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.

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.

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.

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.

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.

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