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2015 NCDE Oration a lesson in leadership, teamwork

A leader is only as strong as its team, according to Stella Axarlis AM.

Speaking at the National Centre for Dairy Education’s (NCDE) second
annual oration on 25 November 2015, Ms Axarlis inspired the audience with her humorous, frank speech titled ‘A lifelong pursuit of excellence through
education’ .

Through hard work, dedication and an unrelenting desire to learn, Ms Axarlis has succeeded and excelled in varied careers. From teacher and opera singer
to managing director, industry representative and community advocate, the speaker’s diverse career has provided her a lifetime of lessons.

Ms Axarlis’ 20 years’ as an opera singer provided lessons in leadership and teamwork. She told the audience: “if you don’t perform as a team then your
performance is only as good as the weakest person on that stage.”

Ms Axarlis also underlined the importance of prioritising health and wellbeing.

“Be kind to yourself. I know how hard you (dairy farmers) work so you have to look after yourself.”

Delivered to 100 members of the Australian dairy industry, including ADF’s President and CEO, the oration’s themes reflected ADF’s belief that skilled,
motivated people are the industry’s most important on-farm asset.

Executive Manager of NCDE and GOTAFE and Oration guest of honour, Peter Carkeek was also celebrated during the evening for his commitment to the NCDE.

Outgoing ADF President, Noel Campbell with NCDE Orator, Stella Axarlis AM and ADF CEO, Ben Stapley at the 2015 NCDE Oration.

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Demonstrating social, economic contribution essential to achieving vision

Two hundred and fifty of Australia’s leading dairy representatives from across the whole value chain, gathered in Melbourne on 27 November 2015 for the
annual Australian Dairy Industry Council (ADIC) Leaders Breakfast.

Centred on the theme “The dairy domino effect: leading healthy, sustainable, profitable communities”, the event explored the interdependent nature
of dairy’s future success and building recognition for the industry’s social and economic value.

Guest speaker and rural sociologist, Dr Neil Barr told industry leaders that the decline in farmer populations over the past decade posed no threat to
the future of Australian dairy.

“Dairying is the future for young farmers in Australia. The demand for opportunities is there, the industry just needs to work on developing the pathways
to get them involved.”

Dr Barr also highlighted that developing the amenities of dairying towns and encouraging investment in recreational facilities, would be key to retaining
skilled workers.

Outgoing ADIC Chair, Noel Campbell highlighted that new opportunities for growth and prosperity brought with them the responsibility to demonstrate dairy’s
value to people, the land, livestock and the global community.

“The extent to which the Australian community understands the story behind the tubs of yoghurt and flavoured milk in their fridges will directly impact
their trust and investment in our industry’s future. We need to share our industry’s story with our communities, our consumers and our customers if
we are to achieve our 2025 Dairy Vision: prosperous, trusted and world renowned for nutrition,” Mr Campbell said.

“Collectively, dairy demonstrates its value through initiatives such as the Dairy Industry Sustainability Framework, as well as the search for the Legendairy Capital.
It is essential that our industry continues to build on such initiatives.”

Guests also heard from a panel including Senator Richard Colbeck, Corangamite Councillor Chris O’Connor, CEO of Bega Cheese Barry Irvin, Co-owner of Myrtleford
Butter Factory Naomi Ingleton and Gipps Dairy Director Dr Sinead De Gooyer.

Dr Sinead De Goyer discusses farmer health as an integral part of sustainability with the ADIC Leader’s Breakfast Panel.

Outgoing ADIC Chair, Noel Campbell, ADIC Deputy Chair, Robert Poole, Incoming ADIC Chair, Simone Jolliffe and Senator Richard Colbeck at the ADIC Leaders’
Breakfast.

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Shirley Harlock celebrated for contribution to industry

Victorian dairy farmer and advocate, Shirley Harlock has been recognised for her contribution to the Australian dairy industry, as the 2015 recipient of
the Australian Dairy Industry Council’s (ADIC) Outstanding Service Award (OSA).

The OSA celebrates the lives and careers of industry participants whose contribution has significantly shaped the dairy community and beyond for the benefit
of the whole value chain. The award was presented to Mrs Harlock at the ADIC’s annual Leaders Breakfast on 27 November 2015.

Outgoing ADIC Chair, Noel Campbell said Mrs Harlock continues to be a key player in shaping the policy landscape for Australian dairy.

“Shirley has a strong belief in advancing industry change through science and innovation. This has seen her advocate for the continued investment in research
and development to industry, government and the broader community,” Mr Campbell said.

“For over four decades, she has been extensively involved with industry representation, helping to find practical, effective solutions to its challenges.”

Mrs Harlock has held local and executive positions with United Dairyfarmers of Victoria, and was a Director of Australian Dairy Farmers (ADF). She also
served as Chair of Dairy Food Safety Victoria for ten years. In 2005, Mrs Harlock was appointed Chair of the Dairy Australia Future Dairy project,
charged with research, development and adoption of robotic technology for Australian dairy farms.

In partnership with her husband John, Mrs Harlock continues to actively operate dairy farms in Warrnambool and support farms in South Australia.

Addressing a room filled with dairy leaders from across the whole value chain, Mrs Harlock took the opportunity to remind guests to ensure to be involved
in finding shared solutions to the industry’s challenges.

“I live by the philosophy that, if you’re not involved, you’re part of the problem,” Mrs Harlock said. “I’m extremely proud to be a dairyfarmer. No industry
could offer such reward, opportunity, support and encouragement – you just have to be prepared to avail yourself of it and be involved.”

ADIC Deputy Chair, Robert Poole and Outgoing ADIC Chair, Noel Campebll with 2015 OSA Winner, Shirley Harlock and her husband John.

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Climate variability drives on farm innovation

A concerted effort to reduce power costs and dairy’s environmental footprint is seeing
increasing numbers of Australian producers implement more efficient, ‘green’ on farm practices.

In Athlone, Gippsland former mechanical engineer and seventh generation dairy farmer, Lindsay Anderson is harnessing solar energy to the benefit of reduced
on-farm costs. Converting all his large single-phase motors to three-phase motors using variable speed drives as phase converters, Mr Anderson has implemented renewable technology throughout his business. He devised a 5 kilo-watt grid-connected solar system which supplies power to his automatic milking system, his workshop and farm house.

This system provides enough power to feedback through the grid for a payment each quarter – providing some additional income for Mr Anderson.

“This system can save me between 15 to 33% of electricity consumption,” Mr Anderson said.

It also means there is even less diesel used on the property so the environment will also be better off.

According to dairy’s 2014 Sustainability Framework Progress Report, Mr Anderson is one of many dairy farmers adopting energy efficient procedures on farm.
Since 2012 40% of farms have installed some form of renewable energy installation.

Chair of the Sustainability Framework Steering Committee, Chris Griffin said that dairy producers have always been stewards of the land, and are constantly
getting smarter about energy efficiency on farm.

“Dairy farmers have a real commitment to managing land and water responsibly, reducing greenhouse gas emissions and protecting natural resources for future
generations. They are constantly reviewing their practices in response to seasonal conditions and a changing climate,” said Mr Griffin.

“As a bonus, many farmers are finding that these measures are cost effective.”

Working with Australian Dairy Farmers (ADF) and Dairy Australia, the ADIC has lobbied hard to secure Government funding to support uptake of energy efficient
technology on farm. Combined with industry investment, Federal and state programs have assisted farmers and manufacturers with the upfront capital
costs in energy efficient or renewable energy technology, and therefore increased uptake.

The dairy industry has seen the benefit of such co-funded initiatives through Dairy Australia and the Federal Government’s Energy Efficiency Information
Program. These nationwide assessments have already helped 1,400 farms. Guidelines have also been developed to complement these assessments and provide
information about where energy is used in dairies, as well as identify where greater efficiency can be found.

In two years since the Sustainability Framework was implemented, manufacturers’ use of fuel and electricity has reduced by 14.5%. Together, the whole value
chain is vigorously pursuing its target of reducing the intensity of greenhouse gas emissions by 30% by 2020.

“We will continue with programs and projects that are guiding the industry toward improved returns, while minimising our environmental footprint and improving
the wellbeing of our people and animals,” Mr Griffin explained.

“There is still work to be done, but we are most definitely headed in the right direction.”

Earlier this year, ADF shifted its climate change policy, calling for joint industry and government investment in adopting energy efficient technologies
on farm. Chair of the ADF Natural Resources Policy Advisory Group, Daryl Hoey said the revised policy highlights to Parliament, consumers and the broader
community that the industry remains actively engaged in reducing its environmental impact.

“The scientific evidence, international policy, and public interest in increased climate variability justify industry action. Our whole value chain strives
to continually reduce its environmental footprint, through uptake of new technologies, improved management and adoption of farming systems to suit
climate variability,”

“The Australian Government can promote the industry’s effective response to climate variability through sustained investment in agriculture R, D&E
and the uptake of energy efficient technologies on farm.”

This includes new solutions that both reduce emissions and improve profitability, international research collaboration, and methodologies that support
a whole-farm-systems approach in reducing emissions.

“The Australian dairy industry is keenly observing the Government’s response to the United Nation’s Climate Change Conference taking place in Paris this
December,” Mr Hoey said.

“We are aware the outcomes of this event may impact the Australian Government’s approach to emissions reduction policy. We want to ensure any policy initiatives
do not undermine our trade exposed industry, but instead support dairy farmers’ ability to manage risk, innovate and adapt to climate variability.”

For more information on ADF’s policy on carbon emissions and climate change click here.

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Sustainability Framework recognised with Banksia Award

The Australian dairy industry has been recognised for its ongoing commitment to sustainability at the
Banksia Sustainability Awards held in Sydney on November 13.

The industry was presented with the Food for Sustainable Thought Award and was a finalist for the Natural Capital Award for work achieved under its
Sustainability Framework. Chair of the Sustainability
Framework Steering Committee, Chris Griffin accepted the award on behalf of the industry.

“The Australian dairy industry is committed to achieving ongoing improvement to ensure a sustainable future for the next generation of farmers and
dairy consumers,” Mr Griffin said.

“We thank the Banksia Foundation and the judges involved for recognising our commitment to a sustainable future and our progress so far.”

An important part of the Australian dairy industry implementing the framework is for customers and the community to follow our performance and progress,”
Mr Griffin said.

“We welcome the opportunity to share the evidence of our progress against key targets on our farms and in the manufacturing sector.”

An initiative of the Australian Dairy Industry Council (ADIC) in collaboration with Dairy Australia, the Australian Dairy Industry Sustainability Framework
takes whole-of-chain approach to sustainability from feed production to manufacturing, retail and packaging.

Endorsed by industry in 2012, the Framework outlines the industry’s commitment to enhance livelihoods, improve wellbeing and reduce our environmental
footprint. 

To ensure dairy is recognised worldwide as a responsible, responsive and prosperous producer of nutritious food, the Framework sets 11 economic, social
and environmental targets to be achieved by the year 2020.

The third Sustainability Framework Progress Report is due to be released in February 2016 to benchmark how the industry is tracking towards achieving
these targets, including supporting case studies to back these findings.

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Pressing pause on the Basin Plan

The Australian Dairy Industry Council’s (ADIC) has expressed concern in a submission to the
Senate Inquiry into the Murray-Darling Basin Plan, regarding the impact of the Basin Plan on dairy business viability.

In the submission the ADIC states its support for a plan with clear and appropriate targets to recover water for the environment provided farms remain
viable. So far, more than 1160GL of a possible 1500GL transferred from irrigation to the environment through buybacks.
Dairy farmer and Chair of the ADIC Water Taskforce, Daryl Hoey said in its current form the Basin Plan isn’t achieving the right balance, setting unrealistic
timelines as well as a lack of planned transition and structural adjustment.
“A significant pain of adjustment is already being felt in the dairy industry, even if no more water is transferred from the irrigation pool across
to the environment,” Mr Hoey explained.
“We can clearly see the impacts on dairy farming systems through exposure to higher water prices, a more volatile temporary water market; reduced viability
of some irrigation districts; and overall, difficulty in growing our milk production.”
Dairy Australia analysis indicates that, based on conservative estimates, the 120GL of high reliability water entitlements dairy farmers in the Goulburn
Murray Irrigation District sold to the Commonwealth as buybacks, could have resulted in the production of an additional 289 million litres of milk
if those entitlements were still owned. That 289 million litres of milk would be worth approximately $144 million at the Farmgate.
Farmers in the same district are now sourcing around 275 GL a year from the temporary market to meet their needs (due to reduced ownership of entitlements)
have added a cost impost of $41million at $150/ML. On 12 October 2015 temporary water was trading at $300/ML.
The ADIC is calling for Government to “press pause” on the Basin Plan to ensure it can achieve the right balance, and therefore achieve genuine outcomes.
“To get the Basin Plan back on track we need more realistic timelines and a clearer picture of socio-economic and environmental effects before more
water is taken from the irrigation pool,” Mr Hoey said.
“This includes a clearer understanding of the water market and more appropriate approach to the 450GL “upwater”. We are also seeking greater flexibility
to trade environmental water and an appropriate sustainable diversion limit adjustment mechanism.”
The ADIC has welcomed the Commonwealth Environmental Water Holder’s decision to sell 20 GL of temporary water in the Goulburn system, which will enable
more trading of temporary water. However, the ADIC said it is vital producers in the region benefit from the availability of this water through
a fair process to trading the water.
Representatives from the dairy industry are seeking to attend the Murray Darling Basin Plan Senate Inquiry hearings scheduled in November. To see the
full recommendations from the ADIC submission see http://www.australiandairyfarmers.com.au/submissions
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Stronger competition laws remain on agenda

Australian Dairy Farmers (ADF) is calling upon the Coalition Government to adopt stronger
misuse of market power laws to foster a more competitive business environment.

While some business groups have suggested that stronger laws about the misuse of market power may have negative impacts on competition and innovation,
these claims don’t withstand scrutiny.
ADF President, Noel Campbell said concerns that the introduction of an effects test could put consumers at risk were unfounded.
“These changes are about protecting consumers and competition from actions that substantially lessen competition in a market. These reforms are in
consumers’ interests,’ said Mr Campbell.
“The Harper Review made it clear, the law as it stand is inadequate. The Government must not let self-interested businesses and organisations with
excessive market share further limit competition to the detriment of 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. ADF is advocating
for certainty that the legal process is able to provide integrity and transparency regarding the impact of retailer actions on suppliers.
Almost all OECD countries already have an ‘effects test’ within their legislative schemes and there should be no trouble in drafting an appropriate
test that protects the integrity of Australian market. ADF is hopeful that this will prevent damaging practices, including predatory pricing in
future.
Addressing the misuse of market power is crucial in determining the Australian dairy industry’s future profitability and sustainability. Farmers need
every opportunity to improve their negotiating power for profitability and returns at the farm-gate to be achieved.
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October President’s Message

After months of debate and uncertainty, on 21 October 2015 Federal Government and opposition
committed to passing the China-Australia Free Trade Agreement (ChAFTA) before the end of the year. As an industry, dairy is pleased that both sides
of politics have recognised the opportunities ChAFTA will provide Australia’s dairy industry.We welcome this collaborative, bipartisan approach to
ensure clear passage of the agreement and entry into force as soon as possible.

The Australian dairy industry is particularly well-placed to take advantage of the enormous opportunities that will flow from our historic trade deal with
China. The tariff cuts that the ChAFTA delivers once it enters into force will enhance the competitive position of Australian dairy. This is good for
growth, for jobs, for the economy and a boom for our export market.
The dairy industry, led by the Australian Dairy Industry Council (ADIC), has fought hard for ChAFTA implementation. We have lobbied Parliament, and explained
to the media that if the ChAFTA is ratified this year, the dairy industry will see a growth in job creation across the value chain, both on farm and
in processing plants. It will also see further growth in confidence to invest in productivity. ADF expects that around 600-700 jobs will be created
within the first year of ratification. The flow-on effects of this growth will undoubtedly benefit the rural and regional communities where dairy plays
an important role.
The message has clearly been received, acknowledged and acted upon. I wish to thank all of you who have taken up this fight to ensure the ChAFTA is ratified
as quickly as possible. This deal is a once-in-a-generation opportunity to grow our businesses and our communities. On behalf of our industry, I look
forward to the swift passage of the enabling legislation through Parliament so that dairy can take advantage of the financial benefits and see the
whole value chain continue to grow sustainably and profitably over time.
Noel Campbell
ADF President
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Voting for Levy Poll Process Now Open

Voting to change the levy poll process has now opened and it is time to have
YOUR say. As the dairy industry’s peak policy and advocacy group Australian Dairy Farmers (ADF) is encouraging all dairy farmers to vote yes on their
ballot papers, which were mailed last week to all dairy levy payers.

Voting yes means a Levy Poll would only be held when a change to the levy or its procedures is proposed. In short, no change, no Levy Poll.
After the last poll in 2012, the clear message from dairy farmers was that the efforts and funds dedicated towards the poll process could have been better
spent delivering dollar value to dairy farmers. The change makes complete sense, saving at least $750 000 that will be redirected to industry programs.
Dairy farmers have made it clear in regional meetings across Australia that the industry should make the change. Now, we need to ensure that the Federal
Government is confident that’s the view of levy payers by voting yes or no.
A yes vote will not remove Dairy Australia from scrutiny. Dairy Australia will still be required to undergo an independent performance review at least
every five years, which will then inform an independent committee of industry representatives on whether or not a levy poll is required. 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 propose a
poll.
The Dairy Levy Poll Process ballot can be completed by post, email, fax or online at www.computershare.com.au/dairylevy2015. Voting
will remain open until midday (AEDT) Friday 27 November. For details on upcoming information sessions near you see www.dairylevypollreview.com.au
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An extra week of Artificial Insemination can be worth thousands $$$

For dairy farmers who plan on spring calving, the next few weeks are a crucial time not only
for their herds, but also for their business and profit plans, especially if they are using Artificial Insemination (AI) techniques on-farm.

Dairy Australia program manager for Genetics and Data Management Matthew Shaffer, and Michelle Axford of the Australian Dairy Herd Improvement Scheme
(ADHIS) recommend farmers ensure they have enough replacements sired by AI bulls from the Good Bulls Guide. This may mean extending their AI program
by a few days before allowing bulls into the paddock to naturally join with their cows.
“Don’t fall short with your AI program and give it that extra bit of time as the upfront costs will pay dividends for over the lifetime of the cow.
”Improving the genetics of your herd will benefit your business bottom line and ultimately your profits even when times are tight,” said Mr Shaffer.
“In 2014, for example, AI bred Australian Holsteins produced 22kg of more fat and 23kg more protein than those naturally bred creating an additional
annual production value of about $271.80 per cow.
“And that means if you have 100 more AI bred Holstein cows in your herd you can expect an extra $27,000 of production value every year,” he added.
Ms Axford said that ADHIS and NHIA research for 2014 showed the total number of herd-recorded Holstein cows in Australia was 317,290, of which about
70% are AI bred. The extra value of annual production (based on $6.04/kg MS, source Dairy Farm Monitor Project 14/15) if the other 30% of cows
were bred by AI rather than by the herd bull was approximately $25 million.
“The reason we do research on better genetics for our cows is that it produces healthier cows who produce better quality milk and make better profits
for our dairy farms,” said Ms Axford.
For more information contact Michelle Axford, ADHIS Extension and Education Manager, ph 0427 573 330 email maxford@adhis.com.au or www.adhis.com.au.
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What the TPP means for dairy

The 12 nations involved in negotiating the Trans Pacific Partnership (TPP) free trade agreement
concluded negotiations in Atlanta on Tuesday 6 October 2015, delivering modest but important gains for the Australian dairy industry.

As the whole of value chain representative body, the Australian Dairy Industry Council (ADIC) acknowledged the conclusion of the agreement as a good result
for Australian dairy farmers.
ADIC Chair, Noel Campbell said that the deal, in conjunction with the recently concluded China-Australia free trade agreement, would give farmers the confidence
that if they are going to grow their businesses there are markets to match their growth.
“As an industry our future growth will be on the export market, as domestic growth has matured. The TPP provides improved access to markets such as Japan,
where demand for our high quality, safe product is expected to increase in coming years,” Mr Campbell said.
“The industry is currently examining the agreement in its entirety to assess what the full extent of the benefits will be for Australian dairy. Early analysis
indicates however that the TPP will enable more Australian cheese to be exported to Japan tariff-free. We’ve also got greater access for butter and
skim milk powder than ever before.”
Mr Campbell said the industry appreciated the dedication of the Minister for Trade and Investment, the Hon. Andrew Robb MP and his team of negotiators,
in continuing to seek trade agreements that benefit the Australian economy.
“On behalf of the Australian dairy industry I would like to extend my thanks to Minister Robb and the Australian negotiators for maintaining strong communication
with industry throughout the TPP negotiations. They have done their utmost to balance the competing interest of industry and government across the
12 nations involved throughout a challenging process,” Mr Campbell said.
“The conclusion of the TPP continues a historic period of increased trade liberalisation over the past few years. The ADIC looks forward to reviewing the
agreement in its entirety to fully quantify the benefits for dairy.”
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World Food Day – A Day of Action Against Hunger

Friday 16 October 2015 is World Food Day – a day of action against hunger observed by more than 150 countries each year.

It is held to acknowledge the chronic hunger experienced by many, and act as a lightning rod for people to declare their commitment to eradicate hunger in our lifetime.

Globally, one in nine people – or 795 million people – are undernourished, with most living in developing countries.

Asia has the most hungry people, with two-thirds of the total, while in Sub-Saharan Africa, projections for 2014-2016 indicate a rate of undernourishment
of almost 23%.

Hunger is a growing problem in Australia too, with a rising number of low-income families struggling to afford minimum daily requirements.

Low-income families are the biggest group seeking food relief, according to Foodbank.

Foodbank is a non-denominational, non-profit organisation which connects the food industry’s surplus food with the welfare sector’s need.

Foodbank released a Hunger Report that revealed 516,000 Australians rely on food
relief from Foodbank’s agencies each month, with over one-third of recipients being children.

Australian dairy’s leading manufacturers, including Devondale Murray Goulburn, Fonterra Australia and Lion Dairy & Drinks, support Foodbank. Donations
of milk, cheese, spreads and yoghurts help make nutritious meals every day for families and school children that would otherwise miss out.

However, food insecurity in Australia is worsening, as demand for food relief outpaces supply. Each month, more than 60,000 Australians seeking food relief
are unable to be assisted.

The Sustainable Development Goals recently released by the United Nations includes a goal to
eliminate hunger by 2030.

This goal includes a target to ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and
production, as well as help maintain ecosystems.

The Australian dairy industry is committed to enhancing livelihoods and improving wellbeing, and has established an industry-wide sustainability framework to help achieve these goals.

The framework’s targets include ensuring dairy contributes to improved health outcomes for all Australians, as well as ensuring the rich source of nutrients
dairy provides continues to be produced in an environmentally sustainable way to the benefit of all.

The world does not necessarily need to produce more food to alleviate hunger. The World Food Program has stated that
hunger is entirely solvable

Instead, it needs nutritious food delivered to those missing out.

Dairy – comprising nutrients critical for growth and development – will play an important part in any solution to this problem.

Eliminating world hunger in our lifetime will require a committed approach by all and the Australian dairy industry is proud to play its part.

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