Federal leaders hear from drought-hit dairy farmers

Caption: ADF President Ben Bennett (left) with Member for Wannon Dan Tehan, dairy farmer Chris Place, Victorian Senator Bridge McKenzie and Leader of the Nationals David Littleproud. Photograph: Ben Hindmarsh

Federal MPs have visited Camperdown, Victoria, to listen to farmers and understand the challenges they face sustaining their families and communities amid the worst drought in memory.

Australian Dairy Farmers President Ben Bennett said the visit showed solidarity and respect because the MPs – David Littleproud, Bridget McKenzie and Dan Tehan – “showed up, fronted up, and didn’t shy away from the tough questions”.

“They travelled to South-West Victoria specifically to see the conditions with their own eyes and hear how farmers are shouldering exorbitant feed and operational costs,” Mr Bennett said.

“That matters when so many dairy farmers feel ignored and undervalued.”

Mr Bennett said the visit stands in contrast to the Victorian Government’s approach, calling for more open and meaningful engagement.

“In New South Wales and South Australia, we’ve seen premiers get the gumboots on and walk alongside farmers. That’s the kind of leadership that builds trust.

“Here in Victoria, we get closed-door ‘consultations’ and PR gloss.”

ADF has outlined a path forward for the Victorian Government to provide meaningful support to farmers.

“With feed prices skyrocketing and supply drying up, dairy farmers are working to increase the availability of imported stock-feed.

“Given the quantities required and the low frequency of such imports, governments can play a crucial role in underwriting shipments – simultaneously giving importers certainty, helping farmers and supporting food security.”

Mr Bennett noted that while recent rain is welcome, it is not a fix.

“Just because it rained in some parts doesn’t mean everything’s back to normal. Feed doesn’t grow overnight—especially not in winter.

“Farmers are still hauling in expensive feed every day just to keep their herds going. Some farmers have now got bills in the hundreds of thousands of dollars.”

ADF is urging all levels of government to step up and work together.

“Food security is at stake. This is a fragile industry under extreme pressure; the answers need to come from Parliament – not just platitudes.”

ADF warns oversight needed as ACCC clears Lactalis-Fonterra deal

Australia’s peak representative group for dairy farmers has expressed serious concerns following the competition watchdog’s decision not to oppose a potential deal between two of the industry’s biggest dairy businesses.

Australian Dairy Farmers (ADF) President, Ben Bennett, said the Australian Competition and Consumer Commission (ACCC) had left farmers vulnerable in giving the green light to Lactalis’s proposed takeover of Fonterra’s Australian dairy business.

Today’s news means Lactalis can progress discussions with Fonterra, along with any other interested parties.

Mr Bennett said the decision risks further weakening processor competition in Victoria and Tasmania – two of the country’s most critical dairy regions.

“Combining two major buyers reduces choice and bargaining power for farmers,” Mr Bennett said.

“That’s a major threat to farmgate prices, especially in a shrinking milk pool.”

The ACCC concluded that the merger would not substantially lessen competition, citing different product mixes, import competition, and retail buyer power. However ADF maintains:

  • Farmer options are already limited, particularly in western Victoria and northern Tasmania. Post-merger, some regions may only have one major buyer;
  • Market concentration will grow, reducing pricing tension. Fonterra and Lactalis may target different contract types, but still influence prices across the same regions;
  • Past conduct matters: Lactalis has a record of Dairy Code breaches, including a $950,000 fine. Enforceable compliance obligations are essential; and
  • Risk of compounding market dominance: A deal between Fonterra and Lactalis increases market concentration of processors. This further reduces competition right along a supply chain that is already dominated at the processor and retail end by supermarket giants Coles and Woolworths. Farmers need strong processor choice.

ADF is calling for court-enforceable undertakings to protect farmers, including:

  • Preserving milk supply freedom – no forced exclusivity in contracts with farmers;
  • Honouring all current Fonterra milk contracts;
  • Guaranteeing continued operation of key processing sites; and
  • Committing to regular Dairy Code compliance audits.

“Without enforceable protections, we risk further processor consolidation that hurts farmers and undermines supply security,” Mr Bennett said.

ADF urges the Federal Government and regulators to strengthen the Dairy Code of Conduct and ensure any deal maintains fair competition and protects the interests of local farmers.

ADF welcomes Category D disaster relief for flood-affected farmers

Australian Dairy Farmers (ADF) has welcomed today’s announcement that farmers impacted by devastating floods in NSW will be eligible for Category D disaster assistance grants of up to $75,000.

The support package follows weeks of pressure from affected communities and farmer groups including NSW Farmers and ADF.

ADF President Ben Bennett congratulated the NSW Government for its leadership in working constructively with the Commonwealth to secure this long-overdue support.

“This funding will be a vital lifeline for farmers in the Hunter and Mid North Coast regions who’ve been hit hard by record flooding,” Mr Bennett said.

“ADF, eastAUSmilk and NSW Farmers have been calling for this since May, so it’s great to see both the Commonwealth and NSW governments working together in providing this assistance.

“We commend the NSW Government for recognising the scale of damage and standing by local producers – especially our dairy farmers – who are doing it incredibly tough.”

The grants are designed to help farmers cover clean-up operations, emergency feed, fodder and water, infrastructure repairs, disposal of dead livestock, and rebuilding damaged or destroyed on-farm assets.

Eligible primary producers can apply through the NSW Rural Assistance Authority. More information is available at www.raa.nsw.gov.au or by calling 1800 678 593.

ADF continues to call for timely and equitable disaster support across all states and sectors.

“We’re also calling on the Victorian and South Australian governments to work with the Commonwealth to secure similar assistance for their drought-stricken farmers,” Mr Bennett said.

“While we have seen a recent drought announcement by the Victorian Government, there is still a conspicuous absence of targeted measures to address the particular needs of dairy farmers in drought such as fodder freight subsidies.

“This oversight is placing significant financial strain on dairy farmers who are already battling skyrocketing input costs primarily through lack of access to adequate stockfeed and water.”

State Dairy Farming Organisations reaffirm commitment to a national voice through ADF

State Dairy Farmer Organisations (SDFOs), including New South Wales Farmers’ Dairy Committee, EastAusMilk, South Australian Dairyfarmers Association, TasFarmers, United Dairyfarmers of Victoria, and WAFarmers, have reaffirmed their united commitment to a single national representative body for the dairy industry, through Australian Dairy Farmers (ADF).

ADF CEO Stephen Sheridan said SDFO leaders from across the six dairy producing states met in Melbourne in conjunction with the ADF Board on Thursday 19th June to discuss the future of national dairy representation and the significant issues facing the dairy industry.

The state representatives held a positive and constructive meeting, unanimously agreeing to support changes to the ADF constitution that will strengthen the organisation and ensure their ongoing support for ADF as single national representative body. They recognised the need for unity and strength, especially in these times of adversity, and that the states must work together to be successful in tackling the key issues facing their industry.

All the SDFOs, in collaboration with ADF, are working on a range of issues from floods in northern NSW to drought in southern states, along with increasing input costs, low opening prices, cheap overseas imports, flat retail pricing and global trade uncertainty.

The state member representatives unanimously agreed they need to move forward collectively, with ADF as their national body, to ensure dairy farmers have an effective, efficient, and sustainable national representative body into the future.

“Our discussions reached a consensus agreement that we need a strong peak body to act as the single representative voice for dairy farmers,” NSW Farmers Dairy Committee Chair Malcolm Holm said. “Dairy has to run its own race representing dairy farmers.”

South Australian Dairyfarmers’ Association (SADA) President Robert Brokenshire echoed the comments, saying it was pleasing to reach a consensus position regarding a future ADF structure.

“We will continue to work together with an aim to fine-tune ADF’s structure and constitution over the coming months,” Mr Brokenshire said. “We need to look to the future and what is in the interests of all dairy farmers.”

EastAUSmilk CEO Eric Danzi said: “We need a national dairy body that is outcomes-focussed, and I’m glad this can continue moving forward with all the state bodies represented at the table”.

United Dairyfarmers of Victoria President Bernie Free said: “it was reassuring that all the states are committed to a united dairy farmers advocacy organisation, this was a key platform for myself when I ran for election”.

“We need to get on with the business of dealing with the very real issues affecting our dairy farmers today and into the future,” Mr Free said.

WA Farmers Dairy Section President Ian Noakes said: “with so many issues facing the dairy sector at the moment, including escalating input and feed costs and disappointing opening milk prices, a unified dairy farmer voice is more important than ever”.

TasFarmers Dairy Council Chair Geoff Cox said: “I am so pleased all the state members were able to come to agreement and that we can now move forward as a collective group as all supported the constitutional change required to ensure we have a sustainable and representative body”.

ADF President Ben Bennett said discussion centred on how to respond to the pressing issues facing farmers, and the critical importance of unity and collective representation to ensure the dairy industry remains resilient and influential at a national level.

“At a time when ag advocacy is under threat, it was great to see ADF’s state members reaffirm their desire for a single, strong national dairy farmer voice,” Mr Bennett said.

“We all recognise that unity is essential to effectively represent and advocate for the industry and to tackle the very big issues affecting farmers’ livelihoods.”

Mr Bennett said ADF would work with its state member organisations to ensure it evolves with the needs of our dairy farmers front of mind to achieve the most effective, sustainable, and representative ADF possible.State Dairy Farming Organisations reaffirm commitment to a national voice through ADF

Ag ministers urged to deliver for disaster-affected dairy farmers

Fresh from meetings with Victoria’s Minister for Agriculture yesterday, Australian Dairy Farmers has issued an urgent plea to state and federal governments for meaningful support for the sector.

More than 40% of Australia’s dairy farmers are in drought, many of them battling the driest conditions on record, including in South Australia, South West Victoria, and extending into Gippsland and Northern Victoria.

Meanwhile, dairy farmers in New South Wales are cleaning up after a 1-in-500 year flood.

Farmers face crippling financial situations, with skyrocketing costs just to keep their cattle fed and watered, coinciding with indications milk prices for the coming season will be weaker than anticipated.

ADF President, Ben Bennett, said farmers need urgent action to address the impacts on livestock, farmers and regional communities.

“Today we call for immediate crisis support, including feed and water transport subsidies, cash grants and low interest loans and the activation of what’s known as ‘Category C and D’ disaster support measures in conjunction with the Commonwealth,” Mr Bennett said.

“Tackling the ‘cash crunch’ for farmers and communities will not only keep our farmers producing milk, but also benefit the regional communities where they shop.”

Mr Bennett said that as feed, fodder, hay and silage runs out, there is an urgent need to look to alternate sources of stock-feed to tide farmers through the winter months.

“There is a simple but pivotal role government could play in underwriting stock feed imports from overseas, in order to give the commercial market the confidence to import more stock feed and increase supply to get us through the winter months.

“ADF is working closely with industry stakeholders – including stock-feed importers, transporters, and the Department of Agriculture, Fisheries and Forestry – to increase the availability of imported stock-feed.

“One viable option is Palm Kernel Expeller (PKE), a high-protein, high-fibre feed source used extensively in the New Zealand dairy industry.”

Mr Bennett said bringing in more PKE and other feeds from overseas would offer vital feed security through winter.

“The commercial market needs confidence – and this is where government action is critical,” Mr Bennett said.

“With freight subsidies and underwriting support, we can get more feed into the country quickly and give farmers a fighting chance to sustain their livestock.

“Without it, we risk animal welfare impacts and long-term damage to the dairy industry’s viability.

“In the interests of getting this feed on-farm as quickly as possible, we’d work with government officials wherever possible to expedite the inspection of these shipments upon arrival.”

ADF has used meetings over recent weeks to stress to governments the importance of taking action to safeguard production over the longer-term.

“Things like investing in water infrastructure projects, particularly the proposed stock and domestic water pipeline in South-West Victoria, only requires political will, but can make a world of difference to our food producers and local communities.

“Such proactive action by governments would provide certainty to farmers and community for the future. It would provide the very preparedness and resilience government promotes, while also securing food security in some of our largest dairying regions.”

Five things governments can do to help dairy farmers

Immediate Crisis Relief
1. Deliver feed and water transport subsidies to address shortages
2. Deliver cash grants and low-interest loans to address the cash-crunch
3. Activate Category C and D disaster support in conjunction with the Commonwealth for flood- and drought-affected areas
Targeted Industry Support
4. Underwrite stock feed imports to give the commercial sector the confidence to increase stockfeed supply through winter
Long-Term Resilience Building
5. Co-invest in water infrastructure, including a commitment to the South-West Victoria water pipeline project

Act now for timely flood assistance

Australian Dairy Farmers (ADF) has raised the alarm on the plight of dairy farmers in New South Wales – many of whom are battling the worst floods in living memory.

While welcoming government assistance for those in flood-affected local government areas, ADF believes more must be done to support farmers in these regions.

Dairy farmers can’t simply stop milking their cows when a flood hits. This, combined with stock losses and the pressures of losing electricity, pasture and fodder, has left many farmers in dire need of assistance.

“We welcome the natural disaster declaration for flood affected parts of NSW, but more must be done to help dairy farmers,” ADF President Ben Bennett said.

“We call on governments to offer primary producers assistance with the cleanup and recovery, given the severity of this disaster.

“Farmers are telling us these floods are the worst in decades, perhaps even the worst in living memory, with the floods described as a 1-in-500 year event.

“I can’t stress enough he importance of putting plans in place now to ensure assistance flows as soon as the water recedes.”

Mr Bennett said rebuilding from this event would be particularly difficult for dairy farmers, given fodder prices are already elevated due to the drought conditions further south.

(ends)

ACCC report highlights supermarkets’ big profits, influence

Today’s release of the competition watchdog’s inquiry into supermarket pricing lays bare the power imbalances, tactics and transparency issues faced in the Australian dairy industry.

Australian Dairy Farmers (ADF) says the Australian Competition and Consumer Commission’s (ACCC) inquiry shows more must be done to strengthen safeguards for dairy farmers, and the agriculture industry more broadly.

ADF President, Ben Bennett, said farmers are the most vulnerable participants in a supply chain dominated by big players.

“This report backs up what we’ve been saying for years – that the big supermarkets have increased their product margins over the past five years at the cost of our industry,” Mr Bennett said.

“With the exception of homebrand milk, which the big supermarkets use as a loss leader, we consistently see the retail price of dairy products rise. Yet, right now, dairy farmers are struggling to juggle high input costs with declining farmgate prices.

“The big supermarkets directly sourcing milk from farmers is further eroding market competition, compounding the issues our industry faces.”

Mr Bennett welcomed the government’s support for the report and called on leaders to adopt and enforce the recommended reforms.

“We also want the government to look beyond these recommendations and consider how they can ensure retail price increases flow to farmers. Government must also implement policies that promote local dairy products and counter the rising levels of cheap dairy imports.”

With one major supermarket now a dairy processor in its own right, and a review of the Dairy Code of Conduct underway, ADF hopes the government will seize the opportunity to strengthen provisions and protections for farmers dealing with processors.

Dairy cows in a paddock.

Settlement reached in ADF-VFF court case

The Presidents of Australian Dairy Farmers (ADF), United Dairy Farmers of Victoria (UDV) and Victorian Farmers Federation (VFF) have announced a settlement in the legal dispute over VFF UDV’s membership of ADF.

The settlement will see VFF UDV remaining a member of ADF working collaboratively for the benefit of Victoria’s dairy farmers.

Comments attributable to VFF UDV President Bernie Free:

“The resolution of this dispute between the VFF UDV and ADF is both welcome and long-awaited.

“During this period VFF UDV and ADF have continued to collaborate in good faith, serving farmers on ADF’s National Council and Policy Advisory Groups.

“However, it will be reassuring for all in industry to have this settled in recognition of what dairy farmers really want, which is for us to get on with the business of dealing with the issues affecting dairy farmers.

“VFF UDV and ADF are looking forward to collaborating on ways to grow and improve both organisations’ connection to dairy farmers, with the goal of a more effective and sustainable future.”

Comments attributable to VFF President Brett Hosking:

“This partnership represents the beginning of a new era for VFF where in-fighting has ended and the focus has shifted to outcomes for members.

“I want to thank the team at ADF for meeting collaboratively with VFF to reach this exciting opportunity.

“Peak bodies play an enormous role in protecting and growing opportunities for our farmers.

“Whether it be trade, biosecurity or protecting our research and development levies, it is vital that Victorian farmers are represented on issues that impact their businesses.

“VFF will continue to engage and look for opportunities to ensure the representation our members enjoy nationally is as effective as possible.”

Comments attributable to ADF President Ben Bennett:

“It has been a challenging time for all, and I am relieved we have finally reached both an amicable resolution and agreement to work together in good faith.

“The critical issue now is to focus on our core business and the path forward. That includes ensuring grass roots dairy farmers have certainty regarding the financial sustainability and autonomy of their representative bodies to champion dairy farmer issues.

“Victoria represents 64% of Australian milk production, so it is critical we are united and working together. That is especially true given the shrinking milk pool, where Australia is now a net importer of dairy.

“ADF and VFF UDV have agreed to work cooperatively and cohesively on dairy policy, representation, and membership activities.

“This will benefit both organisations and help us deliver for the dairy farmers of Victoria and, by extension, Australia as a whole.”

Statement on outbreak of FMD in Germany

The following comments are attributable to ADF President, Ben Bennett: 

The outbreak of Foot and Mouth Disease (FMD) in Germany poses no immediate threat to Australian dairy due to the strict quarantine and biosecurity regulations protecting Australia from disease incursion.  

However, this outbreak is a timely reminder to farmers, the community, industry, government and its agencies of the importance of biosecurity measures and the need to maintain our nation’s vigilance and preparedness against potential disease incursions.  

Such outbreaks have a devastating impact on the farmers involved and may also have significant implications for global agricultural trade, with Germany being an exporter of beef and dairy products, however it is too early to assess the significance of this event.   

As Australian farmers we need to ensure our on-farm biosecurity plans are up-to-date. This includes maintaining a visitor’s log, requiring visitors to decontaminate footwear, and excluding any visitors that have visited or originated from a country where FMD is present from their farm for at least seven days after their return to Australia.  

ADF will continue to work with industry to monitor the German outbreak and will support efforts to keep dairy farmers updated if and when the situation changes.  

ADF congratulates Victorian farmers’ new leadership

Australian Dairy Farmers (ADF) today acknowledges and congratulates Brett Hosking and Peter Star on their election to the positions of President and Vice-President of the Victorian Farmers Federation (VFF) and its Board of directors.

ADF also congratulates Bernie Free on his appointment as United Dairyfarmers of Victoria (UDV) President, Scott Young as Livestock President, Peter Miller as Livestock Vice-President and all other commodity council appointments.

“The comments made by Mr Hosking prior to and subsequent to his election already today demonstrate a willingness to work with peak commodity councils and the National Farmers Federation,” ADF president Ben Bennett said.

“I consider this reassuring and importantly his comments demonstrate a sound understanding of the functions of peak commodity bodies with respect to issues such as biosecurity, trade, and oversight of research and development corporations (RDCs).

“The dairy farmers within Victoria have also demonstrated their ongoing support for ADF through UDV’s continued participation in ADF’s National Council and Policy Advisory groups.

“The appointment of new VFF Board directors affords both organisations the opportunity for a ‘circuit breaker’ to sit down and, hopefully, amicably resolve the dispute between the previous VFF Board and ADF that has been ongoing over the last 18 months.”

Mr Bennett said he would reach out to the VFF’s new board and president with an offer to meet at a mutually convenient time to discuss how the two organisations can work together into the future.

“If media reports are correct regarding VFF membership and finances, the new VFF directors clearly have a huge recovery task ahead of them. However, it is my intent that our respective organisations work collectively and collaboratively towards a mutually beneficial outcome for all Victorian farmers and dairy farmers in particular.”

ADF announces AGM and election results

Australian Dairy Farmers (ADF) held its Annual General Meeting earlier today, with David Beca, Heath Cook, and Ben Bennett returned to the Board.
Ben Bennett was re-elected President for a period of two years unopposed at a National Council meeting immediately following the AGM.

ADF Chief Executive Officer Stephen Sheridan congratulated the three returning Directors.

“David Beca returns once more as an Independent Director and Heath Cook and Ben Bennett as Business Directors,” Mr Sheridan said.

“I thank Andrew Aldridge for contesting the Board vacancies at today’s AGM, as well as for his time and commitment as a Policy Advisory Group chair and a National Councillor.”

“On behalf of ADF, I look forward to a constructive year ahead with some significant priorities already on the cards, including a review of the Dairy Code of Conduct and a Federal Government election.”

Dairy farmers welcome avian influenza funding

Australian Dairy Farmers (ADF) has welcomed the Federal Government’s announcement today of an extra $95 million in preparedness funding for the H5 strain of avian influenza.

ADF President Ben Bennett said: “Biosecurity is a critical issue for the viability of our industry and we are pleased to see the Federal Government is on the front foot with additional Government funding.”

In particular, the support of enhanced surveillance to ensure timely detection and response if the disease enters and spreads in animals within Australia, and strengthening of preparedness and response capability to mitigate impacts for the production sector are welcome.

Mr Bennett said he understands that an incursion is likely to impact wild bird populations unfortunately also placing the poultry industry at risk. Any incursion of the H5 strain would be significantly less likely to impact the dairy sector.

“However, given the crossover of a rare strain of the virus to dairy cattle in the United States, and in very rare cases a small group of workers with minor symptoms, we are taking the H5 strain of the virus seriously.

ADF and the broader dairy sector have been working on an industry-specific response plan in conjunction with Animal Health Australia and other agriculture industries.

Mr Bennett said: “In Australia we are fortunate to have rigorous and robust biosecurity and food safety systems and regulations which protect our industry and consumers. We have the added advantage of forewarning and learning from what has occurred in the United States.

“We are working closely with industry and government to further strengthen our biosecurity and ensure we’ve the right support in place. In particular, farmers need help to bolster on farm biosecurity and surveillance measures to assist early detection and reporting.

“We also welcome support for increased testing to ensure strain variation identification, and preparation for potential losses, including proper quarantine, decontamination and disposal of milk and impacted birds,” he said.

Mr Bennett said all Australian dairy farmers need to familiarise themselves with the industry’s extensive biosecurity plans and protocols and review on-farm biosecurity measures.

“We know the arrival of spring migratory birds is increasing the risk of avian influenza arriving on our shores, making it more important than ever to make sure on-farm biosecurity practices and processes are up to scratch.

“All farmers should keep the biosecurity hotline number close to hand. Any suspicious cases of sick birds (wild or domestic) should be reported for analysis.

“Australian Dairy Farmers will be continuing to keep a close eye on the situation, helping ensure the industry is aligned and prepared.”

The biosecurity hotline is 1800 675 888.

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