ADF calls for urgent action on dairy concessional loans

With approximately 4,000 dairy farmers impacted by unprecedented market shocks in recent weeks, Australian Dairy Farmers (ADF) has called on the Federal and State Governments to stop playing politics with dairy farmers’ livelihoods and make Dairy Recovery Concessional Loans available now.

Acting ADF President, David Basham said the dairy industry had welcomed the Government’s efforts to provide targeted assistance but it remains essential for details to be released urgently.

“It’s now been over two weeks since formal announcements were made regarding assistance for farmers. In order for these measures to be meaningful they must be delivered now,” Mr Basham said.

“ADF, together with state dairy farming organisations, has clearly communicated to all levels of Government that all farmers, not only those who supply Murray Goulburn and Fonterra, need immediate access to the promised dairy loans. This must consider share-farmers and those who have previously been ineligible for government assistance due to their residency status.”

The urgency for making the loans available is compounded by impending July 1 milk price announcements to be made by processors, Mr Basham said.

“Farmers need to know right now whether or not they are eligible for the 10-year Recovery Loans so they are able to compare with loans being offered by milk processors. It’s time for all parties to come to the table and back industry’s efforts to support farmers through the challenging times.”

“Government to government bickering is helping no-one, least of all those most in need – dairy farming families. We continue to urge bipartisan support from all levels of parliament to deliver swift and comprehensive assistance for farmers, to safeguard the dairy industry’s long term future.”

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF continues to call for early opening milk prices

Australian Dairy Farmers (ADF) has acknowledged Warrnambool Cheese and Butter’s (WCB) early announcement of their opening milk price today, the timing of which provides farmers with much-needed certainty.

ADF Acting President, David Basham said the opening price of $4.80 is extremely disappointing, however by making the announcement early suppliers have the opportunity to properly budget and plan for the season ahead.

“There is no denying that this low price is going to hurt. Having said this, we recognise that WCB have heeded the industry’s call for earlier pricing announcements,” Mr Basham said.

“ADF is urging all processors to follow suit and urgently communicate their opening price as soon as possible to help farmers plan and make important on-farm decisions. Give farmers a fair go.”

ADF continues to push for increased transparency throughout the dairy supply chain, and will work with members to build a fairer pricing system.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Confidence dampened, but stronger future ahead

Australian dairy farmer confidence has taken a serious knock since the start of 2016, with a major industry report released today revealing fewer farmers are positive about their industry than a year ago – and a likely 20 per cent drop in confidence between March and now.

Peak body Australian Dairy Farmers says this is not surprising given the unprecedented industry shock that has hit dairy farmers and their businesses.

ADF Acting President David Basham said long-term indicators in Dairy Australia’s 2016 Situation and Outlook report suggest a stronger future, however immediate indicators were understandably negative or neutral.

“Our first interest, with State dairy farmer organisations, is dairy farmers’ wellbeing, and our clear intent is to ensure no dairy farmer is ever again so vulnerable to processor decisions,” Mr Basham said.

“We must better balance market volatility throughout the Australian dairy supply chain.

“The last few weeks have painfully illustrated that farmers bear more than their fair share of risk and financial fall-out from global market volatility,” he said.

“Improving equity and transparency are just some of the matters ADF is driving with the Australian Competition and Consumer Commission and the Federal Government.”

He said short-term, targeted assistance measures provided by State and Federal Governments were broadly positive and reflected the immediate needs of the most affected dairy farmers.

“But it is crucial that the full suite of support measures be available to farmers across all dairying regions, as processors begin the process of setting milk prices to be paid from 1 July.”

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Federal Budget 2016-17 – mixed outcomes for dairy

Amid a time of hardship, the 2016-2017 Federal Budget has delivered on some important priorities for the dairy industry amid other cutbacks, Australian Dairy Farmers (ADF) said today.

ADF President, Simone Jolliffe said the Coalition Government has struck a difficult balance between the need to find savings and the need to invest in the long term future of agriculture.

Mrs Jolliffe said “the dairy industry understands this was always going to be a tough, no-frills budget with little in the way of major new spending initiatives in agriculture. Having said this, there are a few positive incentives for the dairy industry.”

ADF noted moderate progress in the budget including:

  • $7 million over 4 years to continue additional positions within the Rural Financial Counsellors Service;
  • $15.9 million over 4 years to build an advanced analytics capability within the Department of Agriculture and Water Resources for identification of biosecurity risks to the farm sector;
  • A tax cut for small business – 2.5% off the company tax rate from 1 July 2016 which becomes available to all small companies with an annual turnover of less than $10 million;
  • Unincorporated small business tax discount increased from 5 to 8 per cent from 1 July 2016 for small businesses with a turnover of less than $5 million;
  • Increasing access to a range of small business tax concessions for businesses with an annual turnover of less than $10 million, including the ability to immediately deduct asset purchase costing less than $20,000 until 30 June 2017; and
  • $15 million to control carp in the Murray Darling Basin.

ADF remains concerned about the lack of movement with regards to the backpacker tax.

“The Government must restore certainty and confidence to farm businesses and rural communities by urgently removing the backpacker tax.”

“The mixed bag of outcomes for dairy is disappointing. We will take these concerns into consideration in delivering our priorities for the election” Mrs Jolliffe said.

ADF will continue lobbying Government to implement policies and programs that will support farmers through current difficult market conditions.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Concerns for farmers in wake of farm gate announcements

Australian Dairy Farmers Limited (ADF) has expressed disappointment at the announcement made by Murray Goulburn Co-operative Co Ltd (MG) this morning, regarding their revised opening milk price of between $4.75 and $5.00 per kilogram milk solids (kgms) for the Financial Year 2016. MG has proposed a Milk Supply Support Package that would see farmers receive payments during FY16 equivalent to $5.47 per kgms.

ADF President, Simone Jolliffe said that the situation is particularly troubling during a time when farmers are already experiencing hardship.

“Many farmers are already experiencing a challenging season due to dry conditions – market volatility adds to the already difficult task of managing and budgeting through such a period. This announcement will significantly damage confidence and potential investments in the dairy industry,” Mrs Jolliffe said.

“I know it’s a very frustrating situation facing farming families at this time. During times like these we need to ensure we are looking out for one another, and seeking support where possible.”

ADF is working with state dairy farming bodies and Dairy Australia, to support farmers and ensure they have access to all the resources they need.

“ADF will continue to talk to processors to understand the full impact of this announcement on the industry as a whole. We will also continue to urge them to communicate with their suppliers and explain any changes,” Mrs Jolliffe.

“Within the industry there are resources, including Dairy Australia’s Tactics for Tight Times and work being applied to help dairy farmers confront this challenge. We are working in partnership across the industry to support Australian dairy farmers in their decision making and cope with the challenges ahead.”

ADF encouraged farmers to contact their local regional development program or state dairy farming organisation for support services. Farmers looking for mental health support are encouraged to contact Beyond Blue or Lifeline.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Introduction of ‘effects test’ will foster stronger competition

Australian Dairy Farmers (ADF) has applauded the introduction of an ‘effects test’ by the Federal Government, which will strengthen competition across the grocery supply chain.

ADF has advocated strongly for the change since 2011. 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.

ADF President, Simone Jolliffe said she looked forward to working with the government to ensure that the legislation prevents firms with significant market power from engaging in conduct that has the purpose, effect or likely effect of substantially lessening competition.

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

“In conjunction with the government’s introduction of the Food and Grocery Code, which included a large number of ADF’s recommendations, this is a constructive step toward fostering a more competitive business environment.”

“Further, the appointment of Mick Keogh OAM as the Australian Competition and Consumer Commission’s first Agricultural Commissioner and an Agricultural Engagement and Enforcement Unit, highlights that the government is committed to strengthening competition across the supply chain.”

Mrs Jolliffe said the reforms will support consumers’ interests as well as dairy farmers.

“Moving toward a more objective measure to assess the impact of anti-competitive behaviour will build a more open and transparent marketplace.”

ADF is hopeful that this will assist in preventing damaging practices, including predatory pricing in future.

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

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF Welcomes appointment of ACCC Agricultural Commissioner

Australian Dairy Farmers’ (ADF) has welcomed Mick Keogh OAM’s appointment as the Australian Competition and Consumer Commission’s (ACCC) first Agricultural Commissioner.

Mr Keogh brings a wealth of agriculture industry knowledge and experience to the new position. Mr Keogh has researched and written on the impact of supermarket dominance and the struggle for governments to find an appropriate response to ensure markets remain fair. ADF believes this awareness will be invaluable to the role.

ADF President, Simone Jolliffe said Mr Keogh’s appointment delivered on a key outcome of the Agricultural Competitiveness White Paper that would help drive competitiveness across the agriculture supply chain.

“ADF in collaboration with its State member organisations has long advocated for the ACCC to increase engagement with the agriculture sector, to help foster a stronger business environment for our farmers,” Mrs Jolliffe said.

“Mr Keogh’s appointment is a good step toward ensuring farmers’ interests are recognised and understood. We look forward to working with him and the ACCC’s Agriculture Engagement Unit to ensure a transparent, fair supply chain.”

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Seasonal Worker Programme expansion a win for dairy

Australian Dairy Farmers (ADF) is pleased that dairy has been included in the expansion of the Seasonal Worker Programme (SWP).

ADF President Simone Jolliffe said that seasonal workers will now be able to assist dairy farmers during busy periods when local workers are not available.

“We are strongly supportive of initiatives that improve the industry’s access to overseas labour and ADF has been advocating for dairy to be included on the SWP for some time,” Mrs Jolliffe said.

“The dairy industry’s most valuable asset is the people who work in it and our first preference is always to hire Australian workers. However, despite ongoing investment in education and training, the industry is suffering a labour shortage.

“We need overseas workers for vital on-farm roles which cannot be filled locally.”

The dairy industry has a strong track record of contributing to communities in regional Australia and it is eager to similarly make contributions to communities in neighbouring countries in the Pacific and Timor-Leste.

“We congratulate Minister for Agriculture and Water Resources Barnaby Joyce and Minister for Employment Michaelia Cash on this important announcement,” Mrs Jolliffe said.

“It is fantastic to see ADF’s lobbying efforts come to fruition. We will continue to advocate for programs which make it easier for dairy farmers to employ overseas workers who strengthen rural communities when local employees are not available.”

The SWP provides approved employers with access to seasonal workers from Pacific island countries and Timor-Leste for up to six months and up to nine months for workers recruited from Kiribati, Nauru or Tuvalu.

More information on the expansion of the Seasonal Worker Programme can be found here: http://www.employment.gov.au/news/australian-government-expands-seasonal-worker- programme-further-agricultural-sector

Media Contact:

Sarah Chahine, Communications Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF welcomes Minister Joyce’s support for dairy levy poll process review

Australian Dairy Farmers (ADF) has welcomed support from the Minister for Agriculture and Water Resources, the Hon. Barnaby Joyce, for changes to the dairy industry levy poll process.

In a meeting with ADF President Simone Jolliffe on 3 February in Canberra, Minister Joyce confirmed the government’s support of the proposed reforms, and the intention to introduce legislation to facilitate the changes in the Autumn 2016 Parliamentary session.

“Australia’s dairy sector is an important and forward-looking industry, with good leadership and a strong vision for its future,” Minister Joyce said.

“Levy payers have demonstrated strong support for these changes, which will simplify and streamline the dairy levy process”.

Mrs Jolliffe said the changes are expected to generate significant savings to farmers through a simpler, less costly levy poll process, while still ensuring accountability in spending levy funds is retained.

“This means these levy funds can instead be redirected towards vital research, development and extension programs, increasing productivity and profitability and continuing to strengthen innovation within our industry”.

Media Contact:

Sarah Chahine, Communications Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Effects test needed to foster stronger business environment

Australian Dairy Farmers (ADF) has continued calls for the Federal Cabinet to adopt stronger misuse of market power laws to foster a more competitive business environment.

January 26, 2016 marks five years since Coles’ supermarket dropped the price of its home brand milk to $1 per litre, igniting a price war with Woolworths that reduced the value of milk to an unsustainable level.

ADF President, Simone Jolliffe said there have been important breakthroughs for competition policy since 2011.

“The introduction of the Food and Grocery Code, which included a large number of ADF’s recommendations, was a constructive first step toward fostering a more competitive business environment.

Further to this the Australian Government’s support for key recommendations from the Harper Review of Competition Policy is extremely positive,” Mrs Jolliffe said.

“ADF also welcomed the announcement in the Agricultural Competitiveness White Paper of $11.4 million over four years to boost the ACCC’s engagement with the agriculture sector including a new Agricultural Engagement Unit.”

However, Mrs Jolliffe said the industry would continue to advocate for improved transparency regarding the impact of retailer actions on suppliers. ADF also continues to advocate for the regulating bodies to have the power to prevent predatory pricing in future.

“ADF also strongly supports the Harper Review’s recommendations for any updated competition and consumer law to include an effects test,” Mrs Jolliffe said.

“Addressing the misuse of market power is crucial in determining the Australian dairy industry’s future profitability and sustainability.”

Mrs Jolliffe encouraged consumers seeking to show their support for farmers to “buy branded”.

“The more branded milk we buy the more money stays in our dairy value chain. By keeping these dollars in the value chain dairy has the capacity to reinvest in industry research and innovation – which helps to strengthen our farmers, improving their efficiency and prospects of long term sustainability.

“Farmers need every opportunity to improve their negotiating power for profitability and returns at the farm-gate to be achieved.”

Media Contact:

Adele Beasley, Policy Officer

T: (03) 8621 4200

E: abeasley@australiandairyfarmers.com.au

Historic DairyBio partnership a win for farmers

Australian Dairy Farmers (ADF) has welcomed a historic partnership between the Victorian State Government and Dairy Australia who will together invest $45 million in a new research initiative, DairyBio. DairyBio will deliver innovation for pasture and herd productivity research crucial to a profitable future for the dairy industry.

ADF President, Simone Jolliffe said the investment recognises the pivotal role that dairy plays in Victoria’s economy as well as rural communities across the State.

“DairyBio is a win for the dairy industry, particularly farmers. Encouraging uptake of innovative technologies is a challenge in an environment where on farm input costs continue to go up. Shared government and industry investment in research, development and extension (R, D& E) is critical to our success,” Mrs Jolliffe said.

“This partnership is an exciting co-investment in forage and genomic research, development and extension crucial to a strong, profitable future for the dairy industry.”

Building on dairy bioscience developments achieved by the Dairy Futures Cooperative Research Centre (CRC), this initiative ensures the excellent work being conducted by scientists at the AgriBio facility at Bundoora will continue for the benefit of the dairy industry.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Voters say “yes” to Levy Poll Process Review recommendations

Australian Dairy Farmers (ADF) has acknowledged the result of voting on the Dairy Levy Poll Process Review, with the majority of voters in favour of the recommended changes.

“The essential question for levy payers was whether they believed we should opt for a levy poll only when a change in the levy was being sought,” said ADF President, Simone Jolliffe.

“Every Australian dairy levy payer has been contacted through this consultation. Levy payers have been provided opportunity to comment and to vote for or against the recommendations of the review. The most significant recommendation is that a levy poll should only be held if a change to the levy is proposed.

“The response from dairy levy payers including through the vote, which closed on Friday 27 November, provides a strong signal that dairy farmers believe the industry should make the changes to the levy poll process.”

Should the changes be implemented, if farmers believe a poll is necessary, there is a failsafe mechanism for a group of levy payers representing at least 15% of levy votes to propose at a Dairy Australia general meeting, that a poll be held.

The levy payer consultation included a vote that drew 24.70% of votes, with 89.95% voting in support of the recommended changes.

“Against the benchmark of a shareholder vote, the consultation and voter turnout for this review demonstrates strong engagement and support by levy payers,” Mrs Jolliffe said.

Mrs Jolliffe said the Federal Government would now be advised of the outcomes of the three month consultation process.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

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