AUSTRALIAN Dairy Farmers (ADF) is disappointed by the way the Federal Government recommenced water buybacks this week.

The government announced the buybacks on Wednesday (22 February) – just days out from a meeting of state and federal water ministers – without consulting those who are most affected.

ADF president Rick Gladigau says the move undermines transparency and stymies collaborative decision making on the Basin Plan.

“Dairy farmers have invested heavily to improve on-farm water use efficiency. It’s in farmers’ best interests to use water efficiently,” Mr Gladigau says.

“There are innovative projects which will enable more efficient use of water to achieve environmental outcomes, without the need to take more water from the consumptive pool.”

ADF is concerned that reducing the pool of water available to irrigators will affect the price and reliability of water, which in turn influences the viability of farms.

“Dairy farms in the Basin have already done the heavy lifting and paid the price with reduced milk production from the Murray dairy region and higher average water costs,” Mr Gladigau says.

“A further reduction in the consumptive pool will impact food security, not only on the eastern seaboard, but also to our international trading partners.

“Buybacks are not a targeted solution and create poor outcomes for rural communities. This announcement has created stress and uncertainty in irrigation dependent communities.”

Irrigated dairy in the Basin is a $1.67 billion industry that provides more than 8,400 jobs in regional communities.

“More than 2,100 gigalitres of water per year has already been recovered for the environment. This water has been put to good use with significant environmental gains having been made already. But a lack of focus on complementary environmental works across the Basin has in many cases hampered overall environmental improvements.

“When it comes to the environment, adding more water isn’t the only way to achieve better environmental outcomes. The dairy industry would like to work with government to develop innovative projects and use the most up-to-date science to improve environmental outcomes, rather than steadfastly focusing on the blunt instrument of a volumetric target of water for the Basin.”

South Australian dairy farmer Rick Gladigau has been re-elected as a director and President of national policy and advocacy organisation Australian Dairy Farmers (ADF), following ADF’s AGM today.

The ADF Board remains unchanged as:
• Rick Gladigau, South Australia (President)
• Brian Tessmann, Queensland
• Ben Bennett, Victoria
• Heath Cook, New South Wales
• Andreas Clark, South Australia (Independent director)

Victorian dairy farmers Glenn Britnell and Ian Morris were also candidates in a three-way contest for the one seat on the Board open at this year’s AGM.

Following the AGM, at a meeting of ADF’s Board and National Council, Mr Gladigau was re-elected President for a second 12-month term.

Mr Gladigau thanked ADF members for participating in the election process and, in doing so, supporting the organisation. “I look forward to continuing to lead ADF for the benefit of all dairy farmers,” he said.

“ADF thanks Glenn and Ian for nominating and taking part in the election of a Business director.”

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Media contact: Mark Paterson, Currie, mark@curriecommunications.com.au +61 (0) 409 411 110.

Today, Australian Dairy Farmers (ADF) welcomes Mr Stephen Sheridan to the role of CEO.

“The Board is pleased to announce the appointment of Mr Stephen Sheridan as Chief Executive Officer of Australian Dairy Farmers,” says Mr Rick Gladigau, ADF President.

Mr Sheridan has an extensive background in agriculture with a career spanning 30 years in both corporate and non-for-profit (NFP) agricultural management positions. He is a former CEO of the Victorian Farmers Federation and a current director of Rural Financial Counselling Service Victoria West.

Growing up on a mixed cropping, livestock and irrigation property, Mr Sheridan’s love for all things dairy and agriculture was fostered from a young age.

“Stephen has breadth and depth of corporate and NFP experience, as well as expertise and vision that align with where our Board wants to see ADF in the future,” says Mr Gladigau.

Says Mr Sheridan: “I look forward to working with the ADF Board and team, farmers, members, and the broader industry in a sector which makes high-quality products I enjoy, as do people all around Australia and the world.

“Australia is fortunate to have such a fantastic, clean, green, healthy and abundant supply of essential dairy foods. The outlook for the dairy industry appears positive both domestically and internationally.

“This said, I am eager to better understand and meet the challenges faced by the sector, including the immediate impact of current flooding in eastern states, biosecurity risks such as foot-and-mouth and lumpy skin disease, increasing costs of production and equitable pricing, through to the challenges faced by us all to reduce our carbon footprint and improve our environmental stewardship.”

Mr Sheridan says his priority is to “engage with our farmers, members, industry groups and government to understand these immediate and longer-term challenges and opportunities”.

“My goal is that ADF is an effective advocacy organisation, focused on the sustainability of Australian dairy farmers supplying the dairy products we know and love,” he says.

Says Mr Gladigau of the recruitment process: “An extensive search was conducted across the second half of 2022, revealing a substantial number of applicants from within and external to the dairy sector. The Board would like to express its thanks to all applicants for their time and interest.”

Mr Sheridan starts as ADF CEO today (2 November). He will attend this month’s ADF AGM.

About Australian Dairy Farmers
Australian Dairy Farmers is the recognised national policy and advocacy organisation working to improve profitability and sustainability of dairy farming in Australia. Representing Australia’s six dairying states, Australian Dairy Farmers state membership comprises representatives from Victoria, Tasmania, New South Wales, Queensland, South Australia and Western Australia. These state bodies are known as State Dairy Farmer Organisation (SDFO). Australian Dairy Farmers provides the SDFOs with support and representation on a national level.

For further information, contact:
Mark Paterson
Currie
Tel: +61 (0) 409 411 110
Email: mark@curriecommunications.com.au

Australia’s dairy industry has urged state and federal water Ministers at today’s Murray Darling Basin meeting to recognise the adverse impact of the Murray Darling Basin Plan on dairy livelihoods and to keep more destructive water buybacks off the table.

Australian Dairy Farmers (ADF) President Rick Gladigau says ADF welcomes a new report on the social and economic impacts of the Plan in Victoria that reveals that there was a 46 per cent decline in milk production in the Basin during the past 15 years and 60 per cent of this decline was attributable to water buybacks.

The report, commissioned by the Victorian Government and released yesterday by Frontier Economics, shows milk production in the Goulburn Murray Irrigation District declined from an average of 2350 million litres in 2003-04 to 2005-06, to about 1270 million litres in 2019-20 and 2020-21.

“These figures suggest that the Plan has had the biggest adverse impact on dairy than any other event over the same period,” says Mr Gladigau. “The report shows that the dairy industry has already done the heavy lifting on the Plan. We want that recognised in any decisions the Ministers make today.”

The report includes an analysis of the socio-economic impacts of a buyback of an extra 450 gigalitres (GL) of water for the environment – which is currently on the table. Under this scenario It forecasts a gross marginal loss of approximately $150 million annually and 900 job losses for northern Victoria.

“Under a 450GL buyback the report forecasts a further 137GL of loss across the country for the dairy industry, which is more than any other agricultural sector,” says Mr Gladigau. “These numbers alone make it clear the socio-economic test cannot be passed.

“The Australian dairy industry believes a smart and efficient implementation of the Plan can generate positive environmental and socio-economic outcomes without the need for the Australian Government to acquire an extra 450GL of water.

“We want outcomes-based policymaking for water management to sustain dairy production in the food bowl of Australia. Any Plan that we support must incorporate lessons and insights from the past, with the water acquired achieving good environmental outcomes without harming dairy operations and rural communities.”

About Australian Dairy Farmers
Australian Dairy Farmers is the recognised national policy and advocacy organisation working to improve profitability and sustainability of dairy farming in Australia. Representing Australia’s six dairying states, Australian Dairy Farmers state membership comprises representatives from Victoria, Tasmania, New South Wales, Queensland, South Australia and Western Australia. These state bodies are known as State Dairy Farmer Organisation (SDFO). Australian Dairy Farmers provides the SDFOs with support and representation on a national level.

For further information, contact:
Ryan Ong
Currie
Tel: 0439 575 559
Email: ryan@curriecommunications.com.au

Australian Dairy Farmers (ADF) has welcomed a decision by Federal Environment Minister Tanya Plibersek not to halt development of a $4.5 billion urea fertiliser production plant in Western Australia’s Pilbara region.

Minister Plibersek’s decision supports fertiliser manufacturing in Australia – which helps dairy farmers deal with soaring costs of farm inputs – and preserves ancient rock art by First Nations people on the Burrup peninsula.

“We congratulate Minister Plibersek on finding a path forward,” ADF President Rick Gladigau says. “Development of the site can now proceed having already received approval from the relevant state authorities.

“Australia must urgently expand domestic urea production to secure supply and stabilise fertiliser prices. Prices have skyrocketed due to COVID disruptions, including higher shipping costs, as well as several geopolitical challenges, including fertiliser supply restrictions out of China and Russia’s invasion of Ukraine.”

ADF has been advocating for the importance of shoring up Australia’s fertiliser production directly to Minister Plibersek and has lobbied for exploration and development of fertiliser production in Australia. ADF supported the previous Government’s pre-election decision to award major project status to the urea fertiliser project in the Pilbara.

Dairy farmers rely on fertilisers, including urea, to produce pasture and fodder to feed their cows and produce milk. Fertiliser prices are more than double their pre-pandemic level. The fluctuating price of natural gas – a key input in urea production – means urea prices are on a rollercoaster with no end to the volatility in sight for the dairy industry, Australia’s fourth largest agricultural industry. Australian dairying is a $13 billion farm, manufacturing and export industry that employs 43,000 Australians and feeds millions every day.

Perth-based Perdaman Chemicals and Fertilisers agreed not to begin ground disturbance works for its planned urea production plant, following claims from some Traditional Owners that the plant could accelerate degradation of the rock art. However, Minister Plibersek decided not to grant their request for an emergency pause on the project – made under section 9 of the Aboriginal and Torres Strait Islander Heritage Protection Act – because it was not supported by the Murujuga Aboriginal Corporation, the legally constituted and democratically elected representative organisation that safeguards First Nations culture in the Burrup area. Murujuga had agreed with Perdaman on the appropriate cultural treatment of five rock art sites.

“ADF acknowledges the cooperation of the Murujuga Aboriginal Corporation and the consultation by Perdaman Chemicals and Fertilisers in achieving an outcome that is positive for dairy farmers,” Mr Gladigau.

About Australian Dairy Farmers

Australian Dairy Farmers is the recognised national policy and advocacy organisation working to improve profitability and sustainability of dairy farming in Australia. Representing Australia’s six dairying states, Australian Dairy Farmers state membership comprises representatives from Victoria, Tasmania, New South Wales, Queensland, South Australia and Western Australia. These state bodies are known as State Dairy Farmer Organisation (SDFO). Australian Dairy Farmers provides the SDFOs with support and representation on a national level.

For further information, contact:

Mark Paterson

Currie

Tel: 0409 411 110

Email: mark@curriecommunications.com.au

Federal Election: Labour remains dairy’s most immediate priority

AUSTRALIAN Dairy Farmers (ADF) is again reminding all political parties and independents that labour shortages must stay high on the agenda post this weekend’s Federal Election.

ADF President Rick Gladigau says as in many other sectors in the Australian economy, dairy is experiencing a chronic shortage of labour as a consequence of the full employment rate and the slow opening of international borders post COVID.

“The situation is desperate. Although exacerbated by COVID, this is not a new challenge and while we have made progress in advocating for an improved labour strategy and policy over the past 18 months, labour needs to be a priority for any incoming government.

“In particular we need to see the ALP increase its offering to Australian dairy farmers and the wider dairy industry. In the final days leading up to the election, we remain unclear how an Albanese-led government will assist.”

He says there are still levers available that would further assist dairy farmers’ day-to-day labour challenges.

“The call from Seniors Australia to exempt employment income from the Age Pension means test to boost workforce participation is one example that would help dairy farmers and must be supported.

“The current means testing for the age pension discourages many older Australians from working. Exempting work income from means testing means pensioners can return to work, and help meet critical labour shortages across dairy, and many other industries.”

“Dairy regions have retirees, many who wish to work; however, are not incentivised to do so due to the means test. And with many retirees already residing in dairying regions, some of the current accommodation challenges are mitigated with this proposal. It would be another proactive step in overcoming this labour hurdle. Dairy would welcome the opportunity to work with Seniors Australia and run a trial using our industry as a test case, as we need workers today.”

Mr Gladigau says the government’s National Agricultural Workforce Strategy and $30 million implementation commitment in the 2021 budget was a good start to addressing the sectoral challenge, but further investment is needed.

“At least $300 million would enable the establishment of a large-scale workforce capability fund to resolve worker shortages and build capabilities needed for the future.”

Mr Gladigau cites progress in the last 18 months as including the review of ANZSCO (the Australian and New Zealand Standard Classification of Occupations) and upgrade of occupations and skills on a dairy farm, as well as updates to the Dairy Industry Labour Agreement which makes it easier for farmers to source staff from overseas.

“We have several members who currently have applications lodged, and with the easing of COVID travel restrictions, it is hoped application processing times are prioritised and this option becomes more viable for an increasing number of dairy farmers.”

He said the Agriculture Visa was another significant step forward, and while it has been designed and is ready for trial, there have been some difficulties commencing this trial, although Vietnam has now signed up its support.

“Ensuring this Visa is working efficiently is a top priority for the dairy sector, as we’ve specific skills shortages in areas such as AI technicians, which international jobseekers could help address.”

Mr Gladigau said despite these wins, ADF would continue to push for further support.

“Our successful launch of the national Pathway for People in Dairy and the Dairy Passport, supported by securing a $715k grant from the Victorian Government as part of the government’s $50m Agriculture Workforce Plan, demonstrates the value of both our NFF membership, and direct lobbying.”

ADF chief executive David Inall said labour shortages are being amplified by increased pressure in the housing market. Rental prices have surged, and housing prices are growing steadily. Dairy regions are often sought after for sea- or tree-change destinations. This means housing accessibility is especially constrained for dairy workers.

“To help alleviate these issues, ADF welcomes government investment for building dairy capabilities and increasing housing initiatives for regional areas – especially those that can deliver medium-density options which is the most underserved type of housing for dairy regions.”

Deloitte Access Economics estimate that a 5% increase in workforce participation from Australians over 55 would result in a $47.9bn increase to GDP.

About Australian Dairy Farmers

Australian Dairy Farmers is the recognised national policy and advocacy organisation working to improve profitability and sustainability of dairy farming in Australia. Representing Australia’s six dairying states, Australian Dairy Farmers state membership comprises representatives from Victoria, Tasmania, New South Wales, Queensland, South Australia and Western Australia. These state bodies are known as State Dairy Farmer Organisation (SDFO). Australian Dairy Farmers provides the SDFOs with support and representation on a national level.

For further information, contact:

Susan McNair

Currie

Tel: 0439 389 202

Email: susan@curriecommunications.com.au

ADF welcomes new federal grant for supply chain reform

Australian Dairy Farmers (ADF) has secured a federal grant of $814,000 to improve price transparency, product traceability and efficiency across the dairy supply chain.

With the grant, ADF will produce a framework for the dairy industry that lays out what technology and systems need to be deployed to track and trace produce and price through the supply chain.

“We thank the Federal Government for this grant. It’s an opportunity to not just improve traceability, but also build transparency and trust within the dairy industry,” says ADF CEO David Inall. “This is a significant industry reform initiative. It ensures that a reform of the supply chain will continue under the leadership of ADF.

“As part of the project, we will be conducting an audit of existing traceability systems and processes, as well as mapping the critical price and financial transactions as product moves through the supply chain. This will help us identify the gaps and barriers in the industry’s current traceability practices based on the Australian Dairy Traceability Guideline released in September 2021.

“We’ll then use this information to develop a technology and systems roadmap to indicate the most efficient and integrated approach to track and trace product and price through the supply chain. This positions us to deploy real time price and product monitoring tools and capture data more effectively.

“The guidelines set out a common language for traceability. Now we’re using that language to determine which technology and systems will lead to more effective and transparent tracking across the supply chain.”

The grant is part of the Australian Government’s Improving Market Transparency in Perishable Agricultural Goods Industries Program that aims to tackle bargaining power imbalances in these industries by improving market and price transparency. This project has been developed in collaboration with the Australian Dairy Products Federation and Dairy Australia.

The grant program is a response to the Australian Competition and Consumer Commission’s (ACCC) inquiry into Perishable Agricultural Goods. This identified a range of harmful practices associated with bargaining power imbalances and market failures with seven categories of misconduct reported mainly relating to supermarket behaviour. To help resolve these problems the ACCC recommended amendments to the Competition and Consumer Act, making the Food and Grocery Code mandatory and supporting industry initiatives to increase price transparency across the supply chain.

“This new project will make product traceability and price transparency real and efficient. This is not only delivers on one of the ACCC’s recommendations it will benefit all stakeholders in the dairy supply chain,” says Mr Inall.

“Securing these grants are further steps towards delivering on the Australian Dairy Plan’s commitment to restore trust and transparency across the dairy supply chain.”

About Australian Dairy Farmers

Australian Dairy Farmers (ADF) is the recognised national policy and advocacy organisation working to improve profitability and sustainability of dairy farming in Australia. Representing Australia’s six dairying states, Australian Dairy Farmers state membership comprises representatives from Victoria, Tasmania, New South Wales, Queensland, South Australia and Western Australia. These state bodies are known as State Dairy Farmer Organisation (SDFO). Australian Dairy Farmers provides the SDFOs with support and representation on a national level.

For further information, contact:

Mark Paterson

Currie

Tel: 0409 411 110

Email: mark@curriecommunications.com.au

A vote by dairy farmers in Dairy Poll 2022 to not change how much they invest in RD&E has been noted by Australian Dairy Farmers (ADF), the national policy and advocacy organisation for dairy farmers.

“With almost two-thirds of votes (64%) cast for “no change” the result demonstrates considerable support for the dairy services levy to remain at the current level,” ADF President Rick Gladigau says.

“We recognise that there is a wide range of views about the levy around the country, and ADF respected these views when forming its view that dairy farmers should vote their own way in Dairy Poll 2022.

“ADF wishes to thank all dairy farmers who voted in Dairy Poll 2022. As we said previously, it was important that levy payers took this opportunity to have their say about funding for Dairy Australia’s research and innovation programs.”

Mr Gladigau says the poll result is not the end of the levy process. He says the Federal Agriculture Minister must now consider the poll result before deciding on the levy amount. ADF looks forward to this decision.

“As we committed throughout the process, ADF will continue to work with Dairy Australia on the development of operational plans for the organisation, now within clear guidance as to future levy income,” says Mr Gladigau.

The results of Dairy Poll 2022 can be found at dairypoll.com.au.

A stronger than expected economic recovery – driven by growth in the mining and agricultural sectors – has resulted in a 2022 Federal Budget providing cost-of-living assistance and further support for Australia’s fiscal bounce-back from the COVID-19 pandemic.

“This budget once again demonstrates the importance of the agricultural industry to Australia’s economy. Revenue derived from agriculture and mining is being distributed across the economy to help the hip pocket of all Australians,” said Australian Dairy Farmers president Rick Gladigau.

“Dairy farmers will be pleased to see initiatives addressing the increasing cost of farming, including flood recovery and further support to grow our regions. However, in reality the extent of expenditure for primary industries is small relative to economic contribution.”

Key budget announcements that support the dairy sector include:

• The fuel excise and excise-equivalent customs duty rate that applies to petrol and diesel will be halved for 6 months, which will create savings for every dairy business as of today.
• Over $2 billion in support measures for flood affected primary producers, small businesses, not-for-profit organisations and councils will help the 190 dairy farms that have been negatively impacted by the NSW and QLD floods.
• $6.9 billion investment in nationally significant, transformational water infrastructure projects to assist in developing regional communities and an additional $137.4 million towards infrastructure and compliance initiatives for the Murray-Darling Basin, which will address water security, a high priority for dairy farmers.
• $2 billion to establish the Regional Accelerator Program (RAP) to drive transformative economic growth and productivity in regional areas, potentially supporting some of Australia’s dairy industry’s regions to enhance their supply chain competitiveness.
• Over $1.2 billion to expand mobile coverage, connectivity, resilience and affordability in regional Australia which will assist in stimulating adoption of digital technologies.
• $250 million to extend the Modern Manufacturing Initiative to support businesses in priority sectors – including agriculture – to deliver high impact projects such as domestic manufacture of fertiliser and other inputs.
• $148.6 million to support more investment in affordable and reliable power, including the development of community microgrid projects in regional and rural Australia such as replication of the Nowra bio-digestor plant in other dairy regions.

“Some of these and other initiatives in the Budget support delivery of the ADF’s Federal Election policy statement,” Mr Gladigau said.

“In particular, the investment in R&D is welcome. Concessional tax treatment for corporate taxpayers who commercialise their eligible patents linked to agvet chemical products, and $505.2 million to support university research projects from proof of concept to commercialisation will in time bring benefit to the farm gate.”

However, the areas of regional development, biosecurity and maintenance of a skilled workforce require more investment to reduce the risk to dairy production and capitalise on the opportunity before the sector.

“For example, dealing with the threat of lumpy skin disease far exceeds the $61.6 million over 4 years provided to address that and other biosecurity risks.”

Craig Hough, ADF Director, Policy and Strategy, also noted the inflationary risk that this budget presents.

“With the economy at near full employment and being one of the strongest economies in the OECD, some of the stimulus initiatives are difficult to justify. Most of the cost-of-living initiatives are temporary and targeted, and there is a commitment to reduce the budget deficit going forward, but there will need to be care that we don’t fuel inflation and undermine the very intent of the Budget itself,” Mr Hough said.

For further information, contact: 

Susan McNair

Currie

Tel: 0439 389 202

Email: susan@curriecommunications.com.au

A breakthrough in milk price transparency and buyer competition was made today, according to Australian Dairy Farmers (ADF), when the Australian Milk Price Initiative (AMPI) ran its first regional milk spot markets.

The market was launched today on the Mercari platform, which is owned and operated by Mercari Pty Ltd. Various bids across the three regions of Victoria were made with prices exceeding $9.00kg/ms for the spot market. Individual months in the new season traded above $8.00kg/ms. “These are very positive signs,” ADF president Rick Gladigau says.

Regional spot markets deliver the monthly price transparency necessary to enable a forward hedging market like those seen in New Zealand, the US and Europe. Such markets enable dairy farmers and processors to lock in prices up to three years forward for some of their milk.

“There is no more transparent price signal than an open market price,” says Mr Gladigau. “AMPI will improve risk management across the supply chain with back-to-back pricing from customer to processor to farmer, providing the ability to lock in margins across the chain. Better margin and risk management enables better planning, which, in turn, drives investment and growth across the supply chain. More investment in the supply chain means a strong dairy industry.”

In 2019 the Morrison Government provided ADF with an election pledge of $560,000 towards the development of a milk trading platform. This initiative was key to the Australian Dairy Plan’s commitment to deliver new measures to increase transparency and help manage market risk, including the establishment of a functioning milk price market.

“While the launch of the AMPI is an important step, the work is not over yet,” says Mr Gladigau. “Effort is required in the future to ensure appropriate governance and operations and there is a well-designed education or extension program delivered to farmers and processors on how to participate in this or other trading initiatives and how this makes a difference to their risk management and bottom line. Ongoing investment and innovation are key to the future of the dairy industry. With an open market where farmers can choose who they sell their milk to, at what price, and on what terms the future is looking brighter.”

The dairy market will be available 2.00-2.30pm AEST on two Thursdays of each month. Information and access to the market can be found at: https://riemann.com.au/products/.

Mercari provides trading venues for both non-financial and financial products and is also the holder of a Tier 1 Australian Market Licence pursuant to s795B of the Corporations Act.

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Media contact:

Craig Hough, Director, Policy and Strategy, Australian Dairy Farmers tel. +61 437 057 022