ANTICIPATION is mounting over a commodity milk price index, with work on the index well underway and a mid-year timeline now set for its release.

Peak advocacy group Australian Dairy Farmers last week received a briefing on key elements of the index, a major election commitment of former Deputy Prime Minister and Agriculture Minister Barnaby Joyce that aims to help farmers better understand and interpret price signals.

“The index is not a magic bullet, but if done right will importantly provide independent and transparent market information to dairy farmers that is easily accessible and useful in making decisions about their businesses,” ADF President Terry Richardson said.

The index will include:

• an index of commodity prices received by Australian dairy processors for cheese, butter, skim milk powder and whole milk powder exports updated monthly, plus a one-year forecast, which will be updated quarterly;
• a regional, retrospective farmgate milk price index, which farmers will be asked to provide price data via an online form to build; and
• regular global, national and regional economic commentary will accompany the indexes.

“The retrospective farmgate milk price index will depend on the participation of farmers to provide data,” Mr Richardson said. “The more dairy farmers submit their pricing data regularly, the more valuable the index will be.”

Deloitte Access Economics has been contracted to develop an econometric model which will use data from sources including the Australian Bureau of Statistics and Global Dairy Trade.

Education material will also be produced by RM Consulting Group and delivered to farmers at dairy industry events.

“The index will include an awareness and education component to help dairy farmers understand what the index means for them and how they could consider it in their business planning,” Mr Richardson said.

Once the index is released, farmers are encouraged to give feedback to the Department of Agriculture and Water Resources.

Feedback and questions can be emailed to milkpriceindex@agriculture.gov.au.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) chief executive David Inall will swap his bed for the cold streets of Melbourne on the longest night of winter when he sleeps outside to raise money to fight homelessness in the annual Vinnies CEO Sleepout.

The last Australian Bureau of Statistics (ABS) census recorded a shocking jump of 14,000 homeless people in Australia (14 per cent) in the five years to 2016, while Vinnies Victoria has experienced a dramatic rise of 40 percent in the demand for welfare support over the past three years.

Mr Inall has committed to raising $5,000 as part of Vinnies’ goal to reach $1 million in Victoria, which will help the more than 116,000 homeless people across Australia.

“The rate of homelessness in this country is devastating and it is our responsibility to raise funds to help people who are vulnerable and living on the streets,” Mr Inall said.

“I am fortunate to be employed in the Australian dairy industry and I am hoping that others from Australian agriculture will also join and be a part of this cause.

“One night isn’t a lot, but it can make a difference in bringing home the realities of homelessness. This will be an eye-opening experience. I’ve participated twice before in Canberra, but this will be my first sleepout in Melbourne.”

Now in its thirteenth year, the CEO Sleepout has raised $36.5 million since 2006, with organisers hopeful they can raise $6.4 million this year.

You can support Mr Inall by pledging donations here: https://www.ceosleepout.org.au/fundraisers/davidinall

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

The Weekly Times has shown contempt for its readers and the broader dairy industry.

The publication today of unsubstantiated gossip around the Australian Dairy Farmers (ADF) submission to the Australian Competition and Consumer Commission (ACCC) regarding our position on an industry Code of Practice is reckless and lacks credibility.

The article makes a number of false claims and it is appropriate that we correct the record and shed light on the nature of dairy industry relationships.

The ADF Board never held the position that the organisation should support a mandatory code. We have always said that first we must assess how a mandatory code would work and whether this would benefit industry.

We are in the process of reviewing the current Code, and as part of this process we are assessing the implications of a mandatory code.

It is false to state that anyone other than ADF Board and staff had input into drafting our submission to the ACCC.

It is also false to claim that any processor made demands to ADF that we change our position.

We have agreements with 11 different processors and not one of them threatened, bullied or even contacted ADF to try and influence our position on the code of practice

It is common in the agriculture industry for different organisations to have differing views on industry issues. This is not something that ADF tries to disguise.

There was a commitment at the time when the Code was launched in mid-2017that a review be conducted We understand the importance of engaging all stakeholders in the review process, and this process is already underway.

The Code of Practice is a vital part of restoring relationships across industry, and we want to ensure that we get the Code right by strengthening provisions, including more formal dispute resolution procedures

Industry is expected to consult on all industry issues, whether it is animal health and welfare, trade and market access, biosecurity, nutrition, marketing – the list goes on.

These accusations in the Weekly Times have a deep impact on farmer representatives, staff and the health of the entire industry.

We are acutely aware of the myriad of on-farm challenges, and now is the time when we should all be working together to improve the state of our industry.

It is the role of ADF to advocate on behalf of farmers. Every minute wasted responding to spurious claims is a minute lost that should be spent standing up for farmers.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

TAX relief and support for business investment are two of the biggest windfalls in a federal budget that has been largely favourable for dairy farmers.

Australian Dairy Farmers praised Treasurer Scott Morrison for delivering measures that will reduce households’ tax burden, increase exports and supply chain efficiency, maintain market access and reduce the cost of agriculture production.

ADF President Terry Richardson commended a 12-month extension of the Government’s instant asset write-off scheme, which allows small businesses with an annual turnover under $10 million to immediately deduct purchases of eligible assets costing less than $20,000.

More winners in the budget included:

• Biosecurity, which will receive an $86.6m four-year investment to develop a national action plan for dealing with priority pests, $102m to manage biosecurity risks before and at the border, $6.6m for research and development, and $6.6m to manage the impact of established pests and weeds on agriculture
• Trade, which will get a $51.3 million four-year investment to boost market access opportunities for agriculture and food exports, with an additional $15.7m per year in funding after the forward estimates; and
• Irrigators, with the Government allocating $226 million in grant funding and $50 million in concessional loans to projects which will help ensure farmers can access the water they need.

The Government also earmarked $24.5 billion for an infrastructure blitz in new major transport projects and initiatives across the country, while a combined $472m will be used to top up funds to support regional infrastructure projects and community investment.

“There is a long list of rural infrastructure priorities that will improve opportunities for Australia’s multi- billion-dollar agriculture industry,” Mr Richardson said.

“It’s great to see the federal Government put such emphasis on infrastructure projects but we still need to ensure rural communities see the benefit.”

Communities in South West Victoria still recovering from bushfires that lashed the region in March will receive $1.5 million in disaster relief funding to help primary producers undertake clean-up activities.

“It has been a difficult few months for communities in the Barwon South West region of Victoria and this funding will go some way to assisting the recovery effort,” Mr Richardson said.

Mr Richardson said ADF had concerns that the Government did not commit to boosting the successful Mobile Black Spot Program to improve telecommunications infrastructure in regional and remote communities.

“Poor mobile phone coverage and connectivity is still a major problem for many rural communities and one the Government must continue to address,” he said.

Mr Richardson said the farmer group would continue to ensure the interests of dairy farmers were considered as the federal Government heads into an election year.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIA’S peak dairy farmer group has thrown its support behind an independent umpire to mediate contract disputes between farmers and processors as the competition watchdog today released its final report into the dairy industry.

Australian Dairy Farmers President Terry Richardson said the organisation was still working through the bulk of the recommendations delivered by the Australian Competition and Consumer Commission but commended the recommendation to establish an independent mediator as an important safeguard of farmers’ interests.

“It is vital that we have a mechanism to ensure farmers are protected in any disputes and this will form a central part of the current Code of Practice review process,” Mr Richardson said.

“We recognise that there is some support for a mandatory code. However, we established the Code for the very reason that we could bring all of industry together in the one room to have an agreed set of values for processor contracts.

“ADF is taking a leadership role by reviewing the Code in consultation with our members, in line with the strong commitment we made when the Code was introduced, and we will incorporate the ACCC’s analysis into our review process.”

The report also analysed the impact of $1 per litre milk, concluding that farmer earnings remain the same regardless of whether milk is sold as private label $1 per litre milk or branded milk.

“Our concern has always been that selling milk as a loss leader at the rear of the supermarket at price points cheaper than water is a strategy that is not in the long-term interest of this industry,” Mr Richardson said.

“Once money departs the supply chain, it is never returned. We have always strongly argued that $1 per litre milk is not sustainable long term.”

Mr Richardson said ADF remained frustrated that the report again failed to acknowledge the relationship between retailers and processors, but the dairy farmer group will work with the federal Government and industry to ensure the Code presents a strong voice for farmers.

“The ACCC has again highlighted the significant imbalance in bargaining power at each level of the supply chain, and ADF will work closely with all parties to ensure the Code adequately protects the interests of dairy farmers,” he said.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) chief executive David Inall will bridge the gap between farmers and animal welfare groups when he shares the stage with Animals Australia head Glenys Oogjes at the United Dairyfarmers of Victoria annual conference this week.

Mr Inall will sit alongside Ms Oogjes as part of a panel discussion into the power of “everyday advocacy”, which the ADF CEO said would surely spark debate between participants and the audience of mainly Victorian dairy farmers.

“We’re very fortunate to belong to an industry full of passionate people with strong opinions who aren’t shy about sharing their views and ideas,” Mr Inall said.

“I’m certain that the panel members will communicate – in some cases – wildly different ideas, and this is a forum to listen to each other and learn from each other’s experiences. I’m sure this discussion will be fascinating and unpredictable.”

Also on the panel will be former Australian Bankers’ Association chief executive Steven Munchenberg, Minds at Work founder Jason Clarke and Gippsland dairy farmer Paul Mumford.

Mr Inall said the discussion was a perfect opportunity to assist advocates across the spectrum – from farmer organisations to welfare groups – and find out how they connect with a rapidly evolving and sophisticated audience.

“We have seen a dramatic shift over the last 15 years in how audiences receive information and it’s vital that we adapt so we can continue engaging with industry and consumers,” he said.

“It’s now easier to interact directly with your audience through Facebook, Twitter and other social media, but it’s harder to tell fact from fiction because anyone can put a message out there to suit an agenda. It’s really changed the face of advocacy and it’s an issue we need to address.”

The 42nd UDV annual conference is at the MCG on Friday May 4. Registrations are open now.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers would like to take this opportunity to warmly congratulate ADF past President, Noel Campbell, on the award Officer (AO) in General Division of the Order Of Australia, for distinguished service to the primary industry sector, particularly to dairy producers, through executive roles with professional bodies, to the milk supply industry, and to the community of Victoria.

Noel Campbell is a third-generation dairy farmer from Yannathan, south east Victoria, Australia. The family operation is run by Noel and his wife Ann, milking 450 cows. Noel was elected President of Australian Dairy Farmers (ADF) and Chair of the Australian Dairy Industry Council (ADIC) in 2012.

Prior to his election as ADF’s Vice President in 2011, Noel was Chair of the Markets, Trade and Value Chain Policy Advisory Group for two years and a Director on the ADF Board since 2008. Noel has also held positions on various other industry boards including as a Director of Genetics Australia, Chair and Director of Bonlac Foods and Bonlac Supply Company, and Chair of the Fonterra Australia Farmer Supplier Forum.

Having lived through a period of considerable policy change in the Australian dairy industry including the removal of fluid milk price controls in Australia combined with the removal of restraints on inter- state trade from mid-2000, Noel is strong advocate for whole of industry unification. With a strong, united front and a shared vision for the future, Noel believes Australian dairy will remain on the international stage as a provider of high quality, nutritious and sustainable food.

Under Noel’s leadership, in 2014 the ADIC launched a whole of supply chain vision to become more prosperous, trusted and world renowned for its nutrition by 2025 than ever before. The vision has received support from across the value chain, as well as the broader dairying community and endorsement from both sides of the Australian parliament.

Key to ensuring the success of this vision, Noel considers that it is important to stop and take stock, acknowledge success and identify areas for improvement. The success of the industry, Noel believes, relies upon the success of each individual link in the chain, from the farm to the customer and we must therefore recognise when and where reform is necessary to ensure a robust industry.

Most recently, Noel’s advocacy efforts were instrumental in the achievement of a pro-dairy China- Australia free trade outcome, where he attended the Minister for Agriculture, Barnaby Joyce’s delegation to China and presented as a guest speaker at the China Dairy Industry Association conference in Shanghai, in August and September 2014.

Noel has a Diploma of Mechanical Engineering and is a Fellow of the Australian Institute of Company Directors.

Media Contact:

David Inall, Chief Executive Officer

M: 0447 161 919

E: dinall@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) will fly the flag for the nation’s dairy industry when a delegation of leading agricultural representatives lays groundwork in Europe ahead of free trade negotiations.

ADF president Terry Richardson has joined with senior figures from across Australia’s farm sector on a 12- day mission to strengthen ties with the European Union and the United Kingdom as the Australian Government prepares for formal trade negotiations to commence later this year.

Mr Richardson said it was critical that Australia’s dairy industry has a strong voice in discussions with the EU leading up to the negotiations.

“This delegation is about gaining an understanding of British and European markets from a farmer’s perspective and ensuring that this understanding is two-way,” Mr Richardson said.

“There is no doubt that individual sectors within Australian agriculture stand to make gains from formalised trade agreements with the EU, however, we must do everything we can to ensure our dairy industry is not adversely impacted.”

Mr Richardson reiterated ADF’s opposition to the inclusion of Geographic Indicators (GI) in any agreement.

Such an inclusion could see Australian producers of cheese varieties including Feta, Haloumi and Parmesan forced to rename their products.

“We have Australian companies that have been producing these varieties to a world standard for over 100 years. An inappropriate GI regime would have significant implications for the value of those proud Aussie brands,” Mr Richardson said.

“The Australian dairy industry believes that current rules in Australia for the protection of agriculture GI’s are sufficient and working effectively.”

A busy schedule will see the farmers’ delegation attending Green Week in Berlin and meetings with Australian Ambassadors and High Commissioners, peak agricultural bodies and European and British agribusiness and industry associations. They will also join Assistant Minister for Agriculture, the Hon. Anne Ruston, on a tour of the Port of Rotterdam and nearby horticulture production facilities.

The delegation will report back to farmers at a series of seminars, beginning with a presentation at WA Farmers’ annual conference in March.

Mr Richardson will also travel to Ireland to meet with senior dairy industry representatives.

Delegates

Fiona Simson (NFF, President)
Tony Hegarty (NFF Board Member and Cattle Council of Australia Vice President) Terry Richardson (Australian Dairy Farmers, President)
John Wallace (Sheep Producers Australia)
Luke Mathews (Grain Growers Limited, Trade Manager)
Warren Males (CANEGROWERS, Head of Economics)
Emma Germano (Victorian Farmers Federation – Horticulture, President)
Alison Horswill (Export and supply chain consultant)
Rachel Nicoll (NSW Farmers Association)
Maximiliane Hanft (NFF, Policy Officer)
Scott Kompo-Harms (NFF, Trade & Economics General Manager)

Media Contact:

David Inall, Chief Executive Officer:

M: 0427 495 266

E: dinall@australiandairyfarmers.com.au

Today’s release of the ‘ACCC’s Dairy Inquiry – Interim Report’ has confirmed what Australian Dairy Farmers (ADF) has long been advocating; there is significant imbalance in market power with farmers having a weak bargaining position.

ADF President Terry Richardson said that this is the very reason why we established the Code of Practice, to bring all of industry together in the one room to have an agreed set of parameters and conditions for processor contracts.

“The ACCC has rightly recognised the bargaining power imbalance between farmers and processors, and processors and retailers,” said Mr Richardson

“We acknowledge the ACCC’s recommendation to implement a mandatory dairy industry Code of Practice, as well as strengthening elements of the current Code. This report is timely and we will incorporate ACCC’s analysis into our already-established review process.

“There was a commitment at the outset that the Code be reviewed after 12 months; the voluntary Code was an important first step in this process of improving the balance of power through the supply chain,” added Mr Richardson.

ACCC Commissioner Mick Keogh acknowledged that there have been some improvements following the introduction of the voluntary code; however, in the ACCC’s view, it is unlikely to fully address the issues that cause detriment to the industry.

The report also analyses the impact of $1 per litre milk, concluding that farmer earnings remain the same regardless of whether milk is sold as private label $1 per litre milk or branded milk.

“Our concern has always been that selling milk as a loss leader at the rear of the supermarket at price points cheaper than water is a strategy that is not in the long-term interest of this industry,” said Mr Richardson.

“Once money departs the supply chain, it is never returned. We have always strongly argued that $1 per litre milk is not sustainable long term.”

A total of eight recommendations are outlined in the report including specific findings about contracting practices and farmgate milk prices.

These interim finding are detailed and comprehensive and we look forward to further consultation with our members in the preparation of a formal response by 31 January 2018.

Media Contact:

David Inall, Chief Executive Officer

M: 0427 495 266

E: dinall@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) is thrilled to be confirmed as a recipient of the Department of Agriculture and Water Resources Leadership in Agricultural Industries Fund, with over $335,000 going towards the national policy and advocacy body.

The announcement from the Federal Government was made following a comprehensive application from ADF submitted earlier this year.

ADF President Terry Richardson welcomed the grant funding as further recognition of the significant importance of the Australian dairy industry.

“We thank the Department of Agriculture and Water Resources for initiating the fund and Assistant Minister for Agriculture and Water Resources Anne Ruston for the announcement, which acknowledges the importance of strengthening and supporting dairy farmer advocates,” Mr Richardson said.

“A strong dairy industry is vital to the ongoing prosperity of regional communities and the Australian economy; and the receipt of this fund is further evidence of that.”

Mr Richardson said the ADF project is aimed at continuing to develop the leadership skills of the organisation’s leaders to enable strong advocacy on behalf of Australian dairy farmers.

“To meet the ongoing challenges and opportunities our industry is facing, we must have strong leadership across the sector, from our dairy communities right through to the ADF Board,” Mr Richardson said.

“This fund will enable us to develop the current cohort of senior dairy leaders and ensure an adequate supply of skilled leaders into the future.

“It will also allow us to give back to our farmer advocates, many of whom volunteer their time for the benefit of the industry. These committed dairy farmers are rarely recognised or supported in the tireless work they perform for this industry.”

Mr Richardson said ADF looks forward to finalising the agreement and delivering a program which will future-proof and modernise the organisation for the benefit of dairy farmers.

Media Contact:

David Inall, Chief Executive Officer

M: 0427 495 266

E: dinall@australiandairyfarmers.com.au

Australian Dairy Farmers’ Business Members today re-elected Business Directors Simone Jolliffe and Bruce Donnison to the Board, joining them will be new Business Director John Versteden and new Independent Director Ms Victoria Taylor.

Simone has a strong community leadership base having been involved with Young Cattleman’s Union, Holstein Australia and is also a director of DataGene.

Bruce Donnison has been re-elected to the ADF Board having fulfilled a casual vacancy. Bruce has more than 30 years’ experience in the dairy industry from farming through to managing manufacturing and supply chain systems.

New director John Versteden has significant experience in dairying businesses and brings his knowledge in member representation and advocacy through his role as vice president of United Dairyfarmers Victoria (UDV).

Victoria Taylor is the new Independent Director and is former Executive Director of Rice Growers’ Association Australia, and is currently a board member of the Rice Marketing Board (NSW) and the Independent Director of the Safety Institute of Australia.

The two new Board members are exceedingly well qualified for their roles, each bringing a unique perspective to the table.

ADF President, Terry Richardson welcomed the new additions to the Board. “It’s a pleasure to welcome our directors to the Board” Mr Richardson said.

“Their vision and ideas will help ADF in its work to promote the interests and sustainable viability of all Australian dairy farmers.”

Outgoing Board members, Tyran Jones and Dr Dedee Woodside chose to retire at the end of their respective terms and therefore did not seek re-election. ADF President, Terry Richardson spoke highly of both directors and their service to ADF.

“On behalf of ADF I would like to thank Tyran Jones and Dr Dedee Woodside for their tireless contribution to ADF during their terms, and for their strong commitment to dairy,” Mr Richardson said.

“We are a stronger organisation for their involvement.”

The ADF Board is comprised of four farmer directors Terry Richardson, Simone Jolliffe, Bruce Donnison and John Versteden, and one independent director, Ms Victoria Taylor.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au