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Early pricing signals essential

Many in the dairy industry feel under enormous pressure at the moment. Farmers not
only have the challenge of adapting their business plans to recent price shocks – we also pick up the paper to read about it every day. With more processors’
opening milk prices due in coming weeks, following Warrnambool Cheese and Butter’s (WCB) announcement today, no doubt some will feel the pressure begin
to mount once more.

We recognise that the announcement from WCB will come as a shock to many, given it is well below the cost of production. Despite the disappointing low
price, we must recognise that they have heeded calls for early price signals and provided much needed certainty to their suppliers.

While we are an industry under pressure, we are also an industry that has the know-how and motivation to overcome these adversities and thrive in the long
term. No one is alone in this scenario and we need to ensure that all farmers feel supported during tough times.

ADF, together with our state members and Dairy Australia is fighting for our farmers. We can’t solve all of the issues farmers are currently facing, but
we can work to relieve some of the immediate pressures and accelerate change to ensure this doesn’t happen again.

We have welcomed the promises made by State and Federal Government, now they must stop playing politics and deliver. Farmers need certainty as to their
options right now.

While we await Government decisions, there are industry resources available to help farmers manage the impact of recent events. It’s important to make
the time to take up these opportunities. Dairy Australia’s Taking Stock provides free one-to-one
business analysis that can help you prepare for the season ahead.

The Dairy Farmer Central website launched this week by the Victorian dairy industry, lists all of these
tools and more. It also signposts events – some of these events will inform and help you plan for the season ahead, others provide an opportunity to
take time out from the farm and get some perspective. We are working to make this website applicable Australia-wide.

These tools are not a silver bullet to restore our businesses but they will help navigate the challenges, so we can move toward a stronger, fairer and
more sustainable future.

David Basham

ADF Acting President

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