Super tax revisions welcomed 

Australia’s dairy farmers can better plan for their futures, with the Federal Government today dropping two of the most damaging elements of its superannuation tax proposal. 

Earlier this year, industry representative body Australian Dairy Farmers (ADF) brought to light the industry’s concerns around taxing unrealised gains and failing to index taxation thresholds. 

ADF President, Ben Bennett, said the original proposal to tax unrealised gains put family farm businesses at risk. Farmers can now plan for the future with confidence, knowing their hard work and succession plans are safe from this unfair proposed taxation.” 

“These changes offer a better direction in recognition of the realities of productive, asset-based farm businesses.” 

As announced by the Treasurer Jim Chalmers today, under the reworked approach, realised earnings on super balances between $3 million and $10 million will have a higher concessional tax rate at 30%, and balances over $10 million at 40%, with both thresholds indexed to inflation. 

“These are important wins for common sense,” Mr Bennett said. 

“This outcome shows the importance of national advocacy and what can be achieved when agriculture stands together and sticks to the facts. It’s a great result for farmers and small businesses right across the country. 

“The Government’s willingness to listen and act means more certainty for family-owned farms to invest and plan for the future – that means to keep growing, keep employing and keep investing in their local communities. 

“While these changes address the most distortionary elements, the remaining higher tax rates still pose risks for investment confidence and intergenerational planning on farm. 

“These changes offer a better direction that recognises the realities of productive, asset-based farm businesses. 

“Proportionate super settings let dairy farms keep capital on farm – backing resilient regional jobs and secure, local milk supply.” 

Why it matters for dairy: 

  • Planning certainty: Prolonged policy uncertainty has already delayed decisions on modernisation and retirement planning. Clear rules, worked examples and transitional guidance will help farmers plan with confidence. 
  • Asset-heavy, cash-flow-variable: Dairy businesses hold value in land, livestock, water and plant—assets that aren’t easily liquid. 
  • Succession and continuity: Many multi-generational farms use superannuation structures as part of their succession planning.  

Safe Food Victoria shows one size fits none

Australian Dairy Farmers (ADF) has called out “tokenistic” consultation behind today’s announcement to establish Safe Food Victoria – the organisation set to replace the specialist Dairy Food Safety Victoria (DFSV).

“The so-called ‘consultation’ felt like more of an ultimatum,” ADF president Ben Bennett said.

“You can’t consult when you don’t bring any genuine options to the table, you can only enforce your decision.

“This is a solution in search of a problem. Don’t dismantle a proven, specialist regulator and replace it with a one-size-fits-none bureaucracy. The stakes are too high for guesswork.”

ADF has been tracking these changes closely, not least because DFSV is seen as the leading organisation in food safety technical expertise across Australia’s dairy industry.

“More milk is produced in Victoria than in any other state in Australia, so it makes sense that the bulk of our knowledge in this field is developed in Victoria,” Mr Bennett said.

“Given we’ve not seen a business case for the transition to Food Safety Victoria, and nobody can outline any grounds for improvement at DFSV, we see this as a clear and blatant cash grab by the debt-stricken Victorian government.

“DFSV doesn’t cost taxpayers anything; it’s fully funded by farmers – in fact, as we understand it, the organisation has a multi-million-dollar bank balance which will probably be consumed by consolidated government expenditure.”

ADF has repeated its invitation for the Victorian Government to engage in good faith and reconsider how a cost-neutral organisation can continue to provide value to a vital industry.

“If the Allan government truly wants to cut red tape, fix the audits and harmonise rules across councils. Keep DFSV independent, risk-based and focused on dairy, rather than building a bigger bottleneck. You don’t bulldoze the house to replace a door.”

Dairy says it’s time to act at Drought Forum

Australian Dairy Farmers (ADF) has a simple message at the National Drought Forum – turn discussion into delivery for dairy farmers, now.

ADF representatives are among the 195 industry, government and community leaders at the forum in Gawler, South Australia.

“Farmers are not being heard,” ADF president Ben Bennett said.

“ADF first took its concerns to all governments over 12 months ago about the drought impacts if nothing changed. Dairy farmers can’t simply stop milking their cows because it’s too dry.

“We’ve consistently engaged with all levels of government in good faith and been patient, but patience has limits.

“There comes a point in time where governments must move from preparedness and resilience into protecting food security, and as the most impacted industry by this drought, dairy can’t wait any longer.

Mr Bennett said previous drought strategies were scrapped because of lines on a map, and models didn’t match the on-ground reality.

“But here we are, yet again seeing a line on a map – this time being the state border – deciding who gets necessary targeted support and who gets symbolic gestures and photo opportunities.

“Victoria’s late and light-on-expertise response has already forced many dairy farmers to liquidate good cows to survive – a long-term hit to production.”

Mr Bennett said the government drought response has implications beyond dairy, with contractors, truck drivers, processors and regional businesses all feeling the hit.

“The immediate issue is financial liquidity – keeping viable dairy farms trading through a cashflow crunch.”

“The response in Victoria does not match the scale or speed of the problem, it does not deliver on the damage done.”

“Meanwhile, across the border in South Australia, the government’s drought response shows what capability and good coordination looks like; other states like Victoria should match it.”

ADF’s calls for immediate action:

  • Financial liquidity: Rapid, targeted working capital relief with interest free loans for a minimum of two years, via state governments and the Regional Investment Corporation.
  • Feed security: Coordinated fodder logistics and freight subsidies, so feed gets where it is needed, now.
  • Water access and confidence: Immediate critical water access for impacted dairy farmers.

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Dairy disappointment as concerns continue to be disregarded

Australian Dairy Farmers (ADF) is deeply disappointed that the Fonterra Board has approved the sale of its global Consumer, Oceania, and Sri Lanka businesses to the world’s largest dairy company, Lactalis.

In July, the Australian Competition and Consumer Commission (ACCC) flagged it would not oppose the acquisition. Following this week’s Fonterra Board decision, the final hurdle for the sale is now approval from Fonterra’s farmer shareholders in New Zealand.

ADF President Ben Bennett said New Zealand farmers will closely scrutinise the deal’s merits.

“It’s going to take some convincing for the NZ farmer to support it; it’s not a fait accompli,” Mr Bennett said.

“As a Kiwi who is dairy farming in Australia, I know farmers on both sides of the ditch will have strong feelings on this deal.

“Here in Australia, we know it limits competition. In New Zealand, farmers will be looking to maximise their returns when this goes to a vote in late October or early November.

“The ACCC said it isn’t going to affect competition in the domestic milk market, but we very much disagree. “Combining two major buyers reduces choice and bargaining power for farmers along a supply chain already dominated at the processor and retail end. It’s a major threat to farm gate prices and the Australian dairy industry.”

Supermarkets encouraged to pass on milk price increase

The peak representative body for dairy farmers hopes Coles and Woolworths pass a recent 10 cent per litre increase in the price of home brand milk on to dairy farmers.

The increase comes as dairy farmers battle high input costs, drought and flood clean-up, threatening to send some broke.

Australian Dairy Farmers notes that after the quiet lift in prices, two litres of milk at either supermarket is now priced at $3.20, up from $3.00 less than a fortnight ago.

“With almost half of Australia’s dairy farmers either battling drought or recovering from floods, this is a timely increase, and we hope it’ll flow back to the farmgate,” Australian Dairy Farmers president Ben Bennett said.

For more than a decade, supermarkets have been discounting milk, constraining the money flowing back through the supply chain.

“The fact is, when people buy milk, the supermarkets, processors, and everyone in between take a cut – leaving dairy farmers as price takers in the supply chain.

“This season is extra tough, dairy farmers are facing skyrocketing feed and input costs. Many are losing money because it costs more to produce the milk than what they’re paid for it.

“So, while the supermarket price increase is modest, that 10c/litre would be welcomed by farmers.

“We hope supermarkets and processors will pass it on to help keep our fragile industry afloat, and dairy on the table of every Australian family.”

Federal leaders hear from drought-hit dairy farmers

Caption: ADF President Ben Bennett (left) with Member for Wannon Dan Tehan, dairy farmer Chris Place, Victorian Senator Bridge McKenzie and Leader of the Nationals David Littleproud. Photograph: Ben Hindmarsh

Federal MPs have visited Camperdown, Victoria, to listen to farmers and understand the challenges they face sustaining their families and communities amid the worst drought in memory.

Australian Dairy Farmers President Ben Bennett said the visit showed solidarity and respect because the MPs – David Littleproud, Bridget McKenzie and Dan Tehan – “showed up, fronted up, and didn’t shy away from the tough questions”.

“They travelled to South-West Victoria specifically to see the conditions with their own eyes and hear how farmers are shouldering exorbitant feed and operational costs,” Mr Bennett said.

“That matters when so many dairy farmers feel ignored and undervalued.”

Mr Bennett said the visit stands in contrast to the Victorian Government’s approach, calling for more open and meaningful engagement.

“In New South Wales and South Australia, we’ve seen premiers get the gumboots on and walk alongside farmers. That’s the kind of leadership that builds trust.

“Here in Victoria, we get closed-door ‘consultations’ and PR gloss.”

ADF has outlined a path forward for the Victorian Government to provide meaningful support to farmers.

“With feed prices skyrocketing and supply drying up, dairy farmers are working to increase the availability of imported stock-feed.

“Given the quantities required and the low frequency of such imports, governments can play a crucial role in underwriting shipments – simultaneously giving importers certainty, helping farmers and supporting food security.”

Mr Bennett noted that while recent rain is welcome, it is not a fix.

“Just because it rained in some parts doesn’t mean everything’s back to normal. Feed doesn’t grow overnight—especially not in winter.

“Farmers are still hauling in expensive feed every day just to keep their herds going. Some farmers have now got bills in the hundreds of thousands of dollars.”

ADF is urging all levels of government to step up and work together.

“Food security is at stake. This is a fragile industry under extreme pressure; the answers need to come from Parliament – not just platitudes.”

ADF warns oversight needed as ACCC clears Lactalis-Fonterra deal

Australia’s peak representative group for dairy farmers has expressed serious concerns following the competition watchdog’s decision not to oppose a potential deal between two of the industry’s biggest dairy businesses.

Australian Dairy Farmers (ADF) President, Ben Bennett, said the Australian Competition and Consumer Commission (ACCC) had left farmers vulnerable in giving the green light to Lactalis’s proposed takeover of Fonterra’s Australian dairy business.

Today’s news means Lactalis can progress discussions with Fonterra, along with any other interested parties.

Mr Bennett said the decision risks further weakening processor competition in Victoria and Tasmania – two of the country’s most critical dairy regions.

“Combining two major buyers reduces choice and bargaining power for farmers,” Mr Bennett said.

“That’s a major threat to farmgate prices, especially in a shrinking milk pool.”

The ACCC concluded that the merger would not substantially lessen competition, citing different product mixes, import competition, and retail buyer power. However ADF maintains:

  • Farmer options are already limited, particularly in western Victoria and northern Tasmania. Post-merger, some regions may only have one major buyer;
  • Market concentration will grow, reducing pricing tension. Fonterra and Lactalis may target different contract types, but still influence prices across the same regions;
  • Past conduct matters: Lactalis has a record of Dairy Code breaches, including a $950,000 fine. Enforceable compliance obligations are essential; and
  • Risk of compounding market dominance: A deal between Fonterra and Lactalis increases market concentration of processors. This further reduces competition right along a supply chain that is already dominated at the processor and retail end by supermarket giants Coles and Woolworths. Farmers need strong processor choice.

ADF is calling for court-enforceable undertakings to protect farmers, including:

  • Preserving milk supply freedom – no forced exclusivity in contracts with farmers;
  • Honouring all current Fonterra milk contracts;
  • Guaranteeing continued operation of key processing sites; and
  • Committing to regular Dairy Code compliance audits.

“Without enforceable protections, we risk further processor consolidation that hurts farmers and undermines supply security,” Mr Bennett said.

ADF urges the Federal Government and regulators to strengthen the Dairy Code of Conduct and ensure any deal maintains fair competition and protects the interests of local farmers.

ADF welcomes Category D disaster relief for flood-affected farmers

Australian Dairy Farmers (ADF) has welcomed today’s announcement that farmers impacted by devastating floods in NSW will be eligible for Category D disaster assistance grants of up to $75,000.

The support package follows weeks of pressure from affected communities and farmer groups including NSW Farmers and ADF.

ADF President Ben Bennett congratulated the NSW Government for its leadership in working constructively with the Commonwealth to secure this long-overdue support.

“This funding will be a vital lifeline for farmers in the Hunter and Mid North Coast regions who’ve been hit hard by record flooding,” Mr Bennett said.

“ADF, eastAUSmilk and NSW Farmers have been calling for this since May, so it’s great to see both the Commonwealth and NSW governments working together in providing this assistance.

“We commend the NSW Government for recognising the scale of damage and standing by local producers – especially our dairy farmers – who are doing it incredibly tough.”

The grants are designed to help farmers cover clean-up operations, emergency feed, fodder and water, infrastructure repairs, disposal of dead livestock, and rebuilding damaged or destroyed on-farm assets.

Eligible primary producers can apply through the NSW Rural Assistance Authority. More information is available at www.raa.nsw.gov.au or by calling 1800 678 593.

ADF continues to call for timely and equitable disaster support across all states and sectors.

“We’re also calling on the Victorian and South Australian governments to work with the Commonwealth to secure similar assistance for their drought-stricken farmers,” Mr Bennett said.

“While we have seen a recent drought announcement by the Victorian Government, there is still a conspicuous absence of targeted measures to address the particular needs of dairy farmers in drought such as fodder freight subsidies.

“This oversight is placing significant financial strain on dairy farmers who are already battling skyrocketing input costs primarily through lack of access to adequate stockfeed and water.”

State Dairy Farming Organisations reaffirm commitment to a national voice through ADF

State Dairy Farmer Organisations (SDFOs), including New South Wales Farmers’ Dairy Committee, EastAusMilk, South Australian Dairyfarmers Association, TasFarmers, United Dairyfarmers of Victoria, and WAFarmers, have reaffirmed their united commitment to a single national representative body for the dairy industry, through Australian Dairy Farmers (ADF).

ADF CEO Stephen Sheridan said SDFO leaders from across the six dairy producing states met in Melbourne in conjunction with the ADF Board on Thursday 19th June to discuss the future of national dairy representation and the significant issues facing the dairy industry.

The state representatives held a positive and constructive meeting, unanimously agreeing to support changes to the ADF constitution that will strengthen the organisation and ensure their ongoing support for ADF as single national representative body. They recognised the need for unity and strength, especially in these times of adversity, and that the states must work together to be successful in tackling the key issues facing their industry.

All the SDFOs, in collaboration with ADF, are working on a range of issues from floods in northern NSW to drought in southern states, along with increasing input costs, low opening prices, cheap overseas imports, flat retail pricing and global trade uncertainty.

The state member representatives unanimously agreed they need to move forward collectively, with ADF as their national body, to ensure dairy farmers have an effective, efficient, and sustainable national representative body into the future.

“Our discussions reached a consensus agreement that we need a strong peak body to act as the single representative voice for dairy farmers,” NSW Farmers Dairy Committee Chair Malcolm Holm said. “Dairy has to run its own race representing dairy farmers.”

South Australian Dairyfarmers’ Association (SADA) President Robert Brokenshire echoed the comments, saying it was pleasing to reach a consensus position regarding a future ADF structure.

“We will continue to work together with an aim to fine-tune ADF’s structure and constitution over the coming months,” Mr Brokenshire said. “We need to look to the future and what is in the interests of all dairy farmers.”

EastAUSmilk CEO Eric Danzi said: “We need a national dairy body that is outcomes-focussed, and I’m glad this can continue moving forward with all the state bodies represented at the table”.

United Dairyfarmers of Victoria President Bernie Free said: “it was reassuring that all the states are committed to a united dairy farmers advocacy organisation, this was a key platform for myself when I ran for election”.

“We need to get on with the business of dealing with the very real issues affecting our dairy farmers today and into the future,” Mr Free said.

WA Farmers Dairy Section President Ian Noakes said: “with so many issues facing the dairy sector at the moment, including escalating input and feed costs and disappointing opening milk prices, a unified dairy farmer voice is more important than ever”.

TasFarmers Dairy Council Chair Geoff Cox said: “I am so pleased all the state members were able to come to agreement and that we can now move forward as a collective group as all supported the constitutional change required to ensure we have a sustainable and representative body”.

ADF President Ben Bennett said discussion centred on how to respond to the pressing issues facing farmers, and the critical importance of unity and collective representation to ensure the dairy industry remains resilient and influential at a national level.

“At a time when ag advocacy is under threat, it was great to see ADF’s state members reaffirm their desire for a single, strong national dairy farmer voice,” Mr Bennett said.

“We all recognise that unity is essential to effectively represent and advocate for the industry and to tackle the very big issues affecting farmers’ livelihoods.”

Mr Bennett said ADF would work with its state member organisations to ensure it evolves with the needs of our dairy farmers front of mind to achieve the most effective, sustainable, and representative ADF possible.State Dairy Farming Organisations reaffirm commitment to a national voice through ADF

Ag ministers urged to deliver for disaster-affected dairy farmers

Fresh from meetings with Victoria’s Minister for Agriculture yesterday, Australian Dairy Farmers has issued an urgent plea to state and federal governments for meaningful support for the sector.

More than 40% of Australia’s dairy farmers are in drought, many of them battling the driest conditions on record, including in South Australia, South West Victoria, and extending into Gippsland and Northern Victoria.

Meanwhile, dairy farmers in New South Wales are cleaning up after a 1-in-500 year flood.

Farmers face crippling financial situations, with skyrocketing costs just to keep their cattle fed and watered, coinciding with indications milk prices for the coming season will be weaker than anticipated.

ADF President, Ben Bennett, said farmers need urgent action to address the impacts on livestock, farmers and regional communities.

“Today we call for immediate crisis support, including feed and water transport subsidies, cash grants and low interest loans and the activation of what’s known as ‘Category C and D’ disaster support measures in conjunction with the Commonwealth,” Mr Bennett said.

“Tackling the ‘cash crunch’ for farmers and communities will not only keep our farmers producing milk, but also benefit the regional communities where they shop.”

Mr Bennett said that as feed, fodder, hay and silage runs out, there is an urgent need to look to alternate sources of stock-feed to tide farmers through the winter months.

“There is a simple but pivotal role government could play in underwriting stock feed imports from overseas, in order to give the commercial market the confidence to import more stock feed and increase supply to get us through the winter months.

“ADF is working closely with industry stakeholders – including stock-feed importers, transporters, and the Department of Agriculture, Fisheries and Forestry – to increase the availability of imported stock-feed.

“One viable option is Palm Kernel Expeller (PKE), a high-protein, high-fibre feed source used extensively in the New Zealand dairy industry.”

Mr Bennett said bringing in more PKE and other feeds from overseas would offer vital feed security through winter.

“The commercial market needs confidence – and this is where government action is critical,” Mr Bennett said.

“With freight subsidies and underwriting support, we can get more feed into the country quickly and give farmers a fighting chance to sustain their livestock.

“Without it, we risk animal welfare impacts and long-term damage to the dairy industry’s viability.

“In the interests of getting this feed on-farm as quickly as possible, we’d work with government officials wherever possible to expedite the inspection of these shipments upon arrival.”

ADF has used meetings over recent weeks to stress to governments the importance of taking action to safeguard production over the longer-term.

“Things like investing in water infrastructure projects, particularly the proposed stock and domestic water pipeline in South-West Victoria, only requires political will, but can make a world of difference to our food producers and local communities.

“Such proactive action by governments would provide certainty to farmers and community for the future. It would provide the very preparedness and resilience government promotes, while also securing food security in some of our largest dairying regions.”

Five things governments can do to help dairy farmers

Immediate Crisis Relief
1. Deliver feed and water transport subsidies to address shortages
2. Deliver cash grants and low-interest loans to address the cash-crunch
3. Activate Category C and D disaster support in conjunction with the Commonwealth for flood- and drought-affected areas
Targeted Industry Support
4. Underwrite stock feed imports to give the commercial sector the confidence to increase stockfeed supply through winter
Long-Term Resilience Building
5. Co-invest in water infrastructure, including a commitment to the South-West Victoria water pipeline project

Act now for timely flood assistance

Australian Dairy Farmers (ADF) has raised the alarm on the plight of dairy farmers in New South Wales – many of whom are battling the worst floods in living memory.

While welcoming government assistance for those in flood-affected local government areas, ADF believes more must be done to support farmers in these regions.

Dairy farmers can’t simply stop milking their cows when a flood hits. This, combined with stock losses and the pressures of losing electricity, pasture and fodder, has left many farmers in dire need of assistance.

“We welcome the natural disaster declaration for flood affected parts of NSW, but more must be done to help dairy farmers,” ADF President Ben Bennett said.

“We call on governments to offer primary producers assistance with the cleanup and recovery, given the severity of this disaster.

“Farmers are telling us these floods are the worst in decades, perhaps even the worst in living memory, with the floods described as a 1-in-500 year event.

“I can’t stress enough he importance of putting plans in place now to ensure assistance flows as soon as the water recedes.”

Mr Bennett said rebuilding from this event would be particularly difficult for dairy farmers, given fodder prices are already elevated due to the drought conditions further south.

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ACCC report highlights supermarkets’ big profits, influence

Today’s release of the competition watchdog’s inquiry into supermarket pricing lays bare the power imbalances, tactics and transparency issues faced in the Australian dairy industry.

Australian Dairy Farmers (ADF) says the Australian Competition and Consumer Commission’s (ACCC) inquiry shows more must be done to strengthen safeguards for dairy farmers, and the agriculture industry more broadly.

ADF President, Ben Bennett, said farmers are the most vulnerable participants in a supply chain dominated by big players.

“This report backs up what we’ve been saying for years – that the big supermarkets have increased their product margins over the past five years at the cost of our industry,” Mr Bennett said.

“With the exception of homebrand milk, which the big supermarkets use as a loss leader, we consistently see the retail price of dairy products rise. Yet, right now, dairy farmers are struggling to juggle high input costs with declining farmgate prices.

“The big supermarkets directly sourcing milk from farmers is further eroding market competition, compounding the issues our industry faces.”

Mr Bennett welcomed the government’s support for the report and called on leaders to adopt and enforce the recommended reforms.

“We also want the government to look beyond these recommendations and consider how they can ensure retail price increases flow to farmers. Government must also implement policies that promote local dairy products and counter the rising levels of cheap dairy imports.”

With one major supermarket now a dairy processor in its own right, and a review of the Dairy Code of Conduct underway, ADF hopes the government will seize the opportunity to strengthen provisions and protections for farmers dealing with processors.

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