Falling interest rates good news for dairy farmers

Falling interest rates on loans delivered under two vital Federal Government schemes will improve the long term viability of dairy farmers according to national advocacy body, Australian Dairy Farmers (ADF).

Loans delivered under the Farm Finance Concessional Loans Scheme and the Drought Concessional Loans Scheme fell to 4.34 and 3.84 per cent respectively as of 1 February 2015.

ADF President, Noel Campbell said the improved terms of both Federal Government loans would help dairy farmers reduce the cost of farm debt as well as providing cheaper finance for drought recovery on farm.

“This interest rate cut means farmers will be better placed if they want to use these Government loans,” Mr Campbell explained.

“While there are many factors beyond our control when it comes to seasonal conditions and drought, this decrease provides a better option for dairy farmers who are trying to return to full viable production as soon as possible.”

As the national voice of Australian dairy farmers, ADF has continually sought Government support to ensure viable farms have access to practical measures that will improve the industry’s longevity.

The decision by Government to lower interest rates shows confidence in Australian agriculture’s efforts to improve its long term sustainability, providing industry with the support to maintain our efforts.

The dairy industry has committed itself to continuous improvements, with a vision of becoming more prosperous, trusted and world renowned for its products’ nutrition by 2025, the value chain is working together to ensure its long-term sustainability and profitability.

The Farm Finance Concessional Loans Scheme is designed to assist farmers struggling with high levels of debt by refinancing existing debt and/or providing new loans to fund productivity enhancement activities that will enable farmers to better manage debt in future.

The Drought Concessional Loans Scheme helps farmers impacted by drought to sustain and rebuild their businesses as soon as possible.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

CEO of Australian Dairy Farmers announces resignation

Natalie Collard, Chief Executive Officer (CEO) of Australian Dairy Farmers (ADF) has announced she will step down from her role on 10 April 2015, after six outstanding years at the helm.

Ms Collard said she had thrived on the challenges and reaped the rewards of an exciting period for both ADF and for dairy.

“Dairy farmers are proud and passionate people, and to represent them on a national level has been an honour,” Ms Collard said.

Ms Collard said while she valued every moment of her time at ADF, she is now seeking her next career challenge.

ADF President, Noel Campbell paid homage to Ms Collard’s extraordinary leadership, and tireless dedication to Australian dairy, which has elevated the industry’s profile in both the community and Parliament.

“Natalie’s record speaks for itself. She is always striving for new ways to improve the profitability and sustainability of dairy and her proactive, innovative and considered approach has improved the quality and effectiveness of our organisation,” Mr Campbell said.

“She has fought hard for farmers on key issues such as $1 per litre milk and implemented imperative dairy policies, such as the Australian Dairy Vision and the Australian Dairy Industry Sustainability Framework.

Most recently, her strong advocacy efforts on the China-Australia Free Trade Agreement contributed to a positive outcome for dairy – one that will improve the long term sustainability of our industry.”

Recognising her outstanding leadership role toward attaining this pro-dairy deal, Ms Collard was awarded an Australian Dairy Farmers’ President’s Commendation in December 2014.

As CEO since 2009, Ms Collard has led ADF through the modernisation of its governance structure – a move that saw 50 per cent income growth leading to a positive change in the balance sheet after many years.

She also played a major role in establishing direct processor funding to the Australian Dairy Industry Council (ADIC), a whole-of-value chain policy and advocacy model that is the first of its kind in Australian agriculture.

In 2013 Ms Collard was recognised for her exceptional dedication and success as ADF’s CEO, awarded the Victorian Telstra Business Woman of the Year for service to Community and Government.

A firm believer in inspiring change, Ms Collard has been a strong advocate for youth in agriculture and mentor to young women in dairy, engaging with over 400 students at speaking events in 2014 alone.

Ms Collard thanked ADF, its board, staff, farmer members and industry partners for their support throughout her time at ADF.

“This is an exciting and important time for dairy,” Ms Collard said. “I would recommend anyone seeking to lead a dedicated team of individuals in an extremely worthwhile cause to take up this opportunity – to drive sustainable profitability of dairy farmers across Australia.”

Mr Campbell said that Ms Collard has gained many friends in the industry; all of whom look forward to watching her succeed in future.

The ADF Board will soon commence recruitment for a new CEO. All inquiries should be directed to the ADF Office via (03) 8621 4200.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Coles announcement highlights need for Mandatory Code of Conduct

On the heels of Coles’ admission to the Australian Competition and Consumer Commission (ACCC) yesterday, Australian Dairy Farmers (ADF) has reiterated the need for stronger competition laws that will protect suppliers against the unjust activities of major retailers.

ADF President, Noel Campbell said that Coles’ announcement was a damning indictment against the supermarket giant, whose actions and continual denial over the past four years have had significant negative impacts on suppliers and dairy farmers affected by $1 per litre milk.

“Coles has misled Australian consumers and Parliament for too long on this issue,” Mr Campbell said.

“They have finally confirmed what ADF, and others, have long said about their unsustainable $1 per litre milk campaign. This admission does nothing to rectify the damage they have inflicted upon processors and dairy farmers, who have ultimately paid for their unsustainable price cuts.”

Mr Campbell said the announcement highlighted the need for a Mandatory Code of Conduct with significant penalties and a Supermarket Ombudsman to enforce the Code.

“Coles must pay suppliers, and ultimately farmers, a fair price for their hard work. They should not be able to force the costs of unsustainable price cuts onto farmers,” he said.

ADF looks forward to the findings of the Harper Review of Competition Law and Policy, with the hope that this will foster a fairer supply sector going forward and end unjust practices such as the $1 per litre campaign.

ADF thanked the ACCC for its persistence in pursuing Coles in this matter, and said it will be watching the court proceedings closely.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Three New ADF Directors elected at AGM

Australian Dairy Farmers’ Business Members today elected three new Business Directors to the Board, Simone Jolliffe, David Basham and Tyran Jones at the second consecutive ADF Annual General Meeting.

With significant experience in the dairying business, all three Board members are exceedingly well qualified for their roles, with each bringing a unique perspective to the table.

Outgoing Board members, Chris Griffin and Peter Evans announced in September that they would retire at the end of their respective terms and therefore did not seek re-election. ADF President, Noel Campbell spoke highly of both directors.

Simone Jolliffe, who has been re-elected to the ADF Board having fulfilled a casual vacancy, has been on the board of Dairy NSW since 2010, and became Deputy Chair in 2013. Simone has a Bachelor of Rural Science, and is the current Chair of the Inland Elite Dairy Network.

As President of the South Australian Dairyfarmers’ Association since 2005, David Basham has been a lively advocate for the dairy industry over many years. David has been instrumental in the development of SADA Fresh Milk.

Tyran Jones is the current President of United Dairyfarmers of Victoria, and a committed member of the ADF National Council. A Victorian dairy farmer, Tyran is an advocate for agriculture innovation and adapting new technologies on farm.

ADF President, Noel Campbell welcomed the new additions to the Board, and thanked the outgoing directors for their service.

“It’s a pleasure to welcome our directors to the Board” Mr Campbell said. “Their vision and ideas will help ADF in its work to promote the interests and sustainable profitability of all Australian dairy farmers.”

The ADF Board is comprised of four farmer directors Noel Campbell, Simone Jolliffe, David Basham and Tyran Jones, and one independent director, Dr Anne Astin.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF Calls For Expressions of Interest in Policy Advisory Groups

Australian Dairy Farmers (ADF) today called for Expressions of Interest from ADF farmer members asking them to become part of one of the peak body’s Policy Advisory Groups (PAGs).

Expressions of interest close on 30 January 2015 and can be accessed via the ADF website.

PAGs play a key role in setting business objectives for industry and driving policy formulation. They help to ensure dairy interests are properly represented at a domestic and international level.

Mr Noel Campbell, President of ADF, said the role of the PAGs was critical to policy formulation for the long-term future of dairy.

“We face many challenges as an industry and have always relied on the vision, passion and participation of people within dairy,” said Mr Campbell.

ADF PAGs recommend policy settings to the ADF via the National Council and also act in an advisory capacity providing feedback to Dairy Australia, state dairy farmer organisations (SDFOs) and other bodies like the National Farmers Federation and the Australian Dairy Products Federation.

“PAG members have made a great contribution to dairy over the last 70 years and we want this to continue,” Mr Campbell said.

Mr Campbell said the five PAGs including: Markets, Trade and Value Chain; People and Human Capacity; Animal Health and Welfare; Farming Systems and Herd Improvement and Natural Resources needed to be driven by farmers.

“We welcome and encourage direct involvement from dairy farmers to drive policy in the right direction,” said Mr Campbell.

PAGs are appointed by the ADF Board every year to ensure ADF business members with the right skills, talent and interest are involved.

PAGs can meet up to three times a year. There is a requirement for PAG members to attend the majority of meetings. When PAGs do meet face to face, expenses and sitting fees are covered by ADF in line with internal policy.

Background

PAG Skills and Interest

Ideally, a PAG will have members with a specific interest in that policy area and a complementary mix of skills and experience. The ADF National Council’s appointment of PAG members is based on assessment of each prospective PAG member and the likely contribution they will make to that policy area.

Generally PAGs will consist of six members including two to three National Councillors (some PAGs may be larger in order to accommodate members with specialist skills).

PAG Expression of Interest Process

ADF uses an Expression of Interest (EOI) process to invite ADF business members to register interest in serving on a PAG. The EOI process seeks people with interest and enthusiasm and a strong commitment to the policy area.

ADF business members are invited to lodge a brief statement indicating reasons for interest in the PAG and a brief summary of experience relevant to the PAG. If a prospective PAG member is interested in joining more than one PAG, they can apply to do so.

Current PAGs will continue until positions have been ratified in the first quarter of 2015.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF Calls For Mandatory Code of Conduct

Australian Dairy Farmers (ADF) has called on the Government to address the imbalance of market power facing dairy farmers, with the submission of its response to the draft report of the independent Competition Policy Review Panel; ADF’s second submission to the Harper Review.

ADF President, Noel Campbell said that the unequal distribution of market power means that farmers are often backed into a corner when it comes to farm gate prices.

“This disadvantage is heightened due to logistical constraints in supplying perishable goods. We need policy that will enable a more level playing field,” Mr Campbell said.

The peak dairy farmer body welcomed the Panel’s recommendation for an Effects Test, to examine the impact of major retailer conduct. However, ADF pointed out that the new need to prove purpose may make the Effects Test impossible to apply and should be removed.

ADF also reiterated the need for a Mandatory Code of Conduct and a Supermarket Ombudsman with teeth to balance the excessive market power of major retailers.

“While we recognise that the proposed retailer and AFGC Grocery Code of Conduct is a step in the right direction, ADF is of the view that it has a number of significant flaws and gaps,” Mr Campbell explained.

“The Code must be mandatory, applying to all retailers and incurring penalties for non- compliance, giving it the necessary authority to provide meaningful protection for the industry.”

The industry also called for further improvements to Collective Bargaining and boycott regimes, than those proposed by the Panel.

Designed to review Australia’s competition laws and policy, the Competition Policy Review is the first of its kind to be undertaken in 20 years. ADF acknowledged the efforts of the government to create a more equal commercial environment for industry suppliers, processors and retailers.

ADF appreciates the opportunity to respond to the review and the hard work that the Panel has undertaken to address key issues in competition policy.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Robb backs dairy foreign investment

Addressing over 100 dairy farmers, industry and political representatives at the Corangamite Farmers’ Forum on 16 October, the Minister for Trade and Investment, Andrew Robb declared that investment, both foreign and domestic, is crucial to the future of dairy.

“For over two centuries now, Australia has relied on foreign investment to drive much of its industrial development,” Mr Robb said. “Such investment continues to be integral to our development.”

ABS data indicates that 99.5 per cent of dairy farm businesses are entirely Australian owned, while foreign investment and joint domestic/foreign partnerships, account for a mere 0.5 per cent.

Australian Dairy Farmers (ADF) President, Noel Campbell said he welcomes foreign investment, recognising the potential it presents to foster sustainable growth for dairy.

“As with any negotiation there will be trade-offs, we cannot expect a strong deal on dairy from the Chinese government without giving something in return, “Mr Campbell said.

Mr Campbell stressed that any foreign business must adhere to the same legislation local industry is subject to, from regulation of employment to food and safety standards.

“ADF believes that foreign investment which passes our foreign investment regulatory regime poses no more risk than any other investment.”

Mr Robb suggested concerns over foreign investment are unfounded.

“There are [6,400] dairy farms in Australia. The fact that 50 may be bought with a lot of other money coming with it, to invest in local towns and new processing operations…this is what Australia’s been built on.”

“Foreign investors will still have to pay taxes like everyone else. They will still have to abide by our laws.”

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Dairy Farmers Support Foreign Investment

“Australian Dairy Farmers recognises the importance of foreign investment to our vibrant Australian dairy industry and supports foreign investment in the industry,” said ADF President Noel Campbell.

“This view has been expressed consistently over the last two decades as various countries have invested in Australia,” said Mr Campbell.

The Australian dairy industry is a global player in a global industry. We export almost 40 per cent of our total production.

If we are to grow our industry it will be through exports. Our global market share is currently 7 per cent, we want this to grow.

“Investment, both domestic and foreign, is crucial for this growth. Australian dairy farmers support foreign investment for this reason.”

The China Free Trade Agreement is an important plank in growing our industry.

Greater China is now our biggest export destination, even without an FTA, with over half a billion dollars worth of product going there in 2013.

As with any negotiation there will be trade-offs, we cannot expect a strong deal on dairy from the Chinese government without giving something in return.

ADF is confident the current foreign investment regulatory regime is robust, will be strengthened further by the planned land register and supports the National Interest Test.

ADF believes that foreign investment that passes our foreign investment regulatory regime and accords with our national competition laws poses no more risk than other business investment.

It is worth noting that investment to drive sustainable growth was a key priority from the National Dairy Farmers’ Summit.

“I have never seen a foreign investor pick up farming land or a dairy farm and take it back to their country,” said Mr Campbell.

We welcome foreign investment that helps to grow and strengthen our industry.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF urges swift ratification of the Korea-Australia FTA

Australian Dairy Farmers (ADF) has welcomed the Joint Standing Committee on Treaties (JSCOT) recommendation that Australia ratify the Korea-Australia Free Trade Agreement (KAFTA) – an agreement that could deliver millions of dollars in additional export value to the Australian economy.

ADF President Noel Campbell said the deal recognises dairy as one of the nation’s export strongholds and must be ratified as soon as possible to open up markets for Australian dairy farmers.

“We were pleased that the Korean and Australian Governments reached an agreement in December 2013 after four years of intense negotiations. This was a major step forward in securing Australia’s trade within the Asian region, and we congratulate the Government on its achievement.

“The challenge now is moving from words to action. Key commercial rivals such as the USA and EU already have FTAs with Korea and Australia’s FTA with Korea is vital to stop continued market erosion,” Mr Campbell said.

“Korea is a significant dairy market for Australia and currently ranks 10th by value with $88 million worth of exports in 2012/13,” he said.

In 2011/12 Australian exports to Korea were $116 million. To arrest this decline, Mr Campbell stressed that KAFTA must be ratified before the end of 2014.

“The agreement, when implemented, will set most Australian dairy products on a path to eventual full trade liberalisation into Korea,” Mr Campbell said.

Key benefits for dairy in the agreement include:

  • Some dairy products with zero tariffs on entry into force, while the majority will see tariffs phased down over varying periods of time; and
  • Tariff-free access for specified volumes of cheese, infant formula, and butter under Country Specific Quotas (CSQ) from day one of the agreement.

Mr Campbell said that Dairy Australia estimates indicate that the first year benefit of tariff savings for Australia under KAFTA will be in the order of US$7.6 million, with this figure set to grow year on year as the CSQ volumes increase and the out of quota tariffs reduce.

“Ratifying the agreement before the end of the year will mean that Australian dairy can take advantage of the tariff reduction timeline as of 1 January 2015. Any delay in the parliamentary process will cost the Australian dairy industry another year of benefits.

“It’s vital that Australia acts quickly to seize the opportunity for early implementation of this agreement. We must get the ball rolling – every day of unnecessary delay holds Australia’s growth and prosperity back,” Mr Campbell said.

Media Contact:

Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

#FTA4dairy campaign reaches over 1.6 million online

Australian Dairy Farmers’ (ADF) social media campaign, #FTA4dairy launched yesterday, received a tremendous response, reaching over 1.6 million Twitter users.

ADF CEO, Natalie Collard said the Australian dairy community’s strong online support is a testament to the industry’s desire to secure a positive China-Australia free trade agreement (FTA) for dairy.

“We are overwhelmed by the incredible support for the dairy industry and ADF would like to thank all those who took part in our campaign,” Ms Collard said.

“This social media campaign was positively backed by all sides of dairy – farmers, processors, the broader industry, politicians, students and dairy consumers alike – all in support of a more competitive and prosperous future for our dairy industry,” Ms Collard said.

Along with the Australian dairy community’s support, both sides of politics also voiced their backing for a positive China-Australia FTA outcome.

Nationals Senator, Bridget McKenzie expressed the Senate’s desire to “back” the Australian dairy industry.

Similarly, Shadow Minister for Agriculture, Joel Fitzgibbon showed his support for the campaign and tweeted: “What’s good for dairy is good for Oz.”

ADF President, Noel Campbell said that the #FTA4dairy social media campaign is just one avenue of ADF’s ongoing advocacy efforts.

“We continue to work closely with the Federal Government in order to help secure the best possible China-Australia FTA outcome for our dairy industry,“ Mr Campbell said.

Mr Campbell, who has just returned from the China Dairy Industry Association (CDIA) annual conference in Shanghai, reiterated that the Australian dairy industry has been working closely with its Chinese counterpart to foster a mutually beneficial trade partnership into the future.

“Once secured, a China-Australian FTA will provide Chinese consumers with better access to high-demand products, as well as an improved overall diversity of supply,” he said.

ADF appreciates the hard work of the Federal Government and will continue working hand in hand with the Department of Foreign Affairs and Trade (DFAT) and the Department of Agriculture.

ADF launched #FTA4dairy on Monday 1 September, encouraging everyone to upload a #FTA4dairy ‘selfie’ holding a sign incorporating the #FTA4dairy hashtag and a positive message about the China FTA.

For more information about ADF’s advocacy work and to view the campaign’s highlights visit: www.fta4dairy.com.au

Media Contact:

Stephanie Karangis, Acting Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

Get your #FTA4dairy selfie on TODAY!

Australian Dairy Farmers (ADF) is today urging all Australians to get behind its #FTA4dairy ‘selfie’ campaign to help secure a China-Australia free trade agreement (FTA) which could see $30 million in tariff savings per year placed back into the pockets of Australians.

Showing your support is as simple as uploading a #FTA4dairy selfie holding up a postive message, and posting it online incorporating the #FTA4dairy and #FTA4farmers hashtags.

Australia’s fresh and unparalelled quality dairy products are something we take for granted everyday, but Australia’s dairy industry continues to be significantly commercially disadvantaged by tariffs which don’t apply to our New Zealand (NZ) neighbours.

ADF President, Noel Campbell said a China-Australia FTA that places Australian dairy on a level footing with NZ dairy will provide benefits for everyone, including the 43,000 Australians directly employed in the dairy supply chain.

“A positive China FTA will help to bolster economic growth, provide jobs, encourage industry investment, and provide Chinese consumers with the clean, green and fresh dairy produce they deserve,” Mr Campbell said.

Along with 6,400 Australian dairy farmers, Gippsland dairy farmer, Chris Griffin was up at 4.00am this morning before most of us were awake, milking 350 of Australia’s 1.6 million dairy cows, hoping for a fair China-Australian FTA dairy deal.

“Out in the paddock today, I will be on my smart phone to show my support online for a positive China FTA that will secure a more competitve and prosperous future for Aussie dairy,” Mr Griffin said.

“Everyone needs to get involved, it’s so easy – I’ve already taken a #FTA4dairy selfie this morning!” Mr Griffin said.

Together, we can secure a positive China-Australia FTA dairy deal our industry and Chinese consumers deserve.

For more information and to find out how to get involved in this campaign, please visit: www.FTA4dairy.com.au.

Media Contact:

Stephanie Karangis, Acting Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

ADF welcomes National Centre for Farmer Health funding

Australian Dairy Farmers (ADF) has welcomed a total of $625,000 funding from the Victorian and Commonwealth Governments for the world-renowned National Centre for Farmer Health (NCFH).

ADF President, Noel Campbell, said the funding, comprising $375,000 from the Commonwealth and $250,000 from the Victorian Government, would enable the centre to run for a further 12 months.

“The National Centre for Farmer Health has made an important contribution towards improving the health, safety and well-being of farm men and women, farm workers, their families and the communities in which they live,” Mr Campbell said.

“The centre is located in Hamilton in Western Victoria and is a partnership between the Western District Health Service and Deakin University.

“An example of the NCFH’s work includes the internationally-recognised and nationally-run Sustainable Farm Families Program.

“The NCFH has undertaken too much good work, like the Sustainable Farm Families Program, to be allowed to close its doors for a simple lack of funding.

“As such, ADF welcomes the Commonwealth and Victorian Government’s funding contributions as an important indicator of their support for the centre’s work.

“However, we note that this funding has been provided on a one-off basis, and ADF earnestly hopes that a longer term and sustainable funding arrangement can be put in place.”

Mr Campbell congratulated NCFH staff, the National Farmers’ Federation (NFF), the Victorian Farmers Federation (VFF) and the Federal Member for Wannon, Dan Tehan MP, for their efforts in securing funding.

“Building on their efforts, ADF had previously advocated for funding on the centre’s behalf in our pre-budget submission to the Federal Government,” he said.

“We look forward to a productive 12 months ahead for the NCFH in promoting the physical and emotional well-being of farmers and farming communities.”

Media Contact:

Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

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