Over 100 parliamentarians, advisors, departmental members and industry stakeholders gathered in Canberra on Wednesday 14 October, in celebration of Australian
dairy’s innovative and dynamic value chain. Hosted by the Australian Dairy Industry Council (ADIC) the dinner centred on the theme of Australian Dairy,
Thinking Beyond the Box.

The announcement of five new Agricultural Counsellors in overseas markets has been welcomed
by the Australian Dairy Industry Council (ADIC) as a positive step toward addressing non-tariff barriers to trade.

It’s three years since Australian dairy farmers last voted in a levy poll to
determine the level of contribution to Dairy Australia, the industry’s research and development body. Levy payers at that time approved the proposed
levy increase of 10 per cent, but it was clear that the process was costly and distracting.

The 2012 levy poll process included over 50 meetings, took more than 15 months to complete, and cost in excess of $750,000 in levy funds. The time and
money could have been better directed to delivering farm dollar value to dairy farmers.

In the wake of that poll, levy payers, Australian Dairy Farmers (ADF) and industry stakeholders agreed there must be a better way. The Dairy Australia
board agreed to a review that will simplify the levy poll process reduce costs and retain farmer’s rights to be consulted about changes to the levy.

The six-member independent Dairy Levy Poll Process Review Panel delivered its report earlier this year, with unanimous recommendations for a more streamlined,
cost-effective dairy levy poll process. The panel’s primary recommendation is that a poll only be conducted when a change in the levy or the levy process
is sought. In other words, “no poll if no change”.

This doesn’t mean that levy payers or industry won’t have a say. It’s also not about removing Dairy Australia from scrutiny. The report recommends a vital
“failsafe” mechanism where farmers can initiate a poll, if they believe it’s necessary.

If levy payers believe a poll is necessary, they can initiate one by bringing together a group of levy payers representing at least 15 per cent of levy votes.This would activate a Dairy Australia General Meeting where 50 per cent of voters would need to resolve to hold a poll.

The critical thing for Australia’s dairy farmers is that to move to “no poll if no change”, we need to impress on the Federal Government that this proposition
has broad industry support.

ADF is consulting with dairy levy payers, to ensure all are aware of the proposed changes and have the opportunity to make their thoughts known and have
any questions answered.

We’re asking the question of dairy farmers at field days, processor events and State Dairy Farming Organisation meetings.

Starting in October 2015 there will be a simple poll of levy payers, asking for either a “Yes” or “No” vote in support of the independent panel’s recommendation
to change the levy poll process. If the change is supported, ADF will take this endorsement to the Federal Government – specifically the Agriculture
Minister – and we could see this change legislated before the 2017 levy poll is due.

This is not about limiting scrutiny of Dairy Australia. In addition to the “failsafe” recommendation, Dairy Australia will still be subject to independent
review every five years. What we want is a sensible, cost-effective way to get the best value from the levy. Dairy farmers have that opportunity in
front of them, and it can be realised with a simple show of support, right now.

Getting the China-Australia Free Trade Agreement (ChAFTA) ratified will require farmers to show their communities what this opportunity means to them,
according to Australian Dairy Farmers (ADF) President, Noel Campbell.

Mr Campbell, along with representatives from the United Dairyfarmers of Victoria (UDV) and the Victorian Farmers Federation (VFF), was in Northern
Victoria as part of a Regional Roadshow which kicked off on Monday 21 September.

The industry used the roadshow to ask as many farmers as possible for their help in getting the China agreement ratified before the end of the 2015
calendar year.

“Farm lobby groups are leading the push to get the deal passed through Parliament.ADF, in collaboration with the State Dairy Farming Organisations
has been wearing a path to Canberra, lobbying both sides of parliament and the independent senators to highlight why this deal is important,” Mr
Campbell said.

“The ChAFTA is under threat. We need farmers, processors, service providers and regional communities to help us get this deal over the line before
the end of the year. We need your help to explain to your neighbours, friends and family why this deal matters for Australia.”

The regional meetings were well attended, with over 100 farmers attending for the first three events in West Victoria. Farmers from all commodities – not just dairy – attended the meetings, demonstrating that the entire farming community is well aware of what is at stake.

Tatura dairy farmer, Ingrid Tysoe said the ChAFTA was about building long term sustainable profitability.

“For farm security, things are going to be a lot better; this gives courage for us to work towards the future,” Ms Tyson said.

“I felt that the session was really informative and it’s giving us hope that the dairy industry is looking brighter for us.”

Mr Campbell told attendees that it was essential to highlight that the ChAFTA is a good deal not just for farmers but for the Australian community.

“We worked hard to get a true ‘free trade’ agreement with the ChAFTA last year. With tariffs down to zero over the next four to 11 years on dairy products,
we believe this has been achieved,” Mr Campbell said.

“The ChAFTA is a great deal for Australian dairy and a great deal for the Australian community. If ratified this year, the dairy industry alone will
see growth in job creation across the value chain. We expect that around 600-700 jobs will be created within the first year of ratification. More
dairy jobs means more vibrant, prosperous and growing rural and regional communities across all of Australia’s dairying regions.

“I urge all of you to get on board to help us ensure that this deal is implemented this year so that our industry, as well as the broader community
can start to take advantage of the benefits this deal brings.”

With meetings in Victoria to conclude on Tuesday 29 September, ADF plans to take the regional roadshow to Tasmania to spread the word about how farmers
can help get ChAFTA over the line.

A new project, ImProving Herds aims to demonstrate how innovative science, on farm testing and data driven decision-making deliver increased profits. To
achieve this a collaborative team of Australian and international dairy industry organisations and experts has united to explain existing value and
explore future services.

Having all of his young stock genotyped has completely changed the way Rob Cooper manages the breeding program of his 1300+ split calving Holstein herd
at Manilla, North West of Tamsworth, NSW.

“We rear about 600 heifer calves a year and will soon reach our target herd size of 1600. We will soon have a significant number of surplus replacements,”
he said. 
Rob says the combination of surplus replacements, sexed semen and genotyping will allow him to place more selection pressure on the herd to increase its
Health Weighted Index (HWI) and use better genetics over the top group of heifers.

“We’ve got our first set of genomic results and I’m waiting on the results from another two batches sent off from more recent calving,” he said.

Rob says having the results has opened up new management approaches that weren’t previously possible. “Because it’s so new, our approach is still a work
in progress, but the possibilities are very exciting,” he said.

Rob’s breeding objective is to improve functional type (udders, capacity, rump and feet and legs), fertility, mastitis, protein and fat.

Rob uses the Balanced Performance Index (BPI) to select sires. However when it comes to reviewing the heifers’ genomic results, he is most interested in
their Health Weighted Index (HWI) because it is a better reflection of their genetic potential for fertility and mastitis resistance.

“At this stage I’ve split the herd into three groups – the top 50%, bottom 25% and the remaining 25% – based on Health Weighted Index but I am keen to
improve herd fertility so I was curious to see how they re-ranked on that.”

Michelle Axford from ADHIS said that genomic breeding values for heifers were equivalent to those based on seven lactations of herd recording data.

“Obviously it is a lot more useful to have that information at an early age than waiting nine years,” she said.

Farmers have found a variety of ways to use the results to improve genetic gain in their herds.

“Some, like Rob are using genomic results to increase selection pressure on their herd. Others, especially breeders of elite genetics are using genomic
results for embryo transfer; to identify elite heifers for flushing and inferior animals to use as recipients. It is becoming more common to have whole
co-horts of heifers tested to inform mating and culling decisions,” Mrs Axford said.

If you’d like to send hair tail samples off for genotyping, contact Zoetis, Holstein Australia or Jersey Australia.  

Dairy Australia Program Manager Suzi O’Dell hoped the search for a national “Legendairy Capital” would get some attention, but she never imagined
the amount of interest the initiative has generated.

“We’ve received 104 nominations from communities throughout the country’s eight dairying regions; media interest in the program has been massive and has
reached a massive audience,” she said.

The Legendairy Capital program was launched in April this year as an initiative to put rural and remote communities on the map, get people thinking
about how dairy has played a part in shaping their community and nominate a project that will benefit them as a group.

“It’s been great to see communities getting behind the concept and sending in some excellent nominations,” Suzi said.

“We don’t hear enough about the community spirit that is such an integral part of Australia’s dairy sector. Celebrating towns that have endured and thrived
throughout the years sits at the heart of the program,” she added.

The program will see one successful town from each of Australia’s eight dairy farming regions receive a $2500 grant to invest in a community project.
One of those eight towns will then go on to receive the coveted title of Australia’s Legendairy Capital 2015, as well as a further $7500 for
their nominated community project.

Nominations will be assessed by independent members of various dairy farmer representative groups and industry bodies in each state, with the grants administered
by the Foundation for Rural and Regional Renewal (FRRR), on behalf of Dairy Australia.

Australia’s Legendairy Capital 2015 will be announced in September and will become a bi-annual program sitting in the Farmer Communications and
Engagement Program in Industry Promotion and Product Innovation.

For more information on the Legendairy Capital project go to www.legendairy.com.au

Comboyne, NSW is one of eight Legendairy Capital finalists for 2015.

The
Australian dairy industry has historically managed price volatility, global supply and demand issues and the fluctuations of the Australian dollar
to good effect, maintaining international competitiveness, innovation and resilience to market volatility.

While we’re in volatile times, there is a lot more to be factored into the market in the next few months. Rather than panic, we need to ensure we are prepared
for the short term difficulties facing us and remember that the long-term outlook for dairy is positive, despite current market volatility.

Industry needs to work to its strengths as a cost-efficient milk producer of quality dairy products in order to face the expected challenges. Within the
industry there are considerable resources and work being applied to help dairy farmers confront the volatility challenge. Australian Dairy Farmers
(ADF) is working in partnership across the industry and with government to undertake work and analysis to support Australian dairy farmers in their
decision making.

It is reasonable to ask why up until now the Australian dairy industry has not been affected to the same degree as New Zealand. Unlike New Zealand Australia
has more the 50 percent of its production consumed domestically. This provides a dampening effect on the downward trend of international markets on
farm gate pricing. Our product mix has also allowed for the pricing trends to be less severe. However, there is no doubt that this international pricing
impact is placing downward pressure on expected farm gate pricing that was not even seen two to three months ago.

Those farmers who supply processors that are uncontracted and exposed to world export pricing should treat the 2015/16 season with a significant amount
of caution, understanding their underlying costs and being aware of input costs which will affect profitability.

Whether you’re a farmer, state organisation or peak body, we are all striving for the same outcome – a healthy and sustainable dairy industry. Industry
projects such as the Sustainability Framework and the Australian Dairy Vision help provide a strategy for ADF’s efforts. On this note, it is with great
pleasure that I welcome Benjamin Stapley as incoming Chief Executive Officer (CEO) of ADF. With a strong background in member advocacy, stakeholder
engagement, policy development and media management, Mr Stapley comes into the role after two years as Director of Policy and Regulation at the Plastics
and Chemicals Industries Association (PACIA).

I look forward to the fresh perspective and expertise that Ben brings to the role and along with my fellow Directors, National Council and staff look forward
to working with him to continually improve the sustainability and profitability of farmers across all dairying regions. I hope you will all join me
in welcoming Ben to our dynamic industry when he commences as CEO on 1 September 2015.

Noel Campbell

ADF President

Speaking at the annual WAFarmers’ Dairy Conference on 28 July in Busselton, ADF Director, Simone Jolliffe discussed the importance of working collectively
to achieve a more sustainable future.

“The extent to which dairy succeeds in its objectives will rely on shared leadership, with everyone in the industry recognising that their contribution
adds to the end goal.

“Don’t underestimate the value of your involvement or the many ways in which you can demonstrate leadership. Attending farmer discussion group meetings
is one way, being here and participating today is another,” Ms Jolliffe said.

With over 90 dairy farmers, processors and industry stakeholders gathered, the one-day conference was a fantastic opportunity for members and non-members
to hear from their fellow dairy farmers.

As a first generation dairy farmer at her property in Wagga Wagga, NSW as well as Deputy Chair of Dairy NSW, Ms Jolliffe said there was a need for farmers
to be proactively involved with those representing their interests.

“Farmer engagement with industry bodies responsible for setting priorities whether in advocacy or research programs is key to ensuring that our policy
settings truly reflect industry needs. If everyone takes part in identifying, owning and finding solutions to our challenges, the resulting decisions
made will inevitably be sounder.”

Speaking alongside Ms Jolliffe at the Conference was Victorian dairy farmer and horse trainer, Anne McGrath, who shared the emotional story of her family’s
challenging journey after a young farm worker was killed on their property. Telling the conference of the legal action against her family which followed
the tragedy, Ms McGrath reiterated the importance of getting farm safety right for all involved.

At the Dairy Council annual general meeting later that afternoon, President Phil Depiazzi, Senior Vice President Michael Partridge and Junior Vice
President Paul Ieraci were re-elected unopposed to their respective positions.

Dairy consultant, John Mulvany chaired the processor panel involving representatives from Brownes, Parmalat (Harvey Fresh) and Lion who discussed opportunities
for dairy to grow in future, as well as milk price challenges. The conference concluded with a wonderful gala dinner where a number of WA dairy farmers
were recognised with Dairy Australia’s Milk Quality Awards.

For more information about the event, download your copy of the conference program here.

WAFarmers’ Dairy Council’s Junior Vice President, Paul Ieraci with President, Phil Depaiazzi and Senior Vice President, Michael Partidge at the conference.

ADF Director, Simone Jolliffe speaking at the WAFarmers 2015 Dairy Conference.

The Australian Dairy Industry Council (ADIC) has reiterated its long-standing support of the 1500 gigalitre (GL) cap on buybacks in the Murray Darling
Basin Plan (MDBP) with its submission to the 2015 Water Amendment Bill last month. The Bill, which will legislate the 1500GL cap as part of the 2750GL
target under the Basin Plan, requires bipartisan support to deliver dairy farmers with much-needed certainty about future water availability to sustain
their business.

The 1500GL cap provides dairy farmers in the Murray-Darling Basin with much-needed certainty about future water availability to sustain their business.
At the same time, environmental water can continue to be recovered through water-saving infrastructure projects, which will benefit the environment,
farmers and local communities more effectively than buybacks.

However, there were aspects of the Bill that the dairy industry did not support, in particular the fact that the 1500GL buybacks cap applies only to water
recovered towards meeting the 2750GL target. Additionally, the failure to address long-standing limitations in the Water Act 2007 and the Basin Plan
in achieving the socio-economic neutrality and triple bottom line outcomes promoted so often by decision-makers is a missed opportunity.

The ADIC’s key recommendations in the submission to the Bill were to:

• Ensure that the 1500GL cap on buybacks includes the 450GL in the Water for the Environment Special Account
• Clarify that the entitlement transfer to the Commonwealth relating to infrastructure and reconfiguration for state programs are excluded in the 1500GL
  cap on buy backs.
• The Basin Plan socio-economic neutrality test should include collective impacts on irrigation districts, community and water market.
• Amend the Basin Plan to ensure that the 2750GL target is achieved first before any water recovery is counted towards the 3200GL target, and that any
  water recovered under the Special Account first covers any shortfall to the 2750GL target.
• Clarify that the 450GL “up water” is an up-to amount, not a minimum.
• Enable environmental water trading where the proceeds can be reinvested in works and activities for environmental outcomes, and to cover the Commonwealth
  Environmental Water Holder’s storage and other costs.

Bipartisan support for the legislative change remains a key priority for the ADIC, with representatives meeting with both sides of parliament to ensure
the importance of passing the 2015 Water Amendment Bill is heard and acknowledged across the board.

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

On 5 August 2015, Australian Dairy Farmers (ADF) announced the appointment
of Mr Benjamin (Ben) Stapley as its incoming Chief Executive Officer (CEO).

With a strong background in member advocacy, stakeholder engagement, policy development and media management, Mr Stapley comes into the role after two
years as Director of Policy and Regulation at the Plastics and Chemicals Industries Association (PACIA).

Mr Stapley’s expertise in developing and executing strategic advocacy and communications activities will ensure that ADF continues to be a strong advocate
for Australia’s dairy farmers. Prior engagements have included leading policy, regulatory and advocacy programs for Australia’s chemical manufacturers
and importers, and for Australia’s agricultural chemical suppliers. Mr Stapley brings particular experience in government relations with extensive
networks within the Government and bureaucracy central to ADF’s interests.

Previous roles with the Commonwealth Government saw Mr Stapley work closely with industry stakeholders to reform and streamline Australia’s management
systems for environmentally hazardous chemicals.

“ADF is pleased to welcome Ben and I, along with my fellow Directors, National Council and staff look forward to working with him to continually improve
the sustainability and profitability of farmers across all dairying regions,” ADF President, Noel Campbell said.

Mr Stapley has also attained qualifications in both Law and Architecture.

“Australia’s dairy farmers have a very bright future and I am proud to be given this opportunity to work with the ADF Board, staff and farmers to help
deliver a vibrant, profitable and sustainable dairy farming sector in Australia,” said Mr Stapley.

ADF Interim CEO Dr Clive Noble, who took on the role as a short term break from his consulting business, will continue in the position until 26 August,
and Mr Stapley will commence on 1 September 2015.

Mr Campbell thanked Dr Noble for his contribution and service to ADF during his time as Interim CEO and wished him every success in his future endeavours.

Jason and Casey Bermingham’s breeding goal has always been fairly consistent: to breed cows that will have long, productive lives in their herd. However
over the past 10 years their selection priorities have evolved as their herd develops.

The couple dairies near Maffra in East Gippsland, milking 240 cows under a pasture based system. Sixty per cent of the herd calves in spring and the rest
in autumn, averaging nearly 8,000L per cow.

A recent Genetic Progress Report on the herd helped Mr Bermingham refine his breeding priorities.

“Our report confirmed we’d made good genetic progress for production and type traits but it also highlighted the opportunity to improve on health traits
such as fertility and cell count. We had already started paying more attention to fertility but the report really brought the message home,” Mr Bermingham
said.

When the three new breeding indices became available with the April ABV release Mr Bermingham discovered that the Health Weighted Index (HWI) wa

“I know that all the bulls on the HWI list will improve overall production, with extra emphasis on fertility, cell count and feed saved and this matches
what we want to achieve in our herd,” he said.s a good reflection of his breeding priorities.

Mr Bermingham is looking forward to being able to track the impact of his breeding decisions through future Genetic Progress Reports.

“It will be really interesting to see how our herd’s genetic merit for fertility and cell count change over time in response to selecting sires on the
basis of HWI,” he said.

Mr Bermingham has welcomed the introduction of three breeding indices.

“Having three indices obviously gives dairy farmers more choice – to identify sires that more closely match their individual breeding priorities. But it
has also sparked a lot more interest and discussion about breeding priorities. It has really encouraged people to stop and think about what traits
are important for their herd and what direction they want to take their herd through breeding.”

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
, alternatively take a look at the Good Bulls Guide.