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Pressing pause on the Basin Plan

The Australian Dairy Industry Council’s (ADIC) has expressed concern in a submission to the
Senate Inquiry into the Murray-Darling Basin Plan, regarding the impact of the Basin Plan on dairy business viability.

In the submission the ADIC states its support for a plan with clear and appropriate targets to recover water for the environment provided farms remain
viable. So far, more than 1160GL of a possible 1500GL transferred from irrigation to the environment through buybacks.
Dairy farmer and Chair of the ADIC Water Taskforce, Daryl Hoey said in its current form the Basin Plan isn’t achieving the right balance, setting unrealistic
timelines as well as a lack of planned transition and structural adjustment.
“A significant pain of adjustment is already being felt in the dairy industry, even if no more water is transferred from the irrigation pool across
to the environment,” Mr Hoey explained.
“We can clearly see the impacts on dairy farming systems through exposure to higher water prices, a more volatile temporary water market; reduced viability
of some irrigation districts; and overall, difficulty in growing our milk production.”
Dairy Australia analysis indicates that, based on conservative estimates, the 120GL of high reliability water entitlements dairy farmers in the Goulburn
Murray Irrigation District sold to the Commonwealth as buybacks, could have resulted in the production of an additional 289 million litres of milk
if those entitlements were still owned. That 289 million litres of milk would be worth approximately $144 million at the Farmgate.
Farmers in the same district are now sourcing around 275 GL a year from the temporary market to meet their needs (due to reduced ownership of entitlements)
have added a cost impost of $41million at $150/ML. On 12 October 2015 temporary water was trading at $300/ML.
The ADIC is calling for Government to “press pause” on the Basin Plan to ensure it can achieve the right balance, and therefore achieve genuine outcomes.
“To get the Basin Plan back on track we need more realistic timelines and a clearer picture of socio-economic and environmental effects before more
water is taken from the irrigation pool,” Mr Hoey said.
“This includes a clearer understanding of the water market and more appropriate approach to the 450GL “upwater”. We are also seeking greater flexibility
to trade environmental water and an appropriate sustainable diversion limit adjustment mechanism.”
The ADIC has welcomed the Commonwealth Environmental Water Holder’s decision to sell 20 GL of temporary water in the Goulburn system, which will enable
more trading of temporary water. However, the ADIC said it is vital producers in the region benefit from the availability of this water through
a fair process to trading the water.
Representatives from the dairy industry are seeking to attend the Murray Darling Basin Plan Senate Inquiry hearings scheduled in November. To see the
full recommendations from the ADIC submission see http://www.australiandairyfarmers.com.au/submissions
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Stronger competition laws remain on agenda

Australian Dairy Farmers (ADF) is calling upon the Coalition Government to adopt stronger
misuse of market power laws to foster a more competitive business environment.

While some business groups have suggested that stronger laws about the misuse of market power may have negative impacts on competition and innovation,
these claims don’t withstand scrutiny.
ADF President, Noel Campbell said concerns that the introduction of an effects test could put consumers at risk were unfounded.
“These changes are about protecting consumers and competition from actions that substantially lessen competition in a market. These reforms are in
consumers’ interests,’ said Mr Campbell.
“The Harper Review made it clear, the law as it stand is inadequate. The Government must not let self-interested businesses and organisations with
excessive market share further limit competition to the detriment of 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. ADF is advocating
for certainty that the legal process is able to provide integrity and transparency regarding the impact of retailer actions on suppliers.
Almost all OECD countries already have an ‘effects test’ within their legislative schemes and there should be no trouble in drafting an appropriate
test that protects the integrity of Australian market. ADF is hopeful that this will prevent damaging practices, including predatory pricing in
future.
Addressing the misuse of market power is crucial in determining the Australian dairy industry’s future profitability and sustainability. Farmers need
every opportunity to improve their negotiating power for profitability and returns at the farm-gate to be achieved.
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October President’s Message

After months of debate and uncertainty, on 21 October 2015 Federal Government and opposition
committed to passing the China-Australia Free Trade Agreement (ChAFTA) before the end of the year. As an industry, dairy is pleased that both sides
of politics have recognised the opportunities ChAFTA will provide Australia’s dairy industry.We welcome this collaborative, bipartisan approach to
ensure clear passage of the agreement and entry into force as soon as possible.

The Australian dairy industry is particularly well-placed to take advantage of the enormous opportunities that will flow from our historic trade deal with
China. The tariff cuts that the ChAFTA delivers once it enters into force will enhance the competitive position of Australian dairy. This is good for
growth, for jobs, for the economy and a boom for our export market.
The dairy industry, led by the Australian Dairy Industry Council (ADIC), has fought hard for ChAFTA implementation. We have lobbied Parliament, and explained
to the media that if the ChAFTA is ratified this year, the dairy industry will see a growth in job creation across the value chain, both on farm and
in processing plants. It will also see further growth in confidence to invest in productivity. ADF expects that around 600-700 jobs will be created
within the first year of ratification. The flow-on effects of this growth will undoubtedly benefit the rural and regional communities where dairy plays
an important role.
The message has clearly been received, acknowledged and acted upon. I wish to thank all of you who have taken up this fight to ensure the ChAFTA is ratified
as quickly as possible. This deal is a once-in-a-generation opportunity to grow our businesses and our communities. On behalf of our industry, I look
forward to the swift passage of the enabling legislation through Parliament so that dairy can take advantage of the financial benefits and see the
whole value chain continue to grow sustainably and profitably over time.
Noel Campbell
ADF President
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Voting for Levy Poll Process Now Open

Voting to change the levy poll process has now opened and it is time to have
YOUR say. As the dairy industry’s peak policy and advocacy group Australian Dairy Farmers (ADF) is encouraging all dairy farmers to vote yes on their
ballot papers, which were mailed last week to all dairy levy payers.

Voting yes means a Levy Poll would only be held when a change to the levy or its procedures is proposed. In short, no change, no Levy Poll.
After the last poll in 2012, the clear message from dairy farmers was that the efforts and funds dedicated towards the poll process could have been better
spent delivering dollar value to dairy farmers. The change makes complete sense, saving at least $750 000 that will be redirected to industry programs.
Dairy farmers have made it clear in regional meetings across Australia that the industry should make the change. Now, we need to ensure that the Federal
Government is confident that’s the view of levy payers by voting yes or no.
A yes vote will not remove Dairy Australia from scrutiny. Dairy Australia will still be required to undergo an independent performance review at least
every five years, which will then inform an independent committee of industry representatives on whether or not a levy poll is required. If farmers
believe a poll is necessary, there is a failsafe mechanism for a group of levy payers representing at least 15 per cent of levy votes to propose a
poll.
The Dairy Levy Poll Process ballot can be completed by post, email, fax or online at www.computershare.com.au/dairylevy2015. Voting
will remain open until midday (AEDT) Friday 27 November. For details on upcoming information sessions near you see www.dairylevypollreview.com.au
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An extra week of Artificial Insemination can be worth thousands $$$

For dairy farmers who plan on spring calving, the next few weeks are a crucial time not only
for their herds, but also for their business and profit plans, especially if they are using Artificial Insemination (AI) techniques on-farm.

Dairy Australia program manager for Genetics and Data Management Matthew Shaffer, and Michelle Axford of the Australian Dairy Herd Improvement Scheme
(ADHIS) recommend farmers ensure they have enough replacements sired by AI bulls from the Good Bulls Guide. This may mean extending their AI program
by a few days before allowing bulls into the paddock to naturally join with their cows.
“Don’t fall short with your AI program and give it that extra bit of time as the upfront costs will pay dividends for over the lifetime of the cow.
”Improving the genetics of your herd will benefit your business bottom line and ultimately your profits even when times are tight,” said Mr Shaffer.
“In 2014, for example, AI bred Australian Holsteins produced 22kg of more fat and 23kg more protein than those naturally bred creating an additional
annual production value of about $271.80 per cow.
“And that means if you have 100 more AI bred Holstein cows in your herd you can expect an extra $27,000 of production value every year,” he added.
Ms Axford said that ADHIS and NHIA research for 2014 showed the total number of herd-recorded Holstein cows in Australia was 317,290, of which about
70% are AI bred. The extra value of annual production (based on $6.04/kg MS, source Dairy Farm Monitor Project 14/15) if the other 30% of cows
were bred by AI rather than by the herd bull was approximately $25 million.
“The reason we do research on better genetics for our cows is that it produces healthier cows who produce better quality milk and make better profits
for our dairy farms,” said Ms Axford.
For more information contact Michelle Axford, ADHIS Extension and Education Manager, ph 0427 573 330 email maxford@adhis.com.au or www.adhis.com.au.
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What the TPP means for dairy

The 12 nations involved in negotiating the Trans Pacific Partnership (TPP) free trade agreement
concluded negotiations in Atlanta on Tuesday 6 October 2015, delivering modest but important gains for the Australian dairy industry.

As the whole of value chain representative body, the Australian Dairy Industry Council (ADIC) acknowledged the conclusion of the agreement as a good result
for Australian dairy farmers.
ADIC Chair, Noel Campbell said that the deal, in conjunction with the recently concluded China-Australia free trade agreement, would give farmers the confidence
that if they are going to grow their businesses there are markets to match their growth.
“As an industry our future growth will be on the export market, as domestic growth has matured. The TPP provides improved access to markets such as Japan,
where demand for our high quality, safe product is expected to increase in coming years,” Mr Campbell said.
“The industry is currently examining the agreement in its entirety to assess what the full extent of the benefits will be for Australian dairy. Early analysis
indicates however that the TPP will enable more Australian cheese to be exported to Japan tariff-free. We’ve also got greater access for butter and
skim milk powder than ever before.”
Mr Campbell said the industry appreciated the dedication of the Minister for Trade and Investment, the Hon. Andrew Robb MP and his team of negotiators,
in continuing to seek trade agreements that benefit the Australian economy.
“On behalf of the Australian dairy industry I would like to extend my thanks to Minister Robb and the Australian negotiators for maintaining strong communication
with industry throughout the TPP negotiations. They have done their utmost to balance the competing interest of industry and government across the
12 nations involved throughout a challenging process,” Mr Campbell said.
“The conclusion of the TPP continues a historic period of increased trade liberalisation over the past few years. The ADIC looks forward to reviewing the
agreement in its entirety to fully quantify the benefits for dairy.”
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World Food Day – A Day of Action Against Hunger

Friday 16 October 2015 is World Food Day – a day of action against hunger observed by more than 150 countries each year.

It is held to acknowledge the chronic hunger experienced by many, and act as a lightning rod for people to declare their commitment to eradicate hunger in our lifetime.

Globally, one in nine people – or 795 million people – are undernourished, with most living in developing countries.

Asia has the most hungry people, with two-thirds of the total, while in Sub-Saharan Africa, projections for 2014-2016 indicate a rate of undernourishment
of almost 23%.

Hunger is a growing problem in Australia too, with a rising number of low-income families struggling to afford minimum daily requirements.

Low-income families are the biggest group seeking food relief, according to Foodbank.

Foodbank is a non-denominational, non-profit organisation which connects the food industry’s surplus food with the welfare sector’s need.

Foodbank released a Hunger Report that revealed 516,000 Australians rely on food
relief from Foodbank’s agencies each month, with over one-third of recipients being children.

Australian dairy’s leading manufacturers, including Devondale Murray Goulburn, Fonterra Australia and Lion Dairy & Drinks, support Foodbank. Donations
of milk, cheese, spreads and yoghurts help make nutritious meals every day for families and school children that would otherwise miss out.

However, food insecurity in Australia is worsening, as demand for food relief outpaces supply. Each month, more than 60,000 Australians seeking food relief
are unable to be assisted.

The Sustainable Development Goals recently released by the United Nations includes a goal to
eliminate hunger by 2030.

This goal includes a target to ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and
production, as well as help maintain ecosystems.

The Australian dairy industry is committed to enhancing livelihoods and improving wellbeing, and has established an industry-wide sustainability framework to help achieve these goals.

The framework’s targets include ensuring dairy contributes to improved health outcomes for all Australians, as well as ensuring the rich source of nutrients
dairy provides continues to be produced in an environmentally sustainable way to the benefit of all.

The world does not necessarily need to produce more food to alleviate hunger. The World Food Program has stated that
hunger is entirely solvable

Instead, it needs nutritious food delivered to those missing out.

Dairy – comprising nutrients critical for growth and development – will play an important part in any solution to this problem.

Eliminating world hunger in our lifetime will require a committed approach by all and the Australian dairy industry is proud to play its part.

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Canberra celebrates dairy innovation

Over 100 parliamentarians, advisors, departmental members and industry stakeholders gathered in Canberra on Wednesday 14 October, in celebration of Australian
dairy’s innovative and dynamic value chain. Hosted by the Australian Dairy Industry Council (ADIC) the dinner centred on the theme of Australian Dairy,
Thinking Beyond the Box.

An exciting opportunity for parliamentarians and industry to discuss the role innovation plays in helping the industry grow, the event saw key agricultural
leaders including Minister for Agriculture and Water Resources, the Hon. Barnaby Joyce and Shadow Minister for Agriculture, the Hon. Joel Fitzgibbon
identify the importance of collaboration in achieving a more sustainably profitable future.
Minister Joyce said the Coalition Government shared the industry’s commitment to innovation as a way of improving dairy farmer productivity and profitability.
“Through our Agricultural Competitiveness White Paper, the Coalition Government is delivering a range of initiatives across a number of key areas to
strengthen dairying in Australia such as boosting funding for R&D, biosecurity and water infrastructure, developing more innovative and collaborative
business models for farmers and establishing an ACCC Commissioner for Agriculture.
“In addition to the White Paper measures, the conclusion of free trade deals with Korea, Japan and China, as well the recent Trans-Pacific Partnership
Agreement will help to significantly grow demand for Australian dairy products well into the future,” Minister Joyce said.
Mr Fitzgibbon commended the industry on working to progress the Dairy Industry Vision for 2025.
“Dairy is increasingly part of Australia’s economic future and it is great to join so many industry participants who share a vision for a more innovative,
efficient, and sustainably profitable sector.”
With more than $2 billion dollars invested in farm science and technologies since 1980, innovation has always been pivotal to boosting dairy’s profitability
and productivity.
ADIC Chair, Noel Campbell told guests that dairy is a dynamic and growing industry, one that more than ever needs to push boundaries.
“As an industry, dairy is working to ensure that the benefits of research, development and extension reach our whole value chain. For every dollar
that our industry invests in R,D&E our farmers and processors see three dollars in returns,” Mr Campbell said.
“Increasingly volatile market conditions, where input costs continue to go up and capital for investment is limited mean encouraging uptake of innovative
technologies is a challenge. Shared government and industry investment in R,D&E is critical to our success.”
Leaders in Australian dairy innovation, including CEO of the Dairy Futures CRC, Dr David Nation as well as dairy farmer and 2014 Nuffield Scholar,
Aubrey Pellett provided guests with insight into key advancements in dairy technology and science.
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Five new Ag Counsellors to help seize opportunity

The announcement of five new Agricultural Counsellors in overseas markets has been welcomed
by the Australian Dairy Industry Council (ADIC) as a positive step toward addressing non-tariff barriers to trade.

The ADIC has been a strong advocate for increased resources toward overcoming technical barriers to trade in overseas markets and is pleased to see the
Coalition Government’s acknowledgement of this issue.
A recent report commissioned by Dairy Australia, suggested that if the aggregated sum of all technical barriers to trade imposed by countries importing
Australian product were reduced it could benefit global dairy trade by up to $1.57 billion. This amount includes the opportunity costs resulting from
having technical barriers to trade in place as well as the potential gains from their removal.
ADIC Chair, Noel Campbell said the announcement of three new positions in Vietnam, Malaysia and the Middle East, as well as additional postings in Bangkok
and China, would help the industry make the most of recent trade agreements as well as open up access to emerging markets.
“The appointment of these Counsellors will assist Australian dairy to promote its high quality, safe product in growth markets across South East Asia,
the Middle East and of course China where there is growing interest in our products,” Mr Campbell said.
“It is also a further positive step toward addressing technical barriers to trade in international markets. The extent to which our industry is able to
seize opportunities delivered through recently completed and pending trade agreements will depend upon addressing nontariff barriers. These Counsellors
will help to improve the flow of Australian dairy products to international markets. It will also ensure that Australian dairy farmers can attain a
fair price for their product.”
The ADIC continues to work with all overseas Counsellors, in conjunction with Government to promote Australian dairy overseas and ensure improved access
to key export markets.
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No change, no levy poll – you decide

It’s three years since Australian dairy farmers last voted in a levy poll to
determine the level of contribution to Dairy Australia, the industry’s research and development body. Levy payers at that time approved the proposed
levy increase of 10 per cent, but it was clear that the process was costly and distracting.

The 2012 levy poll process included over 50 meetings, took more than 15 months to complete, and cost in excess of $750,000 in levy funds. The time and
money could have been better directed to delivering farm dollar value to dairy farmers.

In the wake of that poll, levy payers, Australian Dairy Farmers (ADF) and industry stakeholders agreed there must be a better way. The Dairy Australia
board agreed to a review that will simplify the levy poll process reduce costs and retain farmer’s rights to be consulted about changes to the levy.

The six-member independent Dairy Levy Poll Process Review Panel delivered its report earlier this year, with unanimous recommendations for a more streamlined,
cost-effective dairy levy poll process. The panel’s primary recommendation is that a poll only be conducted when a change in the levy or the levy process
is sought. In other words, “no poll if no change”.

This doesn’t mean that levy payers or industry won’t have a say. It’s also not about removing Dairy Australia from scrutiny. The report recommends a vital
“failsafe” mechanism where farmers can initiate a poll, if they believe it’s necessary.

If levy payers believe a poll is necessary, they can initiate one by bringing together a group of levy payers representing at least 15 per cent of levy votes.This would activate a Dairy Australia General Meeting where 50 per cent of voters would need to resolve to hold a poll.

The critical thing for Australia’s dairy farmers is that to move to “no poll if no change”, we need to impress on the Federal Government that this proposition
has broad industry support.

ADF is consulting with dairy levy payers, to ensure all are aware of the proposed changes and have the opportunity to make their thoughts known and have
any questions answered.

We’re asking the question of dairy farmers at field days, processor events and State Dairy Farming Organisation meetings.

Starting in October 2015 there will be a simple poll of levy payers, asking for either a “Yes” or “No” vote in support of the independent panel’s recommendation
to change the levy poll process. If the change is supported, ADF will take this endorsement to the Federal Government – specifically the Agriculture
Minister – and we could see this change legislated before the 2017 levy poll is due.

This is not about limiting scrutiny of Dairy Australia. In addition to the “failsafe” recommendation, Dairy Australia will still be subject to independent
review every five years. What we want is a sensible, cost-effective way to get the best value from the levy. Dairy farmers have that opportunity in
front of them, and it can be realised with a simple show of support, right now.

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Getting ChAFTA over the line requires united front

Getting the China-Australia Free Trade Agreement (ChAFTA) ratified will require farmers to show their communities what this opportunity means to them,
according to Australian Dairy Farmers (ADF) President, Noel Campbell.

Mr Campbell, along with representatives from the United Dairyfarmers of Victoria (UDV) and the Victorian Farmers Federation (VFF), was in Northern
Victoria as part of a Regional Roadshow which kicked off on Monday 21 September.

The industry used the roadshow to ask as many farmers as possible for their help in getting the China agreement ratified before the end of the 2015
calendar year.

“Farm lobby groups are leading the push to get the deal passed through Parliament.ADF, in collaboration with the State Dairy Farming Organisations
has been wearing a path to Canberra, lobbying both sides of parliament and the independent senators to highlight why this deal is important,” Mr
Campbell said.

“The ChAFTA is under threat. We need farmers, processors, service providers and regional communities to help us get this deal over the line before
the end of the year. We need your help to explain to your neighbours, friends and family why this deal matters for Australia.”

The regional meetings were well attended, with over 100 farmers attending for the first three events in West Victoria. Farmers from all commodities – not just dairy – attended the meetings, demonstrating that the entire farming community is well aware of what is at stake.

Tatura dairy farmer, Ingrid Tysoe said the ChAFTA was about building long term sustainable profitability.

“For farm security, things are going to be a lot better; this gives courage for us to work towards the future,” Ms Tyson said.

“I felt that the session was really informative and it’s giving us hope that the dairy industry is looking brighter for us.”

Mr Campbell told attendees that it was essential to highlight that the ChAFTA is a good deal not just for farmers but for the Australian community.

“We worked hard to get a true ‘free trade’ agreement with the ChAFTA last year. With tariffs down to zero over the next four to 11 years on dairy products,
we believe this has been achieved,” Mr Campbell said.

“The ChAFTA is a great deal for Australian dairy and a great deal for the Australian community. If ratified this year, the dairy industry alone will
see growth in job creation across the value chain. We expect that around 600-700 jobs will be created within the first year of ratification. More
dairy jobs means more vibrant, prosperous and growing rural and regional communities across all of Australia’s dairying regions.

“I urge all of you to get on board to help us ensure that this deal is implemented this year so that our industry, as well as the broader community
can start to take advantage of the benefits this deal brings.”

With meetings in Victoria to conclude on Tuesday 29 September, ADF plans to take the regional roadshow to Tasmania to spread the word about how farmers
can help get ChAFTA over the line.

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Expression of Interest for Genetics Focus Farms

A new project, ImProving Herds aims to demonstrate how innovative science, on farm testing and data driven decision-making deliver increased profits. To
achieve this a collaborative team of Australian and international dairy industry organisations and experts has united to explain existing value and
explore future services.

ImProving Herds is now recruiting 25 genetics focus farms to demonstrate the value of genetic improvement. Find out more about how you can be part
of this exciting and dynamic project here.
ImProving Herds is an innovative herd improvement RDE&E project funded by the Gardiner Foundation and supported by a range of industry organisations.
Express your interest before 30 September 2015.
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Breeding program evolves with genotyping

Having all of his young stock genotyped has completely changed the way Rob Cooper manages the breeding program of his 1300+ split calving Holstein herd
at Manilla, North West of Tamsworth, NSW.

“We rear about 600 heifer calves a year and will soon reach our target herd size of 1600. We will soon have a significant number of surplus replacements,”
he said. 
Rob says the combination of surplus replacements, sexed semen and genotyping will allow him to place more selection pressure on the herd to increase its
Health Weighted Index (HWI) and use better genetics over the top group of heifers.

“We’ve got our first set of genomic results and I’m waiting on the results from another two batches sent off from more recent calving,” he said.

Rob says having the results has opened up new management approaches that weren’t previously possible. “Because it’s so new, our approach is still a work
in progress, but the possibilities are very exciting,” he said.

Rob’s breeding objective is to improve functional type (udders, capacity, rump and feet and legs), fertility, mastitis, protein and fat.

Rob uses the Balanced Performance Index (BPI) to select sires. However when it comes to reviewing the heifers’ genomic results, he is most interested in
their Health Weighted Index (HWI) because it is a better reflection of their genetic potential for fertility and mastitis resistance.

“At this stage I’ve split the herd into three groups – the top 50%, bottom 25% and the remaining 25% – based on Health Weighted Index but I am keen to
improve herd fertility so I was curious to see how they re-ranked on that.”

Michelle Axford from ADHIS said that genomic breeding values for heifers were equivalent to those based on seven lactations of herd recording data.

“Obviously it is a lot more useful to have that information at an early age than waiting nine years,” she said.

Farmers have found a variety of ways to use the results to improve genetic gain in their herds.

“Some, like Rob are using genomic results to increase selection pressure on their herd. Others, especially breeders of elite genetics are using genomic
results for embryo transfer; to identify elite heifers for flushing and inferior animals to use as recipients. It is becoming more common to have whole
co-horts of heifers tested to inform mating and culling decisions,” Mrs Axford said.

If you’d like to send hair tail samples off for genotyping, contact Zoetis, Holstein Australia or Jersey Australia.  

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Legendairy Capital search sparks national interest

Dairy Australia Program Manager Suzi O’Dell hoped the search for a national “Legendairy Capital” would get some attention, but she never imagined
the amount of interest the initiative has generated.

“We’ve received 104 nominations from communities throughout the country’s eight dairying regions; media interest in the program has been massive and has
reached a massive audience,” she said.

The Legendairy Capital program was launched in April this year as an initiative to put rural and remote communities on the map, get people thinking
about how dairy has played a part in shaping their community and nominate a project that will benefit them as a group.

“It’s been great to see communities getting behind the concept and sending in some excellent nominations,” Suzi said.

“We don’t hear enough about the community spirit that is such an integral part of Australia’s dairy sector. Celebrating towns that have endured and thrived
throughout the years sits at the heart of the program,” she added.

The program will see one successful town from each of Australia’s eight dairy farming regions receive a $2500 grant to invest in a community project.
One of those eight towns will then go on to receive the coveted title of Australia’s Legendairy Capital 2015, as well as a further $7500 for
their nominated community project.

Nominations will be assessed by independent members of various dairy farmer representative groups and industry bodies in each state, with the grants administered
by the Foundation for Rural and Regional Renewal (FRRR), on behalf of Dairy Australia.

Australia’s Legendairy Capital 2015 will be announced in September and will become a bi-annual program sitting in the Farmer Communications and
Engagement Program in Industry Promotion and Product Innovation.

For more information on the Legendairy Capital project go to www.legendairy.com.au

Comboyne, NSW is one of eight Legendairy Capital finalists for 2015.

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August President’s Message

The
Australian dairy industry has historically managed price volatility, global supply and demand issues and the fluctuations of the Australian dollar
to good effect, maintaining international competitiveness, innovation and resilience to market volatility.

While we’re in volatile times, there is a lot more to be factored into the market in the next few months. Rather than panic, we need to ensure we are prepared
for the short term difficulties facing us and remember that the long-term outlook for dairy is positive, despite current market volatility.

Industry needs to work to its strengths as a cost-efficient milk producer of quality dairy products in order to face the expected challenges. Within the
industry there are considerable resources and work being applied to help dairy farmers confront the volatility challenge. Australian Dairy Farmers
(ADF) is working in partnership across the industry and with government to undertake work and analysis to support Australian dairy farmers in their
decision making.

It is reasonable to ask why up until now the Australian dairy industry has not been affected to the same degree as New Zealand. Unlike New Zealand Australia
has more the 50 percent of its production consumed domestically. This provides a dampening effect on the downward trend of international markets on
farm gate pricing. Our product mix has also allowed for the pricing trends to be less severe. However, there is no doubt that this international pricing
impact is placing downward pressure on expected farm gate pricing that was not even seen two to three months ago.

Those farmers who supply processors that are uncontracted and exposed to world export pricing should treat the 2015/16 season with a significant amount
of caution, understanding their underlying costs and being aware of input costs which will affect profitability.

Whether you’re a farmer, state organisation or peak body, we are all striving for the same outcome – a healthy and sustainable dairy industry. Industry
projects such as the Sustainability Framework and the Australian Dairy Vision help provide a strategy for ADF’s efforts. On this note, it is with great
pleasure that I welcome Benjamin Stapley as incoming Chief Executive Officer (CEO) of ADF. With a strong background in member advocacy, stakeholder
engagement, policy development and media management, Mr Stapley comes into the role after two years as Director of Policy and Regulation at the Plastics
and Chemicals Industries Association (PACIA).

I look forward to the fresh perspective and expertise that Ben brings to the role and along with my fellow Directors, National Council and staff look forward
to working with him to continually improve the sustainability and profitability of farmers across all dairying regions. I hope you will all join me
in welcoming Ben to our dynamic industry when he commences as CEO on 1 September 2015.

Noel Campbell

ADF President

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Success relies on shared ownership

Speaking at the annual WAFarmers’ Dairy Conference on 28 July in Busselton, ADF Director, Simone Jolliffe discussed the importance of working collectively
to achieve a more sustainable future.

“The extent to which dairy succeeds in its objectives will rely on shared leadership, with everyone in the industry recognising that their contribution
adds to the end goal.

“Don’t underestimate the value of your involvement or the many ways in which you can demonstrate leadership. Attending farmer discussion group meetings
is one way, being here and participating today is another,” Ms Jolliffe said.

With over 90 dairy farmers, processors and industry stakeholders gathered, the one-day conference was a fantastic opportunity for members and non-members
to hear from their fellow dairy farmers.

As a first generation dairy farmer at her property in Wagga Wagga, NSW as well as Deputy Chair of Dairy NSW, Ms Jolliffe said there was a need for farmers
to be proactively involved with those representing their interests.

“Farmer engagement with industry bodies responsible for setting priorities whether in advocacy or research programs is key to ensuring that our policy
settings truly reflect industry needs. If everyone takes part in identifying, owning and finding solutions to our challenges, the resulting decisions
made will inevitably be sounder.”

Speaking alongside Ms Jolliffe at the Conference was Victorian dairy farmer and horse trainer, Anne McGrath, who shared the emotional story of her family’s
challenging journey after a young farm worker was killed on their property. Telling the conference of the legal action against her family which followed
the tragedy, Ms McGrath reiterated the importance of getting farm safety right for all involved.

At the Dairy Council annual general meeting later that afternoon, President Phil Depiazzi, Senior Vice President Michael Partridge and Junior Vice
President Paul Ieraci were re-elected unopposed to their respective positions.

Dairy consultant, John Mulvany chaired the processor panel involving representatives from Brownes, Parmalat (Harvey Fresh) and Lion who discussed opportunities
for dairy to grow in future, as well as milk price challenges. The conference concluded with a wonderful gala dinner where a number of WA dairy farmers
were recognised with Dairy Australia’s Milk Quality Awards.

For more information about the event, download your copy of the conference program here.

WAFarmers’ Dairy Council’s Junior Vice President, Paul Ieraci with President, Phil Depaiazzi and Senior Vice President, Michael Partidge at the conference.

ADF Director, Simone Jolliffe speaking at the WAFarmers 2015 Dairy Conference.

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Bipartisan support for water buybacks cap essential

The Australian Dairy Industry Council (ADIC) has reiterated its long-standing support of the 1500 gigalitre (GL) cap on buybacks in the Murray Darling
Basin Plan (MDBP) with its submission to the 2015 Water Amendment Bill last month. The Bill, which will legislate the 1500GL cap as part of the 2750GL
target under the Basin Plan, requires bipartisan support to deliver dairy farmers with much-needed certainty about future water availability to sustain
their business.

The 1500GL cap provides dairy farmers in the Murray-Darling Basin with much-needed certainty about future water availability to sustain their business.
At the same time, environmental water can continue to be recovered through water-saving infrastructure projects, which will benefit the environment,
farmers and local communities more effectively than buybacks.

However, there were aspects of the Bill that the dairy industry did not support, in particular the fact that the 1500GL buybacks cap applies only to water
recovered towards meeting the 2750GL target. Additionally, the failure to address long-standing limitations in the Water Act 2007 and the Basin Plan
in achieving the socio-economic neutrality and triple bottom line outcomes promoted so often by decision-makers is a missed opportunity.

The ADIC’s key recommendations in the submission to the Bill were to:

  • Ensure that the 1500GL cap on buybacks includes the 450GL in the Water for the Environment Special Account
  • Clarify that the entitlement transfer to the Commonwealth relating to infrastructure and reconfiguration for state programs are excluded in the 1500GL
    cap on buy backs.
  • The Basin Plan socio-economic neutrality test should include collective impacts on irrigation districts, community and water market.
  • Amend the Basin Plan to ensure that the 2750GL target is achieved first before any water recovery is counted towards the 3200GL target, and that any
    water recovered under the Special Account first covers any shortfall to the 2750GL target.
  • Clarify that the 450GL “up water” is an up-to amount, not a minimum.
  • Enable environmental water trading where the proceeds can be reinvested in works and activities for environmental outcomes, and to cover the Commonwealth
    Environmental Water Holder’s storage and other costs.

Bipartisan support for the legislative change remains a key priority for the ADIC, with representatives meeting with both sides of parliament to ensure
the importance of passing the 2015 Water Amendment Bill is heard and acknowledged across the board.

To see the ADIC’s submission to the 2015 Water Amendment Bill click here.

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ADF appoints incoming CEO, Benjamin Stapley

On 5 August 2015, Australian Dairy Farmers (ADF) announced the appointment
of Mr Benjamin (Ben) Stapley as its incoming Chief Executive Officer (CEO).

With a strong background in member advocacy, stakeholder engagement, policy development and media management, Mr Stapley comes into the role after two
years as Director of Policy and Regulation at the Plastics and Chemicals Industries Association (PACIA).

Mr Stapley’s expertise in developing and executing strategic advocacy and communications activities will ensure that ADF continues to be a strong advocate
for Australia’s dairy farmers. Prior engagements have included leading policy, regulatory and advocacy programs for Australia’s chemical manufacturers
and importers, and for Australia’s agricultural chemical suppliers. Mr Stapley brings particular experience in government relations with extensive
networks within the Government and bureaucracy central to ADF’s interests.

Previous roles with the Commonwealth Government saw Mr Stapley work closely with industry stakeholders to reform and streamline Australia’s management
systems for environmentally hazardous chemicals.

“ADF is pleased to welcome Ben and I, along with my fellow Directors, National Council and staff look forward to working with him to continually improve
the sustainability and profitability of farmers across all dairying regions,” ADF President, Noel Campbell said.

Mr Stapley has also attained qualifications in both Law and Architecture.

“Australia’s dairy farmers have a very bright future and I am proud to be given this opportunity to work with the ADF Board, staff and farmers to help
deliver a vibrant, profitable and sustainable dairy farming sector in Australia,” said Mr Stapley.

ADF Interim CEO Dr Clive Noble, who took on the role as a short term break from his consulting business, will continue in the position until 26 August,
and Mr Stapley will commence on 1 September 2015.

Mr Campbell thanked Dr Noble for his contribution and service to ADF during his time as Interim CEO and wished him every success in his future endeavours.

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Health breeding index ticks the boxes

Jason and Casey Bermingham’s breeding goal has always been fairly consistent: to breed cows that will have long, productive lives in their herd. However
over the past 10 years their selection priorities have evolved as their herd develops.

The couple dairies near Maffra in East Gippsland, milking 240 cows under a pasture based system. Sixty per cent of the herd calves in spring and the rest
in autumn, averaging nearly 8,000L per cow.

A recent Genetic Progress Report on the herd helped Mr Bermingham refine his breeding priorities.

“Our report confirmed we’d made good genetic progress for production and type traits but it also highlighted the opportunity to improve on health traits
such as fertility and cell count. We had already started paying more attention to fertility but the report really brought the message home,” Mr Bermingham
said.

When the three new breeding indices became available with the April ABV release Mr Bermingham discovered that the Health Weighted Index (HWI) wa

“I know that all the bulls on the HWI list will improve overall production, with extra emphasis on fertility, cell count and feed saved and this matches
what we want to achieve in our herd,” he said.s a good reflection of his breeding priorities.

Mr Bermingham is looking forward to being able to track the impact of his breeding decisions through future Genetic Progress Reports.

“It will be really interesting to see how our herd’s genetic merit for fertility and cell count change over time in response to selecting sires on the
basis of HWI,” he said.

Mr Bermingham has welcomed the introduction of three breeding indices.

“Having three indices obviously gives dairy farmers more choice – to identify sires that more closely match their individual breeding priorities. But it
has also sparked a lot more interest and discussion about breeding priorities. It has really encouraged people to stop and think about what traits
are important for their herd and what direction they want to take their herd through breeding.”

 

For more information contact Michelle Axford, ADHIS Extension and Education Manager, ph 0427 573 330 email maxford@adhis.com.au or
www.adhis.com.au
, alternatively take a look at the Good Bulls Guide.

 

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Labour template to address skills shortage

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

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Dairy remains hopeful of comprehensive TPP outcome

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.

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Dairy’s Big Day Out in Western Vic

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.

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Are you prepared for el niño?

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.

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Westpac farm innovation challenge

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.

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ADF supports measures to balance misuse of market power

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.

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ADIC reiterates need to implement China-Australia FTA in 2015

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.

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Genetic progress reports now available

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.

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Increased transparency for ag land purchases

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.

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Dairy to phase out calving induction

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.

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Report to strengthen farm profitability

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.

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Boost for dairy competitiveness welcomed

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.

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WAFarmers Dairy Conference 28 July

Australian Dairy Farmers (ADF) is excited to attend the WAFarmers Annual Dairy Conference
in Busselton on 28 July, to address key challenges facing the Australian dairy sector. Dairy industry representatives are invited to join agribusiness
leaders to discuss everything from innovative technologies on farm to the importance of wellbeing for everyone on farm.

ADF Director, Simone Jolliffe will present at the conference, exploring how the successful conclusion of several key trading agreements with Asia will
open up new opportunities for dairy, as well as the broader agricultural sector, and how best to take full advantage of them.

For more information and to register, visit http://www.wafarmers.org.au/events/wafarmers-annual-dairy-conference/ .

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R,D&E Levy report handed down

On 30 June 2015, the Australian Senate Rural and Regional Affairs and Transport References Committee released its report
on the Australian agricultural levy system.

The report titled, “The industry structures and systems governing the imposition of and disbursement of marketing and research and development (R&D)
levies in the agriculture sector” endorsed the current model of Rural Research and Development Corporations (RDCs) as well as suggesting improvements
to current operating processes.

The Australian Dairy Industry Council (ADIC) submission into the inquiry advocated in support of the (RDCs) model and the opportunities for dairy farmers
provided by Dairy Australia (DA). Whilst the ADIC considers that the Levy Poll framework provides an important opportunity for DA to talk to levy payers
about their levy investment, it was also acknowledged that there is scope to improve the effectiveness and efficiency of the process.

The diversity across the various commodities subject to levies was recognised by the report, as was the need for each industry to determine their own method
of consultation and changes to the levy poll process.

Key points for dairy:

  • The report emphasizes that levy payers should be able to trace their levy payment to investment and return, and be able to have their say on investment
    of their levy.
  • The report notes that dairy currently undertakes a levy poll in order to change the levy rate, however it does not support such a poll for every industry,
    nor does it state that a levy is not an appropriate method.
  • The role of industry representative bodies, such as ADF, in the levy system is endorsed noting that peak industry groups play an essential role in
    providing opportunities for levy payers to influence investment decisions.
  • The report finds that the method of consultation is currently a burden on time, resources and industry and therefore should be streamlined.
  • The report emphasizes the importance of having a levy payer database as crucial for the system and engagement with levy payers.
  • The report does not conflict with where the DA levy poll review process is heading.

Overall the report has reaffirmed the importance of Australia’s Agricultural R&D levy system as crucial to the continued sustainable growth of the
Australian dairy industry. The report highlights that there are always improvements to be made which will provide farmers with greater returns on their
levy investments, while not recommending any substantial changes to the existing arrangement for dairy.

The Government will next formally consider the report and provide its response. For more information and to download a copy of the ADIC’s submission,
click here.

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Audits streamlined to save on farm

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

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

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

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

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

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

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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