Aussie dairy farmers have a good track record of dealing with the
unexpected. From managing a variable climate to coping with fluctuating milk prices – dealing with uncertainty is practically second nature.

This attribute means that dairy is by nature a forward thinking industry – keen to address tomorrow’s challenges today, to ensure our animals continue
to thrive and that our farms are sustainable and profitable in the long term.

In 2015 our industry’s focus remains the same – from the farm to the processing plant – we continue our commitment to investing in our planet, people and
animals, and investing in the long term profitability of Australian dairy.

I am pleased to inform you that the 2014 Sustainability Framework Progress Report is now available online
. This report outlines the dairy industry’s current sustainability-related investments, accomplishments, and challenges as we work towards our sustainability
targets.

We have built on our progress in 2013, with programs and projects on our farms and in our factories that are guiding the industry toward better profits,
while minimising our environmental footprint and improving the wellbeing of our people and animals.

However, there are still challenges to overcome. We continue to look for improvements and are strongly committed to working towards even better performance
standards.

Looking ahead, our commitment to securing a sustainable dairy industry provides the foundation for all our actions, to establish an Australian dairy industry which is more prosperous, trusted and world renowned for its nutrition than ever before. I look forward to working with you all in pursuit of these goals.

On a more personal note, in April this year our highly respected CEO, Natalie Collard is moving on in search of her next challenge.

I am certain you will all join me in thanking Natalie for her tireless dedication to not only ADF, but to the people that we represent.  Natalie’s
proactive, innovative and considered approach has improved the quality and effectiveness of the work we do on your behalf.

We wish Natalie every success for the future, and hope that her skills, leadership and passion are not completely lost to the dairy industry in future.

Noel Campbell

ADF President

Just released by the Australian Dairy Herd Improvement Scheme (ADHIS), the Australian Dairy Herd Improvement Report 2014 provides a snapshot of Australian dairy’s national herd across a range of performance criteria.

The informative report analyses production comparisons across region, breed, age, herd size, month of calving and sire type, highlighting our farming systems’
rich diversity.

Whilst the report is loaded with interesting statistics, we thought we’d share a few interesting observations with you…

Did you know?

• 48 per cent of herds are herd recorded – a statistic lower than last year, however similar to five years ago.
• Less than one third of herds (29 per cent) have recorded AI sires for most of their cows.
• Daughters of AI sires produce approximately 52 kilograms more of milk solids than their naturally-bred counterparts.
• More than one third of the productivity improvements achieved over the last 10 years can be attributed to genetics.

Produced in conjunction with the National Herd Improvement Association, the report also features highlights from Dairy Australia’s herd improvement projects
and Dairy Future CRC’s Genomic Information herds research.

To download your copy of the report, click here or visit www.adhis.com.au for more information.

Large risks, huge expenses and long time-lags make investment in research, development, extension (R,D&E) and marketing unfeasible for individual dairy farm businesses.

Instead, to deliver appropriate improvements pre and post-farmgate, all Australian dairy farmers pay a levy based on milk production – an investment that has seen a reported benefit of $3.30 for each $1 spent.

On 4 February, the Australian Dairy Industry Council (ADIC) – the peak, national whole-of-value-chain advocacy body – appeared at the hearing of the Inquiry into agricultural levies. This included the dairy services levy that contributes to Dairy Australia (DA) and the equivalent levies paid by farmers for other research and development corporations.

DA and the CRC also appeared at the hearing. The Senators were interested in the DA R,D&E priorities, the processes for determining those priorities, how research had impacted dairy farm productivity and the levy poll process.

The Dairy Services Levy amounts to approximately $33m per year and attracts Federal Government funding of about $20m annually, all administered by DA. Other bodies, such as the Geoffrey Gardiner Dairy Foundation, state departments of primary industries and dairy manufacturers, also support new and ongoing R,D&E.

The investments are made according to a strategic plan prepared in consultation with all key stakeholders, including Australian Dairy Farmers (ADF), and reviewed by government.

ADF and DA have a memorandum of understanding whereby ADF provides strategic direction towards the investment priorities of R,D&E projects to ensure farmers’ levies are positively advancing their interests.

ADF’s feedback to DA has commented on the investment priorities for research, gaps in the draft priorities, program delivery options, as well as monitoring and understanding the effectiveness and uptake of DA programs.

Additionally, the Australian Dairy Herd Improvement Scheme (ADHIS) is an ADF initiative majority-funded by DA.

In its November 2014 submission to the Senate Inquiry into the systems and structures for the agricultural research and development levies, ADF in collaboration with the Australian Dairy Industry Council (ADIC) noted the importance of process for farmers to know about and contribute to the DA strategy, and for DA to report on the benefit of levy investment to farmers. 

ADF also encouraged farmers to make their own submissions to the inquiry, to ensure their perspectives were heard by the Senate Inquiry on more than one platform.

For more information about the Inquiry, its terms of reference and to view the full ADIC submission please see here.

Healthy, happy cows are productive cows and are a key to a sustainable future for dairy. The progress made in genomic technology by Dairy Futures CRC will be central to producing the happy, healthy kind of cow you want to milk.

The progress made in genomics technology helps farmers address key issues in herd health, which impact on the animal’s wellbeing. It also allows farmers to reduce the cost of production and exposure to external price shocks.

The AgriBio, centre for agribioscience, in Bundoora, is the home for Dairy Futures CRC’s work to develop world-leading gene technology. Members of the ADF team toured the facility in January, accompanied by the CRC’s CEO, Dr David Nation and Manager of Education and Industry Engagement, Belinda Griffiths, where they were exposed to a variety of the CRC’s projects.

Dr Nation explained how recent achievements in pasture and animal breeding will help farmers evolve their production systems.

“Recent achievements by the CRC, including the development of an Australian Breeding Value (ABV) for feed efficiency, which will be published in April 2015, have significantly increased farmers’ ability to improve the quality of their herds,” Dr Nation said.

“An improved model for calculating the fertility ABV and the ability of farmers to select young bulls before they have sired milking daughters also contribute to this.”

The technology developed in collaboration with the Australian Dairy Herd Improvement Scheme, will help farmers boost the productivity of their stock by matching animals which produce offspring with greater disease resistance, milk production and fertility.

Such progress, Dr Nation said, gives the industry the certainty that it will be able to grow regardless of economic and climatic environments. 

“This will give us the scope to improve dairy’s productivity and resilience now and in the future.”

Developments in breeding ryegrass have also been made with pasture breeders now able to select breeding plants for desirable traits using a world-first ryegrass cultivar map. Additionally, pasture breeding companies have low-cost, accurate tests to screen ryegrass seed and plants for contamination by toxic or undesirable endophytes.

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.   

Find out more about Dairy Futures CRC and the work they do here.

For any organisation to succeed, its members must truly believe that they are investing in something worthwhile. To Natalie Collard, outgoing CEO of Australian Dairy Farmers (ADF), there is no cause more worthy than that of the Aussie dairy farmer.

“My career in dairy was very deliberate,” Ms Collard said. “I was convinced that dairy could be the next economic boom for Australia – it was already in 97 per cent of Australian homes – Coca Cola can only dream of such consumer cut through!”

While Ms Collard wasn’t born into dairy, she quickly developed an appreciation for the resilient and humble people who worked to put their products on the kitchen table.

“Without their generosity in sharing their knowledge, there is no way I could‘ve succeeded in my position.”

Believing in the importance of a unified, commodity-based representation, Ms Collard joined ADF in 2008 with a view to help dairy become more sustainable.

General Manager of Shareholder Relations at Murray Goulburn, Robert Poole noted the challenging time in which Ms Collard took over the role of CEO at ADF in 2011. Mr Poole, also Deputy Chair of the Australian Dairy Industry Council (ADIC) said the organisation was in need of stabilised financial and governance procedures, as well as stronger industry ties and improved policy.

“Natalie was not deterred by these hurdles,” Mr Poole said. “She always maintained her professionalism and drive toward improving ADF and the ADIC, and therefore outcomes for farmers.”

Chair of the NSW Farmers Dairy Committee, Robert McIntosh said Ms Collard had shown true leadership, always acting nationally and ensuring that all perspectives were heard and acknowledged.

“Under Natalie’s leadership, the state dairy farming organisations now feel as though they are valued members of the national network,” Mr McIntosh said. “Our interests are now recognised on a national level.”

Mr McIntosh said the ADF National Dairy Farmers’ Summit, held in March 2014, had a substantial influence on the strategies and policies of the industry, and was a true testament to the renewed focus and vision that Ms Collard brought.

With Ms Collard at the helm, ADF fought hard for farmers on key issues including $1 per litre milk and achieved milestones, such as the positive dairy outcome at the conclusion of the China-Australia free trade agreement.

As a firm believer in positive change, Ms Collard said she is confident it was the right time to look for the next challenge.

“It has been an honour to represent the proud and passionate people of dairy, and I am keen to see them prosper,” Ms Collard said.  “I am confident ADF is in a strong position going forward, and that I can now step into a new horizon and seek out my next challenge.”

Falling interest rates on loans delivered under two vital Federal Government schemes will improve the long term viability of dairy farmers according to national advocacy body, Australian Dairy Farmers (ADF).

Interest on loans delivered under the Farm Finance Concessional Loans Scheme and the Drought Concessional Loans Scheme fell to 4.34 and 3.84 per cent respectively as of 1 February 2015.

ADF President, Noel Campbell said the improved terms of both Federal Government loans would help dairy farmers reduce the cost of farm debt as well as providing cheaper finance for drought recovery on farm.

“This interest rate cut means farmers will be better placed if they want to use these Government loans,” Mr Campbell said.

“While there are many factors beyond our control when it comes to seasonal conditions and drought, this decrease provides a better option for dairy farmers who are trying to return to full viable production as soon as possible.”

As the national voice of Australian dairy farmers, ADF has continually sought Government support to ensure viable farms have access to practical measures that will improve the industry’s longevity.

The decision by Government to lower interest rates shows confidence in Australian agriculture’s efforts to improve its long term sustainability, providing industry with the support to maintain our efforts.

While the interest rate cuts are welcomed by the industry, ADF highlights the need to reduce the loans red tape to ensure they are more accessible to dairy farmers.

To find out more about the Farm Finance and Drought Concessional Loans Schemes and your eligibility, click here. 

Australian Dairy Farmers (ADF) welcomes 2015 with enthusiasm as we fine-tune our advocacy priorities to establish a sound policy platform to ensure we can capitalise upon growth opportunities delivered by 2014’s advocacy.

The prospects presented through 2014’s policy wins, such as the China FTA, prove that dairy is a force to be reckoned with when the whole value chain works collectively to achieve its aims. However, challenges including limited opportunities for domestic growth, as well as labour and skills shortages, and competition issues continue to constrain our industry.

We must persist in identifying and addressing these issues and solutions at the Federal level, whilst assisting our State Dairy Farmer Organisation (SDFO) members at the State level as required. ADF’s 2015 agenda is committed to carrying out whatever we can to progress these policies and help dairy become the best it can be.

Over the next 12 months, ADF is focused on addressing five key priority areas: continuing to drive market, trade and farm prosperity; building a highly skilled and productive workforce; developing fair and sustainable access to natural resources; and promoting animal health and welfare standards.

Under the ‘building a highly skilled and productive workforce’ umbrella, ADF will continue to advocate to reduce the three-hour minimum engagement requirement from the Pastoral Award  2010 and ensure that milking is included as an essential requirement, alongside feeding and watering of livestock.

The Pastoral Award is one of ADF’s 15 key policy priorities to Government this year. To find out more about other 2015 policy priorities, please stay tuned over the coming weeks to download your copy of ADF’s ‘Policy Priorities to Government 2015’.

I look forward to working with you throughout 2015 and trust you had an enjoyable festive season spent with family and friends.

The Australian Dairy Industry Council (ADIC) lodged its submission in response to the Federal Government’s Agricultural Competitiveness Green Paper on 19 December, 2014.

In the joint submission with Dairy Australia, the ADIC commented on many of the Green Paper’s policy proposals, with a particular call on the Government to address four priority areas that affect the industry’s competitiveness in the short to medium term; research, development and extension (R,D&E); access to international markets; investment; and people.

Recognising the Government’s funding of dairy R,D&E as an acknowledgement of its essential role in creating a more durable industry, the ADIC encouraged the Government to reaffirm its commitment to these programs.

The ADIC welcomed the successful conclusion of the China-Australia free trade agreement (ChAFTA), but highlighted that there are still opportunities for growth through the conclusion of further bilateral and multilateral trade agreements that provide genuine liberalisation of all dairy products. The ADIC also sought the removal of hurdles such as technical barriers to trade that need to be addressed.

Increased Government support for industry efforts to encourage investment and ensure a positive regulatory environment to underpin confidence and certainty for dairy investment was a further recommendation.

The ADIC also highlighted the need for enhanced Government support for Australian dairy programs designed to attract and retain a highly skilled, productive workforce.

The percentage of Australian dairy farms reported with negative farm business profit is estimated to have decreased significantly from 67 per cent in 2012-13, to 38 per cent in 2013-14, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

In addition, the ABARES reported a significant jump in the average rate of return on capital (excluding capital appreciation) to 3.1 per cent in 2013–14, up from 0.9 per cent in 2012–13 and above the ten year average of 2.1 per cent.

Released in December 2014, the ‘Australian dairy: financial performance of dairy farms, 2011-12 to 2013-14’ report correlates improved profitability to the strong rebound in the average farm cash income  which increased to $129,000 in 2013-14, around 29 per cent above the 10-year average. Dairy farmers in southern New South Wales, South Australia, Victoria and Tasmania had the largest increases as a result of significant milk price rises, with smaller increases in Western Australia.

Yet, whilst incomes may have ended on a high and negative farm business profit on a low in these states, northern New South Wales and Queensland continue to feel the pinch of higher fodder expenditure and lower production due to dry seasonal conditions, highlighting the relevance of  drought preparedness to long-term profitability.

Australian Dairy Farmers (ADF) President, Noel Campbell said whilst many factors, including drought, impact dairy farm profitability, there are some sound principles we can apply to reduce their effects on our farm business returns, with drought preparedness being one of these.

 “Farmers need to demonstrate a commitment to long-term sustainable farming through appropriate business and farm practices that embrace effective risk management options,” Mr Campbell said.

“The Government can play a key role in reinforcing its long-term commitment to drought through providing policy options that support farmers in risk management, for example, tax incentives to encourage fodder and water infrastructure investment by farmers.”

ADF continues to actively advocate on tax solutions and other complementary measures that may assist in drought preparedness, including improving the Government and industry’s investment in seasonal forecasting.

Further development of the Managing Climate Variability Program, which promises greater accuracy in midseason forecasting, will enable farmers to make better tactical decisions around managing their fodder and water resources to maximise profit.

Mr Campbell welcomed Minister for Agriculture, Barnaby Joyce’s announced $100 million in Drought Recovery Concessional Loans in December 2014 and the lower interest rates on drought concessional loans announced earlier in January this year, however stressed that further proactive measures need to be taken to achieve long-term drought policy and ensure the ongoing viability of our dairy farm businesses.

ADF will continue to lobby for a range of measures to support drought preparedness management and security to ensure that dairy farmers are supported in sustainable farming practices to manage whatever Mother Nature may bring.

*The ABARES report data is gathered from the annual Australian Dairy Industry Survey, with a sample size of approximately 300 dairy farmers.

The “three P’s” of our farming future according to Dr Cameron Archer AM, Principal of Tocal College, are: people, people, people.

Delivering the National Centre for Dairy Education Australia’s (NCDEA) first annual oration on 26 November 2014, Dr Archer underlined the importance of well-educated people in producing a respected product and underpinning the future of Australia’s dairy industry.

“A new technology, a genetic marker, a treatment or medicine, processing method, smart farm technology, breeding strategy, dietary strategy, feed supplements can be around the world in a flash. All of our competitors will have it. What they will do with it – will be up to their people,” Dr Archer said.

“Where we can really have the competitive advantage is through our people.”

Delivered to 90 members of the Australian dairy industry, including the Australian Dairy Farmers (ADF) President and CEO, the oration’s themes reflected ADF’s belief that people are the industry’s most important on-farm asset.

Committed to developing policies and strategies to attract more highly skilled people to dairy, ADF’s People and Human Capacity Policy Advisory Group advocates policies to address Australian dairy’s skilled labour shortage, drive industry innovation and secure long-term prosperity.

NCDEA Manager – Educational Development and oration guest of honour, Sylvia Vagg, was recognised by the Australian dairy industry for her dedicated service to dairy education and training.

Dr Cameron Archer AM, Principal of Tocal College presenting as guest speaker at the NCDEA Oration.

As temperatures rise and grasslands dry, December marks the beginning of Australia’s bushfire season. Bushfires pose significant threats to people, livestock and farming properties, and careful preparation and planning is critical.

Under legislation, landowners and managers have a responsibility for the safety of all people living, working on or visiting their property. Landowners and managers are advised to consider safety, environmental and legal issues, and long-term sustainability with safety as a priority.

To ensure you don’t become overwhelmed with everything that needs to be done in a bushfire crisis, it is important you sit down with someone in your family or your staff and make a list of everything that should be considered and the jobs that need to be done.

On the heels of Coles’ admission to the Australian Competition and Consumer Commission (ACCC) yesterday, Australian Dairy Farmers (ADF) has reiterated the need for stronger competition laws that will protect suppliers against the unjust activities of major retailers.

ADF President, Noel Campbell said that Coles’ announcement was a damning indictment against the supermarket giant, whose actions and continual denial over
the past four years have had significant negative impacts on suppliers and dairy farmers affected by $1 per litre milk.

“Coles has misled Australian consumers and Parliament for too long on this issue,” Mr Campbell said.

“They have finally confirmed what ADF, and others, have long said about their unsustainable $1 per litre milk campaign. This admission does nothing to
rectify the damage they have inflicted upon processors and dairy farmers, who have ultimately paid for their unsustainable price cuts.”

Mr Campbell said the announcement highlighted the need for a Mandatory Code of Conduct with significant penalties and a Supermarket Ombudsman to enforce
the Code.

“Coles must pay suppliers, and ultimately farmers, a fair price for their hard work. They should not be able to force the costs of unsustainable price
cuts onto farmers,” he said.

ADF looks forward to the findings of the Harper Review of Competition Law and Policy,
with the hope that this will foster a fairer supply sector going forward and end unjust practices such as the $1 per litre campaign.

ADF thanked the ACCC for its persistence in pursuing Coles in this matter, and said it will be watching the court proceedings closely.