Farmers and their advisors have been eagerly awaiting the release of the latest Genetic Progress Reports which now include trends for the Balanced Performance
Index (BPI).

This handy tool enables dairy farmers to track the impact of breeding decisions and changes in their herd’s genetic merit over time.

Developed by the Australian Dairy Herd Improvement Scheme (ADHIS), the Genetic Progress Report also allows dairy farmers to compare their herd’s genetic
merit with the average and top 10% of their breed in the country.

The report includes a summary of 10-year trends, including traits that have improved, remained stable and reduced in the herd. It also includes indicators
of the herd’s genetic merit for profitability and its rank out of all Australian herd recorded herds for the breed.

Seven graphs track changes in the herd’s genetic changes since 2004 for profit, type, longevity, mastitis resistance, fertility, protein and fat. Further
graphs for Health Weighted Index (HWI) and Type Weighted Index (TWI) are expected in August 2015.

Micelle Axford, ADHIS extension manager, said farmers were using the report to identify breeding areas that have performed well and those they wish to
improve.

Once they have identified the traits they want to improve through breeding, The Good Bulls Guide can be used to identify suitable sires.

“The report is generated from herd test data, so it is available to any farmers who herd record. There’s no need to supply extra information. Just request
a Genetic Progress Report from your herd test centre or view it on your tablet using Mistro Web,” Ms Axford said.

For more information contact Michelle Axford 0427 573 330 maxford@adhis.com.au.

An example BPI graph now available in the new Genetic Progress Reports.

Foreign investment has historically been an important source of support for the Australian dairy sector. The dairy industry is strongly supportive of all
investment, foreign and domestic, that helps the industry grow and prosper provided it adheres to the same regulations.

On 1 March 2015, the Federal Government announced a reduction to the screening threshold for agricultural land from AU$252 million to AU$15 million. The
new threshold will include the cumulative value of agricultural land owned by the investor and the purposed purchase. An AU$55 million threshold for
investments in agribusiness will be introduced 1 December 2015.

A step towards a register of foreign owned farmland is also underway, with the Australian Tax Office (ATO) collecting information on all foreign purchases,
regardless of size from 1 July 2015. The ATO will also be auditing existing ownership of agricultural land by foreign investors to gain further insights
into the investment landscape.

ADF President, Noel Campbell said the register would help increase transparency and give industry a better idea of what foreign investment really looks
like in the dairy sector.

“The register is sound policy and will hopefully provide credible land ownership data to give us a comprehensive landscape of investment in agriculture
across Australia,” Mr Campbell said.

ADF supports the government’s recent initiatives to improve the robustness of the investment landscape in Australia which recognise the important role
of our global partners in helping the dairy industry to grow and strengthen.

After extensive consultation with dairy farmers, industry and veterinary experts, Australian Dairy Farmers (ADF) have agreed to adopt a new policy, which
will see the phase out of routine calving induction nationally.

Calving induction is used as a management tool on a declining proportion of Australian dairy farms. For some farmers, it provides a way of ensuring as
many animals as possible are milking at similar times.

Earlier this year, over 35 industry stakeholders, the majority of whom were dairy farmers as well as veterinarians, met to discuss and develop a national
policy recommendation regarding calving induction. Following the industry forum the ADF National Council met and agreed to modify ADF’s policy position
to the following:

“ADF does not support routine calving induction and will work to phase it out through improved herd improvement practices, tools and technologies.”

The dairy industry’s breeding programs such as InCalf and the improvement of fertility by genetic selection are making a difference and the use of calving
induction is reducing. In 2014, fewer than 2% of the national herd were induced (approximately 24,000 cows) and the industry is now working to reduce
the need to use this management tool even further.

A Steering Group, including dairy farmers, representatives from the Australian Cattle Veterinarians, Dairy Australia and ADF, was established to develop
an action plan. The Steering Group has met twice; developing communications and data collection materials that have been distributed to cattle veterinarians
to help progress the phasing out process.

The industry is liaising with counterparts in New Zealand to understand and learn from their approach; in particular the setting of annual limits with
certain exemptions.

A particular concern raised at the industry forum, was the use of late calving induction. ADF is aware that several veterinary practices no longer conduct
late calving inductions, as they provide no reproductive benefit and should not be performed. Early pregnancy testing is required by these practices
to make sure late inductions are not occurring.

ADF is working with farmers, veterinarians, state dairy farmer organisations and other stakeholders, to ensure the phase out works for both animals and
farmers. ADF will continue to consult with industry and farmers and is committed to ensuring that the timing, process and outcomes are right for all
involved.

Caring for cows has always been a key priority for Australian dairy farmers – they are dedicated to providing a high standard of care for their animals,
and to change their practices when in the best interests of their livestock.

A new report on the Australian dairy industry has identified efficient input use, strict cost control and sound management skills as the key areas of focus
that can help all dairy farmers achieve better profits.

Commissioned by the Australian Dairy Industry Council (ADIC) and produced by Dairy Australia, the Sustainable Farm Profitability Report examines farm business profitability, pinpointing key drivers of successful dairying businesses and highlighting long-term strategies for success within
farmers’ control.

Launching the report on Gippsland farmers’ Aubrey Pellet and Jaqui Morrison’s property on Friday July 3, ADIC Chair, Noel Campbell said that by benchmarking
profitable and less profitable farms against one another the report would help identify areas for improvement on farm.

“Farmers may not be able to control the hike of electricity, fertiliser and fuel costs, which continue to squeeze margins,” Mr Campbell said.

“We can however control how well we use these inputs to control the costs which have a major influence on their bottom line.”

Macro drivers outside the farmer’s control, such as weather events, milk price volatility and government policy are put aside to provide a focus on the
aspects of tactical efficiency, management capability and tactical flexibility decisions that farmers can make, to deal with risk and volatility.

Focusing on these elements under farmers’ control, the report highlights that every operation, big or small, has areas where it can improve to safeguard
its profitability. No two of these farms are the same, which is why there is no “silver bullet approach” to profitable dairy farming.

Mr Campbell said that by using the resource document of tactical, strategic management guidance in conjunction with other resources, such as the new
DairyBase tool from Dairy Australia, it was hoped that farm profitability could be lifted across the board.

Victorian Parliamentary Secretary for Treasury and Finance, the Hon. Daniel Mulino MP, officially representing Minister for Agriculture the Hon. Jaala
Pulford at the event said that Government was keen to work with industry to ensure the future sustainability and profitability of the industry.

“We are committed to working with Australian Dairy Farmers, Dairy Australia and key dairy stakeholders to ensure this critical industry is focused on sustainable,
profitable growth, and that farmers are supported to better understand their financial situation and to build financial flexibility to deal with volatility.”

To read the full Sustainable Farm Profitability Report click here.

 ADIC Chair, Noel Campbell with Vic Parliamentary Sec. For Finance and Treasury, Daniel Mulino, Federal Member for MacMillan, Russel Broadbent,
Baw Baw Shire Council Member, David Balfour and Director of Gardiner Foundation, Bruce Kefford. Photo courtesy of Jeanette Severs.

Australian Dairy Farmers (ADF) is excited to attend the WAFarmers Annual Dairy Conference
in Busselton on 28 July, to address key challenges facing the Australian dairy sector. Dairy industry representatives are invited to join agribusiness
leaders to discuss everything from innovative technologies on farm to the importance of wellbeing for everyone on farm.

ADF Director, Simone Jolliffe will present at the conference, exploring how the successful conclusion of several key trading agreements with Asia will
open up new opportunities for dairy, as well as the broader agricultural sector, and how best to take full advantage of them.

For more information and to register, visit http://www.wafarmers.org.au/events/wafarmers-annual-dairy-conference/ .

The much-anticipated Agricultural Competitiveness White Paper released on Saturday 4 July on Australian Dairy Farmers (ADF) National Councillor, Roma Britnell’s dairy farm in Victoria has delivered key initiatives
which mark a positive step toward delivering higher productivity and profitability for Australian dairy.

Key benefits for dairy farmers which have been championed by ADF as part of the Australian Dairy Industry Council (ADIC) include increased funding for
Agricultural Counsellors abroad to address technical barriers to trade in overseas markets; improved flexibility of Farm Management Deposits and investment
in establishing agricultural expertise in the provision of an Agricultural Commissioner for the Australian Competition and Consumer Commission (ACCC).

“We are pleased to see that key points of the ADIC’s recommendations to the Green Paper have been taken on board,” ADIC Chair, Noel Campbell said.

“In particular, the provision of $11.4 million over four years toward boosting ACCC engagement with agriculture, including an ACCC Agriculture Commissioner,
will aid in fostering a stronger business environment throughout the supply chain.”

The ADIC submissions to the issues and green papers covered all aspects of agricultural policy with a particular focus on the following key areas:

• Continued support for research, development and extension projects;
• Overseas trade market access;
• Strengthening competition laws;
• Improving skilled labour availability.

The Government’s enhanced commitment to research, development and extension projects with a focus on innovation and risk management was also welcomed by
the ADIC. The commitment of $200 million to improve biosecurity surveillance and analysis nationally will also play an essential role in creating a
more durable, profitable and competitive dairy industry.

Additionally, the Government’s confirmation for water efficiency projects combined with improving existing water infrastructure and developing new infrastructure
is positive. Increased support for these initiatives was a key recommendation in the ADIC’s submission to the Green Paper.

Mr Campbell said that the ADIC is committed to working with Government to see swift implementation of the initiatives delivered in the White Paper.

“The White Paper points us in the right direction in terms of where we want to go and as an industry we now look forward to working with Government to
ensure that these initiatives translate into real outcomes for dairy.”

Click here to view the ADIC’s submission to the Agricultural Competitiveness Green Paper.

On 30 June 2015, the Australian Senate Rural and Regional Affairs and Transport References Committee released its report
on the Australian agricultural levy system.

The report titled, “The industry structures and systems governing the imposition of and disbursement of marketing and research and development (R&D)
levies in the agriculture sector” endorsed the current model of Rural Research and Development Corporations (RDCs) as well as suggesting improvements
to current operating processes.

The Australian Dairy Industry Council (ADIC) submission into the inquiry advocated in support of the (RDCs) model and the opportunities for dairy farmers
provided by Dairy Australia (DA). Whilst the ADIC considers that the Levy Poll framework provides an important opportunity for DA to talk to levy payers
about their levy investment, it was also acknowledged that there is scope to improve the effectiveness and efficiency of the process.

The diversity across the various commodities subject to levies was recognised by the report, as was the need for each industry to determine their own method
of consultation and changes to the levy poll process.

Key points for dairy:

• The report emphasizes that levy payers should be able to trace their levy payment to investment and return, and be able to have their say on investment
  of their levy.
• The report notes that dairy currently undertakes a levy poll in order to change the levy rate, however it does not support such a poll for every industry,
  nor does it state that a levy is not an appropriate method.
• The role of industry representative bodies, such as ADF, in the levy system is endorsed noting that peak industry groups play an essential role in
  providing opportunities for levy payers to influence investment decisions.
• The report finds that the method of consultation is currently a burden on time, resources and industry and therefore should be streamlined.
• The report emphasizes the importance of having a levy payer database as crucial for the system and engagement with levy payers.
• The report does not conflict with where the DA levy poll review process is heading.

Overall the report has reaffirmed the importance of Australia’s Agricultural R&D levy system as crucial to the continued sustainable growth of the
Australian dairy industry. The report highlights that there are always improvements to be made which will provide farmers with greater returns on their
levy investments, while not recommending any substantial changes to the existing arrangement for dairy.

The Government will next formally consider the report and provide its response. For more information and to download a copy of the ADIC’s submission,
click here.

The news that the Department of Environment will remove unnecessary audit requirements from the On-Farm Irrigation Efficiency Programme (OFIEP) has been
warmly welcomed by Australian Dairy Farmers (ADF). The relaxation of the requirements, which ADF has been advocating for well over 12 months, will
save programme participants in the southern-connected region of the Murray Darling Basin significant time, money and stress.

The Australian Dairy Industry Council (ADIC) is extremely concerned about the Victorian Government proposal to increase rent of stevedoring facilities
at the Port of Melbourne (PoM). The size of the reported increase will have a large and disproportionate impact on the dairy industry, including both
dairy farmers and companies that export product through the port.

The 2015 Federal Budget announced on 12 May, delivered modest gains for agriculture. With initiatives aimed at supporting rural and small businesses such
as tax breaks for those with annual turnover under $2 million, social and community support services for rural Australians, and drought relief assistance,
dairy came out slightly better off than the year before.

Whether at the farm gate or in the board room, stopping to take stock, acknowledge success and identify areas for improvement is essential
to ensuring any good business remains on track to deliver desired outcomes.

Australia’s top dairy herds based on genetic merit have been announced by the Australian Dairy Herd Improvement Scheme (ADHIS).