As New Zealand (NZ) Prime Minister, John Key has reportedly been working to ensure NZ’s dairy industry receives equal benefits to our industry, it’s clear that Australia’s free trade agreement (FTA) with China has weighed up very well.

With negotiations concluded and a Declaration of Intent signed on 17 November, the China-Australia FTA has delivered a significant confidence boost to the whole dairy value chain, with the outcomes presenting real opportunities for dairy to grow and prosper.

So what does the deal promise and how does it compare to NZ’s existing FTA with China?

While the FTA is currently in its legal review phase, it has secured the following tariff outcomes:

• Elimination of the 15% tariff on infant formula over 4 years;
•  Elimination of the 10 ‐ 19% tariff on ice cream, lactose, casein and milk albumins over 4 years;
• Elimination of the 15% tariff on liquid milk over 9 years;
• Elimination of the 10 ‐ 15% tariff on cheese, butter and yogurt over 9 years; and
• Elimination of the 10% tariff on milk powders over 11 years.

In comparison to our trade deal, the China-NZ FTA contains restrictive safeguard measures on a wide range of dairy products, including liquid milk, cheese, butter and all milk powders. These safeguards or quotas mean that China raises the tariff back to the normal rate when NZ’s exports exceed a certain volume of product.

The prosperity of the Australian dairy industry is underpinned by the profitability of the cows farmers milk. New breeding indices set an exciting path for genetic improvement in Australia.

Developed by the National Breeding Objective (NBO) Task Force and driven by the Australian Dairy Improvement Scheme (ADHIS) after an extensive consultation process with dairy farmers from across all dairying regions, the NBO aims to deliver herds that the Australian dairy industry needs for the future.

Three new breeding indices will be released from April 2015. The Balanced Performance Index (BPI) will replace the Australian Profit Ranking and aims to achieve farm profit through a balance of longevity, health, type and efficient production. Two additional indices will also be introduced to align with specific breeding philosophies, namely the Health Weighted Index (HWI) and the Type Weighted Index (TWI).

Officially launched at the Australian Dairy Industry Council (ADIC) Industry Leaders’ Breakfast, ADHIS General Manager, Daniel Abernethy said the new indices are backed by strong science and are in line with farmer trait preferences.

“For the first time, farmers and their advisors directly contributed towards the NBO’s development through initiatives including Australia’s Longest Farmwalk and a sector wide survey to ensure the indices are well suited for the future needs of farmers,” Mr Abernethy said.

In another industry first, the new breeding indices now also include feed efficiency – a new trait which has been developed through ground breaking research from the Dairy Futures CRC and the Department of Environment and Primary Industries Victoria, supported by Dairy Australia and The Geoffrey Gardiner Foundation.

For more information and to download a copy of the NBO, click here.

About David

David Basham operates a 380 cow dairy farm with his wife, Kate and two daughters. Their property is located in Mount Compass, 65 kilometres south of Adelaide, on the Fleurieu Peninsular in South Australia (SA). David’s family has been milking cows for more than 120 years.

David is the President of the South Australian Dairyfarmers’ Association (SADA) in a role he has held since August 2005. SADA is a membership organisation that advocates and develops policies to benefit SA dairy farmers.

David has been instrumental in the development of a new brand of fresh milk, SADA Fresh, being sold in one of his state’s major retail supermarkets to generate funds for SA industry development.

Growing up in a family that has been dairy farming for over 120 years, what does dairy mean to you?

Dairy has been the lifeblood of our family. I’ve had a long history of family involvement, particularly in leadership positions, where my father was Vice President of the SADA back in the 80s and my grandfather was also passionately involved in many sectors of the industry. The dairy industry is certainly something that is in my blood to be involved in and help make a difference for.

You have been an active leader in the dairy industry for almost 10 years, what does your position on the ADF Board mean to you personally?

I am a re-appointed Director, having served almost six years in the position in the previous form of the Board. Getting involved back on a national level is vital to developing the relationships that are required at a Federal basis for connecting ADF with Dairy Australia (DA) and Government. I believe the techniques I’ve developed over the years will help to strengthen the whole industry.

What importance do you place on engaging with all sectors in the industry, including building strong relationships with Government?

Building on strong relationships with politicians and their advisors is essential. Not necessarily when you want something, but actually when you don’t want something! Meeting and talking with them on an ongoing basis is essential to building up goodwill. The important thing about relationships with Government is being able to make that phone call when you need to make that phone call – having the phone number and access is so important.

With other stakeholders, it’s so important to develop and strengthen those relationships to make sure that there is nothing in the industry that could potentially blindsides us. We need to work as a cohesive group to develop a good industry.

Animal Health and Welfare is a policy area you are passionate about, do you think the industry is being proactive enough in addressing its issues? How do you think we can improve this?

It’s a very hard space to be more proactive than we have been. It would be nice if we could, however the problem is, we have to be able to bring the industry along with us.

We’ve seen in New Zealand for example, a few years ago when they tried to ban calving induction and they did not have the support from the industry to do so. It led to enormous issues of managing the situation.

When we make significant changes to policy, particularly in the animal health and welfare space, we need to be able to bring the majority of the industry with us. There will always be those that want to make us move faster, but the difficulty is bringing the majority.

If there is one policy issue you would like to see ADF focus its advocacy efforts on in 2015, what would it be and why?

I think there are a lot of areas we need to look at in the animal health and welfare space to ensure we are constantly monitoring it. But I think we also need to look at issues that prohibit or restrict our ability to use new technologies. We need to make sure we can convince the consumer, Government and others that they are safe tools and practices that we, as dairy farmers, should be allowed to use.

You’re interstate a lot with work, how do you manage running a dairy farm, being a husband and a father, as well as an industry leader?

It is a big challenge at times. Running the farm is the easier side of things – I have two great staff who are very reliable, that carry out the day-to-day farm work. Over time, I’ve become a very good manager over the phone.

Probably the harder one to manage is the family side of things. Last night I missed my daughter receiving a reading award. This is an example of the difficult things I sometimes have to miss, however I try to be there as much as possible when I am home. Farming, to some degree, also gives you that flexibility to take a day off and go on an excursion to the zoo which may not be possible with other jobs.

We know you love swimming in bath tubs of milk, but tell us something we might not know about you…

On a personal note, I guess one thing many people don’t know about me was that I was single for a very long time and I met my wife on a winery tour, which was a complete and utter setup that I had no knowledge of. It worked quite well because within two weeks, Kate moved in to live with me!

About Tyran

Tyran Jones completed a Bachelor of Engineering and worked in that capacity, before returning to the family farm. Tyran holds a number of industry leadership positions. He is the President of the United Dairyfarmers of Victoria (UDV) and a Member of the Australian Dairy Farmers (ADF) National Council.

In addition to these advocacy roles, Tyran was a Director of The Geoffrey Gardiner Foundation, Chair of GippsDairy, and is currently a member of the industry Steering Committees which oversee critical research, development and extension (R,D & E) national programs.

Tyran is a partner in a Victorian dairy farm and is a strong advocate for agricultural innovation. He believes that the sector needs to focus on driving a profitable, growing, industry. His vision sets bold targets and mechanisms for increasing returns on assets, growing milk production, embracing new tools and technologies, and establishing Australia’s position as a key global dairy exporter.

What is one of your fondest memories growing up on your family dairy farm?

I’ve always loved feeding calves and looking after them as they grow up. Just being outside all the time with the animals, machinery and lots of room to move around remains a fond childhood memory of mine.

How has your engineering degree supported your skill set as a dairy farmer?

The degree has provided me with good, basic training for objective assessment and logical thought processes for assessing issues that arise. In other words, it’s provided a good filter for sensible decision making.

What unique qualities do you believe you have as an industry leader, and how do you think these will compliment the ADF Board?

Having grown up on a dairy farm, with a long history in the industry working in Regional Development Programs (RDPs), and research and development projects with Dairy Australia for the last 10-12 years, I have a good understanding of the structures of the industry. I also have an accurate grasp on farmer issues – particularly around profitability and practical decision-making – and I feel I understand the industry from top-to-bottom fairly well.

Part of your vision is to embrace new tools and technologies, what actions are involved in being an advocate for agricultural innovation?

We need to always, always, always place the opportunity for farmers to make milk more efficiently and more cost-effectively first. If it means we’ve got to advocate for other parts of the industry to change – such as consumers – then that’s what we need to do.

We need to tackle these technological hurdles head on, and this is absolutely the case for the bio-tech area which may offer some significant gains for farm profitability over the longer-term.

What’s one policy issue you would like to see positively resolved next year?

I would like to see genetically modified (GM) grass approved through testing and in a position where the industry as a whole, right across the supply chain, is backing the introduction of GM ryegrass. It has the potential to increase profitability and at the same time, reduce our environmental footprint. We need to be vocal and strategic about it, and to not shy away from having these debates.

Many dairy farmers know you are very proactive in the advocacy space, however can you tell us something about you we may not know?

When I have time off (and if you look at my Twitter picture), you will see that I like to ski when I’m not dairy farming, at Mount Hotham or in Canada.

Dairying duo, Lindsay and Ann Jarvis, were recognised as the first couple to receive the Australian Dairy Industry Council’s (ADIC) Outstanding Service Award (OSA) for their collective commitment to dairy at the ADIC Industry Leaders’ Breakfast, 28 November.

ADIC Chair, Noel Campbell said like many men and women who dedicate their lives, professionally and personally to dairy, the Jarvis’ are a team.

“It would be remiss to recognise the efforts of one without the other,” Mr Campbell said.

Addressing a room filled with dairy leaders from across the whole value chain, the couple said they were humbled by the award, which recognises people as the core of what makes the industry work.

“Our ability to thrive (as an industry) requires caring, co-operation, commitment, collaboration and concentration on the wellbeing of our people,” Mrs Jarvis said.

“The best genetics, soils, research breakthroughs and new markets won’t succeed unless we are all fully are committed.”

Describing their partnership as “one part dreamer, one part doer” the Jarvis’ each bring a unique approach and skill set to dairy.

Having spent 31 years as a director at Murray Goulburn, Mr Jarvis, the ‘dreamer’ of the pair has transformed the couple’s 148 year old, 280 hectare dry-land farm into a contour flood irrigation system, used his welding skills to build a swing-over herringbone dairy.

With a belief in educating and encouraging young people and, particularly, women to engage with new challenges, Mrs Jarvis, the ‘doer’ of the pair, managed the family farm and its workers while Lindsay was off farm.  Mrs Jarvis also spent seven years volunteering for the highly respected Dookie College Advisory Committee.

Actively involved in dairy organisations their whole careers, the Jarvis’ are respected members of United Dairyfarmers of Victoria, and have each received an Order of Australia for their service to the dairy industry.

The OSA award has been traditionally presented at the ADIC Dairy Industry Leaders’ Breakfast since 2006, to recognise individual Australians who, through their leadership, dedication and commitment, have provided outstanding service for the benefit of the dairy industry.

For more information about the ADIC Outstanding Service Award, click here.

Did you know that there are 15 agricultural Research and Development Corporations (RDC) in Australia, yet only two of these have regulated levy polls?

Along with the Australian Wool Innovation, Dairy Australia (DA) is bound by a five-year levy review cycle to ensure that dairy farmers have a say towards
the amount they pay for their research, development and extension (R,D&E) levy and how it is spent.

In response to the Senate Inquiry into the system for agricultural R,D&E levies , the Australian Dairy Industry Council (ADIC) has made a submission
in support of the RDC model and the opportunities for dairy farmers provided by 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,
there is scope to improve the effectiveness and efficiency of the process.

Suggestions the ADIC puts forward to the Inquiry include streamlining the Levy Poll consultation approach, for example through more tailored consultation,
use of industry networks, and increased use of technology; improving engagement with farmers about the DA investment throughout the five-year period,
not just at the time of the levy poll; as well as, improving the information to demonstrate the returns to farmers from their levy investment.

As subsidiaries of the ADIC, the role of Australian Dairy Farmers (ADF) and the Australian Dairy Products Federation (ADPF) in R,D&E investment
is to represent levy payers by working with DA to drive the development of strategies, highlighting priority investment areas and ensuring tangible
benefits reach the dairy community.

For more information and to download a copy of the ADIC’s submission,
click here
.

Australian Dairy Farmers (ADF) today called for Expressions of Interest from ADF farmer members asking them to become part of one of the peak body’s Policy
Advisory Groups (PAGs).

Expressions of interest close on 30 January 2015 and can be accessed via the ADF website.

PAGs play a key role in setting business objectives for industry and driving policy formulation. They help to ensure dairy interests are properly represented
at a domestic and international level.

Mr Noel Campbell, President of ADF, said the role of the PAGs was critical to policy formulation for the long-term future of dairy.

“We face many challenges as an industry and have always relied on the vision, passion and participation of people within dairy,” said Mr Campbell.

ADF PAGs recommend policy settings to the ADF via the National Council and also act in an advisory capacity providing feedback to Dairy Australia, state
dairy farmer organisations (SDFOs) and other bodies like the National Farmers Federation and the Australian Dairy Products Federation.

“PAG members have made a great contribution to dairy over the last 70 years and we want this to continue,” Mr Campbell said.

Mr Campbell said the five PAGs including: Markets, Trade and Value Chain; People and Human Capacity; Animal Health and Welfare; Farming Systems and Herd
Improvement and Natural Resources needed to be driven by farmers.

“We welcome and encourage direct involvement from dairy farmers to drive policy in the right direction,” said Mr Campbell.

PAGs are appointed by the ADF Board every year to ensure ADF business members with the right skills, talent and interest are involved.

PAGs can meet up to three times a year. There is a requirement for PAG members to attend the majority of meetings. When PAGs do meet face to face, expenses
and sitting fees are covered by ADF in line with internal policy.

Background

PAG Skills and Interest

Ideally, a PAG will have members with a specific interest in that policy area and a complementary mix of skills and experience. The ADF National Council’s
appointment of PAG members is based on assessment of each prospective PAG member and the likely contribution they will make to that policy area.

Generally PAGs will consist of six members including two to three National Councillors (some PAGs may be larger in order to accommodate members with specialist
skills).

PAG Expression of Interest Process

ADF uses an Expression of Interest (EOI) process to invite ADF business members to register interest in serving on a PAG. The EOI process seeks people
with interest and enthusiasm and a strong commitment to the policy area.

ADF business members are invited to lodge a brief statement indicating reasons for interest in the PAG and a brief summary of experience relevant to the
PAG. If a prospective PAG member is interested in joining more than one PAG, they can apply to do so.

Current PAGs will continue until positions have been ratified in the first quarter of 2015.

Download 2015 PAG Application

Officially launched by the Federal Minister for Agriculture, Barnaby Joyce in Taree, NSW, the ‘Collective Bargaining for Dairy Farmers’ guide is an easy to read document for dairy farmers interested in forming collective bargaining groups to negotiate with milk buyers.

Prepared by Dairy Australia, in conjunction with Australian Dairy Farmers (ADF), the guide aims to provide practical advice and insights for farmers looking to level the playing field between small suppliers and large milk buyers.

The guide explores the mutual benefits both dairy farmers and milk buyers can receive when collective bargaining is employed effectively. While not suitable for all, collective bargaining has the potential to deliver many benefits to dairy farmers, including supply chain efficiencies, new marketing opportunities, greater input into contractual terms and more certainty on price.

From the milk buyers end, collective bargaining can result in enhance milk quality, guaranteed year-round fresh milk supplies and improved two-way communications with the collective bargaining group. These mutual benefits show that when effectively employed, collective bargaining can be a win-win for both parties involved.

In 2011, ADF renewed its authorisation grant from the ACCC to collectively bargain with milk processors. This authorisation enables dairy farmers to form and register collective bargaining groups under ADF’s existing authorisation without having to separately apply to the ACCC.

For more information about collective bargaining groups and authorisation guidelines, please contact the ADF Office: (03) 8621 4200

NSW Farmers’ Dairy Committee, in partnership with Australian Dairy Farmers, will host contract negotiation and industrial relations workshops for dairy farmers next month. All dairy farmers are welcome.

Covering topics ranging from basic contract information; to collective bargaining and family succession planning, the workshops aim to equip dairy farmers with key negotiating skills and the ability to understand their contractual obligations, to ensure the smooth functioning of dairy operations.

Topics:

• Basic contract information and contractual rights for dairy farmers
• Mediation on contractual disputes
• Collective bargaining
• Family succession planning
• Employment obligations for dairy farmers

Key Presenters:
Keynote: Senior Counsel, Ian Coleman
Ian has more than 30 years experience working in commercial mediation, family and agriculture law. He is a former Federal Family Court Judge, and he is also admitted to the Supreme Court of NSW. He is a Mediator with the Rural Assistance Authority of NSW and also holds a Masters of Sustainable Agriculture (USYD).

NSW Farmers: Special Counsel for Industrial Relations, Matthew Waring
Matt is part of the industrial relations team at NSW Farmers and has almost 10 years experience in employment law and industrial relations, regularly dealing with large clients in agriculture and manufacturing.

Workshop Details:

• Wednesday 3 December, the Grand Hotel, Bega: 9am-1pm.
• Monday 8 December, Elizabeth Macarthur Agricultural Institute, Camden: 10am-2pm.
• Wednesday 10 December Casino RSM Club, Casino: 10am-2pm.
• Friday 12 December, Muswellbrook RSL, Muswellbrook: 10am-2pm.

To RSVP and for more information, please call NSW Farmers’ Members Service Centre: 1300 794 000.

ADIC Chair and ADF President, Noel Campbell presenting at the China Dairy Industry Association Conference in Shanghai earlier this year.

In anticipation of the announcement of a China-Australia Free Trade Agreement (FTA) on the heels of the G20 Summit in Brisbane this weekend (15-16 November), there has never been a more pivotal time for the dairy to ensure the industry’s interests remain a priority at the pointy end of the negotiations.

A number of dairy industry executives from the Australian Dairy Industry Council (ADIC) and Dairy Australia (DA), including myself, returned from Beijing, China last weekend after spending time with Australian Government officials who were negotiating the proposed bilateral trade deal.

I am pleased to report back that the talks were positive and we are confident that in the event of a signed FTA the industry can expect the announcement will enhance future confidence for both the farm and processing sectors.

If we get this deal right, it will be a great opportunity to boost Australian dairy’s competitiveness on an international scale and support, and grow, the 43,000 Australians directly employed in dairy, most in regional Australia.

The ADIC has reiterated the mutually beneficial nature of such a deal, which will offer Chinese consumers increased access to a secure supply of high quality, safe dairy products from Australia, and has encouraged the Government not to sign an agreement that does not deliver commercially meaningful outcomes for dairy.

As Chair of the ADIC, I am proud of the acknowledgement and bipartisan support our industry has received throughout the trade negotiations. Dairy’s message has been heard loud and clear – now, it’s over to the Government.

For more information, visit: www.fta4dairy.com.au

Dawn Waite, South West Victorian dairy farm owner

The Legendairy South West Ladies Group gathered in Warrnambool, Victoria this week to discuss opportunities to support, mentor and upskill women in dairy, and expand connections with women in other dairy groups.

Co-established earlier in 2014 by South West Victorian dairy farmers Simone Renyard and Roma Britnell, the group is comprised of around 15 dairy women, each of whom brings different experience and skills to the mix. The Legendairy group aspires to give back to their local dairy community, as well as learn from one another.

“Each member brings unique experience outside of dairy to contribute towards the group. We aspire to support and mentor women in dairy – and between us, we have plenty of enthusiasm to make it happen,” said Ms Renyard.

Guest speaker, ADF CEO, Natalie Collard presented on her career path inside and outside of dairy,leadership and inspiring change. Ms Collard also encouraged the group to consider how challenging career moments can often lead to your greatest achievements.

Co-founder of the group, Roma Britnell also presented at the meeting on her recent trip to China, funded by The Geoffrey Gardiner Dairy Foundation. The similarity between Chinese and European dairying, as well as the first class robotic factories, impressed Ms Britnell and were of keen interest to the group.

The Legendairy South West Ladies Group is hoping to host a lunch in March 2015, with more information to follow.