Fuel security risks highlight need for government focus on essential food supply chains like dairy

Australian Dairy Farmers (ADF) has warned that escalating geopolitical tensions in the Middle East pose a serious risk to Australia’s fuel security, with potential flow‑on effects for food supply and regional communities.

ADF President Ben Bennett said renewed instability in the Middle East has already heightened concerns about sharp increases in fuel prices and disruptions to global fuel supply chains, with Australia particularly exposed due to its heavy reliance on imported fuel and low reserves.

The Federal Government confirmed in Parliament today that Australia has reserves of just 34 days of diesel and 36 days of petrol to hand – some of which is still at sea but within Australian waters.

Recent reporting highlights the risk of oil price shocks if key shipping routes such as the Strait of Hormuz are disrupted, a scenario that could quickly translate into higher fuel prices and reduced availability domestically.

“Australia imports around 90 per cent of its transport fuels, which leaves essential industries such as dairy vulnerable when global supply chains are under pressure,” Mr Bennett said.

“From the tractors on farm to milk tankers and feed deliveries, these fuels keep the dairy industry moving. Any interruption to fuel supply would be felt almost immediately on farms and across the entire dairy supply chain.”

Mr Bennett noted that Australia remains well short of the International Energy Agency’s requirement to hold 90 days of fuel reserves, despite long‑standing commitments.

Assessments show Australia has failed to meet this benchmark for more than a decade, leaving the nation exposed during international crises.

“ADF has previously raised concerns about Australia’s inadequate fuel reserves, and recent global events underline just how real this risk is,” Mr Bennett said.

“Dairy cows cannot simply be switched off or milk stored indefinitely on farm.

“If milk tankers stop running because fuel is unavailable or unaffordable, farmers face serious animal health and environmental consequences. ADF is calling on the Australian Government to formally classify the dairy industry as an essential service in any fuel security or emergency planning, to ensure milk, food and fuel trucks can continue operating during periods of disruption.

“Keeping dairy supply chains moving is about more than economics,” Mr Bennett said.

“Cows must be milked every day, and milk must be collected regularly. Ensuring priority access to fuel for dairy and other food producers is critical to keeping fresh, nutritious food on Australian tables.” Mr Bennett said ADF stands ready to work with government to formulate a plan to safeguard Australia’s food supplies and ensure essential agricultural industries are protected during periods of global uncertainty.

UK court ruling should call time on Aussie dairy imitators

Australian Dairy Farmers (ADF) has renewed its call for strong, enforceable rules on the use of dairy terms after a United Kingdom (UK) court confirmed plant-based products cannot be called “milk”, “butter” or “yoghurt”.

The Supreme Court of the United Kingdom has ruled that manufacturers of plant-based products cannot use dairy terms in ways that mislead consumers about the nature of their products.

Australian experience shows marketers of plant-based products often try to imitate dairy staples. These products are formulated to mimic the natural taste of dairy, and while they are often fortified with vitamins and minerals, they are not nutritionally equivalent to dairy products.

The recent decision reinforces long-standing protections across the UK, European Union (EU) and the United States (US) that reserve terms such as milk, butter and yoghurt for animal-derived products.

Yet the Australian Government has just announced it will pursue a voluntary approach to plant-based labelling following its review, rather than enforce clear separation in law.

ADF President Ben Bennett said Australia is increasingly out of step with global standards.

“It’s about honesty,” Mr Bennett said.

“Words matter. When consumers pick up a product labelled ‘milk’, it should come from a cow – not a marketing department.

“Consumers should have the confidence that what they are buying is a dairy product with the natural nutritional profile that comes with dairy, not be misled by artificial alternative products suggesting they have the same nutritional benefit.

“This is why the rest of the world protects dairy words, because they mean something. Here in Australia, we’re allowing these products that are engineered through additives and fortification to imply they offer the same benefits as dairy products.”

Mr Bennett raised concerns around the government’s $1.5 million spend on the local labelling review, led by the Department of Agriculture, Fisheries and Forestry (DAFF), which paid Food Standards Australia New Zealand (FSANZ) to conduct a consumer survey.

That process concluded there was limited consumer confusion. ADF strongly disputes that conclusion.

The survey did not ask meaningful questions about nutritional equivalency claims. It focused on front-of-pack labelling and failed to test whether consumers understand the nutritional differences between dairy and highly engineered plant-based imitations.

“Industry did not have an opportunity to provide input over key questions posed to consumers in the review,” Mr Bennett said.

“Reporting was shifted in ways through drafting that downplayed earlier findings indicating confusion about nutritional content.

“If you don’t ask the right questions, you won’t get the right answers. Consumers might know the product is made from oats – but do they understand it is not nutritionally the same as milk?”

Instead of clear mandatory regulation, the government endorsed the development of a voluntary code of practice to be drafted and led by the Alternative Proteins Council.

ADF says allowing the plant-based industry to draft its own standard on the use of dairy terms is fundamentally flawed.

“Once again this government is allowing the fox to build the hen house,” Mr Bennett said.

“You cannot ask an industry that profits from using dairy language to write the rules about how dairy language should be used – they are clearly conflicted.”

A voluntary code does not prevent misuse.

Across the EU, the UK and the US, dairy terms are legally protected. Plant-based products cannot be sold with the terms “milk” or “yoghurt”. They may use descriptors such as “style” or “alternative”, but the core dairy term remains reserved.

“Australia helped write the international Codex standards on what milk is,” Mr Bennett said.

“We accept those rules in international trade negotiations yet refuse to apply them at home. That undermines our farmers and our credibility.”

Australia is a major dairy exporter. Failing to protect dairy terms domestically weakens the standing of Australian dairy in global markets where those words are legally protected.

Mr Bennett said ADF was not seeking to remove plant-based products from shelves.

“We’re calling for clear, mandatory rules so that dairy terms are reserved for dairy,” he said. “The world recognises that dairy words have meaning. Australia should too.”

Confirmed again – dairy code is necessary

Australian Dairy Farmers (ADF) has welcomed a report from the Federal Government’s agriculture department, finding – for the second time – that the Dairy Code of Conduct continues to operate as intended.

The second review into the Code, completed by the Department of Agriculture, Fisheries and Forestry (DAFF), shows it remains a critical safeguard for fairness, transparency and confidence in dairy contracting.

The report reinforces ADF’s long-held position that the Code is necessary to address structural power imbalances between dairy farmers and processors, and that its core settings remain fit for purpose.

ADF President Ben Bennett said the outcome reflects the strength and consistency of farmer advocacy throughout the review process.

“It confirms the Dairy Code of Conduct is doing its job, and that is in no small part due to farmers standing firm on what matters,” Mr Bennett said.

“ADF was clear and consistent, and those core protections have been upheld.”

ADF welcomed the retention of key farmer safeguards, including the permanent ban on retrospective price step-downs, the ongoing requirement for minimum prices in milk supply agreements, and the confirmation that the Code should remain in place rather than be repealed or allowed to lapse.

Changes that could allow dairy farmers to work together in mediating or arbitrating disputes are another positive outcome, reflecting ADF’s advocacy for more practical and accessible enforcement tools that allow farmers facing common issues to act collectively.

“These outcomes matter because they protect confidence at farm level and support investment, and planning,” Mr Bennett said.

However, Mr Bennett said ADF was concerned the report could lead to greater processor flexibility, despite there being no evidence the current rules are failing.

“In particular, proposed changes around cooling-off periods, exceptional circumstances and contract administration have been put on the table, despite there being no indication from the ACCC the current situation poses a problem,” Mr Bennett said.

ADF also noted that the review acknowledges farmer confidence remains fragile and that power imbalances persist in parts of the supply chain, particularly in regions with limited processor competition.

Mr Bennett said ADF would continue to closely monitor and ensure any future changes do not have adverse effects.

“ADF’s position remains clear – the Code should always be protected and strengthened, not diluted.”

ADF will continue to work constructively with Government and regulators to ensure any amendments to the Code uphold the original purpose and maintain confidence across the dairy supply chain.

New drought loan a major step forward

Australian Dairy Farmers (ADF) has welcomed the Federal Government’s announcement of a new Drought Hardship Loan through the Regional Investment Corporation (RIC) as dairy farmers stare down the prospect of another difficult season.

ADF has strongly advocated for changes to the loan scheme over the past 18 months, with dairy farmers having already battled consecutive dry years.

Under the new loan, eligible farmers will be able to borrow up to $250,000 over five years, with interest incurred by repayments fully deferred for the first two years.

The loan is designed to help with short-term operating costs during prolonged droughts, when cash flow strain is most acute and traditional lending is often less flexible.

ADF President Ben Bennett said the announcement reflected the Government’s willingness to act on the concerns repeatedly raised by dairy farmers.

“This is a positive step and a direct result of the strong, consistent advocacy ADF has led throughout 2024 and 2025,” Mr Bennett said.

“Dairy farmers have endured rising costs, water shortages, and some of the harshest seasonal conditions in years.

“ADF has been the strongest voice – publicly and privately – calling for a hardship product that genuinely reflects the realities on dairy farms. This announcement shows that work has paid off and those calls have been heard.”

The government has also released its long-awaited response to the Craik Review of the Regional Investment Corporation (RIC). Of the 32 recommendations made, 21 were agreed in full, including improved collaboration with commercial lenders, and five-yearly reviews of maximum loan amounts.

ADF has long argued that RIC must be easier to access, better targeted to industry needs, and more responsive during severe drought. While the new hardship loan is welcome, Mr Bennett said the job was not yet finished.

“The structure of this new loan is a good start, particularly the deferred repayments,” Mr Bennett said.

“But dairy farmers still face significant red tape in the application process. Many tell us it can take months to navigate the paperwork, and coordination with their own bank is often slow and complex. That needs to change.

“Farmers are looking for genuine relief, not products that simply mimic the commercial market.

“If RIC is to be a meaningful tool in future droughts, it must offer terms that clearly outperform what is already available from banks—especially when multi-year drought has wiped out reserves.”

ADF has advocated throughout 2024/25 for:

  • A dedicated drought operating loan, with deferred repayments (now delivered)
  • Simplified application processes to cut administrative burden
  • Better alignment between RIC and commercial lenders to avoid duplicated assessment, delays and inconsistent loan security requirements
  • Clearer, farmer-friendly communication about eligibility, timelines and expectations

Mr Bennett said ADF would continue its work to ensure the final design of the new product delivers real value for dairy farmers.

“This announcement is a win for dairy farmers and shows the Government is responding to our concerns,” he said. “We now want to build on this momentum. The next step is making the system faster, simpler and more coordinated so that when farmers are doing it toughest, the support arrives quickly and with minimal stress.”

ADF welcomes new board director

Australian Dairy Farmers (ADF) held its Annual General Meeting on Tuesday, which included the announcement of election results for one vacant Board Director position.

The position was contested by two candidates, Western Australian dairy farmer Ian Noakes and Gippsland dairy farmer Paul Mumford. Mr Noakes was ultimately elected to the position.  

In announcing the election results, ADF Chief Executive Officer Stephen Sheridan thanked both candidates for nominating and expressing their interest in applying for the Board position.

“I would like to congratulate Ian Noakes on his successful election and appointment to the Board, while also thanking Paul Mumford for nominating to contest the position,” Mr Sheridan said.

“Both Ian and Paul are well respected leaders, and both hold or have formerly held the position of president with their respective State Dairy Farming Organisations in WA and Victoria, and both sit on ADF’s National Council.

“It is positive for ADF to have Director positions contested by such high calibre leaders from their respective states, and we look forward to both Ian and Paul’s continued involvement in ADF at the Board and National Council level.    

The ADF Board now comprises:

  • Ben Bennett, Victoria (Chair, Business Director)
  • Matthew Trace, Queensland (Business Director)
  • Heath Cook, New South Wales (Business Director)
  • Ian Noakes, Western Australia (Business Director)
  • David Beca, Victoria (Independent Director)

Water buyback plan slammed as another threat to Aussie dairy

Dairy farmers have condemned today’s announcement of renewed water buybacks in the Murray Darling Basin, saying it will damage dairy farming, slash milk production, hurt regional jobs and limit consumer choice.

Federal Water Minister Murray Watt announced the buybacks at the Basin Leadership Summit 2025 in Adelaide this morning.

The announcement includes increasing the volume of water that may be purchased in the southern connected basin by 130GL, bringing the total of all purchase programs to 300GL.

“We’ve just caught Woolies using American butter in stores and now the government is taking away more water from our dairy farmers,” Australian Dairy Farmers (ADF) president Ben Bennett said.

“Consumers’ access to safe, locally produced food is being attacked from all fronts – from within our own country!”

“Dairy farmers have already given up significant water rights since the millennium drought to help restore river health, yet are now being asked to cop even more pain for questionable gain.

“Our dairy farmers have done the heavy lifting to improve the Basin’s environmental health. We’ve invested heavily in water efficiency and drought resilience and have a proud environmental history as being stewards of the land. But this announcement ignores those efforts and punishes us for it.”

At a time when food prices are rising and the government itself is holding an inquiry into food security, Mr Bennett said it was ironic that buybacks are being prioritised.

“Buybacks create insecurity and make food production unsustainable,” he said.

Mr Bennett pointed to a recent industry report commissioned by Dairy Australia that warned of devastating economic impacts from more buybacks – warnings the government has effectively ignored.

“The independent analysis confirmed our worst fears: taking more water would cut annual milk production by up to 270 million litres and could cost dairy processors up to $545 million each year in lost output and higher costs.

“Those are massive hits to our supply chain and regional economy, yet Canberra is turning a blind eye.”

The report also found buybacks would reduce the consumptive water pool by between seven and 16 per cent, pushing water prices up between 17 and 40 per cent in dry years.

“That means higher costs for dairy farms  – when they can least afford it – undermining our resilience,” Mr Bennett said.

ADF has demanded a full Regulatory Impact Statement on this announcement to assess the fallout from any further buybacks on dairy communities.

“No further buybacks should proceed without a comprehensive assessment of the damage this announcement will do to our dairy farmers, processors and rural towns,” Mr Bennett said.

He stressed that buybacks, even if labelled ‘voluntary’, drive up water prices and squeeze out dairy production, which in turn threatens local jobs and reduces consumer choice in dairy products. “If we keep losing local milk production, Australian consumers will end up with fewer choices on the supermarket shelf – just like we are seeing from Woolies with American butter dressed up in green and gold.”

ADF congratulates new NFF President and board appointees  

Australian Dairy Farmers (ADF) has today congratulated Hamish McIntyre on his election to the key role of President of the National Farmers’ Federation. 

ADF extends its congratulations to incoming directors Peter Herrmann and Ben Bennett, who also serves as ADF president.   

Together, their leadership will be vital as agriculture navigates an increasingly complex policy and economic landscape.   

ADF chief executive officer, Stephen Sheridan, said the organisation would continue to work with the NFF to progress key issues that benefit not just dairy, but the entire agricultural sector.  

“ADF recognise that NFF directors must act in the best interests of NFF, its membership and the broader industry, and ADF as a long-standing member of NFF welcome the appointment of a dairy farmer to the NFF board,” Mr Sheridan said.  

“The dairy industry is the third largest agricultural sector in Australia and it is only appropriate to have a dairy producer as a director of NFF”. 

ADF thanked David Jochinke for his advocacy and leadership throughout this time as both a director and President of the national body. 

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.

(ends)

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.”

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