ADF President elected

Australian Dairy Farmers (ADF) has elected Terry Richardson as the President of the peak policy body providing collective representation for dairy farmers in Australia.

Terry Richardson operates a dairy farm with his family in Deans Marsh, South West Victoria, where he has lived since 2004. The farm has seasonal calving pattern and milks 550 cows.

Terry was appointed as an Australian Dairy Farmers Business Director in November 2015 and assumed the role of Acting President in December 2016.

Terry has held several positions in the dairy industry, in New Zealand and Australia. He was a director of Kiwi Co-operative Dairies for seven years and a dairy consultant with Agriculture New Zealand for seven years. After moving to Australia, he joined his local UDV branch and was later appointed to the South West Regional Extension Committee. He was previously Chair of Warrnambool Cheese and Butter Company and served as a director of the company for nine years. Terry has served on many community boards and committees.

Earlier in the day, at the ADF Annual General Meeting, State Members, Business Members and invited guests heard from CEO, David Inall about the year in review.

“We are pleased with the achievements made this year and we look forward to continuing to deliver on our policy priorities to help deliver a more profitable and sustainable industry in the long-term,” Mr Inall said.

“It has been an honour to discuss Australian Dairy Farmers’ ongoing efforts and to advocate at a national level on your behalf.”

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

Thanks to dairy farmers on National Ag Day

Dairy farmers around the country are today being celebrated for their hard work, dedication and commitment to producing trusted and nutritious products.

The inaugural National Agriculture Day (Ag Day) recognises the remarkable contribution agriculture makes to Australian society and the economy.

Australian Dairy Farmers President, Terry Richardson, said the dairy industry was a key contributor to Australia’s agricultural sector, and a major employer in rural and regional areas.

“Every year Australian dairy farmers produce more than 9 billion litres milk on just under 6000 farms,” Mr Richardson said.

“Our industry employs more than 42,000 people across the supply chain, in both regional and rural centres, and we are the fourth biggest dairy exporter in the world.

“Based on a farmgate value of production of $3.7 billion, it is worth about $13.7 billion across the supply chain.”

Ag Day, an initiative of the National Farmers Federation and the Federal Department of Agriculture and Water Resources, comes on the back of recent research, which found that 83% of Australians would describe their connection with farming as ‘distant’ or ‘non-existent’.

Given its importance to the economy and society, Mr Richardson said it was important to better connect consumers with the sector.

“The Australian agricultural sector is valued at more than $60 billion annually and is the countries’ second largest export industry,” Mr Richardson said.

“We like consumers to have a connection with where their food comes from and how it is produced.

“Australians should be very proud of their dairy industry. We’re world leaders in producing clean, green and nutritious dairy products and our sustainable practices are recognised internationally as some of the best in the world.”

National Ag Day is being celebrated at events and functions across Australia. Get involved at www.agday.org.au.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Senate releases final report into the dairy industry

Australian Dairy Farmers (ADF) acknowledges the release of the Economic References Committees report (Australia’s dairy industry: rebuilding trust and a fair market for farmers) yesterday into the dairy industry as a positive move towards strengthening the entire dairy value chain.

ADF President, Terry Richardson said he recognised the interest of the Senate and their support as an acknowledgement of Parliaments willingness to work on long-term solutions on behalf of dairy farmers.

“We are pleased to see support for the Code of Practice and the work we have been doing with the Australian Dairy Products Federation (ADPF), our state dairy farming members and key industry bodies to establish a fair, long-term solution to improve profitability of Australian dairy farmers”, Mr Richardson said.

“The recommendations of the report will help improve farmers negotiating powers, and will contribute further to ensuring there is fairness and transparency throughout the supply chain”.

“We have been working with industry partners on establishing solutions to a number of issues within the dairy industry for a long time and are pleased we are finally getting the tools needed to increase transparency and fairness”, Mr Richardson said.

“The Effects Test, Unfair Contracts Legislation and Small Business and Family Enterprise Ombudsman, are among the tools we have been advocating for since 2011”.

ADF notes the Committees recommendation to cease development of the Commodity Milk Price Index, while the Coalition Senators support the development of the index.

“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”.

“In isolation, tools such as Code of Practice, the Effects Test and the Commodity Milk Price Index will not fix the problems with the dairy industry. However, when combined and used alongside other reforms such as the Small Business and Family Enterprise Ombudsman will ensure fairness along the supply chain”.

“We will continue to advocate for improved transparency regarding the impact of retailer actions on suppliers, and for the regulating bodies to have the power to prevent potentially damaging situations such as retailer predatory pricing in future”, Mr Richardson said.

Mr Richardson also noted the committee’s recommendation for the Government to hold an independent review of the Dairy Services Levy and Dairy Australia.

“While we recognise the need to continuously assess organisational practices, we can confirm that Dairy Australia has recently undertaken a review and put in place mechanisms to ensure dairy farmers are receiving the best value for money from their levy”.

“There is absolutely no doubt that the research and development levy has delivered enormous benefits to all dairy farmers over the past 35 years and Dairy Australia are focused on delivering long- term research, development and extension strategies for the dairy industry”, Mr Richardson said.

ADF acknowledges the ACCC inquiry into the dairy industry and are awaiting the outcomes and measures that can be taken from the inquiry to further reduce the power imbalances between retailers, processors and farmers and help reduce the transfer of risk onto farmers.

As an industry, we want to recognise the efforts of Australian Parliament for their support and willingness to listen to the dairy industry to get the effective solutions in place.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF acknowledges the allegations made by ABC’s Four Corners program

AUSTRALIAN Dairy Farmers (ADF) is concerned about the development of allegations made this past week regarding the misappropriation of water from the Murray-Darling Basin.

Chair of the ADIC Water Taskforce, Daryl Hoey said that there are rules on water extraction and it is only fair to all irrigators and taxpayers that the rules are enforced.

“The allegations on ABC’s Four Corner’s program are serious, and must be independently and transparently investigated to give everyone confidence that water is shared fairly and equitably according to the rules,” said Mr Hoey.

“Notwithstanding the issues raised in the Barwon-Darling River catchment in the northern Basin, we believe the Murray-Darling Basin Plan, overall, is far from broken.”

More than 2000 billion litres of water have already been recovered, mostly in the southern Basin, with improved environmental outcomes already evident five years only after the Plan was signed in 2012.

However, while the Plan is on track to meet its 2750GL target by 2019, communities are paying a high socio-economic cost as agricultural production declines across some regions.

“The dairy industry is concerned that additional adverse impacts will occur if more water is recovered from irrigators,” said Mr Hoey.

“Any failure to enforce compliance with the rules only adds insult to injury in adversely affected communities.”

ADF is committed to working with State and Federal Governments to improve the management of water in the Basin, achieve the necessary community buy-in, and achieve socio-economic outcomes while meeting environmental targets.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF welcomes the announcement by the Basin State Governments

Australian Dairy Farmers (ADF) welcomes the announcement of an environmental offset package to close the remaining gap to meet the Basin Plan’s 2750 GL target.

Today’s announcement was made by Basin State Governments at a landmark meeting in Canberra.

Chair of the ADIC Water Taskforce, Daryl Hoey says the package means environmental water is used more efficiently, allowing the water recovery target to be reduced by over 600 GL.

“The projects recover water through complementary and efficiency projects, which is crucial for the Basin’s health and reducing socio-economic pain,” said Mr Hoey.

“This is why the Basin States announcement at their March meeting of an independent socio- economic analysis beyond what is legislated is so crucial.

“We look forward to working with Ernst and Young in their socio-economic analysis of the Southern Basin and in delivering a triple bottom line.”

Ministers expressed confidence for the proposed environmental offset projects and measures that would deliver more than 600 GL in offsets. Mr Hoey said it was essential that the offsets package fully closed the remaining gap to meet the Plan’s 2750 GL target.

“ADF has strongly advocated for the recovery of 650 GL in offsets and would like to see the Basin states deliver the full 650 GL to be sure no further water is recovered from irrigators,” said Mr Hoey.

The Basin State Governments must notify the Murray-Darling Basin Authority (MDBA) of the agreed offset package of projects by 30 June 2017, and the MDBA will make a final decision on the projects at the end of the year.

ADF is committed to working with Government to improve the management of water in the Basin, achieve the necessary community buy-in, and achieve positive socio-economic outcomes while meeting environmental targets.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Federal Budget 2017-18 – mixed outcomes for dairy

The 2017-18 Federal Budget has both delivered some important priorities to the dairy industry and raised concerns, Australian Dairy Farmers (ADF) said today.

Interim ADF CEO, John McQueen said the Coalition Government has had to find a difficult balance between the need to find savings and the desire to grow the agricultural industry, dairy included.

“While we were prepared for a no-frills budget offering limited spending initiatives, we are pleased the government has delivered on some priorities”, said Mr McQueen.

Relevant budget information for dairy:

  • Instant asset write off extended for 12 months – Businesses with a turnover of less than $10 million will be

    eligible for accelerated depreciation arrangements for assets valued at less than $20,000 until 30 June 2018.

  • Regional Growth Fund – $272 million over four years for major regional projects to support structural adjustment and $200 million for the Building Better Regions Fund.
  • Extended eligibility for Farm Business Concessional Loans Scheme – farmers and their partners who have received their full entitlement for Farm Household Allowance will eligible for loans up to 50 per cent of their debt position for refinancing purposes.
  • Gas supply affordability – $86.3 million over four years to improve gas regulation and supply.

Concerns for dairy:

  • Visa Fee Changes – Businesses with turnover of less than $10 million will be required to make upfront payments of $1,200 for temporary skill shortage visas (to replace the 457 visa), and $3,000 for employees on permanent work visas. The money will be used towards the Skilling Australians Fund.

ADF is concerned the increase in fees for foreign workers will be detrimental to the dairy industry.

“We believe the fee increase will place an even greater burden on farmers who have had to rely on skilled migration to bolster their workforce due to critical labour shortages in many dairy regions”, said Mr McQueen.

ADF also acknowledges funding for two election commitments with the development of the commodity milk price index and Regional Investment Corporation to streamline the delivery of concessional loans.

ADF will continue lobbying Government to implement policies and programs that will increase confidence and enable the dairy industry to grow through difficult market conditions.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF welcomes today’s announcement by the ACCC

Australian Dairy Farmers (ADF) welcomes today’s announcement by the ACCC in initiating proceedings in the Federal Court against the actions of Murray Goulburn a year ago where they cut the milk price paid to farmers for the year.

The ACCC has stressed the lack of transparency in price notification when considering the actions of Murray Goulburn and is now seeking orders through the Federal Court.

Interim ADF CEO, John McQueen said the issue of price transparency and unfair/unconscionable contract terms and conditions has been a high priority issue for ADF for more than 15 years and it is pleasing that we are seeing some significant recognition that dairy farmers need to be treated much more fairly than they have been in the past.

“Over the past 7 months, ADF in collaboration with processors and farmers have been working to develop a Code of Practice on Contractual Arrangements which is almost ready for signing.

“This Code will go a long way to ensuring the actions taken a year ago will lead to more transparency.

“We are also pleased the ACCC has recognised the nature of the Murray Goulburn Cooperative and has decided against seeking financial penalties which will negatively impact the farmers who were adversely affected in 2016”, said Mr McQueen.

While ADF were surprised that the ACCC is not taking any action against Fonterra, we acknowledge the ACCC is an independent regulator and after applying the law has concluded that they were more transparent in their activities.

Mr McQueen added that ADF also welcomes the ACCC proposed actions, which will provide a strong message to all processors that the independent regulator is serious about addressing breaches of Competition Law.

“We believe the adoption of the Code of Practice on contractual arrangement will bring significant improvements in relationships between farmers and processors”, said Mr McQueen.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF welcomes new CEO

Australian Dairy Farmers (ADF) is very pleased to announce the appointment of Mr David Inall as the incoming Chief Executive Officer (CEO) of Australia’s peak dairy farm body.

With a strong background working with industry and government on strategic policy matters, including animal welfare and sustainability, Mr Inall comes into the role after four years as the Senior Vice-President of United Egg Producers based in Atlanta, Georgia, United States.

“I am excited to be joining the team at ADF and look forward to working alongside the Chairman and Board, members, the ADF staff as well as the broader value chain, serving whatever active role I can in supporting and advancing the industry”, said Mr Inall.

Having commenced his policy career with the NSW Dairy Farmers’ Association, Mr Inall has also held the position of Chief Executive Officer with the Cattle Council of Australia (Canberra), and Livestock Export Manager (Asia & Australia) for Meat & Livestock Australia/Livecorp (Sydney).

“It is an honour to now be returning to this great industry and while dairy farmers are currently navigating their share of challenges, I am confident that the outlook is bright as the industry is poised to seize upon future opportunities”, Mr Inall said.

Mr Inall has a Bachelor in agricultural science from the University of Western Sydney and is a graduate of the Australian Institute of Company Directors.

ADF Interim CEO Mr John McQueen, who took on the role as a short-term replacement, will continue in the position until Mr Inall commences in early July 2017.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF seeking assurances on new visa arrangement

Australian Dairy Farmers (ADF) is seeking assurances that there will not be any changes to the Dairy Industry Labour Agreement, under the new visa arrangements announced yesterday.

Interim ADF CEO, John McQueen said access to skilled workers was essential to the continued growth and productivity of the dairy industry, yet there is still a critical shortage of skilled dairy farm workers.

“The dairy industry relies on skilled migration to bolster its workforce and help our farmers with critical labour shortages.”

“Our preference is always to hire Australian workers, but there are not enough experienced workers to meet the demand.”

“Many dairy employers rely on skilled overseas workers to fill core on-farm roles due to the lack of available local labour”, said Mr McQueen.

Under the template agreement finalised with the Department of Immigration and Border Protection on 17 July 2015, dairy farmers can recruit skilled senior farmhands from overseas on 457 visas, as well as farm managers.

The dairy industry has been investing heavily in recruitment, training and retention programs since 2006, and will continue to do – being able to recruit overseas is just another option for farmers to meet demand in the short to medium term.

“We are concerned that instead of addressing farmers worries and streamlining the application process, the Government’s changes could mean more red tape by placing an even greater administrative burden on farmers,” said Mr McQueen.

Mr McQueen said more detail on the Government’s new visa program was required and ADF will be consulting Government on the changes.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF welcomes independent review of the south

Australian Dairy Farmers (ADF) welcomes the Murray-Darling Basin Ministerial Council’s agreed terms of reference for an independent analysis of socio-economic impacts of the Plan in the southern Basin. This is the sensible outcome we have been pushing for.

Minister for Water Lisa Neville said Victoria was working with the other States and the Commonwealth to deliver an outcome which benefits farmers, regional communities and the environment.

“Given the level of community concern about further water recovery we need to be making evidence- based decisions to ensure that we are delivering on the triple bottom line outcomes,” said Ms Neville.

The comprehensive assessment will ensure neutral or improved socio-economic outcomes that go beyond the specific legal requirements of the Basin Plan for the additional 450 gigalitres of water (above the target of 2,750 gigalitres).

Chair of the ADIC Water Taskforce, Daryl Hoey attended the forum with Ministers in Mildura on Thursday evening where the input of stakeholders was acknowledged.

Daryl Hoey said that there will be serious implications for the dairy industry if any more water is removed from the collective pool i.e. north and south, without first understanding the impact it will have to every district including South Australia, Queensland, Northern New South Wales and Victoria.

“We agree with government that the Basin plan needs to protect all water uses – which is why it’s critical that we understand what the different water recovery levels mean for southern communities and the environment,” said Mr Hoey.

Agreement was also achieved on a way to secure the remaining 650 gigalitres of water required under the plan without any more buybacks of water.

ADF along with the ADIC has long advocated for a comprehensive review of the social-economic impact for the south. We are committed to working with Government to improve the management of water in the Basin, achieve the necessary community buy-in, and achieve socio-economic outcomes while still meeting environmental targets.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF announces revised routine calving induction limit

Australian Dairy Farmers (ADF) is pleased to announce a revised 2017 routine calving induction* limit of a maximum of 12 per cent of cows in a herd, down from the 15 per cent target set in 2016.

Interim ADF CEO, John McQueen said the revised routine calving induction target is great news for the industry.

The new target was set after reviewing 2016 induction data and following consultation with dairy farmers, vets and processors through the Calving Induction Steering Group, the Australian Dairy Farmers (ADF) Animal Health and Welfare Policy Advisory Group, the ADF National Council, ADF Board and the Australian Dairy Industry Council (ADIC) Board.

“Farmers are constantly reviewing and improving their practices.

“Dairy farmers are dedicated to providing a high standard of care and to change practices when it is in the best interests of their animals.

“Caring for cows has always been a key priority for ADF and the industry”, said Mr McQueen.

A survey of veterinary practices performing inductions in 2016 confirmed that induction was used in fewer herds and the number of cows induced (0.75% nationally) was almost half the number induced in 2015.

In April 2015, following a series of meetings and consultation with farmers, vets and processors, the dairy industry agreed to phase-out routine calving induction nationally.

“The Australian dairy industry wants to be as proactive as possible on measures to support excellent animal welfare outcomes and to meet the expectations of customers and consumers”, Mr McQueen said.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF urges Government to simplify the FHA payments

Australian Dairy Farmers (ADF) is pleased the Government has announced its intention to make it easier and quicker for farmers to access Farm Household Allowance payments (FHA).

Both ADF and the State Dairy Farming Organisations have been calling for a simplified system and streamlined access and asset valuation through discussions with both the government and relevant departments responsible for the delivery of these programs.

Interim ADF CEO, John McQueen said farmers were frustrated with long delays and need to have faster access to income support payments.

“We have been working closely with the Dairy Industry Liaison Officer to follow up on individual claims.

“Some farmers have reported waiting up to six months for their applications to be assessed and approved”, said Mr McQueen.

It is reported that this will be introduced into parliament today. The legislation means that the two mandatory waiting periods for the FHA would be scrapped and the ‘on farm’ assets test would be expanded.

The Government’s reported intention is to address the issues of water assets and shares in cooperative, necessary for the operation of the farm enterprise.

“These important changes would mean a more accurate definition of farm assets such as water rights, which would make more people eligible for the payment,” Mr McQueen said.

ADF urges that the legislation is passed by both houses in the current sitting to ensure struggling dairy farmers in need can access these programs as soon as possible.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

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