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AHA Review of Bovine Johne’s Disease

Throughout 2015 and early 2016 Animal Health Australia (AHA) has been conducting a review
of Bovine Johne’s Disease (BJD) management in Australia. The review has progressed with consultative forums, meetings of a review panel, discussion
papers and a draft framework document.

Information on the AHA Review of BJD can be found via http://www.animalhealthaustralia.com.au/news/latest-information-about-the-national-bjd-strategic-plan-review/

Dairy farmers were represented on the Review Panel by ADF and Dairy Australia and State Dairy Farmer Organisations have had input through the consultations.
Farmer representatives have been present at both the forums and at the consultation meetings held.

AHA released the final framework document in February 2016 – BJD – Where to from here? A Fresh Approach to the Management of Johne’s Disease in Cattle: Management Plan for Cattle Production Conditions.

Major changes in the management of BJD outlined in the final framework document include:

The removal of zoning;

  • Reliance on producers to protect themselves from disease (a biosecurity approach);
  • A market driven approach where producers undertake practices dependant on market requirements;
  • An evaluation of the CattleMAP; and
  • Development of tools and education material.

The dairy industry has provided collective input and feedback throughout the process. The final framework document is a very high-level document and dairy
industry representatives have indicated that further work is necessary to provide detail on how any revised scheme would be implemented.

A Communications Plan and an Implementation Plan for the new BJD approach are being worked on and industry representatives are involved in this work. As
a result of the above, in consultation with State Dairy Farming Organisations, recommended revisions to the Dairy Score developed by ADF and DA have
been endorsed.

The National Dairy Industry BJD Assurance Score will continue to be an important tool for dairy farmers but some refinements may be needed to facilitate
an alternative to Cattle MAP for dairy farmers.

The draft revised Dairy Score is based on the current criteria that supports risk-based trading and provides an extension tool to help farmers understand
how they can achieve higher levels of assurance. The draft revised Dairy Score focuses on biosecurity measures, particularly hygienic calf rearing,
with incorporation of herd tests at the higher levels to monitor and verify the integrity of the Score.

Work is also happening on making the Johne’s Disease Calf Accreditation Plan (JDCAP) available across Australia. The JDCAP is currently only implemented
in Victoria and recently New South Wales.

The JDCAP is a voluntary comprehensive audited program that has been implemented on some dairy farms in Victoria and has been a compulsory part of participation
in the Victorian Test and Control Program since 2003.

For further information, please do not hesitate to contact the ADF Office via (03) 8621 4200.

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Friday 20 May ADF Update

As debate rages about milk price shock in the public sphere, it is essential
that we don’t let the facts about the current challenges our industry is facing go astray.

The decisions made by some major processors, in particular Murray Goulburn and Fonterra, in recent weeks have hit Australian dairy farmers hard.

We can’t change what has happened, but we can work to take charge of the things within our control – that means providing support to equip farmers with
the tools they need to help manage their current situation and finding ways to prevent this issue in future.

Australian Dairy Farmers (ADF) in collaboration with state members and Dairy Australia is providing targeted assistance. I encourage you all to take advantage
of these resources by contacting your Regional Development Program (RDP).

Industry efforts will continue to support farmers during these challenging times, but in order for farmers to get through the short term ADF is seeking
commitments from all parties to back our farmers during this financial crisis.

Ongoing discussion with all political parties, both state and national has delivered positive commitments from State government, particularly in Victoria
and South Australia, to help farmers continue to operate.

We have met with Federal politicians this week to discuss support measures we need here and now, including one off grants for dairy farmers in exceptional
circumstances, increased funding for the Rural Financial Counselling resources and streamlining access to existing government programs. A bipartisan
approach to these solutions is essential.

Our priority remains delivering support for the short term but that doesn’t mean we aren’t considering solutions to prevent this issue from occurring again.

ADF has always advocated that there needs to be a better balance between retailers, processors and farmers. We are working with the Australian Competition
and Consumer Commission (ACCC) to address these concerns. We were pleased to see that the ACCC’s Agricultural Engagement Unit heeded our call to investigate
the processors actions in recent weeks and we will assist with that investigation where possible.

ADF is working with financial institutions to ensure farmers are treated fairly. The ANZ’s announcement is very encouraging, and we are confident other
banks will take a balanced approach, if not provide a similar assistance package.

Farmers have been hit with a number of challenges but with the resilience we know this industry has, and the right support we will work through this and
build a stronger future.

Simone Jolliffe

ADF President 

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United industry essential during challenging times

The past few weeks have presented unprecedented step-downs and claw backs to many farmers. The decisions made by our major processors are extremely disappointing
and many farmers must now make difficult decisions about how to best navigate the current market conditions and support their farm.

Across the industry farmers are angry – and they have every right to be. The situation processors have put them in is completely unacceptable. Farmers
are resilient and they love what they do. But they need certainty to be able to plan and to be able to trust that the prices they are budgeting on
are realistic.

Australian Dairy Farmers (ADF) is working hard on behalf of farmers to signpost help for the short term and find solutions for the long term. This includes:

  • Listening to farmers to make sure we understand what they need most right now. We are working across the industry with our state farming members as
    well as national service provider Dairy Australia to deliver support, whether it be one-to-one financial guidance or mental health services.
  • Talking to processors, to urge them to help suppliers understand the implications for their businesses and to be accountable for this decision. ADF
    is pressing the manufacturers to provide early price forecasting. Farmers cannot plan for their businesses without reliable forecasting.
  • Making daily contact with both sides of Parliament, to explain the current and future challenges farmers face, and to seek commitments for targeted
    assistance.

There are no easy solutions to the challenges we face, but we are examining all options and are considering innovative solutions to build an industry with
a stable, long-term future.

Central to this is finding ways to better manage price volatility across the sector, and urging processors to give greater certainty about milk price in
a fair timeframe.

The support of government will be essential in better understanding the current situation and in delivering an effective response. As an industry, we need
to ensure that we are realistic in expectations and that the solutions we put to them are in the best interests of our farmers and our communities
for the long-term.

Our first priority is to provide practical support for farmers facing difficult decisions right now, to ensure that they can take control of their situation
and make the best choice for their business and family.

Now is the time for our industry to unite, support one another through the tough times, and collectively consider innovative and practical solutions to
help us achieve our vision of sustainable profitability.

Simone Jolliffe

ADF President

For information on programs available through Dairy Australia to help you through the short term challenges click here.

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Support for farmers during tough times

The challenges many dairy farmers will face as a consequence of downgraded
milk prices and ongoing market volatility are of great concern and extremely disappointing.

Many farmers are already experiencing a challenging season due to dry conditions and high water prices – these announcements add further distress.

The health and wellbeing of our farming families and their staff is our number one concern. We encourage farmers to share and seek information among your
networks. Start talking: to your bank, to your accountant, to your field services officer, to your partner, to your staff, to your neighbour.

If you are not a farmer, contact the farmers you know and ask them how they are coping.

The Australian dairy industry is working on a coordinated response for measures to help farmers make informed decisions and cope with their situation.

Discussions with Government, processors and banks are underway to ensure that the short and long term implications of the current situation are understood
and considered.

Already, Dairy Australia is rolling out the Tactics for Tight Times program through its Regional Development Programs (RDPs), which helps provide clarity to farmers about settings and seasonal conditions, and supports
key decision making on farms.

Local RDPs will deliver support programs, and put farmers directly in touch with other services, including mental health organisations.

Programs include one-on-one business assessment and support; technical workshops focused on business analysis and planning, feed and water budgeting, climatic
outlook and cropping/forage strategies; and social and community support programs – including expanding the “Look over the farm gate” program.

Dairy Australia has prepared a guide for Building Emotional Resilience,
listing support resources and also some key tips to help get you through difficult periods (available here: http://www.thepeopleindairy.org.au/announcements/emotionalresiliencefactsheet).

Now is the time for farmers to focus on the things that can be controlled, take a step back, and make informed decisions based on current circumstances.

If you or your dairy business is facing challenging times, help is available from your representative bodies, your state dairy farming organisation and
Australian Dairy Farmers (ADF), as well as Dairy Australia and your local RDP.

For more information on the programs delivered by your local RDP contact the relevant individual listed here.

Please continue to look out for one-another in these tough times.

ADF will continue to provide regular updates on industry initiatives to support farmers through this difficult period.

Simone Jolliffe, ADF President

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Protecting workforce wellbeing

Implementing formal occupational health and safety plans on farm is not just the right thing to do, it can also benefit businesses, guests heard at the
Australian Dairy Industry Council’s (ADIC) Business Breakfast in April.

Addressing an audience of dairy farmers, manufacturers and industry leaders at the event themed ‘Protecting what matters: ensuring the health, safety and well-being of our workforce’,
an expert panel explored the opportunities for dairy to improve its workforce safety and well-being.
The panel included Dairy Australia’s Program Manager for Industry Workforce Planning and Action, Bill Youl, Worksafe Victoria’s Bruce Gibson, Lion’s Leader
for Safety and Well-being Josh Norton, Field Services Manager at Fonterra Robyn Mitchard and Director of the National Centre for Farmer Health, Dr
Susan Brumby. Mr Youl observed that, as well as being the right things to do, safeguarding the workforce makes sense for farm profitability.

“A safe work environment will ensure accidents are minimised, productivity is enhanced and the full benefits of farm and manufacturing facilities realised.
Our physical and mental well-being is intrinsically linked to our industry’s success,” Mr Youl said.

ADIC Chair, Simone Jolliffe encouraged the industry representatives in the room to take leadership and drive a culture shift to safeguard the sustainability
of the industry’s workforce.

“Dairy farms are not typical workplaces. There are many potential risks, and stressful situations – particularly because we are often operating in a family
environment, where there is the added pressure of the day-to-day challenges of running a small business,” Mrs Jolliffe said.

“Dairy Australia is already working with state safety regulators and dairy manufacturers to provide farmers with the tools and training they need to operate
safely. As an industry we need to work more collaboratively to ensure uptake and implementation, to move the workforce from ‘knowing’ to ‘doing’.”

The Dairy Industry’s Sustainability Framework has set targets for the industry to achieve by 2020. One of the targets is 100% of on-farm and manufacturing
workers to have completed Occupational Health & Safety training by 2020. A further target is zero workplace fatalities. Mrs Jolliffe said the industry
is falling behind on both accounts.

“Tragically there have already been two confirmed workplace fatalities in our industry this year. Workplace injuries have also risen. Across Australia,
one in five people suffering with mental health challenges. This is not acceptable. We need to lead the industry in prioritising health, safety and
well-being – for the benefit of our industry.”

The ADIC made a commitment at the breakfast to drive change across the industry through improved collaboration between service providers, processors and
industry representative bodies. For information about occupational health, safety and well-being see www.thepeopleindairy.org.au


The expert panel from left to right, Bruce Gibson, Susan Brumby, Josh Norton, John Versteden, Robyn Mitchard and Bill Youl.

 

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Argibusiness Outlook 2016 to focus on global demand for Aussie produce

The Agribusiness Outlook Australia event will explore the strategies for primary producers to access and leverage the global demand for Australian produce.
With sessions exploring how to access overseas markets, how to establish a reputable brand, and how to strategically position your organisation for
success, this event will provide a platform to share best practice examples, innovative approaches and other strategic ways to secure a profitable
and productive future.

In particular, the event will explore the tools to make Australia the next global supplier, due to the considerable economic expectation pinned on the
growing appetite for Australian produce.
 
High international demand is great news for the security of Australian agribusiness. For example, when Coles dropped Bega Cheese in February for its private
label cheese manufacturing and packaging this could have been detrimental for Bega if it had no further opportunities to access even greater revenue.
 
The dairy producer responded to the change in supply arrangements with Coles by redirecting their supply to other markets, like China, and rapidly growing
their infant formula and nutritional platforms to attract much greater margins. Bega’s Chief Executive, Aidan Coleman, has noted that the strong global
demand for infant formula will offset the loss of the Cole’s contract, estimated to be around $130 million.
 
Prior to the terminated contract, Bega’s share price had surged more than 42 per cent after announcing a joint venture with Blackmores to develop branded
infant formula and sell into China. The positive results attained from the early stages of the Bega/Blackmore partnership indicate a prosperous future
for the two companies, and endless possibilities for Australian agribusiness.
 
However, not all producers could bounce back from such an unexpected loss. Transitioning to high-margin products and bigger markets requires significant
resources and investment. But this does not limit access to overseas markets to only those who hold noteworthy resources.
 
Bulla Dairy Foods are a great example of how even small business can access markets and opportunities overseas. Although it will still be a few years before
Bulla can focus more of their business with China, they are currently preparing by innovating and building a competitive export portfolio to unlock
and maximise the benefits available.
 
The Agribusiness Outlook Australia is a not-to-be-missed forum that will examine, amongst other topics, how to leverage global demand through a diverse
collection of case-studies including from Bega Cheese, Graincorp, Coles and Bulla Dairy Foods, with the overall intention to secure a productive, profitable
and successful future for all Australian agribusiness.
 
For more details about the conference please download the brochure here.
 
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Senate must prioritise Water Bill

The Water Amendment Bill 2015 makes positive strides toward improving the Murray Darling Basin Plan, providing much needed flexibility.

It is essential that the Australian Senate passes the Bill when it returns to Canberra for its sitting starting 18 April. If the Bill does not pass before
the election it will face significant delay, to the detriment of communities and industries in the Murray Darling Basin.

Without the flexibility the Bill provides, the States and Commonwealth will be locked into decisions in June that will likely lead to even more water being
removed from agriculture and the communities that depend on irrigated industries like dairy.

In particular, the proposed amendments deliver more flexible timelines for reviews of the Basin Plan and related changes to the Sustainable Diversion Limit
(SDL), which determine how much water can be extracted from the rivers for human consumption, including agriculture.

The Bill also provides greater trading flexibility for the Commonwealth Environmental Water Holder (CEWH).
This flexibility will deliver positive environmental outcomes while simultaneously giving the community, farmers and manufacturers more certainty on
their access to water supplies.

The dairy industry has strongly lobbied for these changes, and supports their implementation.

Dairy farmers in the Murray Darling Basin have proved flexible users of water, steadily adapting their practices to produce more milk with less water over
the last 20 years.

We need the Murray Darling Basin Plan and the law that sits behind it to have the same flexibility. The Basin Plan is already having a significant impact
on farmers, manufacturers and the rural communities they support, with more to come as recovery deadlines approach.

If we are to continue to adjust to the inevitable changes in water availability and affordability we need a plan with clear, appropriate targets and approaches,
that can also adjust. This will help deliver positive outcomes for the environment, community and industry.

Passing the Water Amendment Bill will provide the Murray Darling Basin community with the confidence that Canberra politicians are willing to improve the
Plan in advance of considering decisions in June.

At this time, the Commonwealth and State Governments will either make or break the Basin Plan. We need the Water Bill to pass to ensure the pending decisions
under the Basin Plan this year are based on a foundation of flexibility.

Let your representatives know the importance of supporting the passage of this Bill through the Senate as quickly as possible by contacting your local,
state and federal parliamentarians. See here to get the details of parliamentarians for your region.

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March 2016 President’s Message

2016 is proving to be a challenging year for dairy farmers. Australian Dairy Farmers (ADF) recently visited members in New South Wales, South Australia and Western Australia, and across the country farmers are confronted with low milk prices,
increased input costs, and dry weather conditions.
This continued volatility is a reminder of how dependent farming is on a lot of things which are outside our control.

Dairy farmers are realists and they are resilient business operators. Adaptability has become critical to successful dairy business ventures. Realistic
solutions frequently involve working to address the issues we can control, while also accepting that some things are outside our reach. What those
solutions look like will differ from one business to another.
 
The Sustainable Farm Profitability Report produced
by the Australian Dairy Industry Council and Dairy Australia last year provides some useful tactical management advice to help safeguard businesses
during this challenging period.
 
Through our discussions with both State and Federal Governments ADF continues to advocate for a more competitive business environment, and ensure access
to the resources essential to dairying. Dairy industry advocacy has seen vital progress of late with the introduction of an ‘effects test’ as well
as a review of the proposed ‘backpacker tax’ and bringing in more flexible water policy. These are important achievements that will help deliver a
more profitable and sustainable industry in the long term.
 
Dairy Australia also has important resources to assist in preparation and recovery from different conditions. Services provided by programs such as the
Tactics for Tight Times provide a good vehicle for analysing the individual business and developing solutions.
 
Integral to this future is ensuring we protect what matters, by working to safeguard the health and wellbeing of our workforce. In recent meetings, both
processors and farmers have highlighted this issue as crucial to the future of our industry. I look forward to identifying ways in which our industry
can support our people’s physical and mental wellbeing with many of you at the Australian Dairy Industry Council’s Business Breakfast in April.
 
With the ongoing challenges our industry faces exacerbated by drought and tough seasonal conditions, I encourage you all to look out for one another and
provide assistance where you can.

 

Simone Jolliffe
ADF President

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ADHIS Update: Dairy cow fertility trends improve

After 20 years of declining dairy cow fertility, the genetic trend has turned around and improved every year since 2011. It is now about 5% higher than
cows born in 2011, and similar to cows born in 1996.

This finding and others are reported in the latest Herd Improvement Report, published recently by the Australian Dairy Herd Improvement Scheme (ADHIS)
and the National Herd Improvement Association of Australia (NHIA).

Michelle Axford from ADHIS said this was an example of the gains that can be made through increased emphasis of fertility in Australian selection indices,
particularly in the Balanced Performance Index (BPI) and Health Weighted Index (HWI).
“We can expect further gains as the focus on fertility in the indices has increased further in the past couple of years,” she said.
“We are now seeing the direct benefits on farm. Cows with higher daughter fertility ABVs get back in calf sooner – that is they have higher 6-week in calf
rates.”
Michelle said the simplest way to improve the genetics of herds for fertility was to choose bulls from the Good Bulls Guide or app with a high Daughter
Fertility ABV (>104). She said recent research had given dairy farmers more choice for bulls with better fertility ABVs and more confidence in those
bulls.
“The reliability of the Daughter Fertility ABV has improved significantly and there are more bulls with much higher Daughter Fertility ABVs to choose from.
This is the outcome of collaborative work between ADHIS and the Dairy Futures CRC,” she said.
To find out more about the changing dynamics of Australian dairy herds, download the Australian Dairy Herd Improvement Report 2015 from www.adhis.com.au.
For more information contact Michelle Axford at ADHIS, ph (03) 8621 4240 or maxford@adhis.com.au.

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Revised labelling progress toward a clearer system

The Australian Dairy Industry Council (ADIC) has acknowledged the revised country of origin labelling system,
announced by the Federal Government yesterday, as a positive move toward providing consumers with a clearer understanding of where their food comes
from.

ADIC Chair, Simone Jolliffe said the industry provided significant feedback to the proposed system to Government, some of which is reflected in the
announced laws.

“We are pleased to see the revised laws will allow for a minimum transition period of two years. This will ease implementation for manufacturers, allowing
stocks of existing labels to run out and help ensure that unreasonable regulatory costs are avoided,” Mrs Jolliffe said.

“It will also allow for the development of an education campaign to properly inform consumers about interpreting the new system, so that they can make
sound choices.”

The ADIC also expressed its appreciation for the opportunity to state the percentage of Australian product under the revised labelling system.

“The increased flexibility of the sliding scale system as well as the accompanying descriptions of Australian ingredient content on packaging is a positive
improvement.”

The ADIC looks forward to reviewing the full detail of the proposed changes to fully understand the impact on Australian dairy products and ensure implementation
of the system works for consumers, customers and the Australian dairy industry.

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