Over the past four years, competition policy has been the focus of a Government overhaul, with the intention of preventing situations such as the $1 per
litre milk campaign – a damaging state of affairs for dairy farmers which highlighted the significant imbalance of market power between retailers and
suppliers in the grocery supply chain.

This year, there have been significant developments with Australian Dairy Farmers (ADF) welcoming the announcement of the Competition and Consumer (Industry
Codes – Food and Grocery) Regulation 2015 on 2 March 2015, as a constructive first step toward addressing the imbalance of market power between retailers
and suppliers.

Further to this, the Australian Government has sought to overhaul competition law and policy in Australia with the introduction of the independent Harper
Review of Competition Policy.

The clear intent of the major retailers’ strategy is to extract as much value as possible from the supply chain with consequent pressure on those at the
start of the chain, namely farmers. They are also seeking to increase their own market share to the detriment of competitors and to increase the share
of home brand products in store.

Given this it is important that the Australian Competition and Consumer Commission (ACCC) has the ability to examine the impact of such strategies in the
longer term, with particular emphasis on the impact on consumer choice, farmer viability, the supply chain and future prices. It should also be noted
that ADF is of the firm opinion that the ACCC must take a longer term view of market issues than it currently does on all issues and in all its investigations.

It must not only look at the impact of issues on the current market but examine potential future impacts – this is particularly the case for misuse of
market power issues. The former Section 49 of the Competition and Consumer Act included an ‘effects’ test – does the conduct in question have the effect
or the likely effect of bringing about a substantial lessening of competition? The key term here is substantial lessening of competition – how can
any reasonable person or organisation complain about this?

It is in line with other current competition in Australia and around the world. The Government must not let self-interested large companies with excessive
market share dictate to consumers, farmers and the Government.

ADF strongly supports the Harper Review’s recommendations for any updated competition and consumer law to include an Effects Test and is advocating for
certainty that the legal process is able to provide integrity and transparency regarding the impact of retailer actions on suppliers. ADF is hopeful
that this will aid in preventing potentially damaging situations such as retailer predatory pricing in future.

Addressing the misuse of retailer market power is crucial in determining the Australian dairy industry’s future profitability and sustainability.

ADF supports the recommendations to increase the focus on dealing with the current imbalance of major retailer market power. Farmers need every opportunity
to improve their negotiating power for profitability and returns at the farm-gate to be achieved.

ADF looks forward to working with both sides of Parliament, to ensure the unequal distribution of market power is addressed for the benefit of the entire
food and grocery sector.

The Australian Dairy Industry Council (ADIC) has reiterated the importance of ratifying the China-Australia Free Trade Agreement (ChAFTA) within the 2015
calendar year, to ensure the benefits can reach Australian producers as quickly as possible.

Any delay in implementation of the deal beyond 31 December 2015 will cost Australian dairy between $20 million and $60 million in tariffs. This will make
it more difficult for the Australian industry to compete and gain further market share.

ADIC Chair, Noel Campbell said while the council recognised that debate about the ChAFTA is part and parcel of a vibrant democracy, the Parliament needed
to keep in mind the opportunities at stake for agriculture and food production.

“For Australian dairy to grow and invest in our future profitability, we will require markets that offer a way forward and match our progress,” Mr Campbell
said.

“China’s population is set to reach 1.6 billion by 2050 offering enormous opportunity to sustainably grow beyond domestic markets. Our opportunity in China
is underpinned by their demand for high quality, safe, value-added products such as infant formula.

Mr Campbell reiterated that parliamentary support for the agreement, that sees the removal of all tariffs on dairy imports over a decade, remains essential.

“With a long record of innovation and adaptation to changing conditions and markets, Australia’s dairy producers are in a strong position to meet the particular
demands of boosting exports to China and growing our market share,” Mr Campbell explained.

The Australian dairy industry has had a long and close relationship with China and ChAFTA will allow our industries to further develop this long-term relationship
to the mutual benefit of both countries.

Timing is of the essence. If farmers are to maximise benefits from the removal of tariffs then the deal must be implemented in this calendar year.”

The ADIC looks forward to working with both sides of Government to ensure the implementation of the ChAFTA by 31 December 2015.

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).

For more information contact the NSW Farmers’ Livestock Policy Advisor on 1300 794 000.

Dairy bioscience took its place alongside the cochlear ear implant, aeronautics and global stock exchange surveillance software when major technology advances
were showcased to the Prime Minister and other dignitaries last month.

The Trans-Pacific Partnership (TPP) offers a historic opportunity to address a broad range of distortions affecting Australian dairy producers, and to
ensure consumers throughout the region involved have access to safe, high quality Australian products.

The Australian Institute of Sport (AIS) is recommending the nation’s top athletes incorporate dairy foods more strategically into their diets, following
new research, supported by Dairy Australia, which was launched last month.

Producing more from less is a constant theme on Australian dairy farms. From reusing water in the milking shed, to ensuring the pasture our cows graze
on can be effectively turned into milk, efficiency is the number one buzz word on farm.

Consuming resources with care underpins everything we do on farm because we know it will ensure the sustainability of our businesses, our industry and
our planet in the decades to come.

This year on World Environment Day, June 5, the United Nations will reinforce the importance of consuming with care. Whether it be adopting renewable energy
systems on farm or switching off the lights at the power switch, our individual decisions and actions count towards a larger goal of preserving not
only the environment but the well being of humanity and our economies.

On June 5, Australian dairy will stand proud on its continuing commitment to minimising our environmental footprint as part of dairy’s broader commitment
to establishing a more sustainable dairy industry. This commitment is recognised and promoted through the industry’s Sustainability Framework.

Demonstrating the interdependent nature of dairy’s profitability, well being and natural resource management, the Sustainability Framework shows the progress
dairy has made thus far as well as acknowledging the work left to do by 2020.

On-farm examples of sustainable practices abound. South Australian share farmers, Andy Vickers and Belinda Wright soil tested 20 farm paddocks and were
able to reduce application of phosphorus fertiliser to about one-third, meaning big cost savings, less nutrient runoff, reducing green house gas emissions
and better environmental outcomes.

Overall, the industry’s Fert$mart nutrient management initiative has helped farmers, including 120 in recent months throughout Tasmania, Gippsland and
South Australia, to achieve on average, a savings of approximately $12,000 per farm.

On King Island, a group of nine dairy farmers co-ordinated the installation of solar hot water systems for dairy sheds, an innovation making the most of
renewable energy sources and also forecast to cut hot water costs by up to 50%.

From these grand scale projects to the everyday actions, all dairy farmers play an important role in creating a sustainable Australian dairy industry and
consuming our resources with care. This includes everything from monitoring electricity consumption and equipment performance and having some level
of automated irrigation to manage water use efficiently, to feeding cows a high quality diet to increase milk production and reduce green house gas
emissions.

Australian Dairy Farmers (ADF) has been advocating for the Federal Government’s continued funding towards energy efficiency programs, as well as enduring
investment in R,D&E in the Government’s consideration of Australia’s greenhouse gas emissions targets and policy.

Working with Dairy Australia, ADF has lobbied for nationwide funding for free energy efficiency assessments for dairy farmers that has already helped 1,200
farms – with another 200 due for completion by June 2015.

Supportive policy could assist farmers in tackling rising energy costs, while also contributing to the dairy industry’s – and Australia’s more broadly
– environmental sustainability. We’re committed to ensuring Australian dairy’s voice is heard through government policies that support our industry,
however there are many areas where we can already act to make a difference.

Monday 1 June, is World Milk Day.

The Food and Agriculture Organisation of the United Nations started the day of recognition in 2001, and we’re using the occasion to celebrate the
Aussie farmers who work hard to produce this delicious, nutritious beverage.

For Australian dairy farmers, producing and delivering premium milk is a matter of pride. This is why Australian dairy has a reputation for consistently
high quality and safe products worldwide.

They work hard 7 days a week, 365 days a year to create fresh, great tasting and wholesome fresh milk that Aussies consumed almost 2.5 billion litres of
in 2014 alone.

Each daily on-farm activity involved in producing the milk, whether ensuring the cows are healthy or efficiently cleaning milking equipment, contributes
to the quality assurance of dairy products. From the twice daily health herd checks during milking to stringent testing for milk headed for the processor,
safety is ingrained in what we do.

Our industry is known for being a ‘dairy deli’ in that we place great importance on the quality rather than quantity of supply and this is what sets us
apart. It’s our point of difference to focus on our high quality standards and it’s something our industry must maintain (even with our aspirations
of growth) as we will never compete on quantity or price with our major competitors.

Dairy farmers work rain, hail or shine to produce our milk and want to be known for being prosperous, trusted and world renowned for the nutrition of our
dairy products. Like any Australian, dairy farmers hope to see the effort put into our work reflected in our returns.

Australian Dairy Farmers (ADF), as part of the Australian Dairy Industry Council (ADIC), is committed to ensuring our dairying sector has a sustainable
future. That’s why we’re working with our farmers, processors and industry partners, including Dairy Australia, to ensure that dairy continues to enhance
livelihoods, improve wellbeing and minimise its environmental footprint well into the future.

This commitment is recognised and promoted through the Dairy Industry’s Sustainability Framework. The second Progress Report has just been released and
shows that while we still have hurdles to overcome, progress is being made. This Framework highlights to the rest of the world that Australian dairy
is acting on its social, economic and environmental responsibility.

To produce, refrigerate, transport, process, distribute and deliver fresh milk requires a considerable amount of daily planning, work, risk and investment
on the part of dairy farmers and processors.

So why be a dairy farmer? Is all the milk worth it? Dairy farmers would say yes ten times over – because they’re passionate about it.

This World Milk Day, we ask that everyone remember that milk is made from hard yakka, pure passion and a commitment to sustainable practices. It is made
by an Aussie dairy farmer.

From
water heating to milk cooling; harvesting to lighting, energy is a big cost on our farms. Australian Dairy Farmers (ADF) has been advocating for the
Federal Government’s continued funding towards energy efficiency programs, as well as enduring investment in R,D&E in the Government’s consideration
of Australia’s greenhouse gas emissions targets and policy.

Supportive policy could assist farmers in tackling rising energy costs, while also contributing to the dairy industry’s – and Australia’s more broadly
– environmental sustainability. We’re committed to ensuring Aussie dairy’s voice is heard through government policies that support our industry, however there
are also areas we can address together.

As individuals our decisions can seem small in the face of Australia’s global footprint, however when our community joins forces for a common purpose,
we can and do make a tremendous difference. Good business management can lead to greater efficiency and effectiveness, as well as a reduced environmental
impact. Dairy Australia has many practical natural resource management tips that are not only good
for the environment but also for farmers’ bottom line.

On behalf of ADF, I congratulate Dairy Australia for its success in receiving a proportion of the first round of Government grants under the $100 million
Rural Research and Development for Profit Program. The funding will be invested into three-year projects including finding ways to turn agricultural waste into feed, fertilisers and soil conditioners,
and the development of tools to help dairy farmers manage and select the most profitable cows utilising milk scanning technology. These projects will
contribute significantly to assisting Aussie dairy farmers improve their productivity and profitability.

It has been an incredibly tough month in our northern regions with severe flooding in NSW’s Hunter Valley and Queensland. While we may be able to control
our energy consumption, some issues are just beyond our power no matter how far ahead in the season we prepare for them. During times of hardship it’s
very important to remember to ask for help when you need it. While the water may be receding, the hardship may just have begun. There are many local,
state and national support channels available to dairy farmers both during the time of a natural disaster, as well as the months following the aftermath.

Noel Campbell

ADF President

Like many agricultural commodities in Australia, dairy has an acute skilled labour shortage. Although the Australian dairy industry always gives precedence
to employing Australian workers, enabling farmers to access skilled overseas workers is a positive way of addressing the gap when suitable domestic
labour is not available.

The industry continues to assist farmers in gaining better access to overseas labour, through working to streamline the visa application processes for
both farmers and workers. Further work is required by Government in this area to fully address the scope of this issue.

On 30 April 2015, the Australian Dairy Industry Council (ADIC) lodged its submission to the Senate Education and Employment committee’s review into the impact of Australia’s temporary work visa programs on Australia’s labour market and on the temporary work visa holders.

Issues such as the need for improved alignment of the Australian Qualifications Framework and the skill classifications used by the Department of Immigration
and Border Protection, as well as the extension of 417 and 462 visas from six to 12 months, were key recommendations put forward by the ADIC.

In the submission, the ADIC highlighted the industry’s strong commitment to attracting, developing and retaining a highly skilled domestic workforce through
a range of initiatives, including the National Centre for Dairy Education (NCDE), which provides high quality education and training opportunities
for people interested in developing a career in dairy.

The Australian dairy industry wholeheartedly supports fair and equal treatment of foreign workers. Recently, ABC’s investigative journalism programFour Cornersfeatured
the mistreatment of migrant workers from Asia and Europe on a few poultry and horticulture farms in Australia. Such behaviour is not condoned by the
ADIC and runs counter to the industry’s efforts to ensure that dairy farmers are responsible for their employment practices, including fair workplace
relations and migration laws.

The Employment Starter Kit initiative (ESKi), which was developed by Dairy Australia
in conjunction with Australian Dairy Farmers (ADF), is an example of this. The ESKi has been circulated to over 1,500 dairy farmers across Australia,
assisting them in their understanding of Australia’s legal employment requirements, as well as offering information on how to improve working environments
for both employees and employers.

For more information about how the ADIC is working to improve dairy’s acute labour shortage, click here or contact ADF Policy Officer, Kelly Im: kim@australiandairyfarmers.com.au.

Two short videos are online to explain changes to Australian Breeding
Values (ABVs) and indices.

The bull choices farmers make for every joining have a long term impact on the profitability of their herd. Farmers now have access to a broader range
of communication forms, including animations, e-news and social media components in addition to the traditional media and web services.

Australian Dairy Herd Improvement Scheme (ADHIS) Extension and Education Manager, Michelle Axford said that ADHIS is committed to providing new and exciting
content delivered across the most popular platforms.

“The science behind ABVs is complex, but how we use them to make good decisions doesn’t have to be.

“Providing practical breeding information across a range of devices will help farmers when choosing bulls,” Mrs Axford said.

Sign up to Genemail, the ADHIS e-news

Follow us on Twitter @ADHIS_Dairy

For more information or to arrange a presentation to your organisation, please contact ADHIS Extension and Education Manager, Michelle Axford on 0427 573
330 or maxford@adhis.com.au

In advance of the United National Framework Convention on Climate Change, to be held in
Paris between 30 November and 11 December 2015, Australian dairy has made its voice heard in Australia’s contribution to the new global climate agreement
which will set the emissions reduction target beyond 2020.

Through an Australian Dairy Industry Council (ADIC) submission made to Government in April, we are advocating for emissions reduction policies which will support the industry – not hinder it. In particular, we
are seeking policies that are:

• Aligned with our major international competitors;
• Recognised as an emissions intensity approach that allows dairy to continue to grow while reducing its carbon footprint; and
• Underpinned by Government policy and actions to promote and support the dairy industry’s contribution towards greenhouse gas emissions reduction goals.

Our submission advocated for two key areas of Government support: investment in research, development and extension for on-farm emissions reduction; and
support for energy productivity and efficiency. These policy settings are essential to ensuring Australian dairy remains competitive in the international
market, our emissions intensity is reduced and we are well aligned for growth.

The ADIC attended a roundtable meeting with the Minister in early May and will continue to seek Government support through Australia’s international commitment
to help drive innovation and reduce emissions, while also increasing productivity and profitability.

To read the ADIC’s submission on Australia’s Post-2020 Emissions Target Reduction, click here.

On
26 April, the Australian dairy industry sadly lost leading software innovator and visionary, Dr Mike Larcombe to a lengthy battle with motor neurone
disease.

Dr Larcombe founded MISTRO software, which is responsible for processing 95 per cent of herd testing information in
Australia and is recognised as one of the most flexible and cost-effective herd recording programs in the world today.

His work continued with the development of a genomic database system for the Australian Dairy Herd Improvement Scheme (ADHIS) for storing and analysing DNA profiles of animals for artificial breeding.

As a long-standing member of ADHIS’ Record Standards Committee, ADHIS General Manager, Daniel Abernerthy described Dr Larcombe as one of Australia’s leaders
in data, data transfer and herd improvement systems.

“Mike was a truly gifted man, with the ability to transfer his skills across many areas.

“Aside from playing an integral role in the design and redevelopment of our genomic evaluations systems and computer models, Mike also was a major contributor
to Dairy Australia’s InCalf and mastitis reporting tools,” Mr Abernerthy said.

Dairy Australia Program Manager – Genetics & Data Management – Farm Profit and Innovation, Matt Shaffer, said Dr Larcombe’s impact on the industry
had been phenomenal.

“Mike showed an amazing commitment to farmer outcomes through his work developing MISTRO as a key farm management tool for farmers and herd test centres,
as well as the UDDER program which is still being used by more than 60 consultants in Australia and New Zealand,” Mr Shaffer said.

In 2011 Dr Larcombe was awarded the prestigious National Herd Improvement Association of Australia Meritorious Service
Award, recognising the significance of his achievements and his standing among peers.

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.

Mother Nature has thrown many environmental challenges at dairy farmers
in Queensland and New South Wales over the past month. It is estimated that over 30 dairy farms were affected by Cyclone Marcia’s storms and heavy
rain, with many dairy farmers experiencing power failures and limited road access.

One dairy farmer had to milk over 150 cows by hand. It is times like these that I admire our industry coming together to support dairy farmers in times
of hardship. In particular, I commend the efforts of Queensland Dairyfarmers’ Association (QDO), Subtropical Dairy and Dairy Australia, in providing
practical support and counsel to the affected farmers.

In March, Australian Dairy Farmers (ADF) marks a year since the National Dairy Farmers’ Summit. The Summit has driven industry focus over the last 12 months
and continues to do so moving forward. One of the initiatives developed from the Summit’s priority-setting agenda is the Sustainable Farm Profitability
Report. The Australian Dairy Industry Council (ADIC) commissioned Dairy Australia to produce this report, which aims to provide dairy farmers with
tactical, strategic management guidance in areas which can improve their safeguards to increase business profit. The report will be made available
online shortly in April.

Carrying on from the ADIC Industry Leaders’ Breakfast in November 2014 – which was centred on the theme ‘Sustainable Farm Profitability and Innovation’
– from next month, dairy farmers will also have the opportunity to increase their profitability with feed efficiency. The new Feed Saved Australian
Breeding Value (ABV) is set to save at least 100 kilograms of dry feed per cow, per year. I praise the efforts of Dairy Futures CRC and the Australian
Dairy Herd Improvement Scheme (ADHIS) for this world-leading genetics breakthrough.

I welcome the new Prescribed Food and Grocery Suppliers Code which came into force at the beginning of March. This Code marks a positive step towards addressing
the imbalance of market power between retailers and suppliers. ADF will continue to closely monitor the Code’s effectiveness over the next three years
and we hope this is the beginning of a fairer, more sustainable, domestic fresh milk supply chain.

Noel Campbell

ADF President

Australian dairy’s herd improvement and genetics is ahead of the game, according to Sarah Saxton.
“Visiting New Zealand (NZ) made me realise just how engaged and passionate Australian dairy farmers are when it comes to breeding cows,” Ms Saxton said.

“We have the freedom of choice when it comes to semen selection in Australia, and although that can make the decision process a little more complex, it
means we have the options open to us to breed the sort of cows we want for our herds.”

Reaffirmed by her recent study tour across the Tasman to the South Island with United Dairyfarmers of Victoria (UDV), Ms Saxton, an Australian Dairy
Herd Improvement Scheme (ADHIS) Extension Officer, also noted the dominance of cross-breeding in NZ in comparison to Australia, as well as NZ’s strong
focus on growing pastures.

Embarking on the week-long tour with five young Victorian dairy farmers, sponsored by the Geoffrey Gardiner Dairy Foundation, Ms Saxton visited a variety
of NZ dairy farms with different ownership structures and farming systems. The Van Leeuwen Dairy Group’s 1500-cow robotic dairy in Timaru was included as one of the farm pit stops.

Ms Saxton, ambassador for the Art4Agriculuture Young Farming Champion program, commended
the NZ dairy industry for its well defined and supported career pathway structure.

“We met with a NZ young farmer group who all had a very clear understanding about how to progress a career in dairy, from milking cows to eventually farm
ownership. This is a real credit to DairyNZ, as it is fostering a young and vibrant future for their industry,” Ms Saxton said.

Ms Saxton was also impressed by the New Zealand Dairy Industry Awards, which are awarded annually
to recognise NZ’s passionate farmers of the future.

“These awards not only commend innovative, hard-working dairy farmers in NZ, but also create a opportunity to highlight the progress of up-and-coming dairy
farmers. It would be great to see a similar initiative adopted in Australia,” Ms Saxton said.

When asked what advice she would impart to young Victorian dairy farmers looking to apply for the study tour, Ms Saxton replied: “You really need to think
about what your future might look like in dairy, and how you’re going to benefit, to get the most out of it.”

“It is a fantastic opportunity and a great way to make new contacts. However, you need to be prepared to work hard – it’s not a holiday!” Ms Saxton said.

For more information about UDV’s NZ study tours and application requirements, click here or contact UDV Project and Policy Officer, Yaelle Caspi: ycaspi@vff.org.au

Study Tour participants (L-R): Kerrilyn Bassett, Sarah Saxton, Hayden Hanratty, Gordon Nicholas (UDV Policy Councillor), Aaron Thomas, Jason Bermingham, James Goulding (NCDEA), and Will Ryan.

Community was the topic of conversation at the Warrnambool Women in Focus (IWD) event on 11 March, uniting over 200 regional women from Victoria’s south-west to celebrate their contribution to business, industry, family and
the community.
Australian Dairy Farmers (ADF) CEO and keynote speaker, Natalie Collard shared her agri-business professional experience on leadership, work-life balance,
personal wellbeing and the ability to consider the bigger picture.

“Women in dairy wear so many different hats. From the farm gate to the processing plant, all the way to the ADF office – right across our value-chain women
are contributing to building a stronger, more sustainable future for our industry,” Ms Collard said.

Ms Collard also explored the importance of goal-setting as her “biggest secret”. Referencing a Harvard University MBA graduate program research study,
Ms Collard shared that three per cent of the graduate year which had clear, written goals and plans to accomplish them, 10 years later were earning
on average 10 times as much as the other 97 per cent of the class put together.

“I set career, personal and wellbeing goals for one, five and 10 years ahead. It is a one-pager that sits on my bedside table… By writing your goals
down and affirming them, you’re holding yourself accountable,” Ms Collard explained.

“Goal-setting is not just about earnings, but it really does underscore the power of setting goals as your first step to accomplishing them.”

The IWD Event, hosted by CommBank Women in Focus and LEGENDAIRY South-West Vic Women’s Focus Group, provided a valuable networking opportunity and chance to obtain practical tips for regional women and their businesses.

WestVic Dairy Director, Kirsti Keightley and Operations Manager, Jocelyn Bevin said the day was about bringing together like-minded women within varied
leadership positions in the industry.

“It’s important to highlight and focus on the skills and opportunities that can be brought to the dairy industry and wider community,” Ms Keightley said.

“It’s also vital to support our next generation of women in dairying through sharing our knowledge and experiences, which I hope today’s community theme
encapsulated.”

LEGENDAIRY women (L-R): Katie Gleeson, Simone Renyard, Bilyana Grazing, Natalie Collard, Janet Moxey and Tracey Luhras.