Since completing the pilot Developing Dairy Leaders Program, Warrnambool Cheese and Butter Factory Field Officer Rowan Ault has been using his knowledge gained from the program to learn more about the dairy industry as a whole. Now plenty more like Rowan, who have dairy pumping through their veins and want to make a change in the industry, have the same opportunity.

Following the success of the 2011 program, which saw 15 future leaders of the dairy industry graduate, Developing Dairy Leaders Program will continue in 2012. Aspiring leaders are urged to get cracking to be a part of the second program with applications now open and closing 6 January 2012.

Through the Developing Dairy Leaders Program, the dairy industry is looking to identify individuals across Australia who have a desire to shape the direction of the industry into the future. The program comprises two residential sessions. One in Melbourne, from 13 to 17 February 2012, and the other in Canberra, from 11 to 13 September 2012.

Rowan Ault believes the program gave him an overview of other areas of the dairy industry and an insight into the amount of opportunities available across the industry.

“It was a great opportunity to be involved in the course. I enjoyed being in a room with similar minded people and it gave me a better understanding of the amount of work that goes into research and industry representation,” Mr Ault said.

“It has given me a good idea of the variety of opportunities that are out there in dairy, particularly across the broad range of industry sectors.”

Developed by Australian Dairy Farmers (ADF) and Dairy Australia (DA), the Developing Dairy Leaders Program is the industry’s flagship leadership program. Participants undertake skills development that will allow them to fulfil a range of roles representing their industry at a state level.

The Developing Dairy Leaders Program is delivered through the National Centre for Dairy Education Australia (NCDEA) and aims to provide training to potential leaders already working in the dairy industry.

ADF President Chris Griffin said the Developing Dairy Leaders Program aimed to support leaders making the transition from local to state roles.

“The Australian dairy industry understands and promotes the value of leadership within the industry,” Mr Griffin said. “This program will provide our future leaders with the support to develop their skills and a greater understanding of how the industry works at a policy and advocacy level.”

Dairy Australia Managing Director Ian Halliday said the successful participants would develop their leadership skills by working on a project designed to address a real life issue within the dairy industry.

“The program will give participants the support and knowledge to help them identify and resolve issues the industry is facing in a practical way,” Mr Halliday said. “We want to ensure they can contribute to the dairy industry in the long term.”

To be considered, applicants must complete the application form at www.dairyaustralia.com.au/leadership by 6 January. For more information, contact Rodney Vile at Dairy Australia on 03 9694 3806 or 0417 531 706.

Media Contact:

Felicity Gallagher, Dairy Australia External Communications Manager

M: 0417 540 059

E: fgallagher@dairyaustralia.com.au

Since completing the pilot Developing Dairy Leaders Program, West Australian dairy farmer Michael Giumelli has been using his knowledge gained from the program to learn more about the dairy industry as a whole. Now plenty more like Michael, who have dairy pumping through their veins and want to make a change in the industry, have the same opportunity.

Following the success of the 2011 program, which saw 15 future leaders of the dairy industry graduate, Developing Dairy Leaders Program will continue in 2012. Aspiring leaders are urged to get cracking to be a part of the second program with applications now open and closing 6 January 2012.

Through the Developing Dairy Leaders Program, the dairy industry is looking to identify individuals across Australia who have a desire to shape the direction of the industry into the future. The program comprises two residential sessions. One in Melbourne, from 13 to 17 February 2012, and the other in Canberra, from 11 to 13 September 2012.

Michael Giumelli believes the program gave him valuable insights into different areas the dairy industry and a greater understanding of how it works.

“It was a fantastic experience to be involved in the course and learn so many new things. I met other people working in the dairy industry across the country and from different parts of the industry,” Mr Giumelli said.

“I highly recommend the program to anyone and it is a great addition to my resume.”

Developed by Australian Dairy Farmers (ADF) and Dairy Australia (DA), the Developing Dairy Leaders Program is the industry’s flagship leadership program. Participants undertake skills development that will allow them to fulfil a range of roles representing their industry at a state level.

The Developing Dairy Leaders Program is delivered through the National Centre for Dairy Education Australia (NCDEA) and aims to provide training to potential leaders already working in the dairy industry.

ADF President Chris Griffin said the Developing Dairy Leaders Program aimed to support leaders making the transition from local to state roles.

“The Australian dairy industry understands and promotes the value of leadership within the industry,” Mr Griffin said. “This program will provide our future leaders with the support to develop their skills and a greater understanding of how the industry works at a policy and advocacy level.”

Dairy Australia Managing Director Ian Halliday said the successful participants would develop their leadership skills by working on a project designed to address a real life issue within the dairy industry.

“The program will give participants the support and knowledge to help them identify and resolve issues the industry is facing in a practical way,” Mr Halliday said. “We want to ensure they can contribute to the dairy industry in the long term.”

To be considered, applicants must complete the application form at www.dairyaustralia.com.au/leadership by 6 January. For more information, contact Rodney Vile at Dairy Australia on 03 9694 3806 or 0417 531 706.

Media Contact:

Felicity Gallagher, Dairy Australia External Communications Manager

M: 0417 540 059

E: fgallagher@dairyaustralia.com.au

The Australian Dairy Farmers (ADF) has serious doubts whether the Federal Government and Murray- Darling Basin Authority will deliver on their triple bottom line promises for the draft Basin Plan.

Daryl Hoey, ADF water spokesman said, “In recent meetings with government and the MDBA they certainly haven’t convinced us that the draft Basin Plan is going to allow for a growing dairy industry to operate across the Basin.

“Yet the Federal Water Minister, Tony Burke, promised more than a year ago to deliver a Basin Plan that optimised economic, social and environmental outcomes.

“At the time, the dairy industry accepted these commitments in good faith – only to discover now, at this late stage, that the MDBA has not incorporated the triple bottom line into the draft Basin Plan after all.”

“The MDBA’s own analysis has identified that achieving its water recovery target through continued buybacks would cause severe and lasting decline in irrigation regions.

“With the breaking of the drought, the dairy industry is recovering, rebuilding herds, increasing milk production and reducing debt. If the proposed water reductions go ahead, then the dairy industry will slide back to where it was during the drought.

“Mooted alternatives such as dryland beef farming will not replace the lost jobs, local dairy processing and economic activity associated with irrigation farming,” said Mr Hoey.

Chris Griffin, ADF President said, “Farmers across the Basin have achieved considerable water savings and made substantial contributions to future environmental water through the buyback scheme and other projects.

Further buyback tenders are unnecessary when more water can be saved by increased investment in more water-efficient irrigation systems, environmental works to better use the available water, and improved river operations.”

“Given the amount of water already recovered and the clear economic and social impacts of this change, the dairy industry calls on the Federal Government to make a firm commitment to stop taking our irrigation water,” said Mr Griffin.

Media Contact:

Daryl Hoey, ADF Water Spokesperson

M: 0407 582 982

Chris Griffin, ADF President

M: 0402 846 239

Australian Dairy Farmers (ADF) President Chris Griffin expressed extreme disappointment that the Senate Economics References Committee’s final report on the Inquiry into the impacts of supermarket price decisions on the dairy industry has not recommended immediate action on Coles’ cutthroat discounting.

“The Committee has been presented with clear and uncontestable evidence that Coles’ marketing tactic is adversely affecting dairy farming families and action needs to be taken now,” said ADF President Chris Griffin.

“Coles’ actions have already contributed to the loss of more than 26 dairy farmers from the industry in Queensland since January,” said Mr Griffin.

Whilst dairy farmers are leaving the industry the Committee has recommended four reviews, one study and one consultation process. We need action.

“This cut‐throat discounting by Coles has now been going on for nine months and it is time the government took action to stop it. This is the second inquiry in two years, the time for talking is over, we need action,” Mr Griffin said.

“We’ve seen this discounting cycle before in the United Kingdom, we know what the issues are, we know this cutthroat discounting ultimately flows on to the farmers and their families and we know the UK Competition Commission had to take legislative action to re‐balance the market power of the supermarkets there.”

The Government must take action to balance the unfair market power of the two big supermarkets and provide fairness and transparency along the supply chain.

Coles and Woolworths have unparalleled market power that is not replicated anywhere else in the world. The top five supermarket chains in the United Kingdom have about 80% of the market, the same as Coles and Woolworths here in Australia. This cannot be good for competition in the long term and is definitely not good for the supermarkets’ suppliers.

“ADF applauds Senators Xenophon, Williams, Madigan, Milne and Heffernan for having the courage to stand up to Coles and say it how it is in their minority report. ADF calls on the Federal Government to immediately respond to the Committee’s minority report and work with industry to implement its recommendations.”

“The price cuts are unsustainable and the plain fact is milk priced at $1 per litre does not bring in enough money to support farmers, processors and retailers. The evidence shows it and Coles knows it,” Mr Griffin said.

The dairy industry has done modelling on what the potential impact of the discounting is if it continues.
This national modelling outlines a potential annual loss of $44 million from the value chain due to the shift to home brand products. This scenario would lead to a drop of 2 cents per litre in the farmgate price. For the vast majority of northern NSW and Queensland dairy farmers this would result in the loss of any profit margin on their milk.

Farmers in the drinking milk states are under pressure and they are leaving the industry due to the uncertainty created by Coles and doubts about the long‐term sustainability of their farms at these prices.

“This is leading to a lack of investment in the industry in the drinking milk states at a time when it is vital that farmers develop their farms to meet anticipated future growth in demand,” Mr Griffin said.

Media Contact:

Chris Griffin, ADF President

M: 0402 846 239

“Dairy farmers in the key drinking milk markets of Queensland, northern NSW and Western Australia are being hit hard by the unsustainable pricing of drinking milk at $1 per litre,” ADF President Chris Griffin said.

Appearing before the Senate Economics References Committee Inquiry Mr Griffin gave evidence of the impacts of supermarket price decisions on the dairy industry.

In the last eight months dairy farmers have had to contend with the uncertainty created by Coles’ cut throat discounting of fresh milk.

Farmers are under pressure and they are leaving the industry due to their doubt about the long‐term sustainability of their farms at these prices.

“This is leading to a lack of investment in the industry in the drinking milk states at a time when it is vital that farmers develop their farms to meet anticipated future demand,” Mr Griffin said.

The dairy industry has done modelling on what the potential impact of the discounting is if it continues.

This national modelling outlines a potential annual loss of $44 million from the value chain due to the shift to home brand products. This scenario would lead to a drop of 2 cents per litre in the farmgate price. For the vast majority of northern NSW and Queensland dairy farmers this would result in the loss of any profit margin on their milk.

“The price cuts are unsustainable and the plain fact is milk priced at $1 per litre does not bring in enough money to support farmers, processors and retailers. The evidence shows it and Coles knows it,” Mr Griffin said.

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

The industry also calls for a Supermarket Commissioner or Ombudsman to be established to investigate complaints and enforce the new code.

‘We look forward to the Senate Economic References Committee report to provide direction to the Government on a resolution to the unsustainable pricing and unfair practices of Coles,’ Mr Griffin said.

Media Contact:

Media Contact:

Chris Griffin, ADF President

M: 0402 846 239

Coles has continually tried to claim that dairy farmers are not being impacted by the pricing of milk at an unsustainable $1 per litre. This is simply not true. The evidence is in and the Coles’ led milk price war is directly impacting dairy farmers. There is now no doubt that Coles’ gain is farmers’ pain.

Dairy farmers in the key drinking milk markets of Queensland, northern NSW and Western Australia are being hit hard. In its submission to the Senate inquiry into milk prices ADF shows how.

In the last seven months dairy farmers have had to contend with the uncertainty created by Coles’ cut throat discounting of fresh milk. In Queensland alone over twenty farmers have left the industry, since the price war started, with many citing the impacts and poor outlook due to the supermarket milk price war as a key contributing factor in deciding to exit the industry.

In Queensland one group of farmers has been losing thousands of dollars a month due to the increase in sales of home brand milk, which is directly related to Coles’ unsustainable price discounting. The cumulative impact up until the end of July for this group of 185 Queensland dairy farmers has been a loss of more than $767,000. If this impact continues the group could collectively lose more than $1.5 million this year.

Also in Queensland there was a recent small farmgate price increase, for one group of dairy farmers, that does not even cover the inflation rate of 3.6%, let alone increases in costs of production which have been much higher than inflation this year.

It has been reported that in the early stages of current negotiations with a major processor, Parmalat, New South Wales farmers are being asked to take a drop in farmgate price of 3‐4 cents per litre for new contracts to supply milk to a major supermarket home brand contract won by this processor.

Analysis of ABARES Farm Survey data indicates that average NSW farm profit per litre over the past 10 years has been just 1 cent per litre. A 3‐4 cents per litre cut in farmgate price would render the vast majority of NSW farms supplying the drinking milk market unprofitable and be catastrophic for the industry in NSW.

Nationally, it has been conservatively estimated there is the potential for an annual loss of at least $227 million from the value chain with consequent impacts on farmgate prices.

An analysis of the impact of the $1.00 per litre pricing on the Western Australian dairy industry value chain undertaken for the Western Australian Farmers Federation (WAFF) has estimated that the discounting will take $25.2 million per year out of the Western Australian milk value chain.

“The price cuts are unsustainable and the plain fact is milk priced at $1 per litre does not bring in enough money to support farmers, processors and retailers. The evidence shows it and Coles knows it,” Mr Griffin said.

Mr Griffin said, “This is why the ADF is calling on the Federal Parliament to support industry’s recommendations to rectify this unsustainable situation as a matter of urgency.”

ADF’s submission can be found at the following link (submission number 150, supplementary submission no.1):

http://www.aph.gov.au/senate/committee/economics_ctte/dairy_industry_supermarket_2011/submissions.htm

Media Contact:

Chris Griffin, ADF President

M: 0402 846 239

“After six months of unsustainable pricing of its home brand milk, this cynical marketing tactic has devalued milk as a product and caused unnecessary worry for farmers, particularly those in the key retail drinking milk states of Queensland, Northern NSW and WA,” said ADF Vice President Adrian Drury.

Consumers are not the winner from this, they know they are simply paying more on other food items and ADF is disappointed that Coles is not listening to its customers by pricing milk sustainably.

Consumers can support dairy farmers by buying branded milk and not supermarket brands.
The last time milk was a $1 per litre was around 1992. No-one can live on a wage set at 1992 levels.

More broadly Coles’ action has cut at the heart of all farmers since (whether they supply Coles or not) they are seeing the product they produce ‘devalued’ in the market place.

“Coles has shown total disregard for dairy farmers’ livelihoods and for their customers,” Mr Drury said.

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

Cole’s claim that milk consumption is up, ignores the reality that milk is an inelastic product and that any increase in consumption is due to normal population growth.

The recent inability of the ACCC to address this problem demonstrates that strengthening existing laws, or making new regulation, is the only answer to Cole’s actions.

The ADF has made recommendations to amend the Competition and Consumer Act 2010 and they

are:

• a mandatory Supermarket Code of Conduct be developed, in consultation with industry, with an Ombudsman or Commissioner with strong powers;
• a definition of unconscionable conduct be inserted into the Act;
• an “effects” test be reintroduced;
• a statutory duty of good faith be enacted as part of the Act; and
• that the United Kingdom Competition Act 1998 be examined, section 18 in particular, with a view to amending the Act along similar lines to prevent predatory pricing and the misuse of market power.

“The price cuts are unsustainable and the plain fact is milk priced at $1 per litre doesn’t bring in enough money to support farmers, processors and retailers. Coles knows it,” Mr Drury said.

Media Contact:

Adrian Drury, ADF Vice President

M: 0428 569 245

Wes Judd, ADF President

M: 0407 132 854

ADF Vice President, Adrian Drury today responded to the ACCC announcement on Coles’ unsustainable milk marketing tactic by saying, “The damage done to the dairy industry by unsustainable discounting by Coles means I can only agree with Senator Xenophon who called the ACCC a toothless Chihuahua.

The ACCC is silent on what is happening in regional or remote areas of Australia – Darwin, Kununurra and other areas. It is impossible for Coles to buy, transport, store and sell milk in these areas for $1 per litre.

The ACCC is also silent on the issue of whether Coles has undertaken deceptive and misleading conduct by claiming in its advertising that they were not affecting dairy farmers.

Mr Drury said, “It is clear that small retailers and vendors have suffered and lost business as a result of the discounting war started by Coles and that farmers have been directly impacted.

In Queensland, many dairy farmers have been impacted already by the clear shift in sales to home brand milk with some set to lose around $8,000 this year.

Almost twenty dairy farmers have left the industry in Queensland citing Coles’ actions as the main contributing factor – they know the price is unsustainable.

The price cuts are unsustainable and the plain fact is milk priced at $1 per litre doesn’t bring in enough money to support farmers, processors and retailers. Coles knows it.

Mr Drury said “Dairy farmers certainly do not believe that Coles has been absorbing the cost of its marketing stunt. There are over 20,000 products in Coles stores and we believe Coles has been using milk as a loss leader to draw in customers while fleecing them on other products.

The ACCC has obviously conducted a very narrow inquiry that did not look at issues around false advertising, any long-terms impacts of this cynical marketing tactic on farmers, corner stores, independent service stations and milk vendors or what the cost is to Coles at the checkout.

The ADF is disappointed that the ACCC did not publicise its terms of reference or actually discuss this inquiry with farmers.

Media Contact:

Adrian Drury, ADF Vice President

M: 0428 569 245

Wes Judd, ADF President

M: 0407 132 854

Policies, regulation and decision making for the dairy sector of tomorrow is in good hands now the pilot Developing Dairy Leaders Program has been completed.

A group of 15 young people from across Australia (listed below) completed the program which involved a four- day residential skills development program in Melbourne with state and national industry leaders and time in Canberra learning about advocacy and policy development at a national level.

The program, developed by Australian Dairy Farmers (ADF) and Dairy Australia and delivered by the National Centre for Dairy Education Australia (NCDEA), aims to build on the leadership skills of people aged 18-30 who are committed to the dairy industry and have been identified as potential future leaders.

Throughout the program participants learned to articulate, present and debate ideas, provide advocacy and representation and participate as a member of a board. The group was also given media training and now know how to lead community or industry organisations and balance work and professional development. Participants have also gained formal accreditation through the NCDEA as a result of the program.

Gippsland participant Sally Pate said the program provided an in depth look into the operations of the Australian dairy industry and the many leadership avenues available.

“The media training provided throughout the program has helped me develop some key skills in how to present myself and communicate more effectively,” Ms Pate said.

Ty Maidment, from Meadows in South Australia, said the program had helped him develop his leadership and networking skills and strengthen his knowledge of the overall industry.

“It’s been a great opportunity for me to learn about industry board structures, corporate governance and government related issues and I’ve been able to hone in on my public speaking skills. It’s definitely going to help me in the future in the industry and open up different options for me.”

ADF Vice President Adrian Drury said the program was a key activity in supporting the development of the dairy industry’s state level leaders and the dedication and willingness of participants to put something back into their industry was great to see.

“I have met the participants of the Developing Dairy Leaders Program and believe them to be a group of young people who are more than capable of responding to any challenge thrown at them, leading our industry and staying true to themselves,” Mr Drury said.

Dairy Australia managing director Ian Halliday said the course had attracted a group of enthusiastic and passionate young people from the industry.

“It is very encouraging to see a group of young people so keen to build on their dairy careers, which just goes to show the future of our industry, is in extremely good hands,” Mr Halliday said.

The program was developed in response to the Australian Dairy Industry Council (ADIC) Dairy Leadership – An Industry Blueprint 2010-15, which identified that 200 leadership roles are required across the industry – 40 new people each year.

Wesfarmers has rejected a plea from a group of its shareholders to put an end to Coles’ cut-price milk and dairy campaign.

Australian Dairy Farmers (ADF) Vice President Adrian Drury said Wesfarmers today blocked a moved by the shareholders to force a general meeting.

“The refusal by Wesfarmers to even discuss the Coles “down-down” campaign shows no respect for its shareholders. It also shows total disregard for dairy farmers’ livelihoods and for customers who in the end will be hit with higher prices when Coles seeks to recoup its losses,” Mr Drury said.

On 10 May concerned Wesfarmers shareholders sent a letter to Wesfarmers Chairman Bob Every seeking an extraordinary general meeting of the company to consider two resolutions:

(i) Explain the Coles pricing strategy on milk and other dairy products and how this is consistent with the origins, values and corporate social responsibility of the company; and

(ii) Refrain from implementing and persisting with the Coles “down-down” milk and dairy product price reductions.

“Instead of allowing its shareholders to ask questions and express their views, Wesfarmers called in its lawyers to block any free discussion of Coles’ cutthroat campaign,” Mr Drury said.

Wesfarmers responded to the shareholders’ call for a meeting by saying ‘the Directors have considered your request and decline to call the meeting’ on ‘the basis that the proposed resolution relates to management matters.’

“Wesfarmers, a company whose origins lie with farmers, have missed an opportunity to be true to their roots and show leadership on this issue. They have missed the chance to explain to farmers and their families why they are letting Coles get away with its tactics.”

“Unlike Wesfarmers ADF will consult with farmers about what our next move is.”

“Wesfarmers seems to be unable or unwilling to rein in the Coles ‘bully boys’. It needs to make its subsidiary Coles treat consumers and dairy farmers with respect,” Mr Drury said.

“Coles has not been upfront with the public on their tactics and the impact of its campaign on Australia’s dairy industry. Now its parent company Wesfarmers is joining the strategy to shut down discussion. It’s extreme arrogance to act as though they are not answerable to shareholders or anyone else.

“These price cuts are unsustainable and the plain fact is milk priced at $1 per litre doesn’t bring in enough money to support farmers, processors and retailers. Coles knows it,” Mr Drury said.

Media Contact:

Adrian Drury, ADF Vice President

M: 0428 569 245

ADF has sent a letter on behalf of dairy farmers, Coles’ customers and others concerned by the Wesfarmers subsidiary actions to Wesfarmers Chairman Bob Every seeking an extraordinary general meeting of the company to consider two resolutions:

That the company:

(i) Explain the Coles pricing strategy on milk and other dairy products and how this is consistent with the origins, values and corporate social responsibility of the company; and

(ii) Refrain from implementing and persisting with the Coles “down-down” milk and dairy product price reductions.

“Wesfarmers needs to rein in Coles. It needs to make its subsidiary treat consumers and dairy farmers with respect,” Mr Drury said.

“Coles has not been upfront with the public on their tactics and the impact of its campaign on Australia’s dairy industry or its customers. Now is the opportunity for its parent company Wesfarmers to be open, honest and transparent with those who own it and have helped build the company into what it is now.”

Wesfarmers, a company whose origins lie with the farmers must take responsibility for Coles’ actions that are now directly impacting farmers and be answerable to its shareholders.

Coles is selling milk cheaper than many varieties of bottled water, significantly devaluing one of the most premium fresh products available.

“These price cuts are unsustainable and the plain fact is milk priced at $1 per litre doesn’t bring in enough money to support farmers, processors and retailers. Coles knows it and so should Wesfarmers,” Mr Drury said.

Media Contact:

Adrian Drury, ADF Vice President

M: 0428 569 245

Chris Griffin, ADF President

M: 0402 846 239