Since bushfires began burning in Western Australia (WA) in the week of 4 January, fires
have significantly affected the Waroona-Harvey dairying region. Now three weeks on from the devastation, recovery assistance for farmers is the primary
focus.

To support the recovery effort, WAFarmers has established a hay drive and is managing a relief appeal to collect cash donations for affected farmers. One
hundred per cent of the funds raised through the WAFarmers Fire Appeal will go directly to farmers; ensuring financial assistance is available to farmers
for tasks including the rebuilding of fencing and the purchase of feed.

WA’s Dairy Industry bodies, including WAFarmers and Western Dairy, have commenced preliminary assessments. There are approximately 20 dairy farms with
direct fire damage and many more continue to be impacted by loss of power, burnt pasture and feed supplies.

Fencing is an immediate concern, with the fires destroying over 800 kilometers of farm fences, as well as loss of pasture and newly sown crops. There have
been few reports of dairy stock loss to date.

Funds received through the WAFarmers Fire Appeal will be used directly to benefit farmers. Farmers do not have to be a member of WAFarmers to be able to
receive assistance from the funds. We encourage the public to show support for the WAFarmers Fire Appeal.

The GoFundMe account can be accessed here.

Australian Dairy Farmers (ADF) is pleased to welcome new Business Director, Terry Richardson and Independent Director, Dr Dedee Woodside, alongside recently
elected President, Simone Jolliffe to the ADF Board following the ADF Annual General Meeting on 26 November 2015.

With significant experience in various agriculture roles, as well as through their diverse industry leadership and advocacy roles, both Board members are
exceedingly well qualified for their Board position, each bringing a unique perspective to the table.

ADF interviewed each Director to find out a bit more about them. We asked them what they believe the most important policy issues are for ADF to focus
on in 2016…

Terry Richardson

As a native New Zealander I have great appreciation for the vast geographical challenges that Australian dairy farmers face. As a dairy farmer I know that it is difficult to prepare and mitigate these challenges unless we are building sustainable business models. In order to achieve this it is essential to be profitable. For these reasons I believe the short term and long term goals of ADF are intrinsically linked.

Our policy focus will always be set by what stands in the way of building a stronger future for our industry. This will mean the continued implementation of projects that propel us toward the industry’s vision to become prosperous, trusted and world renowned for nutrition.

In order to help achieve this vision, ADF can develop its communication of the role policy plays in helping us be profitable. Price will always be on the front page, but policy is always bubbling away behind the scenes – we often don’t hear much about it. Yet without strong policies that address everything from competition issues to research and development funding, it is impossible for our industry to be profitable. For this reason I am keen to work with ADF to continue to build our members and non-members’ understanding of how important policy is to what we do.

Through key achievements such as the pro-dairy China-Australia FTA we have seen how effective our industry is when united – we must continue this unity in order to see improved policy outcomes for our industry in future.

Dr Dedee Woodside

Dairy’s central focus for 2016 appears to increasingly be on water, soils and energy – and the availability, quality and sustainability of these resources.

I am attracted to the idea that with such a buzz around environmental responsibility and impact at the moment there is a real opportunity for the Australian dairy industry to make some headway on issues of concern to our farmers, processors and consumers. In particular with the recent Paris Climate Summit and the Australian Government’s commitment to energy targets we can highlight that this isn’t an overnight process. Our industry needs strong thought and planning to ensure we are achieving our environmental targets in a way that is reasonable and practical.

Already the industry has begun on this path, particularly in light of the growing opportunity in overseas markets and talk of expanding production. I am interested to contribute to this discussion, to understand whether growth is really a viable option and to understand what the limits are; where we can be smarter about our operations and where we need to change tactics entirely.

I am excited to be a part of ADF’s journey under a new President, Simone Jolliffe and a part of an industry that is growing, changing and opening up. The next few years will be very interesting.

ADF President, Simone Jolliffe welcomed the new additions to the Board and said she looks forward to working with them in 2016.

“Their vision and ideas will help ADF in its work to promote the interests and sustainable profitability of all Australian dairy farmers,” Mrs Jolliffe
said.

For more information on ADF’s Directors see
www.australiandairyfarmers.com.au

With Christmas only two sleeps away, it’s time to reflect on the role that dairy farmers (and for that matter all farmers) plays in the festive season.

We’re all looking forward to the cheese platters, custard, ice cream and all manner of other festive trimmings this holiday period. All of those tasty
dairy products have been produced by the dairy farmers of this country, which is milked and processed even as we unwrap our presents from Santa on
Christmas morning. Milking takes place every day of the year, irrespective if public holidays or religious festivals. Aussie farmers do this to ensure
that there is always milk in our fridges – 365 days a year.

So as you tuck into your Christmas pudding and add custard, butter or cream remember to thank an Australian dairy farmer who got up early to produce it.

Merry Christmas from Australian Dairy Farmers!

More support has been announced for financial counselling in drought-stricken regions in New South Wales, Queensland, South Australia, Victoria and Western
Australia. An extra $920,000 in funding has been provided for Rural Financial Counselling Service (RFCS) providers in those States to continue to help
farmers battling drought.

The funds are in addition to the $14.3 million Commonwealth funding already allocated to the RFCS programme in 2015-16.

Australian Dairy Farmers (ADF) has welcomed this support, acknowledging the financial counselling service as a vital part of supporting dairy farmers through
challenging times, including drought. ADF highlighted that the service helps people take control of their business again rather than allowing their
business to take control of them.

Agriculture needs as many financial counsellors as possible across rural Australia according to ADF, particularly as drought continues to challenge many
dairy regions.

The RFCS can support farmers with business planning, farm debt mediation and helping them access sources of professional, industry and government assistance.
The services can vary from one ten-minute phone call with a person to on-going support across a number of years.

The additional funding provided by the Commonwealth Government toward the counselling initiative will be crucial over the coming months as the pressures
of drought compound continue.

ADF encourages farmers to utilise the service and to keep in contact with neighbours who may be struggling during this time.

To find out about RFCS offered in your region contact your State Dairy Farming Organisation or visit http://www.ruralfinancialcounselling.org.au/.

The Coalition’s response to the independent review of the Water Act 2007 was released in December 2015. The Government’s decision to adopt all of the recommendations,
some wholly and others partially, including to provide greater trading flexibility for the Commonwealth Environmental Water Holder (CEWH),
is positive new for Australian dairy farmers.

The Australian Dairy Industry Council (ADIC) has lobbied hard for increased flexibility for the CEWH in optimising environmental outcomes in ways that
ensure dairy producers have better access to water supplies. Dairy has proved a flexible and responsible user of water. We have adapted our practices
to be more water-efficient. However, reduced access to water resources is already putting pressure on dairy’s productivity and profitability. This
CEWH flexibility is key to helping our industry remain viable. It will also ensure a balanced approach to achieving environmental outcomes in the Murray
Darling Basin.

The Government’s stated commitment to continue to work towards achieving a total 650GL supply offset is also positive. Achieving the full amount through
environmental works means more water stays in the irrigation pools.

Chair of the ADIC’s Basin Taskforce, Daryl Hoey described the response as a positive first step but highlighted greater improvements in the implementation
of the Act and the Murray Darling Basin Plan are still required.

“That the Government didn’t agree with the submissions of many to amend the Act to unambiguously state a triple-bottom-line objective or to strengthen
the current implementation of the legislation is of concern. Such an approach is critical,” Mr Hoey said.

“It’s good to see the Government amend timelines to some evaluations and reviews under the Act. We now need such revisions to be applied to all elements
of the Act.

“In particular, there is a need for a robust evaluation of environmental, economic and social impacts before considering an additional 450 gigalitres (GL)
of water being taken from agriculture.”

To see the ADIC submission to the Water Amendment Bill 2015 click here.

The industry bid farewell to dedicated dairy advocate, Howard Lee who sadly passed away on his way home from a meeting of NSW Farmers on the Mid North
Coast in late November.

Mr Lee, who was born in Kempsey on 10 October 1939, was an inspirational man who was admired by many. A keen industry representative, Mr Lee was part of
the NSW Farmers Dairy Committee for many years and held several other roles with the industry body, including on the NSW Farmers Executive Committee.

Mr Lee was a passionate community leader for Kempsey. For over five years he was a member of the Mooneba-Turners Flat Rural Bush Fire Brigade, which began
with a tractor and trailer. He was also President of the Kempsey Show Committee and former director of the Kempsey Heights Bowling Club.

Colleagues at New South Wales Farmers recall Mr Lee as a gentle, smiling man and a well respected community leader. Fellow North Coast NSW Dairy Committee
member and long-time friend of Mr Lee, Julie Moore described him as a real “go-getter”.

“Howard was always looking for a way to improve things for dairy farmers and to promote the good practices of dairy. He was particularly keen to see farmers
get a better milk price,” Ms Moore said. “He was a passionate advocate. He will be greatly missed.”

On behalf of the dairy industry, ADF extends its deepest sympathies to Mr Lee’s wife Shirley as well as his friends and family.

NSW Dairy Committee member, Howard Lee is remembered as a “go-getter” with a gentle spirit.

The Australian Dairy Industry Council (ADIC) has welcomed the China-Australia Free Trade Agreement (ChAFTA) entry into force on 20 December 2015.

ADIC Chair, Simone Jolliffe said the dairy industry was extremely pleased that the historic agreement has been ratified before the end of the 2015 calendar
year.

“The entire dairy value chain, led by the ADIC, has lobbied strongly for the implementation of ChAFTA and we are pleased to see its entry into force,”
Mrs Jolliffe said.

“On 20 December, Australian dairy exporters experiences the first year’s tranche of tariff reductions. This will be followed by a second round of tariff
cuts on 1 January 2016.”

“In the long term this will mean 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.”

The ADIC thanked the Minister for Trade and Investment, Andrew Robb, and his team of negotiators as well as the Australian government, industry and the
broader dairy community for its ongoing support and for ensuring the deal will be ratified in the 2015 calendar year.

Open until the 31 December, the 2015 Regional Wellbeing Survey forms an important piece of social research that farming organisations and government agencies
draw on to understand farmers’ views and social impacts on a range of regional issues.

This year’s survey covers issues such as drought, water reform, green tape, CSG and mining, sustainable farming practices, markets, farm finance, and innovation.
With more than 9000 respondents in 2014, the survey results to provide a sound statistical policy resource.

For more information and to complete the online survey visit: http://www.regionalwellbeing.org.au

The results of voting on the Dairy Levy Poll Process Review were delivered on
2 December 2015, with the majority of voters in favour of the recommended changes. The levy payer vote drew 24.70% of votes, with 89.95% voting in
support of the recommended changes.

ADF President, Simone Jolliffe said the Federal Government has now be advised of the outcomes of the three month consultation process.

“The essential question was whether levy payers believed we should opt for a levy poll only when a change in the levy was being sought,” said Mrs Jolliffe.

“Every levy payer has been contacted through the consultation process. They’ve been provided opportunity to comment and to vote for or against the recommendations
of the review. The most significant recommendation is that a levy poll should only be held if a change to the levy is proposed.

“The response from levy payers including through the vote, which closed on Friday 27 November, provides a strong signal that dairy farmers believe the
industry should make the changes to the levy poll process.”

Once the changes are made, if farmers believe a poll is necessary, there is a failsafe mechanism for a group of levy payers representing at least 15 per
cent of levy votes to call a Dairy Australia general meeting and propose a resolution that a poll be held.

“Against the benchmark of a shareholder vote, the consultation and voter turnout for this review demonstrates significant engagement and support by levy
payers,” Mrs Jolliffe said.

Saturday 5 December, is World Soil Day. The Food and Agriculture Organisation
of the United Nations kicked off World Soil Day of recognition in 2002, and we’re using the occasion to celebrate the role healthy soils play in building
productive and profitable farms.

By getting the trace elements in the soil right, farmers on Australian dairy farms often find they have the potential to drive increased milk production
higher.

Regular soil testing is necessary to make informed decisions on fertiliser use and soil management and the interpretation of soil test results is key to
making the most cost-effective fertiliser choice. Dairying for Tomorrow’s Fert$mart program includes a range of tools to help advisers and farmers
get soil “right” and make informed, cost-effective fertiliser management decisions.

Australian Dairy Farmer’s (ADF) Natural Resources Policy Advisory Group Chair, Daryl Hoey said insufficient fertiliser negatively impacts on pasture growth.
This means less pasture and means farmers have to increase supplementary feeding or reduce stocking rates. Too much fertiliser, or fertilising at the
wrong time means wasted resources.

“The key is to have the balance in soil just right so that nutrients are available for optimal pasture growth and are not lost in run-off into waterways
and dams,” Mr Hoey said.

Soil health can also be improved by the implementation of a well-managed effluent system. Effluent is a valuable resource for reducing fertiliser costs,
increasing soil fertility, adding organic matter to soil and providing valuable nutrients and moisture to crops and pastures.

“We now have a better understanding of effluent management than ever before,” Mr Hoey said. “The industry has moved away from a waste product mentality
to taking a resource utilisation approach and, as a result, not only do we have improved productivity on farm, we are leaving our soils in better condition
now and for future generations.”

Australia’s dairy farmers have always had a strong commitment to environmental sustainability with industry bodies such as ADF and Dairy Australia coordinating
a range of industry programs to help farmers manage fertiliser use, improve soil health and minimise the impact of effluent.

The dairy industry’s sustainability framework Mr Hoey explained, underpins the whole of value chain effort to minimise the environmental footprint of dairy.

“The framework has been used to identify priority areas, goals and objectives for sustainability,” said Mr Hoey. “It sets the scene for industry programs
like Fer$mart and farmer investment and practices to deliver better results for both farmers and the environment.”

“Dairy farmers have a real commitment to managing land and water responsibly, reducing greenhouse gas emissions and protecting natural resources for future
generations,” said Mr Hoey.

“And as a bonus, many farmers are finding that, with proper soil and fertiliser management, they can produce more feed at no extra cost.”

To find out more about the role healthy soils play on Australian dairy farms take a look here.

Australian Dairy Farmers (ADF) is pleased to announce the appointment of Victorian dairy farmer, Mr John Harlock as the incoming Chairman of the Australian
Dairy Herd Improvement Scheme (ADHIS). ADHIS is the national dairy genetic evaluation organisation that provides Australian Breeding Values (ABVs)
and other objective information about the genetic merit of dairy cattle. As an ADF initiative, ADHIS receives the majority of its funding Dairy Australia
through the Dairy Service Levy.

John operates a 350 cow dairy farm near Warrnambool with his wife, Shirley. John has held positions on a number of dairy industry boards including the
Warrnambool Cheese & Butter Company, Genetics Australia, Western Herd Improvement and Warrnambool Co-operative Society, has also served on the
ADHIS Board for eight years. As a member and former branch president of the United Dairyfarmers of Victoria, Mr Harlock has a strong understanding
of the broader dairy industry and the issues faced by farmers.

ADHIS CEO, Daniel Abernethy thanked outgoing chair, Mr Adrian Drury who has decided to step down to focus on the adoption of new technology in his dairy
business on the north coast of New South Wales.

“Adrian has lead ADHIS through one of the most sustained periods of intense development in the organisation’s thirty year history,” Mr Abernethy said.
“Under his leadership ADHIS has seen the successful implementation of genomics, the launch of the Good Bulls Guide, a world-first Feed Saved ABV and
the complete review of the National Breeding Objective.”

“We thank Adrian for his service and wish him all the best in his future endeavours.”

On
30 November 2015 video footage prepared by New Zealand animal rights group ‘Farmwatch’ aired on national television in New Zealand. The footage exposed
incidents of appalling treatment of calves at different points along the New Zealand bobby calf supply chain.

The Australian dairy industry has been shocked by the cruelty shown in the footage. Any mistreatment of animals, including this cruel behavior, is completely
unacceptable.

Australian Dairy Farmers (ADF) and its farmer members take their responsibilities for animal welfare seriously and are committed to continuous improvement
in their animal husbandry practices. All animals, including calves must be treated with care.

This footage in no way represents reality for the majority of people in the Australian dairy industry responsible for calves and cows. We want to reassure
our customers and consumers to know we are actively engaging with farmers, manufacturers and transporters to ensure such practices do not happen on
Australian dairy farms.

The Australian dairy industry supports the draft Australian Animal Welfare Standards and Guidelines for Cattle as well as the Land Transport Standards
and Guidelines. These were developed in partnership with the animal welfare groups and Government, and provide industry with clear animal health and
welfare standards.

The dairy industry expects that all persons managing livestock abide by these standards and is committed to working with farmers to ensure best practice
is observed on farm.

ADF, in collaboration with Dairy Australia, and other industry partners continues to work closely with transporters and the meat industry to ensure our
cows and calves are well looked after. We also continue to work with industry, Government and animal welfare groups such as the RSPCA to ensure the
wellbeing of our herds in all farming systems.

For further information regarding this matter, please see the DairyNZ and Federated Farmers joint statement here