Government and farmer-funded upgrades to irrigation systems are reaping multiple benefits with production gains, reduced water use and increased regional economic activity, according to new research released today.

Launched in Rochester, Northern Victoria, the Dairy Australia commissioned report “Cost Benefit Analysis of Farm Irrigation Modernisation” undertook case studies of 10 properties within the Murray Darling Basin in northern Victoria and southern NSW. It found that that the farm upgrades delivered the environmental, social and economic outcomes that regional communities expect from the Murray Darling Basin Plan (MDBP).

ADF Natural Resources Policy Group Chair Daryl Hoey welcomed the report saying it confirms what the industry has been arguing for years – that substantial water savings can be achieved and that water buy-backs are just one small part of the solution.

“This report found that farm upgrades cost the Government around $3,700 a megalitre (ML) of water savings for the environment and at the same time delivered gross productivity gains to farmers worth an average $9,800/ML of water savings. In turn, increased farm production generates additional regional economic activity worth $6,200/ML.”

“While buybacks may cost less, at around $2,000 a megalitre, they are also associated with reduced regional farm productivity. This in turn reduces regional economic activity by around $4,300 for every megalitre purchased by the Government,” said Mr Hoey.

The case studies covered a mix of farm sizes and irrigation systems, and included self-funded farm works as well as participants in the Federal Government’s On-Farm Irrigation Efficiency Program.

The report shows that by working to upgrade farms, substantial economic benefits can the achieved both for the farmer and the broader community.

“By comparing a range of farms, this report shows once and for all that there are real and long- lasting benefits for local farmers and regional economies from upgrades to irrigation systems,” said Mr Hoey.

“It also shows that for the ongoing benefits of the MDBP to continue to flow to regional Australia, continued Government support for water upgrades is vital,” he said.

“The industry urges all parties to back regional Australia by capping water buybacks at 1500GL and recover water for the environment through infrastructure savings instead,” said Mr Hoey.

Media Contact:

Daryl Hoey, Natural Resources Policy Advisory Group Chair

M: 0407 582 982

ADF welcomed today’s announcement by Murray Goulburn Co-operative of a ten year private label daily milk partnership with Coles, the relaunch of Devondale branded fresh milk and the investment of $120 million in two “state-of-the-art” milk processing plants in Melbourne and Sydney.

ADF President Noel Campbell said today, “The most important thing here is the reassurance by Murray Goulburn that the farmers supplying these contracts will see an increased farm gate return from July 2014.

The Australian dairy industry has long been calling for an investment by processors in the fresh milk market. The creation of two new milk processing plants is a positive sign of innovation and long term commitment, both vitally important factors in driving farmer confidence to invest on- farm.

ADF welcomes the duration of Coles’ commitment with Murray Goulburn, recognising that long term contracts at the retail level in turn give milk processors the option to provide longer term contracts to dairy farmers. As always ADF encourages all Australians to buy branded milk to best support Australian farmers.

“We will continue to monitor farm gate returns for farmers supplying fresh milk contracts. It is sincerely hoped that this arrangement, and others like these, flow through as expected to farmers’ bottom line”.

Media Contact:

Nick Green, Communications Manager

T: (03) 8621 4200

Australian Dairy Farmers (ADF) today welcomed the National Farmers Federation’s (NFF) calls for the Australian Government to introduce a mandatory code of conduct for the super market industry aimed at preventing misuse of market power.

Mr Noel Campbell, President of ADF, joined NFF calls to Government to urgently commence a process to finalise a mandatory code for the major retailers.

“For two years, we have openly supported the NFF in their efforts to push for a mandatory code. What we’re ultimately after is a regulatory framework that balances out the excessive market power of the supermarkets,” said Mr Campbell.

Like the NFF, we are also calling for an Ombudsman and penalties to apply when supermarkets breach the code. What we need is a code with teeth.”

Media Contact:

Nick Green, Communications Manager

T: (03) 8621 4200

The Australian Dairy Farmers’ Board and National Council today elected a new Chairman, Mr Noel Campbell. The outgoing Chairman Mr Chris Griffin announced earlier this month that he was not seeking re-election after a year in the role.

Mr Campbell is a dairy farmer from Yannathan in south east Victoria and has been a Director of Australian Dairy Farmers (ADF) since 2007. He is the current Chair of the ADF Markets, Trade & Value Chain Policy Advisory Group (PAG). Noel has a Diploma of Mechanical Engineering and is a Fellow Australian Institute of Company Directors.

The Board, along with the National Council and CEO commended Chris Griffin on his significant contribution to the Australian dairy industry over many years and in various roles including his year as Australian Dairy Farmers President and Chair. Mr Griffin will remain as a Director of ADF.

Immediately following his election to the Chair, Mr Campbell told the Australian Dairy Farmers Board and National Council “My aim is to focus on the outcomes that we and all dairy farmers need. A key role of Australian Dairy Farmers is to advocate for the removal of barriers to profitable and sustainable dairy farm businesses and that all dairy farmers are treated respectfully.

ADF, the State Dairy Farmer Organisations, Dairy Australia and the Regional Development Programs need to work closely together, understand each other’s role in the industry and work collaboratively for the best results. Those who know me will be aware that I always push for industry co-operation as I believe this will produce better outcomes for everyone.”

Earlier today, Australian Dairy Farmers Limited has their first Annual General Meeting under the new constitution that was voted in by members in August this year.

State Members, Business Members and invited guests heard from Chris Griffin, outgoing President and Natalie Collard, CEO about the year in review.

Mr Roger Swain was re-elected as a Business Director for a further three years. The appointment of Dr Anne Astin as Independent Director in August 2012, was also ratified.

The Australian Dairy Farmers Board comprises Mr Noel Campbell, Mr Peter Evans, Mr Chris Griffin, Mr Roger Swain and Dr Anne Astin.

Media Contact:

Noel Campbell, President

M: 0417 381 108

Australian Dairy Farmers (ADF) is calling on the Federal Government to stand by its own evidence when it comes to setting dietary advice about dairy foods.

For the first time in almost 10 years the Dietary Guidelines for Australians are under revision to recognise changes to nutrition science and to ensure they reflect the latest knowledge on nutrition and health.

However, ADF has expressed concern that the National Health and Medical Research Council’s (NHMRC) dietary guidelines working committee’s proposed advice on dairy foods is at odds with current evidence, and could be potentially detrimental to Australian’s health outcomes.

The NHMRC proposes recommending Australians consume milk, yogurt and cheese that is ‘mostly reduced-fat’ and that overall consumption of regular-fat dairy foods should be halved.

Chris Griffin, president of ADF said there was no compelling reason to avoid regular-fat dairy foods. “The trouble with the reduced-fat message is that it is not evidenced-based, and it puts people off regular-fat dairy foods, the type that most Australians prefer.”

“Some people, particularly men, reduce their overall dairy food intake when advised to eat reduced-fat dairy foods.” (See charts below)

“The NHMRC’s own evidence statements do not support a recommendation to encourage mostly reduced-fat dairy,” he said. “The NHMRC is ignoring the evidence from tens of thousands of people in scientific studies in favour of theoretical modelling.”

In 2011 the dietary guidelines working committee released a review of evidence which showed consumption of all types of milk, yogurt and cheese was linked to a reduced risk of heart disease, stroke, hypertension, type-2 diabetes and colorectal cancer, and improved bone mineral density. Neither regular-fat nor reduced-fat dairy foods were linked with weight gain or obesity.

More recent evidence summaries have shown there is evidence high-fat dairy foods have a protective role against weight gain – with no difference whether people consume regular-fat or reduced-fat dairy foods to their risk of heart disease.

“The evidence is clear – it is more important Australians get the health benefits of eating enough dairy foods, rather than getting inappropriately hung-up on the fat content,” Mr Griffin said.

“Research shows seven out of 10 females and six out of 10 males aged 12 years and over fail to get their minimum recommended daily intake and therefore miss out on the health benefits of dairy products.

“Inadequate dairy consumption in Australia has recently been estimated to cost the healthcare system $2 billion per year – an amount comparable to the entire public health budget.

The announcement today of the outcome of arbitration between Lion Dairy and Drinks and Dairy Farmers Milk Co-operative (DFMC) once again highlights that Coles pricing of fresh milk at $1 per litre is unsustainable.

“Dairy farmers across most parts of Australia supplying Lion through DFMC will be receiving lower prices following the announcement of the outcome of the arbitration,” said Australian Dairy Farmer’s (ADF) President Chris Griffin.

Increased sales of home brand milk, which have little or no margin for processors, have impacted on the value chain across Australia.

“Coles must understand that the price on their shelves is linked to what farmers ultimately get paid,” said Mr Griffin.

“It is time Coles and Woolworths raised prices to a sustainable level and stopped their marketing tactic.”

“Consumers can help dairy farmers and their families by buying branded milk, which provides a fairer return,” said Mr Griffin.

This latest evidence of the unsustainable pricing of home brand fresh milk products highlights the need for a Supermarket Ombudsman to balance the market power of the major retailers.

The Supermarket Ombudsman needs to have the power to investigate the supermarkets and use both ‘name and shame’ powers and financial penalties to ensure they treat suppliers and farmers fairly.

ADF is meeting with politician’s from all sides of politics to push the Supermarket Ombudsman and changes to the Competition and Consumer Act to provide some balance and fairness in the system.

“It is important there is transparency through the value chain and in contracts with farmers,” Mr Griffin said.

Media Contact:

Chris Griffin, President

M: 0402 846 239

State farmer groups today backed the restructure of Australian Dairy Farmers (ADF), voting in a new constitution for the national organisation.

The ‘yes’ vote opens the way for a slimmed-down ADF board to focus on strategy and a new National Council to provide policy recommendations. Individual farmers can now be members of ADF for the first time.

“It is a very exciting development for dairy farmer representation in Australia,” said ADF President Chris Griffin. “A more financially efficient and better structured ADF will deliver improved value to farmers and state organisations.”

Mr Griffin said changes in the dairy industry have impacted on the financial viability of ADF. Over the past 30 years milk production has doubled but the number of dairy farmers has dropped by two-thirds. This has hit the membership levels and income of State Dairy Farmer Organisations and ADF. ADF is now operating in deficit and without significant change could not continue to function or deliver quality policy and advocacy services for dairy farmers.

The Australian Dairy Farmers (ADF) Board met today to examine a concern over potential prejudicial conduct of ADF member, South Australian Dairyfarmers Association (SADA).

Directors and Constituent Members examined information that was circulated to all Board members in early July and deliberated whether SADA’s conduct caused injury, harm or loss to ADF.

Since the concern was raised in May 2012, SADA has been given every opportunity to respond to the concerns in person or in writing and declined to attend today’s meeting.

After careful consideration, the ADF Board resolved by an absolute majority that SADA did engage in conduct prejudicial to ADF and that they be removed immediately as a member.

It is ADF’s role to provide strong leadership and collective representation for all dairy farmers and so will continue to consult with all state dairy organisations for feedback and input and this will be reflected in our program of work. ADF will continue to work for the collective benefit of farmers regardless of whether individuals or state organisations are signed up members.

Media Contact:

Chris Griffin, President

M: 0402 846 239

ADF President Chris Griffin has welcomed the release of the green paper on the National Food Plan but has said plenty more needs to be done to ensure dairy farmers get a fair deal on milk price from the major supermarkets.

Mr Griffin said, “ADF is calling on the Government to support the dairy industry’s recommendation for an enforceable and mandatory Code of Conduct for supermarkets that covers the entire value chain, from farmer to retailer.”

“ADF also calls for a Supermarket Ombudsman to be established to investigate complaints and strongly enforce the new code with appropriate financial penalties.”

There is also a need for amendments to the Competition and Consumer Act to balance the supermarkets enormous market power, ensure they act in good faith and allow for potential future impacts of their actions to be taken into account by regulators.

The green paper recognises the importance of an integrated and collaborative approach to achieving the Plan and ADF welcomes this goal.

“We are particularly pleased to see the Government take up the ADF’s recommendation to the Senate Inquiry into the impacts of supermarket price decisions on the dairy industry to convene a forum to examine options for better managing supplier/supermarket relationships,” said Mr Griffin.

“We have written to the Minister urging him to ensure there is strong farmer representation at the forum to allow dairy farmers to voice the impacts on them from the current supermarket pricing practices.”

“We have also asked that ADF, as the national voice of dairy farmers in Australia, attend the forum along with other commodity group representative groups.”

This is vitally important to allow for more frank and fruitful discussions as many suppliers that deal directly with the supermarkets feel they cannot speak out due to a fear of retribution.

Media Contact:

Media Officer

T: (03) 8621 4200

By once again passing on an increase in milk price in Western Australia alone Coles is acknowledging that its pricing of fresh milk is unsustainable.

The increase of 3.3 cents per litre to processor Harvey Fresh is the second in WA since Coles dropped the price of milk to $1 per litre on Australia Day last year*.

Australian Dairy Farmers (ADF) Vice President Noel Campbell says dairy farmers now expect Coles to pass on similar price increases to other processors so they can flow through to farming families.

“Clearly dairy farmers in Western Australia are doing it tough but they are certainly not alone. Milk priced at the unsustainable level of $1 per litre is also hurting farmers in Queensland, Northern NSW and to a lesser extent South Australia,” said Mr Campbell.

Drinking milk takes up all, or the majority, of milk production in these areas.

“The key point is that Coles’ prices for milk are unsustainable and Coles has proven this by giving Harvey Fresh a 3.3 cents per litre increase,” said Mr Campbell.

It is an admission by Coles that their ‘down, down’ campaign is having an impact on suppliers in the Australian domestic market.

Mr Campbell said “Coles also needs to publicly acknowledge that by reducing the price of milk to $1 per litre on their home brand milk they made a mistake and set prices that are unsustainable.”

The last time milk was a $1 per litre was around 1992. No-one can live on a wage set at 1992 levels. Would Coles’ executives be willing to go back to 1992 wage levels?

ADF is seeking an explanation from Coles on why they took this action in WA alone because it does not seem logical to increase prices in one market alone, when their pricing tactic impacts the whole of Australia. They must understand that the price on the retail shelf is linked to what farmers ultimately get paid.

Processors holding Coles contracts across Australia have indicated that milk priced at $1 per litre is hurting them (see attachment 1).

“It is time Coles raised prices to a sustainable level and stopped their marketing tactic. This recent increase in WA urgently needs to be replicated nationally.”

*In February last year Coles announced an increase of 5 cents per litre to Brownes Dairy, the then holder of its fresh milk contract.

Media Contact:

Media Officer

T: (03) 8621 4200

Ensuring that she could deliver the most effective outcomes as a board member for Western Dairy (WD) inspired Busselton’s Ruth McGregor to apply for the Developing Dairy Leaders Program (DDLP).

“Originally, it was the practical side of governance and advocacy that got me interested in the program,” Ruth said. “However, it is the idea that my communication style can directly influence others and their opinions that has really got me thinking.

“I love the dairy industry and the fact it is challenging and highly complex is what has sustained my interest. I’ve learnt that I can be better at listening to others and gaining a better understanding of their views and ideas, and that I can influence the way that our industry is perceived in the public eye. I hope this will mean I can deliver more for Western Dairy and the industry as a whole,” she said.

Ruth is one of 10 dairy people from across Australia’s dairy regions participating in the DDLP, which has been developed by Australian Dairy Farmers (ADF) and Dairy Australia. Delivered by the National Centre for Dairy Education Australia (NCDEA), it follows on from the successful pilot program run in 2011.

Participants learn how to articulate, present and debate ideas, provide advocacy and representation, participate as a member of a board, participate in a media interview or presentation, lead and manage community or industry organisations and manage personal work priorities and professional development.

The program recently kicked off with a five-day residential stint in Melbourne. The next phase will involve a regionally based project with the support of an industry-leading mentor. It will conclude with a two-day residential policy and media development program in Canberra in September, resulting in a formal accreditation.

ADF President Chris Griffin said the program was a key activity in supporting the development of the dairy industry’s leaders.

“The participants of the Developing Dairy Leaders Program are from all the dairying regions of Australia and bring a great cross section of experience and fresh ideas,” Mr Griffin said.

“It is great to see such energy and commitment from people across Australia and across the industry.”

“Dairy is an industry we should be proud of and it is very exciting to see the potential in leadership that is out there,” Mr Griffin said.

Dairy Australia Managing Director Ian Halliday said the course had attracted an enthusiastic group of people, already working in the industry, to become the next round of dairy leaders.

“While the course has just started, participants are taking this opportunity to develop a range of vital leadership skills and are on the way to becoming the next wave of dairy industry representatives such as managers, presidents, directors and board members,” he said.

Media Contact:

Felicity Gallagher, Dairy Australia External Communications Manager

M: 0417 540 059

E: fgallagher@dairyaustralia.com.au

Ensuring leadership roles in the dairy industry are not left vacant prompted South Australian Perrin Hicks to join the Developing Dairy Leaders Program (DDLP).

Perrin, a Farm Manager from Mount Compass, understands the importance of leadership and thus the value of the DDLP course.

“A few years ago, I read about the dairy industry needing 80 new leaders every year,” Perrin said. “That surprised me as that seems to be a lot of new leaders to step forward or be discovered.”

“Luckily for me, I know some of last year’s DDLP participants and heard first hand how much they got out of the program. It really got me thinking about leadership and what I could do to get involved which is why I applied.” Perrin said.

Perrin is one of 10 dairy people from across Australia’s dairy regions participating in the DDLP, which has been developed by Australian Dairy Farmers (ADF) and Dairy Australia. Delivered by the National Centre for Dairy Education Australia (NCDEA), it follows on from the successful pilot program run in 2011.

Participants learn how to articulate, present and debate ideas, provide advocacy and representation, participate as a member of a board, participate in a media interview or presentation, lead and manage community or industry organisations and manage personal work priorities and professional development.

The program recently kicked off with a five-day residential stint in Melbourne. The next phase will involve a regionally based project with the support of an industry-leading mentor. It will conclude with a two-day residential policy and media development program in Canberra in September, resulting in a formal accreditation.

ADF President Chris Griffin said the program was a key activity in supporting the development of the dairy industry’s leaders.

“The participants of the Developing Dairy Leaders Program are from all the dairying regions of Australia and bring a great cross section of experience and fresh ideas,” Mr Griffin said.

“It is great to see such energy and commitment from people across Australia and across the industry.”

“Dairy is an industry we should be proud of and it is very exciting to see the potential in leadership that is out there,” Mr Griffin said.

Dairy Australia Managing Director Ian Halliday said the course had attracted an enthusiastic group of people, already working in the industry, to become the next round of dairy leaders.

“While the course has just started, participants are taking this opportunity to develop a range of vital leadership skills and are on the way to becoming the next wave of dairy industry representatives such as managers, presidents, directors and board members,” he said.

Media Contact:

Felicity Gallagher, Dairy Australia External Communications Manager

M: 0417 540 059

E: fgallagher@dairyaustralia.com.au