The American people have spoken and made their choice. It is amazing how
things can change overnight. President Elect Trump’s victory in the United States presidential election has created a little bit of a stir in Australia
and around the world.

Australia has an open economy and we are heavily reliant on exports. We depend on international stability and open borders to drive our economic growth.
If Mr Trump’s views, which were expressed during the election campaign are realised, then the world trade environment is in for a very bumpy ride.

The Turnbull government promised that the ratification of the Trans Pacific Partnership (TPP) would deliver valuable new markets for Australian dairy.
It was an ambitious pact that would have covered nearly 40 per cent of the global economy and solidified US leadership in the Asia-Pacific.

While Mr Trump’s election win has made the ratification of the TPP less likely, it is not all bad news for Australian dairy.

In fact, this election could open Australia to new opportunities and strengthen economic ties with countries in ways we never thought possible.

The China-Australia Free Trade Agreement (ChAFTA), ratified almost a year ago is a partnership that has the potential of becoming even stronger.

Australian Dairy Farmers (ADF) lobbied hard and strong for this once-in-a-lifetime deal and was closely involved in the negotiations.

Our dairy exports to Greater China have increased 46 per cent over five years, making it our largest dairy market export by volume and value. Import values
have increased by almost 65 per cent year-on-year from approximately $456 million in 2014/15 to over $750 million in 2015/16.

The first half of 2016 saw the value of Australian dairy exports double. China’s market for Australian consumer goods has become much more sophisticated,
with strong sales growth from supermarket chains and convenience stores. A growing middle class of roughly 300 million people want what Australia offers.
Our industry’s ability to benefit China with safe, healthy, reliable sources of quality dairy products is essential for us in the long term.

China remains the largest importer of dairy products and it is still growing. About 16 million babies are born each year in China, and with the relaxation
of the one child policy, that number is projected to beyond 20 million annually in coming years.

Over the long term, ChAFTA means more jobs across the Australian dairy industry both on farm and in processing plants. It will provide our industry with
the confidence it needs to invest for a strong future.

Whatever transpires from the policy direction of a new US President and administration, the Australian dairy industry and Australian Government will do
everything possible to ensure any changes in direction on US trade policy does not adversely impact the gains we have won for our dairy products access
to markets.

The dairy industry’s long term growth will come from our ability to bounce back and make the most of the all the opportunities that are presented.

David Basham

Acting ADF President

Over the past two weeks we have seen an 11 per cent rise in global dairy prices.
This has been the highest since July 2014. Historically low for much of 2016, prices have finally started to increase. It is a really positive sign
that things are looking up for us.

As an industry we have been under intense pressure and with that intense scrutiny. The events of this year has given ADF the opportunity to really cement
our working relationships with state members – QDO, NSWFarmers, SADA, TFGA, UDV, WAFarmers, and industry partners such as Dairy Australia and Australian Dairy Products Federation.

Continuing to work together will give us the know-how and resilience to support dairy farmers to overcome adversity and thrive in the long term. These
things will only happen if there is buy-in from industry and a willingness from key stakeholders to hear each other out to develop solutions together.

The industry wide proposed code of practice on contractual arrangements with farmers is an ideal starting point to get things moving in the right direction.
It has been a long process and a major breakthrough for the entire industry to ensure future milk supply agreements are balanced, fair and transparent.
ADF is expecting to have a near final document by the end of November.

As you may be aware Dairy Australia has just released their forecast for full-year, national milk production for this season.

The current projections indicate that national milk production is down by 6-8 per cent for the 2016/17. However, these projections are in direct response
to the extraordinary period the industry has gone through given the low farmgate milk prices, tight margins and extremely wet conditions across southeast
Australia.

The last five months of wet weather has been challenging for many farmers. Yet, there are some really positive outcomes. Pasture growth will keep production
costs down well into December. Many dairy farmers can reduce the cost of production by saving on surplus feed and water prices in Northern Victoria
will remain under $100 per megalitre well into 2017.

While dairy farmers are still managing the here and now, our attention is firmly on the future sustainability and profitability of the dairy industry.
ADF is working towards addressing volatility to safeguard the future of our industry.

David Basham

Acting ADF President

Earlier this week, ADF spoke at the Senate Economics References Committee inquiry
into Australia’s dairy industry.

We discussed a number of key historical points and highlighted long term solutions we believe will relieve some of the pressures faced by our dairy farmers.

Through consultation with our state member organisations, we proposed a number of solutions:

– The development of the Code of Best Practice on milk supply contractual agreements to ensure transparency and fairness in milk price arrangements

– To ensure that the ACCC review identifies and investigates sharing risk along the supply chain, supply agreements and contracts, competition, bargaining
and trading practices in the industry and the effect of world retail prices on profitability

– Incorporating an effects test to show the impact of anti-competitive behaviour

– The implementation of a world dairy commodity pricing index and educational program for farmers to better understand the impacts of the world market
price and impact on the domestic market

We reiterated the fact that although the dairy industry has gone through a difficult time, we are a resilient industry with a long, sustainable future
ahead and our profitability depends greatly on the continued support of the Australian public.

Which takes me to my last point. The proposed 50 cent milk levy.

Yesterday evening I took part in an extended interview with a major TV network. On several occasions I stated that ADF did not support a levy being applied
to drinking milk (50 cents or otherwise).

The 20 cent quote came from a completely different part of the interview (which was not aired) yet edited in a way that was out of context with the questioning.
I said, it would be good if Coles were to increase the price of $1 milk by at least 20 cents.

Media does not always represent the facts and important messages can get lost in the push for ratings and dramatic intrigue.

We have contacted Channel 7 News to clarify that the impact of its editing together two different part-answers to two different questions has effectively
contributed to misleading Australian consumers.

It is unfortunate when these things happen. Incorrect information leads to confusion in a time when we need open and transparent messaging. Our priorities
have always been to work to strengthen the dairy industry’s foundations so we can achieve long term stability.

To get through this difficult period the industry needs strong leaders with one voice.

ADF together with our state member organisations believe a united vision is the key to achieving positive outcomes going forward.

David Basham

Acting ADF President

Competition laws are about to change. Australian Dairy Farmers (ADF) has lobbied
hard for these changes and worked with many different organisations to represent the needs of farmers.

Since January 2011, Coles and Woolworths have continued to cause unnecessary worry for farmers by devaluing products in the supply chain. Milk was the
first weapon of choice in their discount war as it was a household staple and something that consumers were emotionally attached to.

However, milk is not the only dairy product that has been devalued in the price war. Other Australian staples such as cheese, yogurt and butter have also
seen a significant price drop that further provokes an already besieged industry.

After almost six years of unsustainable pricing, consumption of dairy in Australia has dropped. Data collected by Dairy Australia clearly shows that cheap
dairy has failed to deliver on the major supermarkets claim that lower prices will increase consumption. Their marketing strategy has resulted in millions
of dollars being taken out of the value chain, which has impacted severely on many dairy farmers.

The battle for the hearts and dollars of Australian consumers has distressed the dairy industry, threatened small shopkeepers and prompted a Senate inquiry.

In mid-March, the federal Senate launched an investigation into dairy pricing and whether Australia’s supermarket giants engaged in anti-competitive practices.

ADF was at the forefront on advocacy and policy demanding change in an industry that caused unnecessary financial pain and worry for farmers through the
devaluing of dairy as a product.

The senate inquiry resulted in the Australian Government issuing a draft amendment to the Competition and Consumer Act 2010 outlining a number of changes
ADF has been pushing for.

Most significantly, the draft Bill enables the introduction of an ‘Effects Test’ into Australian competition law. The effects test is a logical tool in
the Australian Competition and Consumer Commission’s (ACCC) kit bag that most other developed countries in the world have.

ADF has long-advocated for change to tackle big business misusing its power and reducing competition in markets. There is no silver bullet to fix the imbalance
of market power that dairy farmers experience, however ADF, together with our state members, are continuing to fight for farmers.

Even though this is an ongoing issue, we are still pushing for the major supermarkets to raise the price of dairy to a sustainable level. This will ensure
a fair price for everyone along the supply chain.

David Basham

Acting ADF President

Collaboration is the key to get us where we need to be. Our industry relies
on all the elements to operate effectively. Farmers need processors and vice versa – so the solutions require all of us to come together to ensure
a positive future. It is a win win situation.

It is one thing to constantly pick apart the industry to highlight the problems, it is another to actually work together to bring about real solutions
to ensure this never happens again.

Last week the Australian Dairy Farmers held an important meeting with state dairy organisation presidents and processors to address a range of contractual
issues which farmer organisations have been trying to address and rectify for 15 years.

During the meeting we discussed a range of topics including the difficult circumstances of farm gate price reductions, the introduction of new legislation
on unfair contracts which comes into effect in November and the outcomes from the August Symposium held by Deputy Prime Minister, Barnaby Joyce.

This meeting provided an ideal opportunity for the dairy industry to unite and develop a voluntary industry wide code of practice on contractual arrangements
with farmers.

The code will include:

– greater transparency in contracts and supply agreements

– ensuring a pricing formula or a price setting mechanism is clearly defined within a contract

– ensuring pricing adjustments to farmers throughout a contract are clearly defined and that there will be no retrospectivity

– while acknowledging step ups do occur and step downs have occurred in severe circumstances, a principle should be incorporated into contracts
which clearly outlines that as much notice as possible is necessary if a step-down has to occur

– ensuring farmers should receive all payments that accrue over the term of a contract or supply agreement – the final payments of a contract should
not be contingent on the farmer being a supplier when, for example, the June payment is made in mid-July

– ensure that where a processor has a contracted volume limit or a different price for volume above a particular level then exclusivity of supply
to that processor must not occur

– ensuring there is a clearly defined mechanism for giving notice of termination of a contract

– ensuring there is a clearly defined mechanism of how contract terms and conditions can be modified and the farmer having the right to a negotiated
variation, not simply a request from the processor.

Incorporating these principles into a code of conduct will give farmers, or their representative, the opportunity to have a contract or supply agreement
which is truly negotiated and not simply an agreement which is a “take it or leave” it approach to farmer’s milk supply arrangements.

The ADF together with the state member organisations have worked hard since the crisis unfolded to ensure future milk supply agreements are balanced, fair
and transparent. It has been a long process to get to this stage and a major breakthrough for the entire industry.

State dairy farmer organisations have been working to achieve these improvements for many years. By having a national organisation which is well resourced
the States can achieve things together that would be impossible to achieve on their own.

We plan on finalising the draft code as soon as possible, ahead of the new legislation and before the Australian Competition and Consumer Commission inquiry
into the dairy industry is finalised next year.

Now more than ever, the dairy industry needs to remain focused and united in its goals to achieve a shared vision of improving the profitability and sustainability
of dairy farmers and the entire dairy industry in Australia.

David Basham

Acting ADF President

Over the last few days, New Zealand based Fonterra lifted its forecast milk
payout for the second time. On Wednesday the estimated Farmgate price was boosted by a further 50 NZ cents to $NZ5.25, while the company maintained
its dividend payout to farmers resulting in a total amount of $NZ5.75 to $NZ5.85 per kilogram.

Australian companies are between 10 – 20 per cent below New Zealand’s latest forecast.

While Fonterra’s announcement follows the increased global dairy prices at the Global Dairy Trade auctions, Australian farmers are still waiting for theirs.
Although there are any number of reasons why we are behind New Zealand, it still makes for an interesting conundrum when Australia has a bigger domestic
market and yet our prices remain unadventurously low.

This really highlights how volatile the world milk price is and why we need regular, clear and realistic market signals in Australia.

By establishing a commodity milk price index tool there will be greater transparency to allow farmers to make their own assessments on milk price forecasts.
Farmers will be able to better balance risk along the dairy supply chain, especially when it comes to managing the effects of world milk prices.

New Zealand already has a milk price index and it works quite well, as they have over 90 per cent exports, and can set themselves against the world market.

In Australia we have a 65 per cent domestic market and a different export commodity mix which should deliver a higher price for Australian farmers than
the New Zealand price in a low commodity market as we are in now. Therefore, Australia needs to have an independent commodity index rather than use
New Zealand’s due to our different export commodity mix.

ADF has had extensive discussions with government on the proposed index and we are looking forward to help shaping this important tool. It’s vital we get
this right so all farmers have the ability to use the global information to assist them when they negotiate supply contracts with processors.

The index needs to be independent and transparent with easily accessible data that isn’t hard or complicated to use. It needs to be updated daily to capture
the latest market intelligence from around the world and should translate commodity market and currency trends back to Farmgate prices across Australia.
The index should also deliver a forward-looking price indicator to capture restored certainty and decision-making resulting in improved farmer confidence,
better on-farm investment decisions, and ultimately higher farm profitability.

We have no doubt that our processors will increase their milk price forecast which is why we support the index and want to ensure it is a true indicator
of commodity prices and meets the requirements of the Australian dairy industry as a whole.

The index will also give farmers the tool to better understand the impacts of world market trends and to be better armed with questions of the company
they supply.

David Basham

Acting ADF President

Senator Lambie announced she would seek a Senate Inquiry into the Dairy Industry. The ADF was quite concerned about the range of issues the Senator
wished to have addressed and worked with a range of people to achieve a more constructive terms of reference.

While we are not pleased with all the issues to be considered, we believe it is better than it would otherwise have been.

This inquiry will be in addition to the Australian Competition and Consumer Commission (ACCC) inquiry into the national dairy industry which is due
to start in November.

This inquiry presents an opportunity to examine the issues affecting the competitiveness and future viability of dairy farming in Australia with farmers
bearing nearly all the risk in the dairy supply chain in the domestic market.

Some of the issues that will undoubtedly be covered include the impact of supermarket price decisions namely the $1 milk on dairy farmers, and the
ongoing physical and mental well being of farmers.

In addition to these, the senate inquiry will likely focus on providing greater transparency in contracts with processors by offering a clear, consistent
formula for milk pricing; and include unambiguous conditions, which is something ADF has advocated strongly towards. Many farmers who have experienced
unfair milk contracts or agreements may have been burdened with debts when the milk price falls.

ADF hopes to be able to achieve implementation of fairer contract clauses through negotiations with processors and be able to provide the Inquiry and
Government with industry developed and shared solutions rather than have Government intervene to impose further regulatory burden that neither
farmers or processors want.

These points illustrate the need by industry to ease the pressure placed on farmers by having to accept an unfair share of the risk and possible financial
fall-out. We believe in greater transparency and look forward to fairer contracts and exploring ways to shed risk by engaging in future markets.

ADF and our state members are united around a clear objective: to ensure every Australian dairyfarmer has the capability, tools and support to fully
understand their individual business position, and to make decisions about their future based on sound evidence and are not be always left to take
all the risks in the market place chain.

To prepare, we believe that all farmers must have earlier and clearer pricing signals, with a more equitable pricing system that better balances risk
along the supply chain of farmers, processors and retailers. Without this, farmers and allied businesses will remain vulnerable.

If we are able to work on minimising potential risk for the future, then we welcome the opportunity to stand up for rural and regional communities
that are doing it tough to make sure that we are able to establish a long term solution that benefits all dairy farmers.

We look forward to working with industry, government and the Economics Reference Committee to advocate on behalf of the dairy farmers to ensure transparency
and equal opportunity, which will provide a fairer way to uncover inequities in the dairy industry.

The report of the senate inquiry is expected to be announced on February 24, 2017.

David Basham

Acting ADF President

Recent data on global dairy prices shows a positive rise that looks as if it
might continue.

The average price in the Global Dairy Trade auction overnight rose by 7.7 per cent. This followed two consecutive rises in the past month, with a 12.7
percent increase in prices at the most recent auction, while the important whole milk powder (WMP) price rose by 3.7 per cent.

These results have driven the index to an 18 month high.

Analysts are predicting further rises in the global milk price which suggests that the worst might be behind us and we may start to see some stability
return to the global milk supply. This will hopefully occur through rebalancing of supply and demand due to cut backs in EU production, intervention
buying of SMP (skim milk powder) in Europe and increased buying in China.

Although these increases are nowhere near enough to return to sustainable prices it is pleasing to see that prices are on the rise and things may be looking
better in the long term.

Unfortunately, the most optimistic scenarios see the market turning in any meaningful way in the first quarter of 2017.

As dairy farmers we have a limited capacity to manage the market price so it is important to always focus on what we can manage, remain aware of industry
risks and maintain a low cost production system so we are in a better position to weather any storms.

While we are an industry that has been under intense pressure, we are also an industry that has the know-how and resilience to overcome adversity and thrive
in the long term.

ADF, together with our state members, is continuing to fight for farmers. Even though we won’t be able to solve all of the issues farmers are facing, we
are working to relieve some of the pressures to create change to ensure that an unfair share of the risk in the value chain is not taken by the farmer
and that recent events in the industry don’t happen again.

Collaboration is the key to get us where we need to be. Our industry relies on all the elements to operate effectively. Farmers need processors and vice
versa – so the solutions require all of us to come together to ensure a positive future.

While we wait for the uptick in prices we must remember that we are a resilient industry with a long, sustainable future ahead and our profitability depends
greatly on the continued support of the Australian public.

It is important to remind the community that dairy farmers – regardless of the challenges they face are good business people, who care for their cows,
work to enhance the well-being of their people and that every efficiency we make on farm has ties to minimising our impact of the environment.

To view the global dairy price index [click here]

David Basham

Acting ADF President

The symposium was a great opportunity to facilitate a discussion around how better
to manage risk along the dairy supply chain, including managing the effects of world dairy prices.

A number of topics were covered including the outlook for the Australian dairy industry and options for improving milk price transparency, strengthening
bargaining and restoring industry confidence.

One important outcome of the symposium was the announcement by Deputy Prime Minister and Minister for Agriculture and Water Resources Barnaby Joyce regarding
the upcoming Australian Competition and Consumer Commission (ACCC) inquiry into the national dairy industry.

The inquiry under Part VIIA of the Competition and Consumer Act 2010, has provided the Commission with additional powers to obtain information from the
entire value chain. What this means is the ACCC has been given extra investigatory control to undertake the inquiry, with the authority to dig deeper
than it would have been able to in a market study.

Already investigating specific issues related to the dairy crisis, the ACCC will have the power to determine whether suppliers engaged in misleading, deceptive
or unconscionable conduct by slashing prices leaving some dairy farmers with massive debts.

The inquiry will investigate sharing risk along the supply chain, supply agreements and contracts, competition, bargaining and trading practices in the
industry and the effect of world retail prices on profitability.

Dairy farmers deserve fair returns at the farm gate, as well as transparency in milk price arrangements and supply contracts. ADF believes that the ACCC
inquiry is a thorough and fair way to uncover inefficiencies and inequities that farmers face; and helps to identify a way forward.

From what we have been told the ACCC will release an issues paper and engage with stakeholders through public and private hearings starting in November.
We encourage everyone in the dairy industry to contribute to the inquiry to ensure the ACCC gets the information it needs. There will also be confidentiality
arrangements in place to protect commercial interests.

After the stakeholder engagement meetings, we will be encouraged to provide written submissions to the ACCC before they deliver a final report to government
in the second half of 2017.

This inquiry will shed some light on the bigger picture by analysing the broader dairy industry to identify structural and behavioural issues that affect
the industry’s performance. By engaging with stakeholders, the ACCC will have a better chance of identifying and understanding the key issues in the
industry and we look forward to being a part of the solution.

Further information about the inquiry, including about how you can be involved, will be made available following the receipt of a Terms of Reference from
the Treasurer.

The government will continue to work with dairy farmers and processors to strengthen the industry, including our election commitment of up to $2 million
to establish a commodity milk price index, while the ACCC’s findings from this inquiry will be a vital source of information when looking at options
for the index.

Further information on the ACCC’s inquiry, including its terms of reference, will be made available at www.accc.gov.au/agriculture shortly.

David Basham

Acting ADF President

The symposium was held yesterday in Melbourne and both the Australian Dairy
Farmers CEO John McQueen and myself attended.

Firstly, I would like to thank the Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce for organising and chairing the
symposium as well as other government officials who were in attendance.

I would also like to thank our state members – QDO, NSWFarmers, SADA, TFGA, UDV, WAFarmers and industry partners for their work prior to the symposium
which gave us the opportunity to narrow our message down to focus on four important key areas.

Lastly I would like to thank the processors and retailers who were at the symposium to hear from concerned farmers, owners of small businesses and people
who produce a quality product that many people in Australia rely on.

For me, the symposium provided an opportunity for the dairy industry to have an open discussion with key stakeholders to address the challenges facing
the Australian dairy industry.

Our main points include no $1 milk, no late season drop in milk price, fairer contracts, commodity milk price index with an educational program and critical
need for farmers and manufacturers to find the solutions rather than depend on government.

These points illustrate the need by industry to ease the pressure placed on farmers by having to accept an unfair share of the risk and possible financial
fall-out. We believe in greater transparency and look forward to working with the government on establishing the commodity price index tool which will
help tip the balance back to the farmer.

Since 2011, we have said that the $1 milk devalues the product by taking substantial value out of the supply chain and has to stop if we are going to maintain
a sustainable industry. There needs to be greater fairness in contracts and we have committed to working with processors to ensure all contracts comply
with the unfair Contracts Legislation that begins on November 12, 2016. Also, the situation in Western Australia needs to be addressed immediately
as we don’t believe it’s right that nine farmers may not have anywhere to take their milk.

In response, Minister Joyce urges the need for industry to work together to better balance risk along the dairy supply chain, especially when it comes
to managing the effects of lower world prices. He wants to see improved Farmgate returns for dairy farmers, an openness in milk price arrangements
and fair and transparent milk supply contracts; plus, the development of a commodity milk price index which he committed up to $2 million in government
funding to establish. Also, for industry to find a compromise to the $1 milk situation otherwise he will need to take action and push for an immediate
solution.

However, he also acknowledged that these things will only happen if there is buy-in from industry and a willingness from key stakeholders to hear each
other out and develop solutions together.

A surprise announcement made by Minister Joyce at the conclusion of the symposium advised that Treasurer Scott Morrison has request the ACCC to undertake
an inquiry under Part VIIA of the Competition and Consumer Act 2010 providing the Commission with powers to obtain information from the entire value
chain. What this means is the ACCC has been given extra investigatory powers to undertake the inquiry, with the authority to dig deeper than it would
have been able to in a market study. The inquiry, which will begin in November, will investigate sharing risk along the supply chain, supply agreements
and contracts, competition, bargaining and trading practices in the industry and the effect of world retail prices on profitability.

Yesterday’s dairy symposium delivered on Minister Joyce’s election promise to get key stakeholders together to address challenges facing the Australian
dairy industry and discuss ways to improve the industry’s prospects going forward.

One of the ways the Coalition Government is delivering assistance to dairy farmers is with a $579 million support package to help manage through the current
low price environment. The funding been allocated to four main areas including access to Dairy Recovery Concessional Loans, Farm Household Allowance
(FHA), the Rural Financial Counselling Service and an additional $900,000 for Dairy Australia to roll out ‘Tactics for Tight Times’ one-to-one farm
business advice.

If you have any questions relating to whether you are eligible for the concessional loans, the government has released a dairy question and answer section
on their website (click here).
However, we suggest that you also contact a financial counsellor or the relevant state delivery agency as they will be able to help you with information
and the application process.

David Basham

Acting ADF President

The Four Corners ‘Milked Dry’ program aired Monday 15^th and highlighted the financial toll that cheap dairy products and fluctuations in both the domestic and global markets have taken on dairy farmers.
This state of crisis has also shown just how far consumers will rally to help our struggling industry, but it will only solve half the problem.

What we really need now is to go beyond short term measures to create stability for our industry’s long term future. The need for transparency and improved fairness by finding new ways to manage price volatility for farmers; and through simplifying supply contracts so farmers know exactly what it means and how it will affect them.

The first in a series of formal talks with the dairy industry, the Prime Minister Malcom Turnball, Deputy Prime Minister Barnaby Joyce and representatives
of Murray Goulburn met to discuss ways to increase the profitability of the Australian dairy industry in order to support farming families and their
communities. An important thing to take away from this meeting is the fact that the Australian Government and Murray Goulburn both agreed that Australia’s
dairy farmers deserve fair returns at the farm gate, as well as transparency in milk price arrangements and supply contracts. Another important outcome
was the role Murray Goulburn will play in explaining to their suppliers what steps they will take to support farmers and restore confidence to the
dairy sector.

We expect a similar message and outcome of next week’s meeting between Fonterra’s Australian management and the Government who will continue to discuss
the state of the dairy industry and how the current issues could be avoided in the future.

The last in the series of talks is the dairy symposium to be held in Melbourne on August 25, chaired by Minister Joyce with representatives from the farming,
processing and retail sectors. We will be asking the government to formally review a number of high priority issues including $1 milk, fair contract
terms and conditions, and a world dairy commodity pricing index.

At ADF, we are working closely with state members and dairy farmer representatives to make sure the government continues to strengthen the industry through
consultation with both Australia’s dairy farmers and processors. We are committed to provide innovative and practical solutions to help farmers achieve
a sustainable level of profitability and ensure that our farmers’ best interests are reflected in the work we do so they can take control of their
situation and make informed choices.

One of the ways the government is helping dairy farmers is by providing assistance through a $579 million support package. This package includes access
to Dairy Recovery Concessional Loans, Farm Household Allowance (FHA), the Rural Financial Counselling Service and an additional $900,000 for Dairy
Australia to roll out ‘Tactics for Tight Times’ one-to-one farm business advice.

The government support package is there to help us through this difficult time. It is very important that dairy farmers, including farm owners, share-farmers
or leasers not self-assess their eligibility for government assistance. If you have any questions relating to whether you are eligible for the concessional
loans, please contact a financial counsellor or the relevant state delivery agency as they will be able to help you with information and the application
process.

David Basham

Acting ADF President  

Most of you are aware the Four Corners ‘Milked Dry’ segment will go to air tonight,
Monday 15^th August, which is a follow-on from the dairy price cuts that happened a few months ago.

As a Dairy farmer, we know the industry is not immune to the volatility of milk prices and as history has shown the prices will probably continue to fluctuate
well into the future.

What the majority of the public don’t see is how resilient we are. Not just as farmers, but as business people, as entrepreneurs and experts in sustainability,
with the skills to adapt our businesses within this challenging environment as best we can.

Behind the scenes, the Dairy industry are working together to provide farmers with the support they need during this challenging time. As an industry,
we are united in going beyond short term measures to create stability for our industry’s long term future.

An important aspect of this is the need for transparency and improved fairness by finding new ways to manage price volatility for farmers. We are working
to address these issues through simplifying supply contracts and improving transparency in the milk pricing system.

The ADF is pleased that the Hon Barnaby Joyce MP is proceeding to hold a Symposium with farmers, manufactures and retailers. The ADF will provide strong
dairy farmer representation regarding the major issues we face including $ milk, fair contract terms and conditions, and a world dairy commodity pricing
index which are just a few of the high priority issues.

There are unfortunately no silver bullets to restore our industry, but there are resources available to help farmers navigate the current challenges and
manage the impact of recent announcements. This includes the Tactics for Tight Times program, which helps provide clarity to farmers about settings
and seasonal conditions, supports key decision making on farms, and put farmers directly in touch with other services such as health and wellbeing
organisations. It’s important to make the time to take up these opportunities.

While being put in the spotlight can sometimes feel overwhelming, the media is a great vehicle to share our message with the public to let them know what
is happening and ways they can help. It is also a chance for state organisations and dairy farmers to let consumers know that they can show their appreciation
and support by buying Australian milk and dairy products.

David Basham

Acting ADF President