ADF backs calls to strengthen misuse of market power laws

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

While some business groups have suggested that stronger laws about the misuse of market power may have negative impacts on competition and innovation, these claims don’t withstand scrutiny.

ADF President, Noel Campbell said concerns that the introduction of an effects test could put consumers at risk were unfounded.

“These changes are about protecting consumers and competition from actions that substantially lessen competition in a market. These reforms are in consumers’ interests,’ said Mr Campbell.

“The Harper Review made it clear, the law as it stand is inadequate. The Government must not let self-interested businesses and organisations with excessive market share further limit competition to the detriment of consumers, farmers and the Government.”

ADF strongly supports the Harper Review’s recommendations for any updated competition and consumer law to include an effects test. ADF is advocating for certainty that the legal process is able to provide integrity and transparency regarding the impact of retailer actions on suppliers. ADF is hopeful that this will prevent damaging practices, including predatory pricing in future.

Addressing the misuse of market power is crucial in determining the Australian dairy industry’s future profitability and sustainability. Farmers need every opportunity to improve their negotiating power for profitability and returns at the farm-gate to be achieved.

ADF looks forward to working with both sides of Parliament, to ensure the unequal distribution of market power is addressed for the benefit of the entire food and grocery sector and for all Australian consumers.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Legendairy Capital highlights dairy’s value to the community

Australian Dairy Farmers (ADF) has congratulated the Legendairy Capital for 2015, Stanhope, announced this morning by Dairy Australia.

ADF President, Noel Campbell said the search for the dairy capital had exceeded industry expectations in drawing significant attention to the central role dairy plays in Australia’s rural and regional communities.

“43,000 Aussies are directly employed in the farming and processing sectors of our industry. A further 100,000 rely on the dairy industry for their work,” Mr Campbell said.

“As the economic backbone for many rural and regional communities across Australia, dairy enhances livelihoods and improves the wellbeing of these communities. For towns like Stanhope, dairy is a defining aspect of what makes their town great – the Legendairy Capital search has shone a light on this.”

“Congratulations to all the finalists, and to Stanhope on being crowned the 2015 Legendairy Capital.”

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Farmers launch China-Australia FTA regional roadshow

THE United Dairyfarmers of Victoria (UDV) and the Victorian Farmers Federation (VFF) together with the Australian Dairy Farmers (ADF) will next week launch a state-wide roadshow to highlight the importance of ratifying the China- Australia Free Trade Agreement (ChAFTA).

The farmer focused forums will offer farmers the opportunity to hear the benefits theChAFTA will deliver and how they can help ensure the ChAFTA is ratified in this calendar year.

“The ChAFTA is a once in a generation opportunity to grow Australian agriculture, particularly dairy, and boost our regional economies. If our Federal Parliament fails to get this ratified before the end of 2015, Australian agriculture and businesses will suffer,” UDV spokesperson, Vin Delahunty said.

“Right now the ChAFTA is under threat – we are ready to tell Victoria the real facts. This landmark deal will impact all of regional Victoria. The long-term prosperity of dairy and regional communities relies on free access to this major international market.

“I congratulate the Victorian Minister for Agriculture, Jaala Pulford and Premier Daniel Andrews for realising the importance of this FTA and being just two of many senior Labor figures who have publicly backed the ChAFTA.This leadership is crucial for Australian agriculture to thrive,” Mr Delahunty said.

“Implementing the ChAFTA will provide Australian businesses unprecedented access to the world’s second largest market encompassing over 1.3 billion consumers.”

“It will mean $25 billion in trade to China by 2020. This means more job opportunities for Australians and more money in the pockets of Australian families.”

ADF President, Noel Campbell said the regional forums would encourage further grassroots support for ratifying the deal this year.

“This trade agreement has taken 10 years to negotiate and it needs to be passed through Parliament so farm businesses can take advantage of two tariff cuts in quick succession – once when ratified and again on 1 January 2016,” Mr Campbell said.

“China is the world’s largest dairy import market. It is time for our farming community to come together and stand up to let Parliament know exactly what this means to our sector.”

Farrer House 24-28 Collins Street Melbourne 3000
Ph. 03 9207 5555 | Fax. 03 9207 5500 | E-mail. vff@vff.org.au | www.vff.org.au

The ChAFTA is a game changer. To delay the China trade deal means a lost opportunity – for jobs, farmers and regional towns.

China FTA Regional Roadshow Dates

Meeting Locations (September):

Monday, 21: Warrnambool – 12pm; Colac – 7pm

Tuesday, 22: Timboon – 11am

Wednesday, 23: Cohuna – 11am; Tatura – 7pm

Monday, 28: Maffra – 11am; Leongatha – 7pm

Tuesday, 29: Warragul – 11am

To register contact VFF Member Services on 1300 882 833 or email members@vff.org.au For more information visit www.FTA4dairy.com.au

Media Contact:

Shona McPherson, ADF Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Tom Whitty, VFF Media Manager

M: 0417 165 784

E: twhitty@vff.org.au

Proposed dairy levy change frees up cash, time: ADF

Australian Dairy Farmers (ADF) is urging support from dairy levy payers’ for recommendations to streamline the dairy levy process, and to opt for a levy poll only when a change in the levy is being sought.

ADF has suggested the change, based on the recommendations of the independent Dairy Levy Poll Process Review panel, commissioned following Dairy Australia’s 2014 Annual General Meeting. The panel concluded that there are big cost-savings and operational efficiencies gained by making this change.

“After the last poll in 2012, the clear message from Australian dairy farmers was that the efforts and funds dedicated towards the poll process could have been better spent delivering dollar value to dairy farmers,” said ADF President, Noel Campbell.

“It makes absolute sense, and the six-member panel recommendation was unanimous: we only vote when a change is proposed.”

Mr Campbell stressed the panel recommendation included a “failsafe” mechanism. If farmers believe a poll is necessary, they can initiate one by bringing together a group of levy payers representing at least 15 per cent of levy votes. This would activate a Dairy Australia General Meeting where 50 per cent of voters would need to resolve to hold a poll.

“This proposal is not about removing Dairy Australia from scrutiny. This is about a direct saving of at least $750, 000 that can instead go directly to industry benefit,” he said. That’s why ADF supports it, and why we believe dairy levy payers should also support it.”

The panel’s considerations included research conducted by Dairy Australia with levy payers after the 2012 poll, feedback from industry groups, public submissions and direct conversations with farmers in dairy regions around the country.

Mr Campbell said the industry must endorse to the Federal Government the changes to the levy poll, which would require amending the Dairy Produce Act and its regulations.

“That means achieving consensus, and ensuring we’ve consulted widely and well with levy payers on this matter, and also conducted a simple vote to demonstrate the merit of the proposal. This has to be wrapped up before the end of this year.”

ADF will provide farmers with the opportunity to discuss the recommendations at regional meetings over the next two months. The report of the independent panel is at www.dairylevypollreview.com.au

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF welcomes Fonterra announcement

Australian Dairy Farmers (ADF) has welcomed the announcement that the first products under Fonterra Australia’s partnership with Woolworths, rolled off the line at the milk processor’s new Beverages Plant in Cobden, Victoria yesterday.

The state-of-the-art plant, which will be officially launched by Fonterra in September, has generated 50 new jobs in Cobden and will supply Woolworths’ Select Own Brand Milk for the next ten years.

ADF President, Noel Campbell said he expected that the benefits of the long term contract between Fonterra and Woolworths would flow through to the farmers’ bottom line.

“The duration of Woolworth’s commitment with Fonterra Australia is welcome. Retail contracts with this sort of longevity provide milk processors with the security and certainty they require to invest in the industry’s capability and growth,” Mr Campbell said.

“The ten year contract also gives Fonterra the option to provide longer term contracts to their suppliers. Farmers are always more willing to invest on-farm when they have a certain destination for their product.”

Mr Campbell said ADF would continue to monitor farm gate returns for farmers supplying fresh milk contracts and as always, encouraged all Australians to buy branded to support all Australian dairy farmers.

“It is essential that farmers are paid sustainable prices for the dairy sector to remain healthy and competitive so we can continue to produce high quality dairy products in Australia.”

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF welcomes incoming CEO Benjamin Stapley

Australian Dairy Farmers (ADF) has announced the appointment of Mr Benjamin (Ben) Stapley as the incoming Chief Executive Officer (CEO) of Australia’s peak dairy farm body.

With a strong background in member advocacy, stakeholder engagement, policy development and media management, Mr Stapley comes into the role after two years as Director of Policy and Regulation at the Plastics and Chemicals Industries Association (PACIA).

Mr Stapley’s expertise in developing and executing strategic advocacy and communications activities will ensure that ADF continues to be a strong advocate for Australia’s dairy farmers. Prior

engagements have included leading policy, regulatory and advocacy programs for Australia’s chemical manufacturers and importers, and for Australia’s agricultural chemical suppliers. Mr Stapley brings particular experience in government relations with extensive networks within the Government and bureaucracy central to ADF’s interests.

Previous roles with the Commonwealth Government saw Mr Stapley work closely with industry stakeholders to reform and streamline Australia’s management systems for environmentally hazardous chemicals.

“ADF is pleased to welcome Ben and I, along with my fellow Directors, National Council and staff look forward to working with him to continually improve the sustainability and profitability of farmers across all dairying regions,” ADF President, Noel Campbell said.

Mr Stapley has also attained qualifications in both Law and Architecture.

“Australia’s dairy farmers have a very bright future and I am proud to be given this opportunity to work with the ADF Board, staff and farmers to help deliver a vibrant, profitable and sustainable dairy farming sector in Australia,” said Mr Stapley.

ADF Interim CEO Dr Clive Noble, who took on the role as a short term break from his consulting business, will continue in the position until 26 August, and Mr Stapley will commence on 1 September 2015.

Mr Campbell thanked Dr Noble for his contribution and service to ADF during his time as Interim CEO and wished him every success in his future endeavours.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

DairyBase to lift farm profitability, says ADF

Australian Dairy Farmers (ADF) has welcomed the official launch of Dairy Australia’s new web- based farm business management tool DairyBase.

ADF President, Noel Campbell endorsed the tool as a highly valuable resource, which will assist farmers who want to reduce on-farm costs, boost profitability and formulate annual business plans.

“DairyBase provides farmers, service providers and industry with a tool where real farm data can be used to measure performance, acknowledge successes and identify risks,” Mr Campbell said.

“Stopping to take stock is essential for good business management and this tool provides a practical, innovative method to delivering more resilient and sustainably profitable farms.”

Used in conjunction with other industry resources including the Australian Dairy Industry Council’s Sustainable Farm Profitability Report, to be officially launched in Victoria tomorrow, DairyBase will help lift farm profitability.

To learn more about DairyBase go to www.dairyaustralia.com.au

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Commonwealth assistance package welcomed by ADF

Australia’s peak dairy farmer body has welcomed an industry assistance package outlined this morning by Federal Agriculture Minister, Barnaby Joyce.

“We’ve been pressing the Federal Government for an appropriate response to this unprecedented dairy industry shock, recognising State Governments in the States most affected have already stepped up to the plate,” said Australian Dairy Farmers (ADF) CEO Ben Stapley.

“In principle the Minister’s announcement meets many of the urgent needs of dairy farmers that we have been representing to the Commonwealth in recent weeks.

“We appreciate recognition that this shock is a combination of factors leading to what we call a market super down cycle, and that the fundamentals of our industry and the entire sector are strong.”

He said dairy farmers were not asking for a bailout. The industry has backed itself and believes the long-term resolution rests with it, but that Governments can help to bridge to the resolution.

ADF has sought interest rate assistance for farmers and the adapted concessional loan scheme for dairy farmers flagged by Mr Joyce should help answer this need.

“Exceptional circumstance recovery grants would be a useful addition and we will continue to press for these,” Mr Stapley said.

More resources for Rural Financial Counselling is a significant gain and will help to ensure dairy farmers are making decisions based on the best available and most accurate information about their business.

Further support for Dairy Australia’s Tactics For Tight Times initiative and streamlined access to various Government services will also directly benefit farm businesses.

“In the dry conditions affecting much of Australia’s dairy production zone, we will continue to press for the release of Commonwealth-owned environmental water, and to advocate for stronger competition policy with the Australian Competition and Consumer Commission, to smooth out volatility and safeguard the future of our industry,” Mr Stapley said.

“Dairy farmers are not asking for a return to past days of a highly-regulated market, and they are not asking for consumers to be punished with a tax as proposed by some on the fringe of our industry.

“With the right support and collaboration in our industry, with consumers and with Governments, we can work through this and build a stronger future for the entire dairy sector.”

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF consolidates leadership to meet new challenges

The dairy industry’s peak farmer body, Australian Dairy Farmers (ADF), has consolidated its leadership around a new board structure in response to what it says are unprecedented challenges resulting from the dairy industry shock.

The ADF board will mobilise board members to address priority areas.

ADF President Simone Jolliffe will step into a newly-created Deputy President’s role, while fellow Board member and 11-year president of the South Australian Dairyfarmers Association (SADA), David Basham, will assume the role of Acting President until November this year.

As a consequence of the appointment, Mr Basham will step aside from SADA.

Ms Jolliffe said her intention as ADF Deputy President was to build stronger links with grassroots farmers and ensure the ADF focused on long-term strategic initiatives including herd improvement, farm business management and on-farm safety.

Mr Basham’s immediate challenge will be to represent the dairy industry nationally as it responds to unfolding market circumstances.

The ADF will maintain pressure on the Federal Government and the Federal Opposition alike as the July 2 election approaches.

Ms Jolliffe and Mr Basham lead a board united in its vision and priorities.

The ADF is leading the national dairy industry response, in collaboration with State dairy farmer organisations and other stakeholders.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF looks forward to release of Agricultural Competitiveness White Paper

Australian Dairy Farmers (ADF) has welcomed the 2015-2016 Federal Budget’s delivery on some important priorities for the dairy industry, as a positive preface to the release of the Agricultural Competitiveness White Paper.

“We are pleased that the Government has delivered on some key priorities for the dairy industry, while also honouring commitments to support drought affected farmers,” ADF President, Noel Campbell said.

“The moderate additional funding provided to our industry recognises the need to invest in dairy so it may grow and prosper and deliver tangible benefits to the Australian economy.”

“We hope that this is just the tip of the iceberg, and that the Agricultural Competitiveness White Paper will see greater investment for the Australian dairy industry.”

Relevant highlights for dairy in the budget include:

  • Tax breaks for small businesses with an annual turnover under $2 million, which will apply to the vast majority of dairy farm businesses across Australia.
  • Drought specific measures that will allow farmers to accelerate depreciation for spending on water, fodder storage and fencing, which will encourage investment and improve cash flow on farm.
  • Extension of the Tasmanian Freight Equalisation Scheme from 1 January 2016 to include a subsidy at a flat rate of $700 per twenty-foot equivalent unit for exports.
  • $25 million to help Australian producers access the benefits of free trade agreements, an initiative called for by the NFF; and
  • $83 million additional resources allocated to the Drought Package including Rural Financial Counsellors, regional infrastructure projects and mental health programs.

ADF will continue to work with the Government to maximise the benefits of these Budget allocations, as well as to advocate for further direction and clarity on future policy and investment essential to dairy’s long-term sustainability.

To view the Australian Dairy Industry Council’s submission to the Agricultural Competitiveness Green Paper click here.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF: “Energy White Paper fails to deliver for rural industries”

Australian Dairy Farmers (ADF) has welcomed the Federal Government’s attention on energy issues and their objectives to keep prices down in the Energy White Paper, as well as to increase energy productivity and investment in a strong energy sector.

However, ADF is disappointed the White Paper has failed to deliver for Australia’s important rural industries and communities.

ADF President, Noel Campbell said the White Paper provides no direct response to critical issues of reliable and efficient energy supplies in regional areas. Mr Campbell added that the White Paper proposes policies which may add significant cost to regional customers in an attempt to charge consumers actual cost of energy use.

“The priorities suggested by the Government in the White Paper disregard the dairy industry’s high power needs for milking equipment, milk storage and cooling, and milk processing procedures,” Mr Campbell said.

“The introduction of cost-reflective tariffs would distinctly disadvantage dairy farmers and manufacturers located in areas where supply costs are higher and they are unable to alter patterns of energy use to take advantage of cheaper tariffs offered at non-peak times of day.”

In addition, ADF said the proposals to increase investment in the energy sector do not include any new solutions to provide regional consumers with the same reliable supply access enjoyed in urban regions.

“The Government needs to carefully consider all initiatives to ensure there is no damage to long-term competitiveness of Australian agricultural commodities including dairy,” Mr Campbell said.

Mr Campbell noted that a national productivity plan will be developed and hopes there is still an opportunity for the Government to deliver a viable incentive program for dairy farmers and manufacturers to increase their use of energy efficient technologies.

Dairy has already embraced the use of renewable, efficient technologies on farm and in manufacturing, however, this often involves significant capital cost barriers and to continue to build the industry’s long-term sustainability Government attention and action is required.

To enable the Australian dairy industry to grow, prosper and become more sustainable in future, the Government must act to encourage downward pressure on electricity prices, increased uptake of energy efficient technologies, and improve the reliability of supply which currently causes minor processing cost impediments with intermittent failures.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADF calls for adoption of Competition Review recommendations

Australian Dairy Farmers has welcomed the release of the Competition Policy Review Panel’s final report as crucial to creating a healthier, more competitive and successful market place for consumers, food suppliers and retailers.

ADF strongly supports the review’s recommendations for any updated competition law to include an Effects Test.

ADF will be advocating for certainty that the legal process is able to provide integrity and transparency regarding the impact of retailer actions on suppliers, and to prevent potentially damaging situations such as retailer predatory pricing in future.

ADF President, Noel Campbell called on the Federal Government to get behind the review’s recommendations to ensure a level playing field for dairy farmers in future.

“As the first review of Australia’s competition laws in over 20 years, this report is crucial in determining the Australian dairy industry’s future profitability and sustainability,” Mr Campbell said.

“We support the Panel’s recommendations to increase the focus on dealing with the current imbalance of major retailer market power. Farmers need every opportunity to improve their negotiating power for profitability and returns at the farm-gate to be achieved.”

ADF expressed disappointment that there was no meaningful consideration in the review of the role of a Mandatory Code of Conduct or the need for a Supermarket Ombudsman “with teeth” to address the issue of potential misuse of market power.

The unequal distribution of market power means that farmers are often backed into a corner when it comes to farm-gate prices, a disadvantage that is heightened due to logistical constraints in supplying perishable goods.

Mr Campbell recognised the proposed changes to collective bargaining as positive and an acknowledgement of ADF’s submission on behalf of dairy farmers.

ADF looks forward to working with both sides of Government to advance the Competition Policy Review’s recommendations, to ensure they translate into tangible outcomes for the dairy industry.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

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