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.

Dairy Australia Program Manager Suzi O’Dell hoped the search for a national “Legendairy Capital” would get some attention, but she never imagined
the amount of interest the initiative has generated.

“We’ve received 104 nominations from communities throughout the country’s eight dairying regions; media interest in the program has been massive and has
reached a massive audience,” she said.

The Legendairy Capital program was launched in April this year as an initiative to put rural and remote communities on the map, get people thinking
about how dairy has played a part in shaping their community and nominate a project that will benefit them as a group.

“It’s been great to see communities getting behind the concept and sending in some excellent nominations,” Suzi said.

“We don’t hear enough about the community spirit that is such an integral part of Australia’s dairy sector. Celebrating towns that have endured and thrived
throughout the years sits at the heart of the program,” she added.

The program will see one successful town from each of Australia’s eight dairy farming regions receive a $2500 grant to invest in a community project.
One of those eight towns will then go on to receive the coveted title of Australia’s Legendairy Capital 2015, as well as a further $7500 for
their nominated community project.

Nominations will be assessed by independent members of various dairy farmer representative groups and industry bodies in each state, with the grants administered
by the Foundation for Rural and Regional Renewal (FRRR), on behalf of Dairy Australia.

Australia’s Legendairy Capital 2015 will be announced in September and will become a bi-annual program sitting in the Farmer Communications and
Engagement Program in Industry Promotion and Product Innovation.

For more information on the Legendairy Capital project go to www.legendairy.com.au

Comboyne, NSW is one of eight Legendairy Capital finalists for 2015.

The
Australian dairy industry has historically managed price volatility, global supply and demand issues and the fluctuations of the Australian dollar
to good effect, maintaining international competitiveness, innovation and resilience to market volatility.

While we’re in volatile times, there is a lot more to be factored into the market in the next few months. Rather than panic, we need to ensure we are prepared
for the short term difficulties facing us and remember that the long-term outlook for dairy is positive, despite current market volatility.

Industry needs to work to its strengths as a cost-efficient milk producer of quality dairy products in order to face the expected challenges. Within the
industry there are considerable resources and work being applied to help dairy farmers confront the volatility challenge. Australian Dairy Farmers
(ADF) is working in partnership across the industry and with government to undertake work and analysis to support Australian dairy farmers in their
decision making.

It is reasonable to ask why up until now the Australian dairy industry has not been affected to the same degree as New Zealand. Unlike New Zealand Australia
has more the 50 percent of its production consumed domestically. This provides a dampening effect on the downward trend of international markets on
farm gate pricing. Our product mix has also allowed for the pricing trends to be less severe. However, there is no doubt that this international pricing
impact is placing downward pressure on expected farm gate pricing that was not even seen two to three months ago.

Those farmers who supply processors that are uncontracted and exposed to world export pricing should treat the 2015/16 season with a significant amount
of caution, understanding their underlying costs and being aware of input costs which will affect profitability.

Whether you’re a farmer, state organisation or peak body, we are all striving for the same outcome – a healthy and sustainable dairy industry. Industry
projects such as the Sustainability Framework and the Australian Dairy Vision help provide a strategy for ADF’s efforts. On this note, it is with great
pleasure that I welcome Benjamin Stapley as incoming Chief Executive Officer (CEO) of ADF. With a strong background in member advocacy, stakeholder
engagement, policy development and media management, Mr Stapley comes into the role after two years as Director of Policy and Regulation at the Plastics
and Chemicals Industries Association (PACIA).

I look forward to the fresh perspective and expertise that Ben brings to the role and along with my fellow Directors, National Council and staff look forward
to working with him to continually improve the sustainability and profitability of farmers across all dairying regions. I hope you will all join me
in welcoming Ben to our dynamic industry when he commences as CEO on 1 September 2015.

Noel Campbell

ADF President

Speaking at the annual WAFarmers’ Dairy Conference on 28 July in Busselton, ADF Director, Simone Jolliffe discussed the importance of working collectively
to achieve a more sustainable future.

“The extent to which dairy succeeds in its objectives will rely on shared leadership, with everyone in the industry recognising that their contribution
adds to the end goal.

“Don’t underestimate the value of your involvement or the many ways in which you can demonstrate leadership. Attending farmer discussion group meetings
is one way, being here and participating today is another,” Ms Jolliffe said.

With over 90 dairy farmers, processors and industry stakeholders gathered, the one-day conference was a fantastic opportunity for members and non-members
to hear from their fellow dairy farmers.

As a first generation dairy farmer at her property in Wagga Wagga, NSW as well as Deputy Chair of Dairy NSW, Ms Jolliffe said there was a need for farmers
to be proactively involved with those representing their interests.

“Farmer engagement with industry bodies responsible for setting priorities whether in advocacy or research programs is key to ensuring that our policy
settings truly reflect industry needs. If everyone takes part in identifying, owning and finding solutions to our challenges, the resulting decisions
made will inevitably be sounder.”

Speaking alongside Ms Jolliffe at the Conference was Victorian dairy farmer and horse trainer, Anne McGrath, who shared the emotional story of her family’s
challenging journey after a young farm worker was killed on their property. Telling the conference of the legal action against her family which followed
the tragedy, Ms McGrath reiterated the importance of getting farm safety right for all involved.

At the Dairy Council annual general meeting later that afternoon, President Phil Depiazzi, Senior Vice President Michael Partridge and Junior Vice
President Paul Ieraci were re-elected unopposed to their respective positions.

Dairy consultant, John Mulvany chaired the processor panel involving representatives from Brownes, Parmalat (Harvey Fresh) and Lion who discussed opportunities
for dairy to grow in future, as well as milk price challenges. The conference concluded with a wonderful gala dinner where a number of WA dairy farmers
were recognised with Dairy Australia’s Milk Quality Awards.

For more information about the event, download your copy of the conference program here.

WAFarmers’ Dairy Council’s Junior Vice President, Paul Ieraci with President, Phil Depaiazzi and Senior Vice President, Michael Partidge at the conference.

ADF Director, Simone Jolliffe speaking at the WAFarmers 2015 Dairy Conference.

The Australian Dairy Industry Council (ADIC) has reiterated its long-standing support of the 1500 gigalitre (GL) cap on buybacks in the Murray Darling
Basin Plan (MDBP) with its submission to the 2015 Water Amendment Bill last month. The Bill, which will legislate the 1500GL cap as part of the 2750GL
target under the Basin Plan, requires bipartisan support to deliver dairy farmers with much-needed certainty about future water availability to sustain
their business.

The 1500GL cap provides dairy farmers in the Murray-Darling Basin with much-needed certainty about future water availability to sustain their business.
At the same time, environmental water can continue to be recovered through water-saving infrastructure projects, which will benefit the environment,
farmers and local communities more effectively than buybacks.

However, there were aspects of the Bill that the dairy industry did not support, in particular the fact that the 1500GL buybacks cap applies only to water
recovered towards meeting the 2750GL target. Additionally, the failure to address long-standing limitations in the Water Act 2007 and the Basin Plan
in achieving the socio-economic neutrality and triple bottom line outcomes promoted so often by decision-makers is a missed opportunity.

The ADIC’s key recommendations in the submission to the Bill were to:

• Ensure that the 1500GL cap on buybacks includes the 450GL in the Water for the Environment Special Account
• Clarify that the entitlement transfer to the Commonwealth relating to infrastructure and reconfiguration for state programs are excluded in the 1500GL
  cap on buy backs.
• The Basin Plan socio-economic neutrality test should include collective impacts on irrigation districts, community and water market.
• Amend the Basin Plan to ensure that the 2750GL target is achieved first before any water recovery is counted towards the 3200GL target, and that any
  water recovered under the Special Account first covers any shortfall to the 2750GL target.
• Clarify that the 450GL “up water” is an up-to amount, not a minimum.
• Enable environmental water trading where the proceeds can be reinvested in works and activities for environmental outcomes, and to cover the Commonwealth
  Environmental Water Holder’s storage and other costs.

Bipartisan support for the legislative change remains a key priority for the ADIC, with representatives meeting with both sides of parliament to ensure
the importance of passing the 2015 Water Amendment Bill is heard and acknowledged across the board.

To see the ADIC’s submission to the 2015 Water Amendment Bill click here.

On 5 August 2015, Australian Dairy Farmers (ADF) announced the appointment
of Mr Benjamin (Ben) Stapley as its incoming Chief Executive Officer (CEO).

With a strong background in member advocacy, stakeholder engagement, policy development and media management, Mr Stapley comes into the role after two
years as Director of Policy and Regulation at the Plastics and Chemicals Industries Association (PACIA).

Mr Stapley’s expertise in developing and executing strategic advocacy and communications activities will ensure that ADF continues to be a strong advocate
for Australia’s dairy farmers. Prior engagements have included leading policy, regulatory and advocacy programs for Australia’s chemical manufacturers
and importers, and for Australia’s agricultural chemical suppliers. Mr Stapley brings particular experience in government relations with extensive
networks within the Government and bureaucracy central to ADF’s interests.

Previous roles with the Commonwealth Government saw Mr Stapley work closely with industry stakeholders to reform and streamline Australia’s management
systems for environmentally hazardous chemicals.

“ADF is pleased to welcome Ben and I, along with my fellow Directors, National Council and staff look forward to working with him to continually improve
the sustainability and profitability of farmers across all dairying regions,” ADF President, Noel Campbell said.

Mr Stapley has also attained qualifications in both Law and Architecture.

“Australia’s dairy farmers have a very bright future and I am proud to be given this opportunity to work with the ADF Board, staff and farmers to help
deliver a vibrant, profitable and sustainable dairy farming sector in Australia,” said Mr Stapley.

ADF Interim CEO Dr Clive Noble, who took on the role as a short term break from his consulting business, will continue in the position until 26 August,
and Mr Stapley will commence on 1 September 2015.

Mr Campbell thanked Dr Noble for his contribution and service to ADF during his time as Interim CEO and wished him every success in his future endeavours.

Jason and Casey Bermingham’s breeding goal has always been fairly consistent: to breed cows that will have long, productive lives in their herd. However
over the past 10 years their selection priorities have evolved as their herd develops.

The couple dairies near Maffra in East Gippsland, milking 240 cows under a pasture based system. Sixty per cent of the herd calves in spring and the rest
in autumn, averaging nearly 8,000L per cow.

A recent Genetic Progress Report on the herd helped Mr Bermingham refine his breeding priorities.

“Our report confirmed we’d made good genetic progress for production and type traits but it also highlighted the opportunity to improve on health traits
such as fertility and cell count. We had already started paying more attention to fertility but the report really brought the message home,” Mr Bermingham
said.

When the three new breeding indices became available with the April ABV release Mr Bermingham discovered that the Health Weighted Index (HWI) wa

“I know that all the bulls on the HWI list will improve overall production, with extra emphasis on fertility, cell count and feed saved and this matches
what we want to achieve in our herd,” he said.s a good reflection of his breeding priorities.

Mr Bermingham is looking forward to being able to track the impact of his breeding decisions through future Genetic Progress Reports.

“It will be really interesting to see how our herd’s genetic merit for fertility and cell count change over time in response to selecting sires on the
basis of HWI,” he said.

Mr Bermingham has welcomed the introduction of three breeding indices.

“Having three indices obviously gives dairy farmers more choice – to identify sires that more closely match their individual breeding priorities. But it
has also sparked a lot more interest and discussion about breeding priorities. It has really encouraged people to stop and think about what traits
are important for their herd and what direction they want to take their herd through breeding.”

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
, alternatively take a look at the Good Bulls Guide.

Under the Dairy Industry Template Labour Agreement, finalised with the Department of Immigration and Border Protection on 17 July 2015, dairy farmers are
now able to recruit senior farmhands from overseas on 457 Visas as well as farm managers.

Eligibility for the 457 visa was previously restricted to farm managers which the Australian and New Zealand Standard Classification of Occupations (ANZSCO)
recognises as skill level 1. Feedback indicated however that many farm employers were seeking workers with qualifications one level under management
– capable of organising day-to-day operations but not necessarily making major decisions.

The Australian dairy industry is in a position to grow substantially over the next decade to meet the burgeoning demand across Asia for high quality, safe
dairy products. Yet the industry’s capacity to increase production is fundamentally constrained by a chronic shortage of skilled labour in the Australian
pool.

Recognising this, in 2014 Dairy Australia, in collaboration with Australian Dairy Farmers (ADF) approached the Department of Immigration with the Dairy
Industry Labour Agreement Template. The agreement is designed to give farmers more options when seeking labour by expanding the eligibility criteria
for 457 visas and reducing paperwork.

Chair of ADF Policy Advisory Group in the People and Human Capacity space, John Versteden said the agreement provides another option for farmers to fill
the short term skills gap for farmhands in Australian dairy.

“The dairy industry’s most valuable asset is the people who work in it, which is why it is important to commit to attracting, retaining and developing
the most skilled labour,” Mr Versteden said.

“While our preference is always to hire Australian workers, there are not enough experienced, available farmhands to meet the demand in a growing industry.”

The industry has invested heavily in training and upskilling its workforce, including via certificate and diploma courses offered through the National
Dairy Education Centre (NCDE) since 2006. Although student numbers are steadily growing, it is still not enough to meet dairy’s growing demand for
skilled workers as production scales up to meet growing export demand.

Senior farmhands recruited under the labour agreement must have Certificate III or equivalent qualifications in addition to at least three years of recent
and relevant experience, or alternatively five years of recent and relevant experience.

You can find further information on the Dairy Industry Labour Agreement Template via http://www.thepeopleindairy.org.au/engagement-reward/contracts-and-agreements.htm

In the wake of the Maui Trans-Pacific Partnership (TPP) ministerial meetings, the Australian Dairy Industry Council (ADIC) has re-emphasised the importance
of achieving a commercially meaningful outcome for all Australian dairy producers with regards to the Trans-Pacific Partnership Agreement (TPP).

While the ADIC is disappointed that a meaningful agreement has not been reached to date, it remains hopeful that in the near future a TPP which is in the
best interests of the Australian dairy industry – and importantly the Australian community as a whole, will be completed.

The TPP is a multi-country Free Trade Agreement (FTA) currently under negotiation between Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore,
Japan, the United States, Vietnam, Mexico and Canada.

Sustained economic and population growth is driving an increase in dairy demand for the Asia-Pacific, but to take full advantage of this unprecedented
opportunity, TPP must be ambitious, comprehensive and commercially meaningful.

ADIC Chair, Noel Campbell said there is still a lot of work to be done and key dairy market access outcomes across the TPP remain unresolved.

“Major dairy players must recognise the importance of trade liberalisation and honouring previously agreed positions to advancing negotiations in a positive
manner,” Mr Campbell said.

“A commercially meaningful outcome for the TPP would provide benefits to all countries involved, their industries and consumers. Yet in order to achieve
positive results across the board all TPP nations must demonstrate a willingness to negotiate in good faith.”

Mr Campbell acknowledged the efforts of the Minister for Trade, the Hon. Andrew Robb, his staff and the team of dedicated negotiators who have worked on
its behalf.

“We will continue to promote the interests of Australian dairy as negotiations progress, and hope to see a comprehensive agreement reached in the near
future.”

The ADIC remains are committed to working Government to reach a transformative outcome that provides opportunity for its farmers and processors.

To find out more about the ADIC’s work to liberalise access to key dairy export markets see here.

The Western Victorian district dairy industry is set to be pumped full of inspiration at an event focussed on positivity and capacity building this September.

The inaugural Dairy Inspire, held in conjunction with the Milk-it-for-More workshops and Profitable Feeding Systems Expo, has been dubbed ‘Dairy’s big
day out’ and looks at filling the attending farmers and industry leaders with inspiring stories focussed on resilience, positivity, successful goal
building and strategy, market growth and essential communication tools.

Sponsored by the Gardiner Dairy Foundation and WestVic Dairy, the ‘big day out’ is aimed at giving farmers the tools to increase personal capacity and
on-farm profitability.

WestVic Dairy Executive Officer Paula Doran said the event on September 2 was firming up to be a significant event on the dairy calendar.

“It’s a mixed bag full of insights to build the skills of our farmers into the future with the over-arching theme of how to make the most of the opportunities
we have before us,” Ms Doran said.

Analyst Michael Harvey from Rabobank will speak about short term commodity insights and futurist Paul Higgins will talk about future trends for the coming
decades and beyond.

Tanami cowboy Rob Cook will talk about his near-fatal chopper crash on his remote Alice Springs property, and his journey back to life-on-the-land as a
tetraplegic, and the resilience and fighting spirit that got him there.

Ms Doran said the day celebrated the dairy industry and the drive for growth, culminating in a dinner in Camperdown that day.

For more information contact the WestVic Dairy office on (03) 5557 1000. Get your tickets here.

With the Bureau of Metrology declaring that the 2015 El Niño is strengthening, farmers are expecting lower rainfall and temperature extremes. While El
Niño cannot be guaranteed, it may be useful to put some back up plans into place.

• To ensure you are prepared for the climatic changes the El Niño may bring, it is important to sit down with someone in your family or staff to plan
  for potential drought and resource shortages, including:

• A feed budget and alternative options if fodder becomes less available
• Alternative sources of fibre to fill a shortfall in your region; and
• How a warm and dry spring could affect your operations in the longer term.

For more information about El Nino preparedness, see Dairy Australia’s Preparing for Drought and El Niño conditions webpage.