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

Australian Dairy Farmers (ADF) has today released the Summit Outcomes Report for the inaugural ADF National Dairy Farmers’ Summit, held on 13 March.

ADF President, Noel Campbell, said the industry’s long-term profitability and future growth prospects headline the report.

“Measures to boost profitability and grow the industry, both on-farm and through the supply chain, featured prominently in the Summit’s discussions and the Summit Outcomes Report reflects this,” Mr Campbell said.

“If the industry as a whole is to grow and prosper, then improving profitability is key – something which farmers on the day made all too clear.”

The top three industry priorities identified at the Summit and outlined in the report are:

1. Develop an industry strategy for innovation, investment and growth;
2. Identify pathways to success to encourage investment and confidence in the industry;

   and

3. Government to continue with trade reform that benefits dairy.

The report provides an overview of the event’s discussion topics, the results of the Summit’s priority setting process and commentary on key outcomes from the day.

This includes the discussions and priorities identified out of the Human Capacity; Farm Business Fitness; Social Licence – Public Trust; Competitive Value Chain; Market Growth and Cohesive Dairy Community workshops.

Mr Campbell thanked all involved with the Summit, including dairy farmers unable to attend but who contributed written or verbal feedback.

“The involvement of dairy farmers, be it in person or in thought, was key to the Summit’s success and for this and much more, we say thank you,” he said.

The report, including details on the industry’s next steps, is available from the ADF website at: www.australiandairyfarmers.com.au.

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) has welcomed the Australian Competition and Consumer Commission’s (ACCC) findings that the ‘Our Coles Brand Milk Story’ video and cartoon are likely to have contravened Section 18 of the Australian Competition Law.

ADF Board member and Gippsland dairy farmer, Chris Griffin, said section 18 prohibits misleading or deceptive conduct, with Coles admitting it is likely to have contravened this part of the act.

“The ‘Our Coles Brand Milk Story’ video and cartoon was a real slap in the face for dairy farmers on top of the damage already inflicted by $1 per litre milk, and we welcome confirmation of the ACCC’s findings today,” Mr Griffin said.

“The ACCC’s investigation followed complaints from dairy farmer organisations, including ADF and the Queensland Dairyfarmers’ Organisations (QDO), about the misleading nature of the video and cartoon, which was published on social media.

“The video and cartoon were a cynical exercise by Coles to convince consumers that farm gate prices had increased for dairy farmers when they had actually decreased.

“Coles has also claimed that their own margins decreased on Coles-brand milk – something that the ACCC has said could not be substantiated.

“The ACCC’s ruling is an indictment of Coles and undermines their key claim that they have absorbed the cost of $1 per litre milk.”

The ACCC has also found that the cartoon and video represented as ‘fact’ that processors received around $1 per 2 litres of Coles-brand milk in 2011-11 and 2011-12, when in fact these figures were estimates and unable to be substantiated.

Mr Griffin said ADF had, since January 2011, consistently said that milk priced at $1 per litre is simply unsustainable and does not give a fair return for dairy farmers and others in the supply chain.

“The ACCC’s findings reflect this and prove beyond all reasonable doubt that Coles’ claims cannot be trusted,” he said

“That’s why ADF continues to strongly push for a Mandatory Code of Conduct, including the establishment of an independent Supermarket Ombudsman with penalties to balance the excessive market power of the major retailers.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

Dairy farmers want a Free Trade Agreement (FTA) with Japan but not at any cost, according to Australian Dairy Farmers (ADF) President, Noel Campbell.

Mr Campbell said Japan is a major market for Australian agriculture, and the dairy industry in particular.

“Japan is a hugely significant market for us, and Australian dairy farmers want an FTA that will add value to our exports, supports local manufacturing and strengthens the long term future of the industry,” Mr Campbell said.

“Advice to date indicates the offer for dairy market access to Japan falls well short of the industry’s expectations, and needs substantial improvement before dairy could accept an agreement.

“We need to get the fundamentals right and if that means there’s not a deal in the short term – then so be it.”

Japan is the largest and most important market for the Australian dairy industry – with $511 million in exports in 2012/131, 19% of our dairy exports by value.

This despite a range of trade barriers2and market distortions that cost Australian dairy exporters over $116 million (USD) in 2011/12 alone, including tariffs of up to and exceeding 35% on cheese.

Victorian dairy farmer, Adam Jenkins, from South Purrumbete, said if a deal was worth doing, it was worth doing right.

“Japan is a very important destination for our product and if we want a successful and internationally competitive Australian dairy industry in future, then we need fair and open market access,” Mr Jenkins said.

“An agreement for agreement’s sake that delivers next to nothing for dairy will end up not being worth the paper it’s written on.

“If we get this right, we see this as a great opportunity, not just for local dairy farmers but also Japanese consumers, who would benefit from access to a secure supply of high quality dairy products from a great producer and trade partner – Australia.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

Dairy farmers from across Australia will shortly head to Melbourne, as momentum builds for the inaugural ADF National Dairy Farmers’ Summit, brought to you with the support of Coles.

ADF President, Noel Campbell, said the response of farmers and the broader dairy industry to the Summit had been “overwhelming”, with the event fully booked and a waiting list now in place.

“We have been thrilled with the level of farmer and industry interest in the inaugural ADF National Farmers’ Summit,” Mr Campbell said.

“So much so, the Summit was booked out weeks in advance of the closing date for registrations.”

“This goes to show what an opportunity the Summit is for Australian dairy farmers and the broader industry, in shaping a positive vision and set of collective priorities, for the future.

“Our attention now turns to the Summit on Thursday 13 March, and what looms as a pivotal and thought-provoking day for the Australian dairy industry.”

Mr Campbell said a significant majority of the 150 Summit attendees will be dairy farmers, with added representation from processors, industry representative bodies and government and business leaders.

The Summit, to be hosted by ADF in conjunction with the Australian Dairy Industry Council (ADIC) and Dairy Australia (DA), will be held at the Grand Hotel Rendezvous in Melbourne, Victoria.

Mr Campbell thanked all those who have registered or expressed interest in attending, and encouraged those unable to attend to register their views with their local State Dairy Farming Organisation (SDFO) or State Farming Organisation (SFO) to ensure their voice can still be heard.

“We are committed to ensuring the views of dairy farmers and others unable to attend, are included as part of the Summit’s deliberations,” he said.

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) has welcomed the Federal Government’s drought support package, announced today by the Prime Minister and Minister for Agriculture.

ADF President, Noel Campbell, said the package, although not delivering all that ADF and the National Farmers Federation (NFF) had called for, was a welcome response to the plight of drought affected dairy farmers in Queensland and New South Wales.

“ADF welcomes the announcement of the Federal Government’s $320 million drought support package,” Mr Campbell said.

“For many dairy farmers in Queensland and News South Wales, the drought has only added to their difficulties by forcing up the price of fodder as demand outstripped supply.

“That’s why we needed a timely and considered response from the Federal Government, and it’s fair to say they have listened and acted upon a number of key priorities raised with them by the NFF, ADF and others.”

Under the package, the Government will bring forward more generous income support arrangements for farmers and their families; extend concessional loans to eligible drought affected farm businesses; provide funds for water infrastructure and pest eradication; as well as funds for counselling support services for farmers.

Mr Campbell said ADF was particularly pleased that the Interim Farm Household Allowance (Interim FHA) will be subject to a different asset test, so that more farmers including those affected by drought, will be able to access income support when they need it.

“Raising the asset test threshold for farmers was a policy priority for ADF and its pleasing to see the Federal Government has heeded ADF’s call for improved eligibility to this vital support payment,” he said.

Mr Campbell thanked the Federal Government, and the Prime Minister and Minister for Agriculture in particular, for their support of drought affected farmers.

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) is encouraging dairy farmers and industry leaders to register to attend the upcoming Australian Dairy Conference.

ADF President, Noel Campbell, said the Conference, to be held between February 25 and 27 in Geelong, Victoria will be held against a backdrop of increased industry confidence in some parts of Australia.

“The Australian Dairy Conference is an important and dynamic annual event on the industry calendar, and I encourage dairy farmers as well as other industry leaders to get involved and register to attend,” Mr Campbell said.

“The Conference always provides a great opportunity for dairy farmers and industry leaders to come together in a friendly, informative and ideas rich environment.

“The choice of Geelong for this year’s conference is very appropriate given the boost to industry confidence in South West Victoria in particular, as a result of increased farm-gate prices and strong competition for Warrnambool Cheese and Butter (WCB).”

Mr Campbell said ADF will have a presence at the Conference with a view to helping inform discussions at next month’s inaugural ADF National Dairy Farmers’ Summit.

“I, along with Chief Executive Officer, Natalie Collard, and other ADF staff look forward to attending the Conference meet, listen and talk with farmers and key industry stakeholders in the lead up to the Summit,” he said.

The Australian Dairy Conference will feature speakers from Australia, New Zealand, Europe, and the US, giving attendees valuable information about dairy practices overseas as well as at home. Topics range from balancing sustainability and profitability in dairy farming to the costs involved with staff turnover.

For further information on the Conference, including the program, how to register and available bursary packages, please visit www.australiandairyconference.com.au.

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) today met with NSW Farmers Dairy Council as part of its ongoing efforts to meet with dairy farmers and industry representative bodies across the country.

ADF CEO, Natalie Collard and Senior Policy Manager, David Losberg, travelled to Sydney to meet with NSW Farmers Dairy Council and brief them on ADF’s continued advocacy on behalf of the industry.

This follows a meeting last week between ADF President, Noel Campbell, and the Queensland Dairyfarmers’ Organisation (QDO) in Brisbane.

Ms Collard said the meeting provided an invaluable opportunity to discuss issues of importance to local dairy farmers.

“ADF is committed to getting out and about to meet with dairy farmers and their representative bodies across Australia,” Ms Collard said.

“We appreciate the opportunity to meet and speak with the NSW Farmers Association Dairy Council today as well as update them on ADF’s ongoing efforts to advocate on their behalf on important issues like the drought, the price of milk, retail competition and trade opportunities among numerous others.

“These matters are important, not just in NSW, but across all of Australia’s dairying regions and ADF remains committed to ensuring our advocacy at a national level reflects this.

“We will be holding many more of these meetings around Australia in 2014, as we seek to grow the industry and build a profitable future for dairy farmers.”

Ms Collard thanked NSW Farmers Association Dairy Council President, Rob McIntosh and Council members for hosting the meeting and for their advocacy on behalf of NSW dairy farmers.

Media Contact:

Karl Liebich, Media Officer

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E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) notes today’s decision by Australian farmer-owned co- operative, Murray Goulburn (MG), to withdraw its offer for Warrnambool Cheese and Butter (WCB), and instead accept the offer of Canadian dairy company, Saputo, for its WCB shareholding.

ADF President, Noel Campbell, said Bega’s recent decision to sell its stake to Saputo was a turning point for all involved with the takeover of WCB.

“ADF notes MG’s decision today to withdraw its offer for WCB, and instead accept Saputo’s offer for its WCB shareholding,” Mr Campbell said.

“While this decision was doubtless a difficult one, proceeds from the sale of MG’s shareholding will position them well for the future.

“We congratulate Saputo upon acquiring WCB, after what could fairly be described as a highly competitive takeover process.

“Throughout, Saputo has been consistent in saying that they are committed to putting WCB suppliers first, and we trust they will be true to their word.

“Local dairy farmers have helped make WCB what it is today, and ADF will watch closely to ensure their interests are upheld in future.”

Mr Campbell said intense competition for WCB was a positive sign for the industry, and reflects international confidence in the future of Australian dairy.

“The interest in WCB was unprecedented and ultimately, represents a substantial vote of confidence in the future of the dairy industry,” he said.

“In addition to improved farm-gate prices in some parts of Australia, and major trade opportunities in Asia, we have cause to be optimistic about dairy’s future.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au