Australian Dairy Farmers (ADF) has today welcomed the introduction of the s46 ‘effects test’ legislation 2016 into the Federal Parliament.

ADF President David Basham said the provision, which will be included in section 46 of the Competition and Consumer Act 2010, will address the current unequal distribution of market power and encourage transparency to the benefit of producers, consumers and retailers.

“This will ensure that supermarkets and firms who enter into contractual arrangements which cause others in the supply chain to be adversely effected will now be captured for the first time by competition law.”

“The effects test is another tool to help provide integrity and transparency regarding the impact of retailer actions on suppliers,” Mr Basham said.

ADF has advocated strongly for this change since 2011 which will assist in preventing damaging practices, including predatory pricing in future.

“The reforms will support consumers’ interests as well as dairy farmers by moving towards a more objective measure to assess the impact of anti-competitive behaviour,” said Mr Basham.

ADF thanked the Prime Minister, Deputy Prime Minister, the Treasurer, the Minister for Small Business for their support and action on this important reform.

‘We also want to thank the Queensland Dairy Farmers Organisation and other state dairy farmer organisations for their tireless work in highlighting the issues within industry,” said Mr Basham.

The introduction of an effects test is in line with competition policy around the world – Australia has joined the clear majority of developed nations who already have established effects tests.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

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

Bringing over 11 years’ representative experience to the role, the former President of South Australian Dairyfarmers’ Association (SADA) was instrumental in the development of a new brand of fresh milk, SADA Fresh, being sold in one of his state’s major retail supermarkets to generate funds for SA industry development.

David Basham operates a 380-cow dairy farm with his wife, Kate and two daughters. Their property is located in Mount Compass, on the Fleurieu Peninsular in South Australia. David’s family has been milking cows for more than 165 years.

David first took a position on the ADF board from August 2005 to 2012, and re-joined the board in November 2014. David has been the Acting President since May 2016.

Earlier in the day, at the ADF Annual General Meeting, State Members, Business Members and invited guests heard from interim CEO, John McQueen 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.

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

We would also like to extend our warmest thanks to the outgoing Australian Dairy Industry Council (ADIC) Deputy Chair, Robert Poole, for his six years of hard work and to welcome the new ADIC Deputy Chairman, Grant Crothers,” said Mr Basham.

Grant has spent his career in food marketing and manufacturing with a heavy bias toward the dairy industry. He is currently CEO and Managing Director of Burra Foods.

The ADF Board is comprised of four farmer directors David Basham, Simone Jolliffe, Tyran Jones, and Terry Richardson, and one independent director, Dr Deedee Woodside.

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Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) is calling for an immediate resolution to the backpacker tax.

ADF President David Basham said after 18 months of continued lobbying, the agricultural sector needs a decision that ensures certainty for backpackers and employers.

“The Labor Party promised that the issue would be resolved before the end of this year,” Mr Basham said.

“Compromises have already been put on the table and it is crucial for the industry that this is resolved.

Dairy farmers and small business owners need to know that they will continue to be able to rely on backpackers for vital on-farm and off-farm roles which cannot be filled locally and to complement our existing workforce during peak times,” Mr Basham said.

The impact of months of indecision has been felt across the dairy sector and, for every day this issue remains unresolved, it affects the dairy industry and rural Australia.

“Along with other agricultural sectors, we have consistently said that we believe it is reasonable for backpackers to pay some tax, but the government’s initial proposal was too high,” Mr Basham said.

The decision to reduce the proposed tax rate from 32.5 per cent to 15 per cent tax maintains Australia’s status as a competitive destination for working holiday makers, while ensuring they pay a fair level of tax.

“We believe that backpackers should not pay less tax than those on the seasonal worker program, which is primarily an aid program.

We need the message out there now that backpackers are welcome on our farms and to do this we need a fair tax rate,” said Mr Basham.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Today, Australian Dairy Farmers (ADF) is speaking at the Senate Economics References Committee inquiry into Australia’s dairy industry after a motion co-sponsored by Senators Jacqui Lambie and Nick Xenophon was passed last month.

ADF President, David Basham said the inquiry offers an opportunity for the industry to lead a collaborative approach to represent all dairy farmers.

“ADF in partnership with our state members, is continuing to fight for farmers and even though we cannot solve all of the issues we are working to relieve some of the pressures dairy farmers are facing”, Mr Basham said.

“Dairy farmers are resilient and realistic – they are used to managing volatility and adapting their budgets to remain sustainable even in tough times.

We need to ensure that an unfair share of risk in the value chain is not taken by the farmer and that recent events in the industry do not happen again”, said Mr Basham.

ADF is pleased to see the Federal Government

Measures proposed by ADF include –

• The development of the Code of Best Practice on contractual agreements
• To ensure that the ACCC review identifies the whole of chain impact on farmers from ongoing issues such as $1 milk and implementing fair contract terms and conditions
• Reinforce the importance of a world dairy commodity pricing index and educational program for farmers to better understand the impacts of the world market price and impact on the domestic market

“Collaboration is key to get us where we need to be, and we rely on all the elements operating effectively. Farmers need processors and processors need farmers – so the solutions require all of us to come together to ensure a positive future”, said Mr Basham.

ADF looks forward to reviewing the final report from the Senate Inquiry on 24 February, 2017. -ends-

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

The Senate Economics References y into Australia’s dairy industry was held today in Canberra to investigate solutions to Australia’s dairy crisis.

Australian Dairy Farmers (ADF) Acting President, David Basham said the senate inquiry, provided an opportunity for ADF to present Senators with possible solutions to protect farmers in the future from the risks that have been exposed by the events of April and May this year.

“This past year, the dairy industry has gone through a difficult time, however, we must remember that we are a resilient industry with a long, sustainable future ahead and our profitability depends greatly on the continued support of the Australian public.

ADF in partnership with our state member organisations have continued to highlight both short term and long terms solutions to relieve some of the pressures faced by our dairy farmers”, said Mr Basham.

Proposed solutions offered to the senate inquiry by ADF include –

• The development of the Code of Best Practice on milk supply contractual agreements to ensure transparency and fairness in milk price arrangements
• To ensure that the ACCC review identifies and investigates sharing risk along the supply chain, supply agreements and contracts, competition, bargaining and trading practices in the industry and the effect of world retail prices on profitability
• Incorporating an effects test to show the impact of anti-competitive behaviour
• The implementation of a world dairy commodity pricing index and educational program for farmers to better understand the impacts of the world market price and impact on the domestic market

“Dairy farmers deserve fair returns at the farm gate, as well as transparency in milk price arrangements and supply contracts.

We urge the industry to work together with government to better balance risk along the dairy supply chain, especially when it comes to managing the effects of volatile world prices.

ADF has continued to advocate on behalf of farmers throughout this difficult period and believe a united vision is the key to achieving positive outcomes going forward”, Mr Basham said.

The final report from the Senate Inquiry will be available on 24 February, 2017.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

The Goulburn Murray Irrigation District (GMID) Water Leadership Forum, today released the final report on the GMID socio-economic impact of the Murray-Darling Basin Plan.

The report reinforces the socio-economic impacts on the dairy industry, specifically the negative impacts of recovering the 450GL ‘upwater’ and the importance of delivering the full 650 GL in environmental offsets.

Chair of the Australian Dairy Industry Council (ADIC) Water Taskforce, Daryl Hoey said the report highlighted the negative impacts on economic and social indicators resulting from the Murray-Darling Basin Plan.

“The GMID community will be poorer again if any more water is recovered from irrigators, whether through buybacks or on-farm upgrades requiring farmers to transfer entitlement to the environment.

Milk production is down by 26 per cent in the GMID region which is directly linked to less water available under the basin plan.

Dairy resilience will wear thinner and two or more years of insecure water deliveries will drive more dairy farms out of business”, said Mr Hoey.

ADF agrees that the government needs to redirect the $1.5 billion earmarked for the Commonwealth On-Farm Further Irrigation Efficiency (COFFIE) program into works and measures to achieve similar or better environmental outcomes, and farm upgrade incentives so water saving remains on-farm.

“What we would like to see is the development for a regional economic development plan to attract new dairy investment to the GMID and retain the HRWS in the region”, said Mr Hoey.

The summit brought together community, industry and government representative concerned about dry conditions, low water allocations, rising water prices, the Murray-Darling Basin Plan’s socio- economic effects, and the GMID’s long-term viability. A working group was formed and commissioned RMCG to prepare this socio-economic impact assessment.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) believes there is an urgent need for the Murray-Darling Basin Authority (MDBA) to conduct a socio-economic analysis on the impacts of the Murray-Darling Basin Plan for the Southern Basin communities.

This is needed to provide an understanding of any proposed changes to the northern Basin plan as a result of the recently released socio-economic analysis of the impacts on the north.

“The MDBA should not be reviewing water recovery targets in the northern end of the Basin without understanding the impacts in the south,” said the chair of the ADIC Water Taskforce, Daryl Hoey.

“The authority can’t ask government to change the northern Basin target without also reviewing what different water recovery levels mean for southern communities and the environment,” said Mr Hoey.

As a response, the dairy industry has and continues to invest in a number of reports to track the Basin Plan’s socio-economic effects, and the implications of attempting to recover more water from the irrigation pool.

In March 2016, Dairy Australia commissioned Aither consultants to model the effects on the temporary water price of the Murray-Darling Basin Plan buybacks for the environment, and changing water demand from different industries.

It concludes that removing any more water from the collective pool, i.e. north and south, will inevitably make water more expensive, with serious implications for the dairy industry.

The positive stride taken by government toward improving the Murray-Darling Basin Plan must now extend to the southern basin communities as a matter of urgency.

The ADF is 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 meeting environmental targets.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) has today welcomed the government’s announcement to drop the proposed 32.5 per cent tax on backpackers.

A recent draft report released by the Productivity Commission into the regulatory burden on Australian agriculture has been welcomed by Australian Dairy Farmers (ADF) as an important first step.

Released yesterday, the report backs recommendations made by an ADF submission earlier that the level of red tape imposed on dairy farmers, including constraints around land use planning; plant science technologies; and transport regulations are costing farm businesses unnecessarily.

Acting ADF President, David Basham said minimising unnecessary red tape would deliver meaningful economic benefits for the entire dairy supply chain.

“As a producer of high quality, nutritious food which is exported to the world, the industry supports regulations to maintain and uphold the industry’s reputation. However, it is important that regulation is appropriately targeted, clearly understood and is not duplicated to the detriment of the industry and the economy,” Mr Basham said.

“When regulation is unnecessary, it often adds an avoidable cost to dairy farmers, which has to be absorbed by the business. This can have the effect of constraining growth or limiting a farmers’ ability to allocate funds to necessary aspects of the business.”

“This report opens up the conversation with industry about reducing red tape on dairy farmers while maintaining our high biosecurity standards and safe, quality products. There are a number of aspects in the report which ADF will be providing feedback on, including the need for an effects test to prevent predatory pricing.”

ADF is pleased that the Productivity Commission has released the draft report and looks forward to working with Government to deliver meaningful outcomes.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

The dairy industry’s peak farmer body, Australian Dairy Farmers (ADF) today announced Chief Executive Officer (CEO) Benjamin Stapley has resigned from his position.

Acting ADF President, David Basham, thanked Mr Stapley for his service over the past nine months, a period which has presented unprecedented challenges for the entire dairy sector.

Mr Basham said the team at ADF remained committed to providing targeted assistance for farmers and would continue to advocate strongly on their behalf.

ADF’s immediate and ongoing challenge is to maintain pressure on the Federal Government and Opposition alike to drive policy outcomes that provide dairy farmers with greater certainty about their businesses and the broader sector.

The vacancy created by the departure of Mr Stapley will be addressed immediately so that ADF can continue business as usual and meet the demands of the current challenges across the industry.

Mr Basham said the ADF Board had already taken steps to ensure that the role of CEO is well served in both the short and long term. Contact has already been made with former ADF CEO John McQueen, now an industry consultant, to step into this important leadership role on an interim basis while the recruitment process is completed.

Mr Basham said he had every confidence that Mr McQueen would be able to step into the role as early as Monday morning and that there will be a smooth, effective transition so no time is lost in fulfilling ADF’s mission to lobby for a stronger future for Australian dairy farmers.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au