On 25 March, Australian Dairy Farmers (ADF) participated in the National Farmers’ Federation (NFF) Water Taskforce workshop. The agenda was focused on a discussion about the Murray-Darling Basin Plan and its measured social and economic impact on the wellbeing of
people living in the Basin area.

Access to water is important in many ways for the wellbeing of rural and regional Australians. The Murray-Darling Basin Plan is Australia’s largest water
reform in recent decades and significantly changes access to water in the Basin. Evaluating the impact of the Basin Plan is complex, particularly separating
out the impacts as a result of the Basin Plan compared to changes that would have occurred anyway.

At the workshop, the NFF Taskforce discussed the work to date in evaluating this impact with the Murray-Darling Basin Authority (MDBA) and the Department of the Environment (DoE). In addition, the survey leader of the Regional Wellbeing
Survey – undertaken by the University of Canberra, in collaboration with MDB Futures – shared preliminary findings of the 2014 Regional Wellbeing Survey,
including trends since the 2013 survey,
with the NFF Taskforce.

Among the survey findings, the Plan’s perceived impact on the Basin residents differs depending on whether they are considering the effects on their household,
community, or the Basin as a whole. The survey revealed that of the 34 per cent of the survey respondents with an interest in the Basin area; approximately
55 per cent said the Basin Plan would positively or neutrally affect the health of the environment in the Basin. In comparison, over 45 per cent said
it would negatively impact farmers in the community.

This highlights the need for balance between providing for agricultural production and the environment. It also demonstrates that reforms to water allocation
do have impacts on regional communities. Views about the social, economic and environmental impact vary significantly across different local areas.

Dairy farmer and processor national representative body, the Australian Dairy Industry Council (ADIC) continues to provide input towards the MDBA and DoE’s
monitoring and evaluation of the Basin Plan’s impact. Last year, the ADIC contributed towards the development of the MDBA Evaluation Strategy to ensure
a strong methodology and meaningful evaluation of the intended Basin Plan outcomes.

Dairy farmers have also contributed to case studies carried out in two dairy communities in 2014. Testing the impact of the Basin Plan on farmers, regional
communities and the environment is important to ensure the integrity of the Basin Plan and to inform future reviews and adjustments.

The full Regional Wellbeing Survey will be released in stages throughout 2015. The community wellbeing section is anticipated to be available in May, and the farming section – which
will include data on farm performance, development, barriers and farm exit – is expected to be available in June. The full survey will be available
later in the year.

For more information on monitoring the Basin Plan, click here.

After the recent Hepatitis A health scare through contaminated frozen berry imports, the Federal
Government has strengthened their commitment to bring changes to Country-of-Origin Labelling, or “CoOL”, laws in Australia.

While CoOL has the potential to assist consumers in deciphering the difference between products that are 100 per cent Australian-made and those containing
only some local ingredients, the new laws could have greater ramifications on the Australian dairy industry.

Below are some FAQ’s the ADF Update thought you might be interested in:

Why is CoOL important to get right for dairy?

Milk is the defining component of all dairy products and its conversion into the variety of cheeses, yoghurts, long-life milks, butter and infant formula
in Australia requires a wide range of ingredients. Often these include very low amounts of rennet, starter, cultures, yeasts, vitamins and minerals
to facilitate their functional transformation from milk into a product.

However, several of these ingredients are not produced in Australia either because the raw materials are not available, or they cannot be economically
and sustainably manufactured here. Other ingredients in dairy products are imported because of seasonality or the need for continuity of supply.

If CoOL requires that use of the term “Australian” can only apply to 100 per cent Australian content and 100 per cent Australian production, then the implication
is that only some white milks will be able to carry the Australian made label.

This would mean that most dairy products containing milk produced in Australia, by Australian dairy farmers and converted into Australian dairy products
in Australian factories, employing Australian workers would not be able to claim Australian origin.

What is important for the new CoOL laws?

The Australian Dairy Industry Council (ADIC) is lobbying Government to ensure that Australian dairy products made with Australian milk in Australian factories
can be defined as Australian products under CoOL. The design of any new CoOL laws must provide for provisions such as:

• Processing aids – minor ingredients necessary for processing should not be part of any percentage requirements relating to the significant ingredients.
• Fortification for healthy Australian communities – the addition of vitamins and minerals not made in Australia to milks or infant formulas in order
  to promote health outcomes and meet consumer demand, should not prevent Australian dairy products being labelled as such.
• Flexibility for seasonal/batch alterations – prescriptive percentages will not work when the origin of product ingredients can alter by season or even
  by batch, therefore some flexibility needs to be built into the requirements.
• Trading protection – labelling requirements need to align with international regulations and trade agreements to ensure the Australian dairy industry
  is not disadvantaged against our key competitors.

What can you do to help influence dairy’s agenda in the Government’s push for “stronger” CoOL laws?

Dairy farmers, processors and industry representatives can take part in a consultation process that the Government has commenced. This will provide an
opportunity for us to ensure that dairy’s interests are heard and considered. Click here for information about the Government’s consultation process and to register you interest.

You may also wish to write to your local MP to inform them of the industry’s requirements with CoOL. Click here for a short statement about the areas the dairy industry is seeking for Government consideration on.

On
30 March, Dr Clive Noble formally commenced his role as Australian Dairy Farmers (ADF) Acting Chief Executive Officer.

Dr Noble brings a wealth of agricultural science and research knowledge from his 32-year career with the Department of Environment and Primary Industries
(DEPI), Victoria. Spanning his time at DEPI, Dr Noble has held the position of Institute Director (Tatura), Regional Manager (Northern Irrigation Region),
Executive Director of Research and Development, Chief of Science and Technology, and Head of Strategic Partnerships.

Dr Noble has also been an active member of the Dairy Moving Forward Steering Committee between 2008-2013, providing strategic direction and support for the Australian dairy industry’s national research, development
and extension framework.

A key highlight of Dr Noble’s DEPI career included working in Tatura, Victoria for 17 years as a Scientist and Regional Manager, building new relationships
with State Government, industry, universities and individual farmers across the region. His role during this time also involved leading major departmental
responses to flood events and the largest anthrax outbreak ever recorded in Australia, in 1997.

Dr Noble said he is excited to take on the interim role at ADF and looks forward to supporting the positive work and strategic direction of Australian
dairy’s policy and advocacy representation.

“Over my career I have worked with many agricultural industries and communities. I have always been inspired by the attitude and efforts of the dairy industry
and its people.

“I feel privileged to be working with the industry and I look forward to continuing the constructive work ADF is carrying out on behalf of dairy farmers
nationally,” Dr Noble said.

Dr Noble underwent an intensive induction period with former CEO, Natalie Collard prior to her departure. Ms Collard will commence her new role at Telstra
as Corporate Affairs Manager – Victoria and Tasmania this month.

Speaking at the annual Tasmanian Dairy Conference on 26 March in Burnie, ADF President
Noel Campbell discussed the importance of the industry working together – not in silos – to achieve a stronger voice and ultimately, a more sustainable
future.

“The traditional view of leadership, where the buck stops with the person at the top does not work for our industry.

“The extent to which dairy succeeds in getting where it wants to will rely on the strength of this shared leadership,” Mr Campbell said.

The conference, in its eighth year, attracted over 200 dairy farmers, industry service providers, government and dairy organisation representatives to
discuss a range of topics, including industry outlook, future developments, farm investment, and industry sustainability and innovation.

Mr Campbell, a third-generation dairy farmer at his 470-cow dairy farm in West Gippsland, Victoria, said there was a need for farmers to be proactive in
the promotion of dairy past the farm-gate.

“The understanding about the relevance and importance of our industry has been and continues to be heard louder than ever before. And we all have a role
to play in building on this momentum; to promote the value and good practices of our industry.

“You don’t have to be an outstanding public speaker or the most experienced statesman in the room to be a strong, effective leader. What you do need is
vision, persistence and the courage to pursue your cause.

“Everyone in the dairy industry can show leadership to promote the industry… Farmers can invite people onto their farms and show them that, while we’re
not perfect, we’re committed to good practices, and building a stronger, more prosperous industry.

“The more we do this, the more value the broader dairy community will see in supporting us,” Mr Campbell said.

Speaking alongside Mr Campbell at the conference included LEGENDAIRY Ambassador, Michael Klim, Dairy Futures CRC CEO, David Nation and Dairy Australia
Managing Director, Ian Halliday. For more information about the event, download your copy of the conference program here.

In December last year, the Federal Government announced its terms of reference for the inquiry into Australia’s Workplace Relations Framework Review.

The review is being undertaken by the Productivity Commission and invites feedback on how improvements can be made to develop more, “productive, rewarding,
competitive and harmonious workplaces”, as stated by Minister for Employment, Eric Abetz.

The Issues Paper was later released in late January 2015. Australian Dairy Farmers (ADF), along with Dairy Australia, lodged a submission in March, focusing on the need for greater flexibility in the Fair Work Act.

In particular, we are seeking greater flexibility with the award system, which will help the dairy industry take full advantage of growth opportunities.
The removal of the Pastoral Award 2010’s three-hour minimum engagement, which states that staff employed on a farm must be rostered for a minimum of
three hours per shift, was cited as a strong example of the current award system’s rigidity.

At the moment, this clause has a number of negative ramifications on farm business operations as it does not acknowledge the unique workforce requirements
of the dairy industry, where cows need to be milked twice daily. As a result, the clause removes any incentives for staff to milk in a time-efficient
manner and often milkers go home early, where farmers pay for time when no work is performed.

The Productivity Commission is expected to release a draft report in July 2015. For more information about this submission, please contact ADF Policy Officer,
Kelly Im: kim@australiandairyfarmers.com.au.

The inaugural Australian Dairy Farmers (ADF) National Dairy Farmers’ Summit,
held a year ago in Melbourne on 13 March 2014, was widely declared a positive step forward for the Australian dairy industry.

Insight provided by the 150 strong industry representatives – the overwhelming majority being dairy farmers from across Australia – continues to drive
a whole-of-value-chain approach toward strategies for innovation, investment and growth.

Officially opened by Federal Minister for Agriculture, Barnaby Joyce, the Summit identified 18 future-focussed priorities.
The consistent message was that the industry’s priorities and actions should focus on delivering long-term sustainable profitability.

The outcomes of the Summit formed the basis of a mid-year Australian Dairy Industry Council (ADIC) Strategic Forum, which saw the formulation of the first
ever Australian Dairy Vision.

One year on from the Summit, Australian dairy has seen keen interest in investment from domestic and international parties, and an enthusiastic response
from the dairying community who continue to get on board to help guide and pursue change.

At the March Summit, a push for developing stronger ties with Australian dairy’s trading partners was also ranked high on the priority agenda. During 2014,
the Federal Government successfully concluded free trade agreements (FTAs) with China and Korea. Those FTAs had been avidly sought by ADIC representatives
who lobbied tirelessly over the terms of the deals with critical technical support from Dairy Australia. The industry will reap benefits for years
to come.

Another direction from the Summit was to ensure immigration laws and the pastoral awards are better matched to industry needs. This supported the ADIC’s
submissions and advocacy to Federal Government, and the reviews of skilled migration and 457 visas.

Similarly, 2014 saw major submissions to the Federal Government’s Competition Review – fighting to keep dairying’s best interests on the agenda by improving competitiveness in the domestic market, as well as to the Government’s Agricultural Competitiveness Green Paper – highlighting the priorities for Government in improving dairy’s competitiveness. The considerable body of work squarely answered one of the Summit’s
recommendations, to “pressure Government to enable agricultural prosperity”.

The Summit has driven industry focus over the last year and will continue to do so as we put the Summit priorities into action. Most importantly, it fostered
a strong sense of unity and a shared vision for Australian dairy’s future.

Mother Nature has thrown many environmental challenges at dairy farmers
in Queensland and New South Wales over the past month. It is estimated that over 30 dairy farms were affected by Cyclone Marcia’s storms and heavy
rain, with many dairy farmers experiencing power failures and limited road access.

One dairy farmer had to milk over 150 cows by hand. It is times like these that I admire our industry coming together to support dairy farmers in times
of hardship. In particular, I commend the efforts of Queensland Dairyfarmers’ Association (QDO), Subtropical Dairy and Dairy Australia, in providing
practical support and counsel to the affected farmers.

In March, Australian Dairy Farmers (ADF) marks a year since the National Dairy Farmers’ Summit. The Summit has driven industry focus over the last 12 months
and continues to do so moving forward. One of the initiatives developed from the Summit’s priority-setting agenda is the Sustainable Farm Profitability
Report. The Australian Dairy Industry Council (ADIC) commissioned Dairy Australia to produce this report, which aims to provide dairy farmers with
tactical, strategic management guidance in areas which can improve their safeguards to increase business profit. The report will be made available
online shortly in April.

Carrying on from the ADIC Industry Leaders’ Breakfast in November 2014 – which was centred on the theme ‘Sustainable Farm Profitability and Innovation’
– from next month, dairy farmers will also have the opportunity to increase their profitability with feed efficiency. The new Feed Saved Australian
Breeding Value (ABV) is set to save at least 100 kilograms of dry feed per cow, per year. I praise the efforts of Dairy Futures CRC and the Australian
Dairy Herd Improvement Scheme (ADHIS) for this world-leading genetics breakthrough.

I welcome the new Prescribed Food and Grocery Suppliers Code which came into force at the beginning of March. This Code marks a positive step towards addressing
the imbalance of market power between retailers and suppliers. ADF will continue to closely monitor the Code’s effectiveness over the next three years
and we hope this is the beginning of a fairer, more sustainable, domestic fresh milk supply chain.

Noel Campbell

ADF President

Australian dairy’s herd improvement and genetics is ahead of the game, according to Sarah Saxton.
“Visiting New Zealand (NZ) made me realise just how engaged and passionate Australian dairy farmers are when it comes to breeding cows,” Ms Saxton said.

“We have the freedom of choice when it comes to semen selection in Australia, and although that can make the decision process a little more complex, it
means we have the options open to us to breed the sort of cows we want for our herds.”

Reaffirmed by her recent study tour across the Tasman to the South Island with United Dairyfarmers of Victoria (UDV), Ms Saxton, an Australian Dairy
Herd Improvement Scheme (ADHIS) Extension Officer, also noted the dominance of cross-breeding in NZ in comparison to Australia, as well as NZ’s strong
focus on growing pastures.

Embarking on the week-long tour with five young Victorian dairy farmers, sponsored by the Geoffrey Gardiner Dairy Foundation, Ms Saxton visited a variety
of NZ dairy farms with different ownership structures and farming systems. The Van Leeuwen Dairy Group’s 1500-cow robotic dairy in Timaru was included as one of the farm pit stops.

Ms Saxton, ambassador for the Art4Agriculuture Young Farming Champion program, commended
the NZ dairy industry for its well defined and supported career pathway structure.

“We met with a NZ young farmer group who all had a very clear understanding about how to progress a career in dairy, from milking cows to eventually farm
ownership. This is a real credit to DairyNZ, as it is fostering a young and vibrant future for their industry,” Ms Saxton said.

Ms Saxton was also impressed by the New Zealand Dairy Industry Awards, which are awarded annually
to recognise NZ’s passionate farmers of the future.

“These awards not only commend innovative, hard-working dairy farmers in NZ, but also create a opportunity to highlight the progress of up-and-coming dairy
farmers. It would be great to see a similar initiative adopted in Australia,” Ms Saxton said.

When asked what advice she would impart to young Victorian dairy farmers looking to apply for the study tour, Ms Saxton replied: “You really need to think
about what your future might look like in dairy, and how you’re going to benefit, to get the most out of it.”

“It is a fantastic opportunity and a great way to make new contacts. However, you need to be prepared to work hard – it’s not a holiday!” Ms Saxton said.

For more information about UDV’s NZ study tours and application requirements, click here or contact UDV Project and Policy Officer, Yaelle Caspi: ycaspi@vff.org.au

Study Tour participants (L-R): Kerrilyn Bassett, Sarah Saxton, Hayden Hanratty, Gordon Nicholas (UDV Policy Councillor), Aaron Thomas, Jason Bermingham, James Goulding (NCDEA), and Will Ryan.

Community was the topic of conversation at the Warrnambool Women in Focus (IWD) event on 11 March, uniting over 200 regional women from Victoria’s south-west to celebrate their contribution to business, industry, family and
the community.
Australian Dairy Farmers (ADF) CEO and keynote speaker, Natalie Collard shared her agri-business professional experience on leadership, work-life balance,
personal wellbeing and the ability to consider the bigger picture.

“Women in dairy wear so many different hats. From the farm gate to the processing plant, all the way to the ADF office – right across our value-chain women
are contributing to building a stronger, more sustainable future for our industry,” Ms Collard said.

Ms Collard also explored the importance of goal-setting as her “biggest secret”. Referencing a Harvard University MBA graduate program research study,
Ms Collard shared that three per cent of the graduate year which had clear, written goals and plans to accomplish them, 10 years later were earning
on average 10 times as much as the other 97 per cent of the class put together.

“I set career, personal and wellbeing goals for one, five and 10 years ahead. It is a one-pager that sits on my bedside table… By writing your goals
down and affirming them, you’re holding yourself accountable,” Ms Collard explained.

“Goal-setting is not just about earnings, but it really does underscore the power of setting goals as your first step to accomplishing them.”

The IWD Event, hosted by CommBank Women in Focus and LEGENDAIRY South-West Vic Women’s Focus Group, provided a valuable networking opportunity and chance to obtain practical tips for regional women and their businesses.

WestVic Dairy Director, Kirsti Keightley and Operations Manager, Jocelyn Bevin said the day was about bringing together like-minded women within varied
leadership positions in the industry.

“It’s important to highlight and focus on the skills and opportunities that can be brought to the dairy industry and wider community,” Ms Keightley said.

“It’s also vital to support our next generation of women in dairying through sharing our knowledge and experiences, which I hope today’s community theme
encapsulated.”

LEGENDAIRY women (L-R): Katie Gleeson, Simone Renyard, Bilyana Grazing, Natalie Collard, Janet Moxey and Tracey Luhras.

Australian Dairy Farmers (ADF) Policy Advisory Group (PAG) meetings have
kicked off with a bang for 2015 with the Natural Resources, and Markets, Trade and Value Chain PAG meetings taking place last week.

Natural Resources PAG Chair, Daryl Hoey said the group has come back refreshed and enthusiastic about the next 12 months of work.

Key issues discussed included, the PAG priorities for 2015, input to the Dairy Australia Annual Plan, and developing a dairy policy position on coal seam
gas development.

“Coal seam gas mining, water policy, and future emissions pricing will be a significant focus of the Natural Resources PAG this year,” Mr Hoey said.

The Markets, Trade and Value Chain PAG discussed trade priorities and competition law policy which are both expected to be a major focus for 2015.

Markets, Trade and Value Chain PAG Chair, Roma Britnell said there were some very good wins last year with the China free trade agreement and recently
the introduction of the Prescribed Food and Grocery Code.

“We will continue to work on issues that impact our industry at both an international and domestic level,” Ms Britnell said.

The PAG Chairs for 2015 are:

• Animal Health and Welfare PAG Chair, David Basham
• Farming Systems and Herd Improvement PAG Chair, Tyran Jones
• Markets, Trade and Value Chain PAG Chair, Roma Britnell
• Natural Resources PAG Chair, Daryl Hoey
• People and Human Capacity PAG Chair, John Versteden

PAGs play a key role in setting ADF’s advocacy objectives and driving policy formulation. They also help to ensure dairy’s interests are properly represented
at a domestic and international level.

ADF President, Noel Campbell welcomed the new PAG members for 2015.

“I congratulate ADF’s PAG members on their appointments and look forward to working closely with them to enhance our policy and advocacy strategic direction,”
Mr Campbell said.

ADF has five policy focus areas, each with a dedicated PAG comprised of elected farmers. These groups are led by a farmer appointed Chair, working in collaboration
with ADF policy officers and Dairy Australian technical support, to discuss priorities and develop strategic direction for ADF’s policy and advocacy
responsibilities.

PAGs recommend policy settings to ADF, via the National Council, and also act in an advisory capacity providing feedback to Dairy Australia, state dairy
farmer organisations (SDFOs), and other bodies such as the National Farmers’ Federation and the Australian Dairy Products Federation.

Did you know that dairy farmers next month will be able to identify bulls that can save at least 100 kilograms of dry feed matter per cow, per year while
maintaining milk production?

The Feed Saved Australian Breeding Value (ABV), available to dairy
farmers from April 2015, is the culmination of eight years of research and development activity by Dairy Futures CRC,
in conjunction with a range of local and overseas partners.

It is the first feed efficiency breeding value in the world to incorporate real feed intake data, as well as a prediction of feed required for maintenance
purposes, making the trait more relevant for farmers.

Dairy Futures CRC’s CEO, Dr David Nation, said: “The Feed Saved ABV allows farmers to breed cows in a new way: by reducing their maintenance requirements
for the same amount of milk produced.

“This is the first practical use of genomic tests to measure a trait that can’t be routinely measured on farm, and the start of more extensive genomic
testing to improve the range of traits important to dairy farmers.

“Visually, you can’t spot a highly feed efficient cow, but farmers can now breed for it.”

Victorian dairy farmer, Ron Paynter who spoke at the ABV launch, said it is exciting to see feed efficiency now included in the ABV indexes.

“Feed costs are a significant determinant of on-farm profitability,” Mr Paynter said.

“The new Feed Saved ABV adds further strength to the new Balanced Performance Index developed by the Australian Dairy Herd Improvement Scheme (ADHIS),
which aims to maximise profit from selection.” 

The Feed Saved ABV will be published for the first time in the ADHIS’ publications, including the Good Bulls Guide. It
will also form part of the ADHIS’ three new breeding indices,
so farmers who make bull selections using one of the indices will be including feed efficiency in their breeding decisions.

For more information about the Feed Saved ABV, click here.

Victorian dairy farmer, Ron Paynter speaking at the ABV launch with ADHIS General Manager, Daniel Abernethy.

South-west Victorian dairy farmers, Brad and Becc Couch believe when it comes to profitable dairy farming, the simplest of systems are often the best.

Named The Weekly Times Coles 2014 Farmer of the Year on 20 February,
the duo was celebrated for their low-cost and high-efficiency dairy farm operation at Brucknell, near Timboon.

Recognised for their simple yet extremely effective approach to dairy farming, the Couch’s herd is ranked in the top one per cent for milk quality and
the couple have cut costs to about two thirds of the district average.

Brad Couch puts their 360-cow farm’s success equation down to seasonal calving, home-grown fodder, selling off empty cows, replacement heifers and proactive
mastitis investigation.

“Our bottom line is why we do, what we do – it’s what our parents did, as well as our grandparents,” Mr Couch explained.

“Simple things like ensuring sufficient dry-off periods, utilising as much home grown feed as possible and being vigilant with identifying mastitis, can
go a long way towards improved herd fertility, healthy cell counts and a positive cash flow.”

Mr Couch said he and his wife felt privileged to receive the award and hope that it will encourage young people to consider a career in dairy.

“There seems to be a perception that you need to be working your parents’ farm or on a big corporate operation to make a go of it. But I know a few people
that have certainly proved that wrong,” Mr Couch said.

“With the average age of dairy farmers now reaching 60 in Australia, we need to have dairy advocates to promote the diverse opportunities dairy has to
offer.”

Mr Couch encourages all Australians considering a career in dairy, whether on-farm or off-farm, to: “Go for it – but make sure you’re prepared to put in
the hard yards, to reap the rewards!”

Australian Dairy Farmers (ADF) CEO, Natalie Collard commended the Couch’s for their considered and well balanced approach to dairying, as well as their
enthusiasm towards promoting young farmers in agriculture.

“It’s wonderful to have Brad and Becc in the spotlight as young, passionate dairy farmers, proactively advocating for dairy,” Ms Collard said.

“I congratulate them both for receiving this award and hope they will inspire young people looking to enter the dairy industry.”