Having social licence to operate requires Australian dairy to be proactive, honest and willing to change practices. Likened to building up a bank of goodwill
and trust that can be drawn on from consumers, customers and the community when issues arise, social licence is what we continue to maintain and grow
as an industry.

At the United Dairyfarmers of Victoria’s (UDV) Annual Conference held in Melbourne on 29 April, social licence was placed at the top of the agenda and a range of issues were discussed and debated, including animal
welfare.

Victorian Farmers’ Federation (VFF) Egg Group President and established national egg wholesaler, Brian Ahmed spoke to the conference of 100 delegates about
his personal dealings with animal activism.

Mr Ahmed also spoke about the growing disconnect between rural and metropolitan communities being a reason for “big business” animal activism today, and
the importance of agricultural commodities uniting together to communicate our animal husbandry and production practices directly with the community.

“These days it is very easy for city-dwellers to assume they know everything about farming through Google…the only way we’re going to get our message
out there is by doing it ourselves.

“We need to start campaigning now by focussing on doing the ‘right thing’ and ‘proving it’ in order to change the perceptions of the community five to
10 years down the track,” Mr Ahmed said.

The Australian Livestock Exporters’ Council (ALEC) CEO, Alison Penfold also shared her industry’s
experiences with animal activism following the fallout from the ABC Four Corners feature story, “Another Bloody Business”
in 2011. Depicting disturbing animal cruelty footage captured in Indonesian abattoirs, the feature ignited public outrage and prompted the Federal
Government to place a ban on live exports to Indonesia.

Ms Penfold explained when ALEC failed to face many of the industry’s emerging issues at the time, they fell short of the Australian community’s expectations
and left them with the view the live export industry was uncaring towards the animals in its charge. However, since then ALEC has been working hard
to earn back the community’s trust.

“The biggest challenge is taking the community along with us. Transparency can be scary at times, but it is also imperative if we are to be honest with
ourselves and those around us.

“It’s so important we openly acknowledge where we are now and where we would like to be. By simply telling the positive stories, you can be accused of
‘spin doctoring’,” Ms Penfold explained.

Australian Dairy Farmers (ADF) President, Noel Campbell who also presented at the conference, spoke about phasing out calving induction as an example of
how the Australian dairy industry is proactively working to meet community expectations.

“As a farming community, we understand calving induction has played an important role in breeding management on our dairy farms, and that this enables
us to perform more efficiently. Yet it is no secret that many consumers find induction and its consequences to be unnecessary.

“The phase out of calving induction is high on ADF’s agenda and we are committed to working with farmers to help make this transition,” Mr Campbell said.

Other aspects of social licence discussed included use of genetically modified crops and mining of coal-seam gas on productive farms, which Australian Dairy Products Federation (ADPF) Executive Director, Dr Peter Stahle provided the dairy processors’ perspective on.

L-R: SADA President, David Basham, VFF Egg Group President, Brian Ahmed and UDV President, Adam Jenkins enjoying breakfast at the UDV Annual Conference.

ADF President, Noel Campbell: Working to support dairy farmers in actively phasing out calving induction .

ALEC CEO, Alison Penfold: Sharing the livestock industry’s experience with animal activism.

Since heavy rains and wild winds hit Northern New South Wales (NSW) on 21 April, flooding has significantly affected the Hunter Valley dairying region.
Now a week on from the first rain fall, recovery assistance is the primary focus.

Council assessments have commenced with the bridge that connects Torryburn Road in East Gresford having been swept away entirely, and railway lines at
Tocal severed recovery assistance is now the primary focus.

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. There
have been no reports of dairy stock loss to date.

Please see below for information on seeking flood recovery assistance:

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, including group tasks – 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).
• Report any damage to the Department of Primary Industries (DPI) via the Disaster Welfare Assistance Line (1800 018 444) or NSW Farmers’ Charlie Cull
  on (02) 9478 1066. Accurate and timely information will help the DPI 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.
• For information on available personal assistance, call the Disaster Welfare Assistance Line (1800 018 444) or click here.
• For general information on assistance that is available for natural disaster declarations, click here.
• See the NSW Farmers’ fact sheet here for further information.

*Dairy Australia together with NSW Farmers continues to coordinate the industry response.

On Wednesday 22 April the Australian Dairy Industry Council (ADIC) in partnership for the first time with leading industry super fund, Prime Super hosted
an annual Business Breakfast, themed Our Industry, Our Future: Generation Dairy.

The breakfast received an enthusiastic response, with over 100 young farmers, processors and dairy service representatives taking the opportunity to discuss
what is working well to support young peoples’ development and growth in dairy, as well as what else need to be done.

Queensland dairy farmer and former Chair of the Australian Dairy Conference 2014, Paul Roderick was the keynote speaker for the breakfast. A fifth generation
dairy farmer, Mr Roderick has been actively involved with a number of industry programs including the Young Dairy Network of Australia and firmly believes
in their worth.

Mr Roderick said that people in dairy need to focus more on ensuring the next generation has the confidence to lead their farm businesses as well as the
processing sector forward.

“What motivates and inspires confidence in people is not always a question of dollars,” he said. “It involves ensuring people in dairy are supported through
investment in up-skilling, building efficiencies into their businesses and new technology.”

Further to this, Mr Roderick said, there was a need to encourage rather than tear down leaders.

“To be a self-confessed ‘leader’ in dairy or any agricultural industry runs the risk of being cut down as a tall poppy. As naturally quite humble people,
dairy farmers can be harsh on people who do speak out. This in turn puts some people off moving into industry roles. But sometimes the right thing
to say or do may not make you popular.”

These sentiments were echoed by ADIC Chair, Noel Campbell who said that leadership is less about management and more about being an agent for change.

“We all have a role to play in leading Australian dairy toward a more sustainable, profitable future.

“The more people who get involved and contribute to important debates, the stronger our voice as a united industry will be,” Mr Campbell said.

A panel of young dairy talent followed Mr Roderick’s presentation. Comprised of Tasmanian dairyfarmer, Nick Dornauf; Victorian farmer and veterinarian,
Stuart Griffin; and Australian Dairy Herd Improvement Scheme extension officer, Sarah Saxton, the panel discussed how the current generation can get
the next generation involved in important representative and service groups.

Stuart Griffin, whose father Chris is Australian Dairy Farmers’ immediate past President, said it all came down to timing.

“As farmers we never want to do anything to the detriment of the farm, and when you consider how much time these roles can occupy, it can make you second
guess it,” Mr Griffin said.

“In truth though, there’s never a wrong time to get involved – it’s about knowing you’re supported and will have guidance along the way.”

On the heels of the event, renewed industry focus has been placed on highlighting the various pathways available to people in dairy, whether stepping up
or stepping back, and getting the current dairying generation to place more trust in their successors – an issue brought to the forefront by Mr Roderick.

“Too often in our industry the older generation struggles to let go of responsibility and put their faith in the next generation. Without a clear plan
of succession…more often than not that lack of faith can lead to the end of a farming business.”

The ADIC will continue to support and promote the continued development and prosperity of young people in dairy by addressing shortfalls in critical resourcing
and funding for services to improve education, safety and wellbeing in the dairying community.

Over the past decade, Australian dairy farms have faced many challenges to profitability. With the wide range of climatic zones, production systems, operating
structures and milk price structures – it’s no wonder there is no silver bullet to ensuring long-term farm profitability.

Following key outcomes from the 2014 Australian Dairy Farmers (ADF) National Dairy Farmers’ Summit, and earlier recommendations of the Horizon 2020 study,
the Australian Dairy Industry Council (ADIC) commissioned Dairy Australia to prepare a report on Sustainable Farm Profitability.

The report, released this month, focuses on the on-farm factors that influence individual dairy farmers’ ability to run profitable farm businesses. Macro
drivers outside of farmers’ control, such as weather events, milk price volatility and government policy, are put aside to provide a focus on the aspects
of technical efficiency, management capability, tactical flexibility, cost control and investment decisions that farmers can make to deal with risk
and volatility.

Dairy Australia’s Farm Business Capability Program Manager, Neil Lane said dairy farms are significantly more successful when farmers are good at managing
their business across the board, with a combination of technical and financial skills.

“There isn’t a one-size-fits-all approach to sustaining profitability and it can be a challenge for many individual dairy businesses, however in both good
times and bad, there are key areas that farmers can improve to better safeguard their businesses,” Mr Lane said.

Download your copy of the Sustainable Farm Profitability report, here.

On 30 March, Australian Dairy Farmers (ADF) welcomed the release of the Competition Policy Review Panel’s final report as crucial to creating a healthier, more competitive and successful market place for consumers, food suppliers and retailers.

Also known as the Harper Review, the independent policy review’s stronger focus on balancing market power between supplier and retailers has been well
received as acknowledgement of the significant input and recommendations ADF made on competition law and policy.

The Review is the first evaluation of Australia’s competition policy in 22 years and recommends strengthening provisions for abuse of market power, as
well as proposing changes to collective bargaining that will strengthen farmers’ negotiating power.

ADF President, Noel Campbell said the Review’s recommendation to re-introduce an Effects Test to measure the ‘purpose, effect or likely effect’ of retailer
actions on suppliers was particularly positive.

“We support the Panel’s recommendations to increase the focus on dealing with the current imbalance of major retailer market power, through initiatives
such as the Effects Test.

“Farmers need every opportunity to improve their negotiating power for profitability and returns at the farm-gate to be achieved,” Mr Campbell said.

Mr Campbell did however express disappointment that there was no meaningful consideration in the review of the role of a Mandatory Code of Conduct, or
the need for a Supermarket Ombudsman “with teeth” to address the issue of potential misuse of market power.

“The unequal distribution of market power means that farmers are often backed into a corner when it comes to farm-gate prices. This is a disadvantage that
is heightened due to logistical constraints in supplying perishable goods,” Mr Campbell explained.

Mr Campbell said ADF looked forward to the opportunity to respond to the Review’s recommendations to ensure that our nation’s competition legislation is
robust and able to protect our dairy farmers going forward.

“ADF will also continue to advocate as legislative amendments are developed to prevent potentially damaging situations, such as retailer predatory pricing
in future,” Mr Campbell said.

The Competition Policy Review is one of three significant developments to occur in 2015, alongside the announcement of the Competition and Consumer (Industry Codes – Food and Grocery) Regulation 2015 in March, and the Agricultural Competitiveness White Paper which is due for release later this year.

To view ADF’s submission to the Competition Policy Review,click here.

Tuesday 7 April is World Health Day and this year the World Health Organisation is
highlighting the importance of food safety with the theme: “From farm to plate, make food safe’.

It’s a theme that rings true when it comes to dairy foods.

Fact is: Australians buy a lot of dairy. According to Dairy Australia,
in 2013/2014 we each consumed around 105.7 litres of milk, 13.4 kilograms of cheese, 3.9 kilograms of butter and 7.4 kilograms of yogurt.

But, there can be a fair amount of wastage in consumer land due to how the product has been handled post-purchase.

So, in the spirit of ‘waste not, want not’ and to shine the light on dairy food safety here are a few practical hints that might come in handy:

• When the mercury’s rising, store your dairy foods in a cooler bag to transport them from the supermarket to home.
• Make the dairy cabinet your last stop on your shopping trip, adding dairy foods to your trolley just before you hit the check out.
• Check use-by dates and consider whether you can consume the food before its expiry date.
• Take a tip from the supermarkets and pack your fridge like a pro – put foods that need to be consumed sooner at the front so they are used first.
• Store milk in its original packaging – don’t transfer to glass bottles or jugs as these allow light in that can cause milk to spoil.
• Milk can be frozen and then thawed overnight in the fridge. The milk may appear slightly grainy when thawed, but a good shake will fix this.
• Butter is best purchased when required, but properly sealed it can be kept frozen for up to 12 months.
• Wrap gourmet cheeses in baking paper and place in a sealed container in the fridge to help them last longer.

Of course, despite the very best efforts we have all been faced with a favourite dairy food that is edging towards its use-by date. But don’t despair –
check out these inspirational ideas for using up left over dairy foods
from the popular Kidspot blog!

Source: LEGENDAIRY 

On 25 March, Australian Dairy Farmers (ADF) participated in the National Farmers’ Federation (NFF) Water Taskforce workshop. The agenda was focused on a discussion about the Murray-Darling Basin Plan and its measured social and economic impact on the wellbeing of
people living in the Basin area.

Access to water is important in many ways for the wellbeing of rural and regional Australians. The Murray-Darling Basin Plan is Australia’s largest water
reform in recent decades and significantly changes access to water in the Basin. Evaluating the impact of the Basin Plan is complex, particularly separating
out the impacts as a result of the Basin Plan compared to changes that would have occurred anyway.

At the workshop, the NFF Taskforce discussed the work to date in evaluating this impact with the Murray-Darling Basin Authority (MDBA) and the Department of the Environment (DoE). In addition, the survey leader of the Regional Wellbeing
Survey – undertaken by the University of Canberra, in collaboration with MDB Futures – shared preliminary findings of the 2014 Regional Wellbeing Survey,
including trends since the 2013 survey,
with the NFF Taskforce.

Among the survey findings, the Plan’s perceived impact on the Basin residents differs depending on whether they are considering the effects on their household,
community, or the Basin as a whole. The survey revealed that of the 34 per cent of the survey respondents with an interest in the Basin area; approximately
55 per cent said the Basin Plan would positively or neutrally affect the health of the environment in the Basin. In comparison, over 45 per cent said
it would negatively impact farmers in the community.

This highlights the need for balance between providing for agricultural production and the environment. It also demonstrates that reforms to water allocation
do have impacts on regional communities. Views about the social, economic and environmental impact vary significantly across different local areas.

Dairy farmer and processor national representative body, the Australian Dairy Industry Council (ADIC) continues to provide input towards the MDBA and DoE’s
monitoring and evaluation of the Basin Plan’s impact. Last year, the ADIC contributed towards the development of the MDBA Evaluation Strategy to ensure
a strong methodology and meaningful evaluation of the intended Basin Plan outcomes.

Dairy farmers have also contributed to case studies carried out in two dairy communities in 2014. Testing the impact of the Basin Plan on farmers, regional
communities and the environment is important to ensure the integrity of the Basin Plan and to inform future reviews and adjustments.

The full Regional Wellbeing Survey will be released in stages throughout 2015. The community wellbeing section is anticipated to be available in May, and the farming section – which
will include data on farm performance, development, barriers and farm exit – is expected to be available in June. The full survey will be available
later in the year.

For more information on monitoring the Basin Plan, click here.

After the recent Hepatitis A health scare through contaminated frozen berry imports, the Federal
Government has strengthened their commitment to bring changes to Country-of-Origin Labelling, or “CoOL”, laws in Australia.

While CoOL has the potential to assist consumers in deciphering the difference between products that are 100 per cent Australian-made and those containing
only some local ingredients, the new laws could have greater ramifications on the Australian dairy industry.

Below are some FAQ’s the ADF Update thought you might be interested in:

Why is CoOL important to get right for dairy?

Milk is the defining component of all dairy products and its conversion into the variety of cheeses, yoghurts, long-life milks, butter and infant formula
in Australia requires a wide range of ingredients. Often these include very low amounts of rennet, starter, cultures, yeasts, vitamins and minerals
to facilitate their functional transformation from milk into a product.

However, several of these ingredients are not produced in Australia either because the raw materials are not available, or they cannot be economically
and sustainably manufactured here. Other ingredients in dairy products are imported because of seasonality or the need for continuity of supply.

If CoOL requires that use of the term “Australian” can only apply to 100 per cent Australian content and 100 per cent Australian production, then the implication
is that only some white milks will be able to carry the Australian made label.

This would mean that most dairy products containing milk produced in Australia, by Australian dairy farmers and converted into Australian dairy products
in Australian factories, employing Australian workers would not be able to claim Australian origin.

What is important for the new CoOL laws?

The Australian Dairy Industry Council (ADIC) is lobbying Government to ensure that Australian dairy products made with Australian milk in Australian factories
can be defined as Australian products under CoOL. The design of any new CoOL laws must provide for provisions such as:

• Processing aids – minor ingredients necessary for processing should not be part of any percentage requirements relating to the significant ingredients.
• Fortification for healthy Australian communities – the addition of vitamins and minerals not made in Australia to milks or infant formulas in order
  to promote health outcomes and meet consumer demand, should not prevent Australian dairy products being labelled as such.
• Flexibility for seasonal/batch alterations – prescriptive percentages will not work when the origin of product ingredients can alter by season or even
  by batch, therefore some flexibility needs to be built into the requirements.
• Trading protection – labelling requirements need to align with international regulations and trade agreements to ensure the Australian dairy industry
  is not disadvantaged against our key competitors.

What can you do to help influence dairy’s agenda in the Government’s push for “stronger” CoOL laws?

Dairy farmers, processors and industry representatives can take part in a consultation process that the Government has commenced. This will provide an
opportunity for us to ensure that dairy’s interests are heard and considered. Click here for information about the Government’s consultation process and to register you interest.

You may also wish to write to your local MP to inform them of the industry’s requirements with CoOL. Click here for a short statement about the areas the dairy industry is seeking for Government consideration on.

On
30 March, Dr Clive Noble formally commenced his role as Australian Dairy Farmers (ADF) Acting Chief Executive Officer.

Dr Noble brings a wealth of agricultural science and research knowledge from his 32-year career with the Department of Environment and Primary Industries
(DEPI), Victoria. Spanning his time at DEPI, Dr Noble has held the position of Institute Director (Tatura), Regional Manager (Northern Irrigation Region),
Executive Director of Research and Development, Chief of Science and Technology, and Head of Strategic Partnerships.

Dr Noble has also been an active member of the Dairy Moving Forward Steering Committee between 2008-2013, providing strategic direction and support for the Australian dairy industry’s national research, development
and extension framework.

A key highlight of Dr Noble’s DEPI career included working in Tatura, Victoria for 17 years as a Scientist and Regional Manager, building new relationships
with State Government, industry, universities and individual farmers across the region. His role during this time also involved leading major departmental
responses to flood events and the largest anthrax outbreak ever recorded in Australia, in 1997.

Dr Noble said he is excited to take on the interim role at ADF and looks forward to supporting the positive work and strategic direction of Australian
dairy’s policy and advocacy representation.

“Over my career I have worked with many agricultural industries and communities. I have always been inspired by the attitude and efforts of the dairy industry
and its people.

“I feel privileged to be working with the industry and I look forward to continuing the constructive work ADF is carrying out on behalf of dairy farmers
nationally,” Dr Noble said.

Dr Noble underwent an intensive induction period with former CEO, Natalie Collard prior to her departure. Ms Collard will commence her new role at Telstra
as Corporate Affairs Manager – Victoria and Tasmania this month.

Speaking at the annual Tasmanian Dairy Conference on 26 March in Burnie, ADF President
Noel Campbell discussed the importance of the industry working together – not in silos – to achieve a stronger voice and ultimately, a more sustainable
future.

“The traditional view of leadership, where the buck stops with the person at the top does not work for our industry.

“The extent to which dairy succeeds in getting where it wants to will rely on the strength of this shared leadership,” Mr Campbell said.

The conference, in its eighth year, attracted over 200 dairy farmers, industry service providers, government and dairy organisation representatives to
discuss a range of topics, including industry outlook, future developments, farm investment, and industry sustainability and innovation.

Mr Campbell, a third-generation dairy farmer at his 470-cow dairy farm in West Gippsland, Victoria, said there was a need for farmers to be proactive in
the promotion of dairy past the farm-gate.

“The understanding about the relevance and importance of our industry has been and continues to be heard louder than ever before. And we all have a role
to play in building on this momentum; to promote the value and good practices of our industry.

“You don’t have to be an outstanding public speaker or the most experienced statesman in the room to be a strong, effective leader. What you do need is
vision, persistence and the courage to pursue your cause.

“Everyone in the dairy industry can show leadership to promote the industry… Farmers can invite people onto their farms and show them that, while we’re
not perfect, we’re committed to good practices, and building a stronger, more prosperous industry.

“The more we do this, the more value the broader dairy community will see in supporting us,” Mr Campbell said.

Speaking alongside Mr Campbell at the conference included LEGENDAIRY Ambassador, Michael Klim, Dairy Futures CRC CEO, David Nation and Dairy Australia
Managing Director, Ian Halliday. For more information about the event, download your copy of the conference program here.

In December last year, the Federal Government announced its terms of reference for the inquiry into Australia’s Workplace Relations Framework Review.

The review is being undertaken by the Productivity Commission and invites feedback on how improvements can be made to develop more, “productive, rewarding,
competitive and harmonious workplaces”, as stated by Minister for Employment, Eric Abetz.

The Issues Paper was later released in late January 2015. Australian Dairy Farmers (ADF), along with Dairy Australia, lodged a submission in March, focusing on the need for greater flexibility in the Fair Work Act.

In particular, we are seeking greater flexibility with the award system, which will help the dairy industry take full advantage of growth opportunities.
The removal of the Pastoral Award 2010’s three-hour minimum engagement, which states that staff employed on a farm must be rostered for a minimum of
three hours per shift, was cited as a strong example of the current award system’s rigidity.

At the moment, this clause has a number of negative ramifications on farm business operations as it does not acknowledge the unique workforce requirements
of the dairy industry, where cows need to be milked twice daily. As a result, the clause removes any incentives for staff to milk in a time-efficient
manner and often milkers go home early, where farmers pay for time when no work is performed.

The Productivity Commission is expected to release a draft report in July 2015. For more information about this submission, please contact ADF Policy Officer,
Kelly Im: kim@australiandairyfarmers.com.au.

The inaugural Australian Dairy Farmers (ADF) National Dairy Farmers’ Summit,
held a year ago in Melbourne on 13 March 2014, was widely declared a positive step forward for the Australian dairy industry.

Insight provided by the 150 strong industry representatives – the overwhelming majority being dairy farmers from across Australia – continues to drive
a whole-of-value-chain approach toward strategies for innovation, investment and growth.

Officially opened by Federal Minister for Agriculture, Barnaby Joyce, the Summit identified 18 future-focussed priorities.
The consistent message was that the industry’s priorities and actions should focus on delivering long-term sustainable profitability.

The outcomes of the Summit formed the basis of a mid-year Australian Dairy Industry Council (ADIC) Strategic Forum, which saw the formulation of the first
ever Australian Dairy Vision.

One year on from the Summit, Australian dairy has seen keen interest in investment from domestic and international parties, and an enthusiastic response
from the dairying community who continue to get on board to help guide and pursue change.

At the March Summit, a push for developing stronger ties with Australian dairy’s trading partners was also ranked high on the priority agenda. During 2014,
the Federal Government successfully concluded free trade agreements (FTAs) with China and Korea. Those FTAs had been avidly sought by ADIC representatives
who lobbied tirelessly over the terms of the deals with critical technical support from Dairy Australia. The industry will reap benefits for years
to come.

Another direction from the Summit was to ensure immigration laws and the pastoral awards are better matched to industry needs. This supported the ADIC’s
submissions and advocacy to Federal Government, and the reviews of skilled migration and 457 visas.

Similarly, 2014 saw major submissions to the Federal Government’s Competition Review – fighting to keep dairying’s best interests on the agenda by improving competitiveness in the domestic market, as well as to the Government’s Agricultural Competitiveness Green Paper – highlighting the priorities for Government in improving dairy’s competitiveness. The considerable body of work squarely answered one of the Summit’s
recommendations, to “pressure Government to enable agricultural prosperity”.

The Summit has driven industry focus over the last year and will continue to do so as we put the Summit priorities into action. Most importantly, it fostered
a strong sense of unity and a shared vision for Australian dairy’s future.