Under the Dairy Industry Template Labour Agreement, finalised with the Department of Immigration and Border Protection on 17 July 2015, dairy farmers are
now able to recruit senior farmhands from overseas on 457 Visas as well as farm managers.

Eligibility for the 457 visa was previously restricted to farm managers which the Australian and New Zealand Standard Classification of Occupations (ANZSCO)
recognises as skill level 1. Feedback indicated however that many farm employers were seeking workers with qualifications one level under management
– capable of organising day-to-day operations but not necessarily making major decisions.

The Australian dairy industry is in a position to grow substantially over the next decade to meet the burgeoning demand across Asia for high quality, safe
dairy products. Yet the industry’s capacity to increase production is fundamentally constrained by a chronic shortage of skilled labour in the Australian
pool.

Recognising this, in 2014 Dairy Australia, in collaboration with Australian Dairy Farmers (ADF) approached the Department of Immigration with the Dairy
Industry Labour Agreement Template. The agreement is designed to give farmers more options when seeking labour by expanding the eligibility criteria
for 457 visas and reducing paperwork.

Chair of ADF Policy Advisory Group in the People and Human Capacity space, John Versteden said the agreement provides another option for farmers to fill
the short term skills gap for farmhands in Australian dairy.

“The dairy industry’s most valuable asset is the people who work in it, which is why it is important to commit to attracting, retaining and developing
the most skilled labour,” Mr Versteden said.

“While our preference is always to hire Australian workers, there are not enough experienced, available farmhands to meet the demand in a growing industry.”

The industry has invested heavily in training and upskilling its workforce, including via certificate and diploma courses offered through the National
Dairy Education Centre (NCDE) since 2006. Although student numbers are steadily growing, it is still not enough to meet dairy’s growing demand for
skilled workers as production scales up to meet growing export demand.

Senior farmhands recruited under the labour agreement must have Certificate III or equivalent qualifications in addition to at least three years of recent
and relevant experience, or alternatively five years of recent and relevant experience.

You can find further information on the Dairy Industry Labour Agreement Template via http://www.thepeopleindairy.org.au/engagement-reward/contracts-and-agreements.htm

In the wake of the Maui Trans-Pacific Partnership (TPP) ministerial meetings, the Australian Dairy Industry Council (ADIC) has re-emphasised the importance
of achieving a commercially meaningful outcome for all Australian dairy producers with regards to the Trans-Pacific Partnership Agreement (TPP).

While the ADIC is disappointed that a meaningful agreement has not been reached to date, it remains hopeful that in the near future a TPP which is in the
best interests of the Australian dairy industry – and importantly the Australian community as a whole, will be completed.

The TPP is a multi-country Free Trade Agreement (FTA) currently under negotiation between Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore,
Japan, the United States, Vietnam, Mexico and Canada.

Sustained economic and population growth is driving an increase in dairy demand for the Asia-Pacific, but to take full advantage of this unprecedented
opportunity, TPP must be ambitious, comprehensive and commercially meaningful.

ADIC Chair, Noel Campbell said there is still a lot of work to be done and key dairy market access outcomes across the TPP remain unresolved.

“Major dairy players must recognise the importance of trade liberalisation and honouring previously agreed positions to advancing negotiations in a positive
manner,” Mr Campbell said.

“A commercially meaningful outcome for the TPP would provide benefits to all countries involved, their industries and consumers. Yet in order to achieve
positive results across the board all TPP nations must demonstrate a willingness to negotiate in good faith.”

Mr Campbell acknowledged the efforts of the Minister for Trade, the Hon. Andrew Robb, his staff and the team of dedicated negotiators who have worked on
its behalf.

“We will continue to promote the interests of Australian dairy as negotiations progress, and hope to see a comprehensive agreement reached in the near
future.”

The ADIC remains are committed to working Government to reach a transformative outcome that provides opportunity for its farmers and processors.

To find out more about the ADIC’s work to liberalise access to key dairy export markets see here.

The Western Victorian district dairy industry is set to be pumped full of inspiration at an event focussed on positivity and capacity building this September.

The inaugural Dairy Inspire, held in conjunction with the Milk-it-for-More workshops and Profitable Feeding Systems Expo, has been dubbed ‘Dairy’s big
day out’ and looks at filling the attending farmers and industry leaders with inspiring stories focussed on resilience, positivity, successful goal
building and strategy, market growth and essential communication tools.

Sponsored by the Gardiner Dairy Foundation and WestVic Dairy, the ‘big day out’ is aimed at giving farmers the tools to increase personal capacity and
on-farm profitability.

WestVic Dairy Executive Officer Paula Doran said the event on September 2 was firming up to be a significant event on the dairy calendar.

“It’s a mixed bag full of insights to build the skills of our farmers into the future with the over-arching theme of how to make the most of the opportunities
we have before us,” Ms Doran said.

Analyst Michael Harvey from Rabobank will speak about short term commodity insights and futurist Paul Higgins will talk about future trends for the coming
decades and beyond.

Tanami cowboy Rob Cook will talk about his near-fatal chopper crash on his remote Alice Springs property, and his journey back to life-on-the-land as a
tetraplegic, and the resilience and fighting spirit that got him there.

Ms Doran said the day celebrated the dairy industry and the drive for growth, culminating in a dinner in Camperdown that day.

For more information contact the WestVic Dairy office on (03) 5557 1000. Get your tickets here.

With the Bureau of Metrology declaring that the 2015 El Niño is strengthening, farmers are expecting lower rainfall and temperature extremes. While El
Niño cannot be guaranteed, it may be useful to put some back up plans into place.

• To ensure you are prepared for the climatic changes the El Niño may bring, it is important to sit down with someone in your family or staff to plan
  for potential drought and resource shortages, including:

• A feed budget and alternative options if fodder becomes less available
• Alternative sources of fibre to fill a shortfall in your region; and
• How a warm and dry spring could affect your operations in the longer term.

For more information about El Nino preparedness, see Dairy Australia’s Preparing for Drought and El Niño conditions webpage.

Applications are open for the ‘Westpac Innovation Challenge’, an opportunity for start-ups and agribusiness entrepreneurs to develop new ideas to revolutionise
Australia’s agricultural sector. A $40,000 prize will be awarded to the entrepreneur that creates the most useful and digital solution for Australian
agricultural producers and agribusiness. For more info, or to apply, please see here.

Over the past four years, competition policy has been the focus of a Government overhaul, with the intention of preventing situations such as the $1 per
litre milk campaign – a damaging state of affairs for dairy farmers which highlighted the significant imbalance of market power between retailers and
suppliers in the grocery supply chain.

This year, there have been significant developments with Australian Dairy Farmers (ADF) welcoming the announcement of the Competition and Consumer (Industry
Codes – Food and Grocery) Regulation 2015 on 2 March 2015, as a constructive first step toward addressing the imbalance of market power between retailers
and suppliers.

Further to this, the Australian Government has sought to overhaul competition law and policy in Australia with the introduction of the independent Harper
Review of Competition Policy.

The clear intent of the major retailers’ strategy is to extract as much value as possible from the supply chain with consequent pressure on those at the
start of the chain, namely farmers. They are also seeking to increase their own market share to the detriment of competitors and to increase the share
of home brand products in store.

Given this it is important that the Australian Competition and Consumer Commission (ACCC) has the ability to examine the impact of such strategies in the
longer term, with particular emphasis on the impact on consumer choice, farmer viability, the supply chain and future prices. It should also be noted
that ADF is of the firm opinion that the ACCC must take a longer term view of market issues than it currently does on all issues and in all its investigations.

It must not only look at the impact of issues on the current market but examine potential future impacts – this is particularly the case for misuse of
market power issues. The former Section 49 of the Competition and Consumer Act included an ‘effects’ test – does the conduct in question have the effect
or the likely effect of bringing about a substantial lessening of competition? The key term here is substantial lessening of competition – how can
any reasonable person or organisation complain about this?

It is in line with other current competition in Australia and around the world. The Government must not let self-interested large companies with excessive
market share dictate to 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 and is advocating for
certainty that the legal process is able to provide integrity and transparency regarding the impact of retailer actions on suppliers. ADF is hopeful
that this will aid in preventing potentially damaging situations such as retailer predatory pricing in future.

Addressing the misuse of retailer market power is crucial in determining the Australian dairy industry’s future profitability and sustainability.

ADF supports the recommendations to increase the focus on dealing with the current imbalance of major retailer market power. Farmers need every opportunity
to improve their negotiating power for profitability and returns at the farm-gate to be achieved.

ADF looks forward to working with both sides of Parliament, to ensure the unequal distribution of market power is addressed for the benefit of the entire
food and grocery sector.

The Australian Dairy Industry Council (ADIC) has reiterated the importance of ratifying the China-Australia Free Trade Agreement (ChAFTA) within the 2015
calendar year, to ensure the benefits can reach Australian producers as quickly as possible.

Any delay in implementation of the deal beyond 31 December 2015 will cost Australian dairy between $20 million and $60 million in tariffs. This will make
it more difficult for the Australian industry to compete and gain further market share.

ADIC Chair, Noel Campbell said while the council recognised that debate about the ChAFTA is part and parcel of a vibrant democracy, the Parliament needed
to keep in mind the opportunities at stake for agriculture and food production.

“For Australian dairy to grow and invest in our future profitability, we will require markets that offer a way forward and match our progress,” Mr Campbell
said.

“China’s population is set to reach 1.6 billion by 2050 offering enormous opportunity to sustainably grow beyond domestic markets. Our opportunity in China
is underpinned by their demand for high quality, safe, value-added products such as infant formula.

Mr Campbell reiterated that parliamentary support for the agreement, that sees the removal of all tariffs on dairy imports over a decade, remains essential.

“With a long record of innovation and adaptation to changing conditions and markets, Australia’s dairy producers are in a strong position to meet the particular
demands of boosting exports to China and growing our market share,” Mr Campbell explained.

The Australian dairy industry has had a long and close relationship with China and ChAFTA will allow our industries to further develop this long-term relationship
to the mutual benefit of both countries.

Timing is of the essence. If farmers are to maximise benefits from the removal of tariffs then the deal must be implemented in this calendar year.”

The ADIC looks forward to working with both sides of Government to ensure the implementation of the ChAFTA by 31 December 2015.

Farmers and their advisors have been eagerly awaiting the release of the latest Genetic Progress Reports which now include trends for the Balanced Performance
Index (BPI).

This handy tool enables dairy farmers to track the impact of breeding decisions and changes in their herd’s genetic merit over time.

Developed by the Australian Dairy Herd Improvement Scheme (ADHIS), the Genetic Progress Report also allows dairy farmers to compare their herd’s genetic
merit with the average and top 10% of their breed in the country.

The report includes a summary of 10-year trends, including traits that have improved, remained stable and reduced in the herd. It also includes indicators
of the herd’s genetic merit for profitability and its rank out of all Australian herd recorded herds for the breed.

Seven graphs track changes in the herd’s genetic changes since 2004 for profit, type, longevity, mastitis resistance, fertility, protein and fat. Further
graphs for Health Weighted Index (HWI) and Type Weighted Index (TWI) are expected in August 2015.

Micelle Axford, ADHIS extension manager, said farmers were using the report to identify breeding areas that have performed well and those they wish to
improve.

Once they have identified the traits they want to improve through breeding, The Good Bulls Guide can be used to identify suitable sires.

“The report is generated from herd test data, so it is available to any farmers who herd record. There’s no need to supply extra information. Just request
a Genetic Progress Report from your herd test centre or view it on your tablet using Mistro Web,” Ms Axford said.

For more information contact Michelle Axford 0427 573 330 maxford@adhis.com.au.

An example BPI graph now available in the new Genetic Progress Reports.

Foreign investment has historically been an important source of support for the Australian dairy sector. The dairy industry is strongly supportive of all
investment, foreign and domestic, that helps the industry grow and prosper provided it adheres to the same regulations.

On 1 March 2015, the Federal Government announced a reduction to the screening threshold for agricultural land from AU$252 million to AU$15 million. The
new threshold will include the cumulative value of agricultural land owned by the investor and the purposed purchase. An AU$55 million threshold for
investments in agribusiness will be introduced 1 December 2015.

A step towards a register of foreign owned farmland is also underway, with the Australian Tax Office (ATO) collecting information on all foreign purchases,
regardless of size from 1 July 2015. The ATO will also be auditing existing ownership of agricultural land by foreign investors to gain further insights
into the investment landscape.

ADF President, Noel Campbell said the register would help increase transparency and give industry a better idea of what foreign investment really looks
like in the dairy sector.

“The register is sound policy and will hopefully provide credible land ownership data to give us a comprehensive landscape of investment in agriculture
across Australia,” Mr Campbell said.

ADF supports the government’s recent initiatives to improve the robustness of the investment landscape in Australia which recognise the important role
of our global partners in helping the dairy industry to grow and strengthen.

After extensive consultation with dairy farmers, industry and veterinary experts, Australian Dairy Farmers (ADF) have agreed to adopt a new policy, which
will see the phase out of routine calving induction nationally.

Calving induction is used as a management tool on a declining proportion of Australian dairy farms. For some farmers, it provides a way of ensuring as
many animals as possible are milking at similar times.

Earlier this year, over 35 industry stakeholders, the majority of whom were dairy farmers as well as veterinarians, met to discuss and develop a national
policy recommendation regarding calving induction. Following the industry forum the ADF National Council met and agreed to modify ADF’s policy position
to the following:

“ADF does not support routine calving induction and will work to phase it out through improved herd improvement practices, tools and technologies.”

The dairy industry’s breeding programs such as InCalf and the improvement of fertility by genetic selection are making a difference and the use of calving
induction is reducing. In 2014, fewer than 2% of the national herd were induced (approximately 24,000 cows) and the industry is now working to reduce
the need to use this management tool even further.

A Steering Group, including dairy farmers, representatives from the Australian Cattle Veterinarians, Dairy Australia and ADF, was established to develop
an action plan. The Steering Group has met twice; developing communications and data collection materials that have been distributed to cattle veterinarians
to help progress the phasing out process.

The industry is liaising with counterparts in New Zealand to understand and learn from their approach; in particular the setting of annual limits with
certain exemptions.

A particular concern raised at the industry forum, was the use of late calving induction. ADF is aware that several veterinary practices no longer conduct
late calving inductions, as they provide no reproductive benefit and should not be performed. Early pregnancy testing is required by these practices
to make sure late inductions are not occurring.

ADF is working with farmers, veterinarians, state dairy farmer organisations and other stakeholders, to ensure the phase out works for both animals and
farmers. ADF will continue to consult with industry and farmers and is committed to ensuring that the timing, process and outcomes are right for all
involved.

Caring for cows has always been a key priority for Australian dairy farmers – they are dedicated to providing a high standard of care for their animals,
and to change their practices when in the best interests of their livestock.

A new report on the Australian dairy industry has identified efficient input use, strict cost control and sound management skills as the key areas of focus
that can help all dairy farmers achieve better profits.

Commissioned by the Australian Dairy Industry Council (ADIC) and produced by Dairy Australia, the Sustainable Farm Profitability Report examines farm business profitability, pinpointing key drivers of successful dairying businesses and highlighting long-term strategies for success within
farmers’ control.

Launching the report on Gippsland farmers’ Aubrey Pellet and Jaqui Morrison’s property on Friday July 3, ADIC Chair, Noel Campbell said that by benchmarking
profitable and less profitable farms against one another the report would help identify areas for improvement on farm.

“Farmers may not be able to control the hike of electricity, fertiliser and fuel costs, which continue to squeeze margins,” Mr Campbell said.

“We can however control how well we use these inputs to control the costs which have a major influence on their bottom line.”

Macro drivers outside the farmer’s control, such as weather events, milk price volatility and government policy are put aside to provide a focus on the
aspects of tactical efficiency, management capability and tactical flexibility decisions that farmers can make, to deal with risk and volatility.

Focusing on these elements under farmers’ control, the report highlights that every operation, big or small, has areas where it can improve to safeguard
its profitability. No two of these farms are the same, which is why there is no “silver bullet approach” to profitable dairy farming.

Mr Campbell said that by using the resource document of tactical, strategic management guidance in conjunction with other resources, such as the new
DairyBase tool from Dairy Australia, it was hoped that farm profitability could be lifted across the board.

Victorian Parliamentary Secretary for Treasury and Finance, the Hon. Daniel Mulino MP, officially representing Minister for Agriculture the Hon. Jaala
Pulford at the event said that Government was keen to work with industry to ensure the future sustainability and profitability of the industry.

“We are committed to working with Australian Dairy Farmers, Dairy Australia and key dairy stakeholders to ensure this critical industry is focused on sustainable,
profitable growth, and that farmers are supported to better understand their financial situation and to build financial flexibility to deal with volatility.”

To read the full Sustainable Farm Profitability Report click here.

 ADIC Chair, Noel Campbell with Vic Parliamentary Sec. For Finance and Treasury, Daniel Mulino, Federal Member for MacMillan, Russel Broadbent,
Baw Baw Shire Council Member, David Balfour and Director of Gardiner Foundation, Bruce Kefford. Photo courtesy of Jeanette Severs.

The much-anticipated Agricultural Competitiveness White Paper released on Saturday 4 July on Australian Dairy Farmers (ADF) National Councillor, Roma Britnell’s dairy farm in Victoria has delivered key initiatives
which mark a positive step toward delivering higher productivity and profitability for Australian dairy.

Key benefits for dairy farmers which have been championed by ADF as part of the Australian Dairy Industry Council (ADIC) include increased funding for
Agricultural Counsellors abroad to address technical barriers to trade in overseas markets; improved flexibility of Farm Management Deposits and investment
in establishing agricultural expertise in the provision of an Agricultural Commissioner for the Australian Competition and Consumer Commission (ACCC).

“We are pleased to see that key points of the ADIC’s recommendations to the Green Paper have been taken on board,” ADIC Chair, Noel Campbell said.

“In particular, the provision of $11.4 million over four years toward boosting ACCC engagement with agriculture, including an ACCC Agriculture Commissioner,
will aid in fostering a stronger business environment throughout the supply chain.”

The ADIC submissions to the issues and green papers covered all aspects of agricultural policy with a particular focus on the following key areas:

• Continued support for research, development and extension projects;
• Overseas trade market access;
• Strengthening competition laws;
• Improving skilled labour availability.

The Government’s enhanced commitment to research, development and extension projects with a focus on innovation and risk management was also welcomed by
the ADIC. The commitment of $200 million to improve biosecurity surveillance and analysis nationally will also play an essential role in creating a
more durable, profitable and competitive dairy industry.

Additionally, the Government’s confirmation for water efficiency projects combined with improving existing water infrastructure and developing new infrastructure
is positive. Increased support for these initiatives was a key recommendation in the ADIC’s submission to the Green Paper.

Mr Campbell said that the ADIC is committed to working with Government to see swift implementation of the initiatives delivered in the White Paper.

“The White Paper points us in the right direction in terms of where we want to go and as an industry we now look forward to working with Government to
ensure that these initiatives translate into real outcomes for dairy.”

Click here to view the ADIC’s submission to the Agricultural Competitiveness Green Paper.