficient, and sustainably profitable sector.”
With more than $2 billion dollars invested in farm science and technologies since 1980, innovation has always been pivotal to boosting dairy’s profitability
and productivity.
ADIC Chair, Noel Campbell told guests that dairy is a dynamic and growing industry, one that more than ever needs to push boundaries.
“As an industry, dairy is working to ensure that the benefits of research, development and extension reach our whole value chain. For every dollar
that our industry invests in R,D&E our farmers and processors see three dollars in returns,” Mr Campbell said.
“Increasingly volatile market conditions, where input costs continue to go up and capital for investment is limited mean encouraging uptake of innovative
technologies is a challenge. Shared government and industry investment in R,D&E is critical to our success.”
Leaders in Australian dairy innovation, including CEO of the Dairy Futures CRC, Dr David Nation as well as dairy farmer and 2014 Nuffield Scholar,
Aubrey Pellett provided guests with insight into key advancements in dairy technology and science.
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Five new Ag Counsellors to help seize opportunity

October 11, 2015

The announcement of five new Agricultural Counsellors in overseas markets has been welcomed
by the Australian Dairy Industry Council (ADIC) as a positive step toward addressing non-tariff barriers to trade.

The ADIC has been a strong advocate for increased resources toward overcoming technical barriers to trade in overseas markets and is pleased to see the
Coalition Government’s acknowledgement of this issue.
A recent report commissioned by Dairy Australia, suggested that if the aggregated sum of all technical barriers to trade imposed by countries importing
Australian product were reduced it could benefit global dairy trade by up to $1.57 billion. This amount includes the opportunity costs resulting from
having technical barriers to trade in place as well as the potential gains from their removal.
ADIC Chair, Noel Campbell said the announcement of three new positions in Vietnam, Malaysia and the Middle East, as well as additional postings in Bangkok
and China, would help the industry make the most of recent trade agreements as well as open up access to emerging markets.
“The appointment of these Counsellors will assist Australian dairy to promote its high quality, safe product in growth markets across South East Asia,
the Middle East and of course China where there is growing interest in our products,” Mr Campbell said.
“It is also a further positive step toward addressing technical barriers to trade in international markets. The extent to which our industry is able to
seize opportunities delivered through recently completed and pending trade agreements will depend upon addressing nontariff barriers. These Counsellors
will help to improve the flow of Australian dairy products to international markets. It will also ensure that Australian dairy farmers can attain a
fair price for their product.”
The ADIC continues to work with all overseas Counsellors, in conjunction with Government to promote Australian dairy overseas and ensure improved access
to key export markets.
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No change, no levy poll – you decide

October 4, 2015

It’s three years since Australian dairy farmers last voted in a levy poll to
determine the level of contribution to Dairy Australia, the industry’s research and development body. Levy payers at that time approved the proposed
levy increase of 10 per cent, but it was clear that the process was costly and distracting.

The 2012 levy poll process included over 50 meetings, took more than 15 months to complete, and cost in excess of $750,000 in levy funds. The time and
money could have been better directed to delivering farm dollar value to dairy farmers.

In the wake of that poll, levy payers, Australian Dairy Farmers (ADF) and industry stakeholders agreed there must be a better way. The Dairy Australia
board agreed to a review that will simplify the levy poll process reduce costs and retain farmer’s rights to be consulted about changes to the levy.

The six-member independent Dairy Levy Poll Process Review Panel delivered its report earlier this year, with unanimous recommendations for a more streamlined,
cost-effective dairy levy poll process. The panel’s primary recommendation is that a poll only be conducted when a change in the levy or the levy process
is sought. In other words, “no poll if no change”.

This doesn’t mean that levy payers or industry won’t have a say. It’s also not about removing Dairy Australia from scrutiny. The report recommends a vital
“failsafe” mechanism where farmers can initiate a poll, if they believe it’s necessary.

If levy payers believe a poll is necessary, they can initiate one by bringing together a group of levy payers representing at least 15 per cent of levy votes.This would activate a Dairy Australia General Meeting where 50 per cent of voters would need to resolve to hold a poll.

The critical thing for Australia’s dairy farmers is that to move to “no poll if no change”, we need to impress on the Federal Government that this proposition
has broad industry support.

ADF is consulting with dairy levy payers, to ensure all are aware of the proposed changes and have the opportunity to make their thoughts known and have
any questions answered.

We’re asking the question of dairy farmers at field days, processor events and State Dairy Farming Organisation meetings.

Starting in October 2015 there will be a simple poll of levy payers, asking for either a “Yes” or “No” vote in support of the independent panel’s recommendation
to change the levy poll process. If the change is supported, ADF will take this endorsement to the Federal Government – specifically the Agriculture
Minister – and we could see this change legislated before the 2017 levy poll is due.

This is not about limiting scrutiny of Dairy Australia. In addition to the “failsafe” recommendation, Dairy Australia will still be subject to independent
review every five years. What we want is a sensible, cost-effective way to get the best value from the levy. Dairy farmers have that opportunity in
front of them, and it can be realised with a simple show of support, right now.

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Getting ChAFTA over the line requires united front

September 30, 2015

Getting the China-Australia Free Trade Agreement (ChAFTA) ratified will require farmers to show their communities what this opportunity means to them,
according to Australian Dairy Farmers (ADF) President, Noel Campbell.

Mr Campbell, along with representatives from the United Dairyfarmers of Victoria (UDV) and the Victorian Farmers Federation (VFF), was in Northern
Victoria as part of a Regional Roadshow which kicked off on Monday 21 September.

The industry used the roadshow to ask as many farmers as possible for their help in getting the China agreement ratified before the end of the 2015
calendar year.

“Farm lobby groups are leading the push to get the deal passed through Parliament.ADF, in collaboration with the State Dairy Farming Organisations
has been wearing a path to Canberra, lobbying both sides of parliament and the independent senators to highlight why this deal is important,” Mr
Campbell said.

“The ChAFTA is under threat. We need farmers, processors, service providers and regional communities to help us get this deal over the line before
the end of the year. We need your help to explain to your neighbours, friends and family why this deal matters for Australia.”

The regional meetings were well attended, with over 100 farmers attending for the first three events in West Victoria. Farmers from all commodities – not just dairy – attended the meetings, demonstrating that the entire farming community is well aware of what is at stake.

Tatura dairy farmer, Ingrid Tysoe said the ChAFTA was about building long term sustainable profitability.

“For farm security, things are going to be a lot better; this gives courage for us to work towards the future,” Ms Tyson said.

“I felt that the session was really informative and it’s giving us hope that the dairy industry is looking brighter for us.”

Mr Campbell told attendees that it was essential to highlight that the ChAFTA is a good deal not just for farmers but for the Australian community.

“We worked hard to get a true ‘free trade’ agreement with the ChAFTA last year. With tariffs down to zero over the next four to 11 years on dairy products,
we believe this has been achieved,” Mr Campbell said.

“The ChAFTA is a great deal for Australian dairy and a great deal for the Australian community. If ratified this year, the dairy industry alone will
see growth in job creation across the value chain. We expect that around 600-700 jobs will be created within the first year of ratification. More
dairy jobs means more vibrant, prosperous and growing rural and regional communities across all of Australia’s dairying regions.

“I urge all of you to get on board to help us ensure that this deal is implemented this year so that our industry, as well as the broader community
can start to take advantage of the benefits this deal brings.”

With meetings in Victoria to conclude on Tuesday 29 September, ADF plans to take the regional roadshow to Tasmania to spread the word about how farmers
can help get ChAFTA over the line.

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Expression of Interest for Genetics Focus Farms

September 16, 2015

A new project, ImProving Herds aims to demonstrate how innovative science, on farm testing and data driven decision-making deliver increased profits. To
achieve this a collaborative team of Australian and international dairy industry organisations and experts has united to explain existing value and
explore future services.

ImProving Herds is now recruiting 25 genetics focus farms to demonstrate the value of genetic improvement. Find out more about how you can be part
of this exciting and dynamic project here.
ImProving Herds is an innovative herd improvement RDE&E project funded by the Gardiner Foundation and supported by a range of industry organisations.
Express your interest before 30 September 2015.
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