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Audits streamlined to save on farm

June 18, 2015

The news that the Department of Environment will remove unnecessary audit requirements from the On-Farm Irrigation Efficiency Programme (OFIEP) has been
warmly welcomed by Australian Dairy Farmers (ADF). The relaxation of the requirements, which ADF has been advocating for well over 12 months, will
save programme participants in the southern-connected region of the Murray Darling Basin significant time, money and stress.

The issue arose from the Department of Environment insisting that every single farmer who got funding from the OFIEP, had to get an independent audit of
their works, in addition to the individual farm compliance documents already held by the delivery partners. All of this was at the farmers’ personal
expense and within 60 days of the end of each financial year.
The audits were designed to ensure that each of projects was completed within the terms and conditions of work contracts, and that the Government funding
provided was spent appropriately.
On Wednesday 20 May, ADF received a letter from Parliamentary Secretary for the Minister for Environment, the Hon. Bob Baldwin MP, acknowledging ADF’s
concerns around the cost imposition and stipulating alterations to the requirements. Farmers are now instead required to undertake an audit at the
end of their project, rather than at the end of each financial year, and may use their personal accountant rather than a costly independent auditor
to do this review.
Chair of the ADF Natural Resources Policy Advisory Group, Daryl Hoey said that while farmers had no objection to being accountable for their spending,
the audits ultimately became red tape.
“The requirements were onerous from both a time and money perspective. Removing the additional requirements for farmers will mean savings of up to $2000,
plus reducing the added pressure of going through an audit process,” Mr Hoey said.
“Beyond this it will also assist in streamlining the way in which the programme is rolled out, which may encourage greater uptake of irrigation improvement
by farmers.”
ADF is strongly supportive of infrastructure programs under the Murray Darling Basin Plan as they have demonstrated significant cost-benefit, with upgrades
to existing infrastructure delivering approximately $9800/ML worth of increased farm productivity.
An important part of the 450 GL recovery through on and off farm infrastructure savings under the Murray Darling Basin Plan, the On-Farm Efficiency Programme
involves participating farmers transferring water entitlements back to the environment that are equivalent to half the savings they achieve. In return
farmers receive government investment on their farm to improve their capacity to produce more milk from less water.
Upgrades already carried-out under the programme have delivered approximately $9800/ML worth of increased farm productivity per year.
To find out whether you’re eligible for the On-Farm Irrigation Efficiency Programme, click here .
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PoM rent increase will damage dairy’s competitiveness

June 16, 2015

The Australian Dairy Industry Council (ADIC) is extremely concerned about the Victorian Government proposal to increase rent of stevedoring facilities
at the Port of Melbourne (PoM). The size of the reported increase will have a large and disproportionate impact on the dairy industry, including both
dairy farmers and companies that export product through the port.

With around 85% of total dairy exports channelled through the PoM, dairy is the 5th largest user of the port. According to ADIC Chair, Noel Campbell the
move could cripple dairy’s future competitiveness.
“The Australian dairy industry operates in an open international market, competing directly with products from other dairy producing countries,” Mr Campbell
explained.
“Dairy manufacturers operating out of the PoM will be unable to simply add on the cost of the rent increase to their exported products without incurring
negative effects in the global market place. This means the rent hike will be charged back to dairy farmers.”
Basing their estimating on the fact that each Twenty-foot Equivalent Container (TEU) will be handed a $100 rent increase per container, the ADIC said the
impact on individual dairy farmers could be in excess of $1,000 per farm.
“The export market provides substantial and important markets for our products, one where there is clearly great demand for our high quality, safe products,”
Mr Campbell said. “Exporting to these regions ensures the industry’s ongoing viability and growth.”
The ADIC has also expressed concern that the funds raised by the Government through the increased rent are not committed to improving port facilities,
but will instead be directed to the cost of removing railway crossings in suburban Melbourne.
This will have repercussions for port fees in the future and provide no direct benefit to the dairy and other manufacturers that use the port. The impact
on dairy and other commodity exports is further exacerbated by the proposed 50-year non-compete clause that will effectively mean the abandonment of
the development of Hastings as an alternative deep-water port.
For further information on the ADIC’s policy and advocacy work in the markets, trade and value chain area click here.
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Budget offers mixed bag for dairy

June 15, 2015

The 2015 Federal Budget announced on 12 May, delivered modest gains for agriculture. With initiatives aimed at supporting rural and small businesses such
as tax breaks for those with annual turnover under $2 million, social and community support services for rural Australians, and drought relief assistance,
dairy came out slightly better off than the year before.

On 27 May, ADF welcomed the announcement from Federal Government that it would bring forward the introduction of accelerated depreciation of fodder, fencing
and water assets to the night of the Federal Budget, as opposed to 1 July 2016. This decision will greatly benefit farmers who have been recently impacted
by severe floods and drought. ADF acknowledges the considerable effort of the Hon. Barnaby Joyce, Minister for Agriculture, in making this happen.
Key gains for dairy in the 2015 budget:
•Tax write-offs for fences and new water storage
•$25 million for assistance for drought affected areas to reduce the impact of pest animals
•$20 million towards social and community support services for emotional impacts on farmers. And an extra $1.8 million for more counsellors.
•Cattle Farmers in the north will see $101.3 million over the next four years for improved road infrastructure
•$25 million to towards assisting Australian producers access the benefits of free trade agreements
•Tax burden for small business will be reduced to 1.5 per cent for businesses with annual turnover under $2 million
•A 5 per cent tax discount for smaller, unincorporated businesses
•An immediate tax deduction of all assets under $20,000 will allow small businesses to invest in new tools or machinery.
•$3.7 million allocated to implement recommendations from the review into the integrity of the 457 Visa Program.
The budget also included money for drought grants and loan schemes, however, this is the same money that was previously allocated but not spent.
ADF would have appreciated the budget also address the lack of Agricultural Counsellor postings to assist with reducing technical barriers to trade within
key international dairy markets. We also would like to have seen further Investment in agriculture R, D&E, CRCs, infrastructure for rural regions
and biosecurity.
There is still an opportunity to address these issues in the upcoming Agricultural Competitiveness White Paper. ADF will continue to advocate and work
with government to help ensure the budget allocations are used to maximise its benefit for the dairy industry.
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President’s Message – June 2015

June 14, 2015

Whether at the farm gate or in the board room, stopping to take stock, acknowledge success and identify areas for improvement is essential
to ensuring any good business remains on track to deliver desired outcomes.

Now at the half way mark for 2015, Australian Dairy Farmers (ADF) is reflecting on the progress made thus far and the challenges yet to overcome, with
the interests of dairy farmers and their profitability top of mind.
Volatility is a constant theme for dairy farmers and the past six months has been no different with all regions affected in some way by floods, drought
and an ever fluctuating global milk price. But while there have been challenges there has also been important progress.
In March, we welcomed the Australian Government’s announcement to introduce legislation capping water buybacks in the Murray-Darling Basin Plan (MDBP)
at 1500 gigalitres (GL). The 1500GL cap provides dairy farmers in the Murray-Darling Basin with much-needed certainty about future water availability
to sustain their business.
ADF has also welcomed the relaxation of audit requirements for farmers in the southern-connected region of the Basin who participate the On-Farm Irrigation
Efficiency Programme. This policy win will be explored later on the newsletter.
ADF’s lobbying on competition policy was instrumental in securing a positive step toward reforming Australia’s flawed legislation – the introduction of
a Prescribed Code of Conduct. The Prescribed Code is not perfect, but it does address several key imbalances with regard to retailers’ power over suppliers.
We welcome the commitment already made by retailer Woolworths by signing onto the Prescribed Code, and expect that in the days to come all the major
retailers will follow suit.
ADF will continue to monitor the Codes’ effectiveness over the next three years with a view to seek the strengthening of regulations if necessary. We will
also continue to advocate for an Ombudsman to help balance the market power of major retailers.
The above ‘short list’ skims the surface of the progress made so far this year, with many challenges, and triumphs, still ahead. At the forefront of our
agenda is ensuring our industry retains the confidence and trust of consumers, customers and the broader public by addressing issues of concern such
as unconventional gas mining and highlighting dairy farmers’ commitment to the health and wellbeing of their cattle.
The team at ADF remains committed to ensuring Australian dairy’s voice is heard through government policies that support our industry, and working with
our industry bodies to ensure dairy’s good practices are known and understood across the broader community.
Noel Campbell
ADF President
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ADHIS Update: Topping the Genetics Charts

June 13, 2015

Australia’s top dairy herds based on genetic merit have been announced by the Australian Dairy Herd Improvement Scheme (ADHIS).

For Holsteins, George Wagner’s herd from North East Tasmania tops the country for genetic merit for profit, which is measured by the Balanced Performance
Index (BPI). Daryl and Lani Hoey’s herd from Katunga is the number one ranking Jersey herd for BPI. And Sam Graham’s herd at Numbaa, NSW is the number
one ranking red breed herd for BPI.
ADHIS general manager, Daniel Abernethy congratulated the herds on their achievement. “It takes a sustained focus over many years to breed a herd of this
calibre,” Daniel said.
This year, for the first time, herds receive three breeding indices – Balanced Performance Index, Health Weighted Index and Type Weighted Index. The three
breeding indices were introduced following a review last year which found that while profit is important to all farmers, some place more value on traits
such mastitis, longevity, fertility, type and udder conformation.
“Having three breeding indices gives farmers the ability to choose the index that best reflects their individual breeding priorities,” Daniel said. “Every
unit gained in each trait is associated with a financial gain. But each index places slightly different emphasis on traits and this changes the rankings
of bulls, cows and herds.”
A full list of Australia’s top 5% of dairy herds for genetic merit is available at www.adhis.com.au. 
For more information or to arrange a presentation to your organisation, please contact ADHIS Extension and Education Manager, Michelle Axford on 0427
573 330 or maxford@adhis.com.au
George Wagner, tops the country for generic merit for profit.
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NSW Farmers Dairy Conference on this month

June 12, 2015
The NSW Farmers Dairy Section Annual Conference will be held on Tuesday 16 June at 9:30am at Camden. Primary Industries Minister Niall Blair MLC will address
the Dairy NSW industry forum on the same day at 3:00pm.
All NSW Farmers dairy members are invited to attend. Papers were emailed to all members and hard copies have been posted to those who have registered to
attend.
To register go to www.nswfarmers.org.au.

For more information contact the NSW Farmers’ Livestock Policy Advisor on 1300 794 000.

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Taking Dairy Bioscience to Canberra

June 11, 2015

Dairy bioscience took its place alongside the cochlear ear implant, aeronautics and global stock exchange surveillance software when major technology advances
were showcased to the Prime Minister and other dignitaries last month.

Australian Dairy Farmers (ADF) President Noel Campbell joined Dairy Futures CRC’s CEO David Nation and Chair Mike Ginnivan at Parliament House in Canberra
for the annual Cooperative Research Centres (CRC) Association Conference.
This year’s event, themed Australia 2040, celebrated 25 years of innovations by more than 40 CRCs to Australian leaders, including Prime Minister Tony
Abbott. The conference included an innovation showcase, at which many of the 400 attendees, including ministers, parliamentarians, advisers and ambassadors,
took the opportunity to better understand both the scale of innovation being undertaken by the dairy industry and how bioscience will make a real difference
to dairy farm businesses through pasture and cattle breeding.
Mr Campbell, Dr Nation and Dr Ginnivan met the Prime Minister and discussed how Dairy Futures CRC is enhancing dairy productivity through pasture and herd
improvements using genomics.
Dr Nation said that agriculture now sits beside medicine as a major driver of scientific progress in Australia.
“Dairy Futures CRC is a success story for industry-driven innovation. We have over-delivered on our original commitments and transformed dairy herd and
pasture breeding in Australia.
“The effects of many of our innovations are already in farmers’ and commercial partners’ hands and we expect these will grow rapidly over the next 10 years.”
After the showcase, Dairy Futures CRC was delighted to join ADF in hosting The Hon. Joel Fitzgibbon and Senator Bridget McKenzie at a dinner in the Great
Hall at Parliament House.
Other distinguished guests included the Prime Minister, keynote speaker and Minister for Industry and Science, The Hon. Ian Macfarlane, Australia’s Chief
Scientist, Ian Chubb, as well as ambassadors, high commissioners and senior officials from 15 countries.
Mr Macfarlane spoke of the great benefit CRCs have brought to research and development in Australia, delivering significant economic, environmental and
social outcomes.
ADF looks forward to working with Dairy Futures to build the long term sustainability of farming practices, and will continue to advocate strongly for
the positive innovations of transformational bioscience.
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TPP must be commercially meaningful for dairy

June 9, 2015

The Trans-Pacific Partnership (TPP) offers a historic opportunity to address a broad range of distortions affecting Australian dairy producers, and to
ensure consumers throughout the region involved have access to safe, high quality Australian products.

A free trade negotiation that commenced in March 2010, the TPP involves 12 Pacific Rim countries including Australia, who account for approximately 40%
of the world’s GDP*. Included in this round up are key Australian dairy export markets such as Japan, Singapore and Malaysia, as well as competitor
countries such as New Zealand and the USA.
Australia exports dairy products to all eleven TPP countries – between 250,000 and 300,000 tonnes valued at around $US1 billion per year. Around 50% of
these exports (worth $425 million in 2013/14) go to Japan.
Throughout the negotiations, the Australian Dairy Industry Council (ADIC) has continuously lobbied for the TPP to address traditional tariff barriers for
dairy products and more subtle trade distorting non-tariff measures such as the European Union’s aggressive stance on Geographical Indications, as
demonstrated in their trade agreement with Canada.
The ADIC expects that the TPP will address these non-tariff barriers, especially in the Japanese and Canadian markets where these restrictions are most
pervasive. For the TPP to be commercially meaningful, markets like Canada and Japan must demonstrate that they are prepared to significantly increase
their existing dairy market access positions.
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, the TPP must be ambitious, comprehensive and commercially meaningful.
The latest round of TPP negotiations took place in Guam at chief negotiator level on 26 May 2015. There are many issues yet to be addressed and the ministerial
meeting planned to follow the negotiators talks did not take place with the US Congress yet to pass the crucial Trade Promotion Authority (TPA) Bill.
The ADIC will continue to advocate strongly for dairy’s interests in the TPP.
*Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
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AIS Gives Dairy the Thumbs Up

June 7, 2015

The Australian Institute of Sport (AIS) is recommending the nation’s top athletes incorporate dairy foods more strategically into their diets, following
new research, supported by Dairy Australia, which was launched last month.

The study found that eating a dairy-based meal before cycling helped counteract the loss of calcium in sweat and reduce the bone breakdown that would otherwise
occur.
In a separate piece of research, the AIS also examined the effect of high intakes of dairy on gut comfort and time trial performance in their cyclists,
shattering the myth that eating dairy before exercise causes stomach upsets.
According to the research team: “We were delighted to find that even pushing the pre-ride meal to include the entire amount of the day’s dairy intake
guidelines had no detrimental effects on gut comfort or performance in cycling. So we feel confident about our recommendations around the various
benefits of dairy before exercise.”
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Consuming with Care: The Dairy Way

June 4, 2015

Producing more from less is a constant theme on Australian dairy farms. From reusing water in the milking shed, to ensuring the pasture our cows graze
on can be effectively turned into milk, efficiency is the number one buzz word on farm.

Consuming resources with care underpins everything we do on farm because we know it will ensure the sustainability of our businesses, our industry and
our planet in the decades to come.

This year on World Environment Day, June 5, the United Nations will reinforce the importance of consuming with care. Whether it be adopting renewable energy
systems on farm or switching off the lights at the power switch, our individual decisions and actions count towards a larger goal of preserving not
only the environment but the well being of humanity and our economies.

On June 5, Australian dairy will stand proud on its continuing commitment to minimising our environmental footprint as part of dairy’s broader commitment
to establishing a more sustainable dairy industry. This commitment is recognised and promoted through the industry’s Sustainability Framework.

Demonstrating the interdependent nature of dairy’s profitability, well being and natural resource management, the Sustainability Framework shows the progress
dairy has made thus far as well as acknowledging the work left to do by 2020.

On-farm examples of sustainable practices abound. South Australian share farmers, Andy Vickers and Belinda Wright soil tested 20 farm paddocks and were
able to reduce application of phosphorus fertiliser to about one-third, meaning big cost savings, less nutrient runoff, reducing green house gas emissions
and better environmental outcomes.

Overall, the industry’s Fert$mart nutrient management initiative has helped farmers, including 120 in recent months throughout Tasmania, Gippsland and
South Australia, to achieve on average, a savings of approximately $12,000 per farm.

On King Island, a group of nine dairy farmers co-ordinated the installation of solar hot water systems for dairy sheds, an innovation making the most of
renewable energy sources and also forecast to cut hot water costs by up to 50%.

From these grand scale projects to the everyday actions, all dairy farmers play an important role in creating a sustainable Australian dairy industry and
consuming our resources with care. This includes everything from monitoring electricity consumption and equipment performance and having some level
of automated irrigation to manage water use efficiently, to feeding cows a high quality diet to increase milk production and reduce green house gas
emissions.

Australian Dairy Farmers (ADF) has been advocating for the Federal Government’s continued funding towards energy efficiency programs, as well as enduring
investment in R,D&E in the Government’s consideration of Australia’s greenhouse gas emissions targets and policy.

Working with Dairy Australia, ADF has lobbied for nationwide funding for free energy efficiency assessments for dairy farmers that has already helped 1,200
farms – with another 200 due for completion by June 2015.

Supportive policy could assist farmers in tackling rising energy costs, while also contributing to the dairy industry’s – and Australia’s more broadly
– environmental sustainability. We’re committed to ensuring Australian dairy’s voice is heard through government policies that support our industry,
however there are many areas where we can already act to make a difference.

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World Milk Day – Celebrating our farmers

June 1, 2015

Monday 1 June, is World Milk Day.

The Food and Agriculture Organisation of the United Nations started the day of recognition in 2001, and we’re using the occasion to celebrate the
Aussie farmers who work hard to produce this delicious, nutritious beverage.

For Australian dairy farmers, producing and delivering premium milk is a matter of pride. This is why Australian dairy has a reputation for consistently
high quality and safe products worldwide.

They work hard 7 days a week, 365 days a year to create fresh, great tasting and wholesome fresh milk that Aussies consumed almost 2.5 billion litres of
in 2014 alone.

Each daily on-farm activity involved in producing the milk, whether ensuring the cows are healthy or efficiently cleaning milking equipment, contributes
to the quality assurance of dairy products. From the twice daily health herd checks during milking to stringent testing for milk headed for the processor,
safety is ingrained in what we do.

Our industry is known for being a ‘dairy deli’ in that we place great importance on the quality rather than quantity of supply and this is what sets us
apart. It’s our point of difference to focus on our high quality standards and it’s something our industry must maintain (even with our aspirations
of growth) as we will never compete on quantity or price with our major competitors.

Dairy farmers work rain, hail or shine to produce our milk and want to be known for being prosperous, trusted and world renowned for the nutrition of our
dairy products. Like any Australian, dairy farmers hope to see the effort put into our work reflected in our returns.

Australian Dairy Farmers (ADF), as part of the Australian Dairy Industry Council (ADIC), is committed to ensuring our dairying sector has a sustainable
future. That’s why we’re working with our farmers, processors and industry partners, including Dairy Australia, to ensure that dairy continues to enhance
livelihoods, improve wellbeing and minimise its environmental footprint well into the future.

This commitment is recognised and promoted through the Dairy Industry’s Sustainability Framework. The second Progress Report has just been released and
shows that while we still have hurdles to overcome, progress is being made. This Framework highlights to the rest of the world that Australian dairy
is acting on its social, economic and environmental responsibility.

To produce, refrigerate, transport, process, distribute and deliver fresh milk requires a considerable amount of daily planning, work, risk and investment
on the part of dairy farmers and processors.

So why be a dairy farmer? Is all the milk worth it? Dairy farmers would say yes ten times over – because they’re passionate about it.

This World Milk Day, we ask that everyone remember that milk is made from hard yakka, pure passion and a commitment to sustainable practices. It is made
by an Aussie dairy farmer.

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President’s Message – May 2015

May 12, 2015

From
water heating to milk cooling; harvesting to lighting, energy is a big cost on our farms. Australian Dairy Farmers (ADF) has been advocating for the
Federal Government’s continued funding towards energy efficiency programs, as well as enduring investment in R,D&E in the Government’s consideration
of Australia’s greenhouse gas emissions targets and policy.

Supportive policy could assist farmers in tackling rising energy costs, while also contributing to the dairy industry’s – and Australia’s more broadly
– environmental sustainability. We’re committed to ensuring Aussie dairy’s voice is heard through government policies that support our industry, however there
are also areas we can address together.

As individuals our decisions can seem small in the face of Australia’s global footprint, however when our community joins forces for a common purpose,
we can and do make a tremendous difference. Good business management can lead to greater efficiency and effectiveness, as well as a reduced environmental
impact. Dairy Australia has many practical natural resource management tips that are not only good
for the environment but also for farmers’ bottom line.

On behalf of ADF, I congratulate Dairy Australia for its success in receiving a proportion of the first round of Government grants under the $100 million
Rural Research and Development for Profit Program. The funding will be invested into three-year projects including finding ways to turn agricultural waste into feed, fertilisers and soil conditioners,
and the development of tools to help dairy farmers manage and select the most profitable cows utilising milk scanning technology. These projects will
contribute significantly to assisting Aussie dairy farmers improve their productivity and profitability.

It has been an incredibly tough month in our northern regions with severe flooding in NSW’s Hunter Valley and Queensland. While we may be able to control
our energy consumption, some issues are just beyond our power no matter how far ahead in the season we prepare for them. During times of hardship it’s
very important to remember to ask for help when you need it. While the water may be receding, the hardship may just have begun. There are many local,
state and national support channels available to dairy farmers both during the time of a natural disaster, as well as the months following the aftermath.

Noel Campbell

ADF President

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