Today, the National Farmers Federation launches a campaign which aims to increase awareness of the positive role agriculture is playing in a reduced-emissions future. The campaign – ‘Australian farms –
Today, the National Farmers Federation launches a campaign which aims to increase awareness of the positive role agriculture is playing in a reduced-emissions future. The campaign – ‘Australian farms –
For the first time in a decade Australian dairy farmers will get a say on how much money is invested in the industry services managed and delivered by Dairy Australia – an outcome sought and welcomed by Australian Dairy Farmers (ADF).
Yesterday, the Levy Poll Advisory Committee (LPAC) recommended that a poll of all dairy farmers be held to set the future level of the dairy service levy – a levy that funds the range of Dairy Australia’s programs, including research and innovation.
“This is good news for dairy farmers,” says ADF president Terry Richardson. “They can now consider the current levy, or a potential increase, to ensure the investment in farmer RD&E meets their needs.”
LPAC members will now develop the voting options which will go on a ballot, including LPAC’s recommended option, expected by September 2021. LPAC will continue seeking input and feedback from dairy farmers in the coming weeks to determine the voting options, including a preferred LPAC option.
“As the voice of dairy farmers ADF is deeply committed to working with our members, LPAC, Dairy Australia and the broader levy payer farmer base to develop the voting options,” Mr Richardson says.
“Now that it has been decided to activate a dairy levy poll a comprehensive process of analysis, consultation and scenario planning needs to be undertaken to develop the voting options. It is essential that this process delivers clear and concise feedback from farmers, recognising the need of LPAC and the Minister for Agriculture to recommend one clear option when the levy poll is held in March 2022.”
Mr Richardson says the ADF is yet to form a view on the levy poll options that should be presented to levy payers.
“However, we do anticipate that an option to maintain current levels will be included in the levy poll, together with any options for an increase that LPAC may determine appropriate,” Mr Richardson says.
“The levy poll provides dairy farmers with the opportunity to have a say on an important investment that works to benefit their dairy farm businesses and advance the industry as a whole,” Mr Richardson says.
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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.
Australian Dairy Farmers is responsible jointly (with Dairy Australia) for recommending the Levy Poll Advisory Committee (LPAC) Chair and Deputy Chair as well as providing two representatives to the LPAC. Furthermore, ADF is charged with providing a recommendation to the LPAC about whether there should be a poll as well as whether there should be a change in the dairy service levy and, if so, the nature of that change
For further information, contact:
Mark Paterson
Currie
Tel: 0409 411 110
Email: mark@curriecommunications.com.au
PEAK dairy farmer group Australian Dairy Farmers (ADF) has helped secure an estimated $10 million funding for dairy farmers across the country to improve energy efficiency, reduce energy costs and lower on-farm emissions.
The Federal Government today announced the successful applicants in the Energy Efficient Communities Program – Dairy Farming Business Grants program, an initiative that was developed in partnership with ADF following last year’s federal election.
This initiative will provide grants of up to $20,000 with no co-contribution required to help dairy farming businesses save energy and lower bills by installing more energy efficient appliances on farm.
“Dairy operations are energy intensive and heavily impact a farmer’s bottom line,” ADF President Terry Richardson said.
“This program is essential not just to mitigate the excessive cost of energy, but also to contribute to Australia’s emission reduction targets.”
Eligible projects funded under the grants program include:
Financial relief for businesses was a major component of ADF’s 2019 federal election platform, delivered through the Australian Dairy Industry Council (ADIC).
In this manifesto, the organisation argued for businesses to receive tax relief for installing or upgrading to more energy efficient or renewable energy systems.
Media contact:
Ashley Mackinnon, Public Affairs Manager
M: 0407 766 153
E: media@australiandairyfarmers.com.au
Minister for Agriculture, Drought and Emergency Management David Littleproud has announced the first phase of a Blockchain and Traceability Framework for Australian Dairy Farmers.
The project delivers on an Australian Government election commitment to develop a real time dairy payment system and supply chain information sharing capacity using blockchain technology.
“Blockchain can assist in providing a shared view of truth about business transactions,” Minister Littleproud said.
“All sides know they are all looking at the same records and the history of their business relationship.
“Open, transparent and trustworthy systems are important for long term sustainability and global competitiveness.
“Building on standards already used in transport and logistics, warehousing, distribution, retailing and eCommerce ensures Australian producers and processors can participate efficiently and effectively in global markets.”
The initial phase will raise industry awareness of blockchain and traceability benefits for dairy farmers through the delivery of a short video and information paper.
ADF President Terry Richardson said blockchain technology would be integral to helping improve the profitability and efficiency of the Australian dairy industry.
“The transparency and security of shared information using blockchain technology will demonstrate provenance and reduce costs to compete more aggressively in local and global markets,” Mr Richardson said.
“This first phase is all about education. It is a precursor to a field trial that will quantify benefits and set us up for a more digitalised future.”
The project will support ADF’s response to the 2018 ACCC inquiry into the competitiveness of prices, trading practices and the supply chain in the Australian dairy industry.
Led by ADF, project participants include GS1 Australia, Data61|CSIRO and the dairy industry.
Blockchain may help the industry to better manage information, give life to new standard form contracts in the dairy industry, and build trust, transparency and efficiency between dairy farmers and processors.
Click onto the ‘Australian dairy industry on the moo-ve – Blockchain and Real Time Payment System’ video here.
Fast Facts:
Media Contact:
Douglas Ferguson (Minister Littleproud): 0455 448 895
Ashley Mackinnon (Australian Dairy Farmers): 0407 766 153
THE new mandatory Dairy Code of Conduct could be expanded to include retailers as part of a new Australian Competition and Consumer Commission (ACCC) inquiry into perishable agricultural goods, in a move supported by farmers.
Agriculture Minister David Littleproud today announced he would ask the competition watchdog to examine the effectiveness of the new Dairy Code of Conduct and consider options to extend the Code across the entire domestic dairy supply chain.
Australian Dairy Farmers (ADF) President Terry Richardson said that including supermarkets as part of the Dairy Code of Conduct would help address the discounted retail pricing that has dogged the dairy industry for years.
“ADF has a longstanding policy that a mandatory code of conduct for dairy needs to cover the whole supply chain, from farms right through to supermarkets,” Mr Richardson said.
“For years, dairy has suffered from heavily discounted fixed pricing, while the prices on most other perishable products change according to supply and demand.
“It is time for the Federal Government to intervene in establishing an agreed set of retail pricing standards for dairy products on the retail shelves.”
ADF has previously argued that the fixed pricing of dairy products should be scrapped and replaced with a system based around demand and supply, with a universally agreed percentage pass through margin for farmers to remain sustainable.
The farmer group last year wrote in its submission to the Senate Inquiry into the Performance of Australia’s dairy industry and the profitability of Australian dairy farmers since deregulation in 2000 that the Food and Grocery Code, which already covers supermarkets, could provide this mechanism.
Mr Richardson said this inquiry gave hope that issues around supermarket pricing of dairy products might finally be resolved.
“We’re not asking for much – just that farmers receive a fair price for their product that is more than the cost of production, and that retail pricing is based around supply and demand, not fixed for an extended period of time,” he said.
Media Contact:
Ashley Mackinnon, Public Affairs Manager
M: 0407 766 153
E: media@australiandairyfarmers.com.au
DAIRY farmers now have access to $10 million in Federal Government grants to help lower their energy bills and reduce emissions, as part of a multi-million-dollar election commitment welcomed by peak dairy farmer group Australian Dairy Farmers (ADF).
The Federal Government announced that grants of up to $20,000 would be available for dairy farm businesses to save energy by:
Funding for this program will be distributed between states in proportion to the number of dairy farms in each jurisdiction.
ADF President Terry Richardson welcomed the announcement, which fulfils a request made by the farmer group in its 2019 federal election platform.
“Dairy farmers are facing pressure from high production costs that are, in many cases, outstripping their income,” ADF President Terry Richardson said.
“We called on the Government to provide relief to businesses installing or upgrading to more energy efficient or renewable energy systems. These grants will not only mitigate the excessive cost of energy, but also contribute to the dairy industry’s target to reduce emissions by 30 per cent by 2030.”
The grants are part of a $22 million support package promised to dairy farmers in the lead up to last year’s election, which also included over $1 million in projects to be delivered by ADF.
“We have been working with the Government since the last election to ensure that these projects, including a new dairy industry trading platform and a real-time payment and information sharing capacity utilising Blockchain technology, are rolled out to benefit all dairy farmers and the wider industry,” Mr Richardson said.
“These projects will utilise new technology and create a more level playing field between all parts of the dairy supply chain, in line with recommendations made by the ACCC (Australian Competition and Consumer Commission) in its Dairy Inquiry.”
Further guidelines and application forms for the energy grants are available here, or by telephone on 13 28 46. Applications will close on 17 August 2020.
Media Contact:
Ashley Mackinnon, Public Affairs Manager
M: 0407 766 153
E: media@australiandairyfarmers.com.au
DAIRY farmers are feeling more confident now than last year about the state of their own businesses and the future of the industry as a whole, the latest annual National Dairy Farmer Survey has confirmed.
While confidence remains lower than in 2018 and 2017, more than two thirds of farmers surveyed (67 per cent) reported feeling positive about their businesses, a massive 22 per cent jump from last year, while 44 per cent felt good about the future of the industry.
This is a marked improvement from last year, when just 34 per cent felt positive about the industry’s future in the survey’s worst ever result, but still far below the historic high of 78 per cent recorded in the 2008 survey, before the Global Financial Crisis.
Peak dairy farmer group Australian Dairy Farmers (ADF) President Terry Richardson said the survey results were a welcome boost from last year.
“These survey results show a dairy industry in recovery, although it is unclear whether this confidence will continue to grow in a post-pandemic environment,” Mr Richardson said.
Dairy Australia’s June Situation and Outlook Report, released today, confirmed that demand for dairy remained strong during the panic buying that accompanied the COVID-19 pandemic.
“The industry is still facing some considerable challenges, but this is a positive outlook for the future, with dairy products remaining a staple household item.”
Encouragingly, 70 per cent of farmers recorded in this year’s survey expected to make a profit, up from 43 per cent last year, while 48 per cent of farms anticipated an increase in production volumes for the year ending June 2020.
“It appears farmers are recovering from recent production losses and encouragingly, some farmers are actively entering an expansion phase, even as many continue to battle drought, high feed and water costs, and other elements,” Mr Richardson said.
“A confident industry is a key objective of the Australian Dairy Plan, with a goal to boost milk production up to 9.3 billion litres per year by 2024-25,” Mr Richardson said.
“There are a lot of factors involved in sustaining a confident industry. But if the trend in farmer confidence continues, I have no doubt that we can achieve our goal over the next five years.”
Media Contact:
Ashley Mackinnon, Public Affairs Manager
M: 0407 766 153
E: media@australiandairyfarmers.com.au
PEAK dairy farmer group Australian Dairy Farmers (ADF) has supported today’s announcement by supermarket retailer Woolworths to extend its 10 cent per litre levy on discount milk.
“We’re pleased that Woolworths has made a public commitment to continue distributing an extra 10 cents per litre on its Home Brand milk back to farmers, but in the long term we want to see this initiative built into the farm gate milk price,” ADF chief executive David Inall said.
Woolworths said today in a statement that the retailer expected to contribute another $30 million to dairy farmers over the next 12 months, on top of the $50 million already delivered.
The retailer first raised the price of its generic milk line by 10 cents per litre in 2018, with the full increase going back to dairy farmers who were coping with the devastating impacts of drought. Woolworths later committed to continue the arrangement in February 2019.
“We are now looking for Coles, ALDI and other retailers to follow Woolworths’ lead and publicly state their commitment to continue their arrangements,” Mr Inall said.
ADF, in a submission last year to the Senate inquiry into the performance of the dairy industry since deregulation, recommended that the price of generic milk brands be raised to $1.50 per litre until changes are made to the Food and Grocery Code to establish appropriate value distribution up the supply chain to dairy farmers
“If we are to stop farm exits and hardship, then all retailers need to increase the price of their store brand retail fresh milk to $1.50 per litre with the increase going back to farmers via their processors,” Mr Inall said.
Mr Inall said ADF also looked forward to working with Woolworths on future initiatives to maintain a sustainable dairy industry, including a new $5 million fund to provide infrastructure and technology grants to dairy farmers to help improve on-farm efficiency and profitability.
“This new fund is obviously welcome and Woolworths has committed to engage with dairy industry stakeholders on the design of the new program, so we look forward to working with them wherever we can,” he said.
Media Contact:
Ashley Mackinnon, Public Affairs Manager
M: 0407 766 153
E: media@australiandairyfarmers.com.au
PEAK dairy farmer group Australian Dairy Farmers (ADF) is reminding farmers and processors to ensure all new milk supply agreements comply with the industry’s mandatory Code of Conduct.
The Code of Conduct, which came into effect on January 1 2020, requires most dairy processors to publish standard form milk supply agreements on their websites by June 1.
A standard form milk supply agreement template, developed by ADF, was released earlier this month. The farmer group was contracted by the Federal Government to develop a template that incorporates all elements of the Code and can be used by farmers and processors in negotiating contracts.
“It is extremely important that farmers and processors comply with the Code of Conduct so that they don’t risk being penalised in a way that could jeopardise their business,” ADF President Terry Richardson said.
The Australian Competition and Consumer Commission (ACCC) is responsible for enforcing the Code and investigating alleged breaches.
The competition watchdog, in its 2018 dairy inquiry, made several recommendations related to contracting practices, including that milk supply arrangements should be acknowledged in writing, processors should provide farmers with all contractual documents before the start of their agreement, and that those agreements should be simplified.
The Code does not apply to farmers and processors with a milk supply agreement that was entered into before January 1 2020, unless that contract is varied or renewed.
All contracts, no matter when they were entered into, must be compliant with the Code from January 1 2021.
Farmers or processors can contact the ACCC on 1300 302 021 to report alleged non-compliance.
Media Contact:
Ashley Mackinnon, Public Affairs Manager
M: 0407 766 153
E: media@australiandairyfarmers.com.au
MEDIA stories this week concerning Australian Dairy Farmers’ (ADF) involvement in a proposed 40 cents per litre levy on milk are inaccurate and grossly out of context.
ADF officially received this proposal from our Victorian state member, the United Dairyfarmers of Victoria (UDV) on Sunday 10 May 2020. Any previous interactions or knowledge regarding this proposal were subject to confidentiality, which we respected. We are extremely disappointed to now read that ADF allegedly did not act fast enough in assessing this proposal. ADF receives many proposals and ideas to help maintain a sustainable dairy industry. We appreciate the effort of anyone who takes an interest in our industry, and we assess the merits of all proposals.
ADF is a national organisation consisting of six state dairy farming organisations. It is our responsibility to consider the views of each state’s dairy industry, including their positions on regulation. This is an extremely complex and sensitive issue, which requires proper consideration by ADF and our members.
Since the introduction of discount milk in 2011, more than 1,500 Australian dairy farms have left the industry. We recognise the severity of this issue and are treating it as an urgent priority. ADF has a duty to investigate any and all policy scenarios that may have an impact on the dairy industry. This includes assessing options to inform market support measures, such as consideration of any proposal involving government-imposed levies.
Any criticism of ADF being slow to act on $1 milk is simply wrong. ADF has been at the centre of this debate since supermarket retailers introduced their discount milk marketing campaigns in 2011.
ADF and our state members played an integral role in urging retailers to increase the price of discount milk to $1.10 per litre with the full increase being passed back to farmers via their processor. Furthermore, in November 2019, ADF lodged a considerable submission to the Senate inquiry into the performance of Australia’s dairy industry and the profitability of Australian dairy farmers since deregulation in 2000 where, among other recommendations, we called on retailers to lift the price of generic branded milk to $1.50 per litre.
These matters should rightly be discussed between industry and government, and not through public debates of this nature.
Media Contact:
Ashley Mackinnon, Public Affairs Manager
M: 0407 766 153
E: media@australiandairyfarmers.com.au
PEAK dairy farmer group Australian Dairy Farmers (ADF) has today released a standard form contract template for farmers and processors to use in negotiating milk supply agreements under the requirements set by the industry’s mandatory Code of Conduct.
The ADF template, which was sponsored by the Federal Government, is intended to safeguard both farmers and processors from potential breaches of the Code, while also addressing other issues identified by the Australian Competition and Consumer Commission (ACCC) in its Dairy Inquiry.
“Farmers and processors won’t have to spend time developing new agreements from scratch, although the document isn’t a substitute for legal advice and we recommend parties seek out appropriate legal advice in relation to matters set out in the template,” ADF President Terry Richardson said.
The competition watchdog made several recommendations related to contracting practices, including that milk supply arrangements should be acknowledged in writing, processors should provide farmers with all contractual documents before the start of their agreement, and that those agreements should be simplified.
The template incorporates contractual obligations in the code and several other requirements that typically feature in a standard agreement. For example, the template expands on the code’s confidentiality requirements. This provides greater coverage for farmers and processors
Mr Richardson said he expected farmers to have questions about the template, with ADF holding a series of nine webinars to talk directly to farmers, with services body Dairy Australia also developing useful resources.
“We will be encouraging farmers and processors to use this template and seek further information from ADF, either by attending one of the information sessions when they are organised, or by contacting our office,” he said.
The milk supply agreement template is available here
The webinars will be held at the following times. Registration details will be released shortly.
Wednesday 20 May
Friday 22 May
Monday 25 May
Media Contact:
Ashley Mackinnon, Public Affairs Manager
M: 0407 766 153
E: media@australiandairyfarmers.com.au
SUPERMARKETS need to support a dairy industry that is coping with the impacts of bushfires and ongoing drought, says Australia’s peak dairy farmer group.
National advocacy body Australian Dairy Farmers (ADF) has renewed calls for supermarkets to increase the retail price of discount milk to $1.50 per litre, with the increase going back to farmers.
“Farmers have been hit hard by the impacts of drought, bushfires, and of course high production costs,” ADF chief executive David Inall said.
“The price farmers pay for energy, and water and fodder for their cows remains high, but the retail price for their milk has stayed stubbornly low for almost a decade.”
Major retailers, led by Woolworths and Coles, last year increased the price of their private label milk brands from $1 per litre to $1.10 per litre, with farmers getting the full increase.
But Mr Inall said increasing the retail price of discount milk further to $1.50 per litre would reflect the inflation rises farmers should have received over the last decade to account for the current cost of production.
“We lost nearly 500 dairy farms in one year between 2017/18 and 2018/19 and since 2011, we have lost more than 1,500,” he said.
“Since 2011, the average profit for a dairy farm in Australia has been $41,553 per annum.
“If we are to stop farm exits and hardship, then retailers need to increase the price of their store brand retail fresh milk to $1.50 per litre with the increase going back to farmers via their processors.”
Federal Agriculture Minister David Littleproud this morning called for a voluntary levy to support dairy farmers, arguing that it would allow the market to respond, with consumers making purchasing decisions that benefit farmers.
Mr Inall said the country’s approximate 5,200 dairy farmers appreciated the support of the Federal Government.
“It is fantastic to see that the Federal Government recognises this is a major issue for the industry and is prepared to continue pushing for dairy farmers to receive a fairer price for their product,” he said.
“The retail prices of other fresh food products tend to fluctuate with demand, but the shelf price of milk has remained relatively flat.”
Media Contact:
Ashley Mackinnon, Public Affairs Manager
M: 0407 766 153
E: media@australiandairyfarmers.com.au