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

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

“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

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

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

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

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).

Plans by DairyTas for an employment register and pre-employment training courses linking the unemployed with jobs in the industry are worthy of support and consideration at a national level, Australian Dairy Farmers (ADF) said today.

ADF President, Noel Campbell, said the initiatives would help meet anticipated demand for jobs as 50 new farms come online and the industry expands by an estimated $340 million.

“As the local service delivery arm for Dairy Australia (DA), DairyTas deserves credit for their positive approach to addressing labour shortages in the industry,” Mr Campbell said.

“Plans for an employment register and pre-employment training courses will help fill the more than 200 jobs anticipated to be created as the Tasmanian dairy industry expands over the next 12 months.

“In particular, the ‘Getting Into Dairy’ and ‘Getting Into Dairy – Introductory Training’ courses will assist interested people, including those with no previous industry background, to gain experience and practical insight into working in dairy.

“These are very worthwhile and practical steps to assist people into the industry, and consistent with our policy aims, ADF strongly supports and commends this approach.”

Mr Campbell said DairyTas is working closely with the Federal Government to secure funding for the pre-employment training courses.

“Given the potential employment and economic benefits involved, it is our hope the Federal Government will recognise and support what is a worthy local industry initiative,” he said.

“Building on the efforts of DairyTas’ and the success of GippsDairy’s ‘Employment Made Easy’ online recruitment and people management tool, ADF would welcome discussing with the Federal Government the potential to expand this initiative nationally.”

For further information or to register your interest in the introductory dairy training, please call DairyTas on (03) 6432 2233.

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

Dairy Australia’s (DA) 2014 Situation and Outlook Update Report highlights mixed industry fortunes across the country, Australian Dairy Farmers (ADF) said today.

ADF President, Noel Campbell, said while the report painted a positive picture overall it was important to remember that dairy farmers in Queensland, northern New South Wales and Western Australia still faced considerable challenges.

“ADF welcomes the news that farmer confidence has increased in six out of eight dairying regions, according to the 2014 Situation and Outlook Update Report, Mr Campbell said.

“While a positive for the industry, it is tempered by the fact that farmers in Queensland, northern NSW and WA continue to be adversely affected by factors including drought and the ongoing impact of $1 per litre milk.

“However, we can say that an improvement in the farm-gate milk price in some areas, strong overseas demand, a fall in the value of the Australian dollar and better seasonal conditions have contributed to an overall increase in confidence.”

Mr Campbell said key to building on farmers’ confidence levels was government action on key policy priorities for the dairy industry, including an Australia – China Free Trade Agreement (FTA) and the introduction of a Mandatory Code of Conduct to balance the extreme market power of the major retailers.

“The realisation of a ‘New Zealand plus’ China FTA and introduction of a Mandatory Code among other priorities would do wonders for the confidence of Australian dairy,” he said.

With these goals in mind, they will remain front and centre of ADF’s advocacy on behalf of the industry.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

The 2014-2015 Federal Budget has delivered on some important priorities for the dairy industry amid other cutbacks, Australian Dairy Farmers (ADF) said today.

ADF President, Noel Campbell, said the Coalition Government has struck a difficult balance between the need to find savings and the ability of the agricultural sector, including dairy, to grow and prosper in future.

“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,” Mr Campbell said.

“Pleasingly however, the Government has delivered some key priorities for the dairy industry, while also honouring commitments to support drought affected farmers and provide additional rural research and development funding.”

Relevant highlights for dairy in the budget include:

• $100 million of additional funding over four years1 for Rural Research and Development Corporations (RDCs), targeted to projects that enhance agricultural profitability;
• The Federal Government’s re-commitment to the Roads to Recovery and Black Spot road infrastructure programs2 will have a positive benefit for dairy farmers who rely on local roads being well maintained so that milk and cattle transport can easily and safely access their properties;
• $15 million funding over four years3 to support small exporters in sectors where there are specific export certification registration changes;
• $20 million funding over four years4 towards establishing a “Bio-security Flying Squad” for urgent Bio-security issues, and creating a first response Bio-security containment fund; and
• $8 million funding over four years5 to improve access by farmers for minor use agricultural and veterinary chemicals.

Mr Campbell said, by contrast, ADF was disappointed to see a substantial cut in funding to Landcare and an end to the freeze on fuel excise.

“Landcare is an important and beneficial program that has delivered enormous improvements to our natural environment, including on many dairy farms,” he said.

Recent farmer-driven moves to export fresh milk to Asia highlight the scale of the opportunity presented by a potential Free Trade Agreement with China, Australian Dairy Farmers (ADF) said today.

ADF President, Noel Campbell, said the announcement by farmer-owned co-operative, Norco, Dairy Connect NSW, and international exporting company, PGS, of a fresh milk export trial to China as well as moves by Queensland dairy farmers to explore milk exports to Asia were positive steps for the industry.

“At a time when growth opportunities are constrained domestically, it will be key international markets like China that will ultimately offer a way forward for Australian dairy,” Mr Campbell said.

“The industry has the potential to grow and create additional jobs in the food manufacturing and processing sector, however before we can do this, we need more and better access into markets such as China.

“That’s why an Australia – China FTA that opens up markets and delivers significant commercial opportunities for dairy is such an important priority for our industry.”

Mr Campbell said the fresh milk export trial with China broke new ground for the industry by putting in place a quarantine clearance agreement that will bring down the delivery time for fresh milk into that market from between 14 to 21 days to within 7 days.

“This sets an important precedent for the industry, and if replicated on a larger scale would significantly increase the range and volume of Australian dairy exports into China,” he said.

Queensland dairy farmer and Norco supplier, Craig Sellars, said boosting export growth was critical to the industry’s future survival and growth.

“Reduced margins have squeezed farmers and hindered the industry’s ability to grow, and that’s why we’re increasingly looking to markets like China as an alternative destination for our product,” Mr Sellars said.

“As dairy farmers and as an industry we can again grow and prosper with the right access to the right markets.”

Mr Campbell said the dairy industry seeks an FTA with China the equal, if not superior, to the agreement New Zealand achieved with China in 2008.

“After achieving an FTA with China, New Zealand has seen a six-fold increase in the total volume (tonnes) dairy exports to that country, while Australia has experienced only modest export growth over the same period,” he said.

“For the sake of our farmers and the industry as a whole, the China FTA must be the dairy deal.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) today welcomed news that the Australian Competition and Consumer Commission (ACCC) has instituted proceedings in the Federal Court of Australia against Coles Supermarkets Australia.

ADF President, Noel Campbell, said the ACCC will allege that Coles has engaged in unconscionable conduct towards 200 of its smaller suppliers in breach of the Australian Consumer Law.

“ADF welcomes the ACCC’s decision to take Coles to the Federal Court of Australia for using undue pressure and unfair tactics in negotiating with suppliers” Mr Campbell said.

“Coles’ alleged behaviour towards suppliers includes providing misleading information and taking advantage of their superior bargaining position.

“We very much look forward to the result of the court case, given ADF’s strong track record of advocacy to the ACCC since the introduction of the $1 per litre retail milk price.

“This latest action by the ACCC once again highlights the need for a Mandatory Code of Conduct, including the establishment of an independent Supermarket Ombudsman with penalties to balance the excessive power of the major retailers.

“ADF will continue to lobby Government as well as engage in dialogue with the major retailers about the code.”

Mr Campbell said ADF has been a vocal and consistent opponent of $1 per litre milk.

“The simple fact is that milk priced at $1 per litre is unsustainable and does not give a fair return to dairy farmers and others in the supply chain,” he said.

“Farmers want to work cooperatively with the supply chain – we must all work together to achieve the best outcome for the consumers we all serve.”

Mr Campbell urged other small businesses impacted by unconscionable conduct to consider contacting the ACCC.

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au