AUSTRALIAN Dairy Farmers (ADF) welcomes the return of David Littleproud to the agriculture portfolio, following his election on Tuesday as Deputy Leader of the Nationals.

Minister Littleproud has been a strong supporter of the dairy industry, particularly in our fight to break the back of discount supermarket products that have plagued dairy farmers for almost a decade.

We look forward to working with Minister Littleproud on key projects for the dairy industry, including delivering on election commitments that are now underway, such as exploring new ways in which the dairy industry can trade milk. There are a range of significant challenges that continue to impact on Australia’s dairy farmers and we look forward to exploring appropriate solutions with the Minister.

ADF is also looking forward to working with new Water Minister Keith Pitt. Water is a priority for the dairy industry, with nearly 25 per cent of Australia’s total milk production occurring in the Murray Darling Basin contributing more than $2.6 billion to the economy.

We want to thank Senator Bridget McKenzie for her commitment to agriculture. During Senator McKenzie’s tenure as Minister for Agriculture, the dairy industry’s mandatory code of conduct was finalised as well as initiating a review of industry service organisations.

Media contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

FARMERS will be protected by a slew of measures to improve transparency and set minimum standards of conduct in milk supply agreements under the dairy industry’s new mandatory code of conduct, to come into force from January 1 next year.

The final code, unveiled today by federal agriculture minister Bridget McKenzie with the support of national dairy advocacy group Australian Dairy Farmers (ADF) and all state dairy farmer organisations, includes provisions that:

• All parties must deal with each other fairly and in good faith;
• Bans retrospective step-downs;
• A cooling off period is 14 days;
• Stops processors from making unilateral changes to agreements, except when required to comply with legislative changes which cannot reduce the minimum milk price, or in certain exceptional circumstances that reduces the minimum price, with the processor required to notify the competition watchdog and farmer, who must be allowed to terminate the agreement if they wish;
• Processors must publicly release a Standard Form Agreement on June 1 each year, covering the terms of milk supply and a price (or prices) that cover the terms of the agreement;
• Bans exclusive supply arrangements between processors and farmers in combination with either two-tier pricing (where the second tier is less) or volumetric limits by processors;
• Bans processors from withholding loyalty payments to farmers if a farmer switches processors;
• Introduces a dispute resolution process for matters arising under or in connection with agreements; and
• Make civil penalties available for certain provisions imposing obligations on parties to an agreement to allow the competition watchdog to issue infringement notices, recognising in penalty regimes the respective size of processors and farmers.

ADF CEO David Inall thanked the Federal Government for listening to the concerns raised by dairy industry representatives following the release last month of the exposure draft code of conduct.

“The final code of conduct addresses our concerns and provides important protections for farmers when negotiating milk supply agreements with their processors,” Mr Inall said.

“While the mandatory code will not be responsible for setting the farm gate milk price, it will go some way to improving the bargaining power of farmers and professionalising contract management in the industry.”

ADF, initially working through industry body the Australian Dairy Industry Council (ADIC) has been intimately involved in the development of the code of conduct. The farmer group constructed the industry’s original voluntary code in 2017 before preparing a draft code, much of which was used by the Government to develop the final code of conduct.

“The ACCC identified that farmers lacked bargaining power when negotiating contracts and we believe that this will be significantly improved with this mandatory code of conduct.”

All existing milk supply agreements must be compliant with the mandatory code within 12 months of the code coming into effect.

PEAK dairy farmer group Australian Dairy Farmers (ADF) today announced South Australian farmer Rick Gladigau has been elected to a three-year appointment to its five-member board, while independent director Victoria Taylor was re-elected for a two-year term.

Mr Gladigau has been a board member of state dairy farmer organisation South Australian Dairyfarmers Association (SADA) since 2007 and is currently the organisatiofn’s treasurer. He also sits on the National Farmers’ Federation’s Trade Committee and the ADF Markets, Trade and Value Chain Policy Advisory Group.

Previously, Mr Gladigau was a South Australian representative on the Dairy Farmers Co- operative Board from 2013-2016 and was chair of the company’s milk pricing committee during his tenure.

Victoria Taylor is a graduate of the Australian Institute of Company Directors’ Company Directors Course and former Executive Director of the Ricegrowers’ Association of Australia and now owns a business that provides strategic policy and communications support to clients in primary industries. She is a ministerial appointment to the Rice Marketing Board for the State of NSW and an Independent Director of the Safety Institute of Australia.

ADF President Terry Richardson welcomed the appointments of Mr Gladigau and Ms Taylor. “I am pleased to announce Rick as a new appointee to the ADF Board,” Mr Richardson said.

“Both Rick and Victoria bring a wealth of experience to ADF and on behalf of the Board, I look forward to working with them as ADF continues to advocate on behalf of dairy farmers.”

Mr Gladigau will replace retiring ADF Board member and former ADF President Simone Jolliffe, who is stepping down after six years on the board of the dairy advocacy group.

Mr Richardson praised Ms Jolliffe’s contribution to the industry during her tenure on the ADF Board.

“I am grateful for Simone’s dedication and commitment to ADF and the broader dairy industry over the past six years” Mr Richardson said.

“Simone has played an integral role in guiding ADF through a busy time in the Australian dairy industry.”

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) welcomes the deeply held concerns by those in the Australian Parliament and the community regarding the well-being of dairy farmers. There is a desperate cash flow crisis for many dairy farmers, which also impacts on local communities. Dairy farmers’ input costs have risen markedly in recent years (for example: feed, water, energy, labour) and farmers have worn many of the costs of living in Australia and contributing to the country’s food security.

ADF has previously stated that there are challenges, domestically and internationally, associated with the establishment of a milk floor price. There are a multitude of factors that come into play when processors set milk prices, and we must ensure that we are competitive with other dairy export countries. We must recognise the needs of a modern, globally competitive and sustainable industry, and in that context, there may be several mechanisms that deliver that outcome.

A floor price is one instrument that could be considered. However, these are complex, historical challenges that need to be comprehensively explored. We have a fair way to go in resolving these issues, but not a lot of time, and these problems won’t be fixed via parliamentary debate alone. There is a Senate Inquiry pending on this matter which should assist in bringing some of these issues into the public domain, and decisions should not be made prior to a fully informed and proper consideration of the facts.

There are currently several government assistance programs for dairy farmers. The Farm Household Allowance provides up to three (soon to be four) years of income support for farmers and their families experiencing hardship. Rural Financial Counselling Services are a free mobile workforce help identify and farmers’ financial and business options. The Regional Investment Corporation offers investment and drought loans for farmers. Some states also offer concessional loans for farmers in drought- affected areas.

The dairy industry was also promised a $22 million package by the Coalition Government before the May 2019 election. The package included over $1 million in projects to be delivered by ADF, including developing a payment system using blockchain technology and a standard form contract that complies with the industry’s mandatory code of conduct, and facilitating the development of a new dairy industry trading platform. The package also included $10 million to support dairy farmers investing in more energy efficient equipment and $3 million in grants to assist farmer groups in establishing collaborative business models.

ADF works closely with its six state dairy farmer organisation members on a range of initiatives with the objective of improving the well-being of dairy farmers. This year has seen considerable activity in the area of retail pricing with amplified efforts in the retail dairy cabinet space. ADF and its members see considerable scope and opportunity to better promote Australian dairy products, and retailers must be willing to explore all options that foster a profitable, sustainable dairy industry.

There is unclear and varied support to either fully or partially re-regulate the industry as there are countless complex factors involved in doing so, many of which have not been considered in detail. This is critical, not just for those dairy farmers supplying fresh milk contracts, but for all dairy farmers, regardless of the destination of their milk.

What is clear is that dairy farmers must be able to better engage with the marketplace and extract greater value. This is our chance to look at appropriate structural reform in a bipartisan manner. Mechanisms must be identified and adopted that deliver transparency in setting farm gate prices and equitable income back to farmers.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) welcomes the recognition that dairy farmers are doing it tough, with sustained high input costs and flat farmgate returns leading to increasing numbers of farmers exiting the industry.

ADF does not have policy to support re-regulation of the Australian dairy industry. We have supported the Mandatory Code of Conduct and we look forward to the Government’s draft code, which we expect will be released shortly for comment.

The industry supported de-regulation nearly 20 years ago. The federal Government initiated the Dairy Structural Adjustment Program, which provided $1.63 billion in payments to farmers, and the Supplementary Dairy Assistance Package, which provided a further $120 million to farmers, to make the transition to a deregulated environment.

We will continue to work with our state member organisations, the Government and Opposition, Senator Pauline Hanson as well as other representatives in Canberra to ensure that all suitable action be taken to secure the sustainability of dairy farmers. Sustainable pricing through the supply chain is paramount and we will continue, in concert with our members and the Government, to identify the most suitable actions that support dairy farmers.

Clearly this is an extremely complex policy discussion, particularly given our export exposure. However, it is important to note that the dairy the industry is at a critical point and these issues must be addressed.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

FARMERS are being urged to fight back against demands by the European Union that Australia restrict the use of common cheese names in a proposed free trade agreement between Australia and the 28 EU countries.

Peak dairy farmer groups the United Dairyfarmers of Victoria (UDV) and Australian Dairy Farmers (ADF), supported by the industry’s services body Dairy Australia, will lead a series of events aimed at giving farmers the information they need to tell the federal government how a ban on common cheese names will impact their businesses.

UDV President Paul Mumford said the events, which will be hosted by the farmer group, would include a presentation from the Department of Agriculture on the concept of geographical indications (GIs), Dairy Australia on how GIs will impact the dairy industry, and ADF on how the industry is responding to the EU’s GI threat, as well as a Q&A session featuring all three organisations.

“We’re really cheesed off that EU is demanding we stop using common product names, so we are urging farmers, manufacturers and even consumers to stay informed and learn how they can help us convince the federal government that GIs will be another kick in the guts for the dairy industry,” Mr Mumford said

The dairy industry estimates that the EU’s demand for GI inclusions will impact Australia dairy products with an aggregate sales value of more than $650 million.

Cheese manufacturers could end up paying a staggering $70-90 million per year in the early stages of the planned trade deal to rebrand and repackage products, as well as engage in consumer re- education.

ADF President Terry Richardson said the industry remained anxious that dairy would be a major loser out of any trade deal between Australia and the EU.

“This agreement must have benefits for both sides, considering the ease of access European dairy manufacturers have to the Australian market,” Mr Richardson said.

“An opportunity exists to remove trade barriers that are currently stifling dairy trade between Australia and the EU, but this deal should free up the trade relationship rather than creates technical barriers such as GIs.”

The events will be held across the state at:

• Warrnambool (Warrnambool Bowls Club, Monday September 30, 7:30pm)
• Cobden (Cobden Football Club, Tuesday October 1, 11:00am)
• Tangambalanga (Tangambalanga Community Hall, Monday October 7, 7:30pm)
• Kyabram (Ky Club, Tuesday October 8, 11:00am)
• Tinamba (Tinamba Community Hall, Monday October 21, 11:00am)
• Leongatha (Leongatha RSL, Monday October 21, 7:30pm)

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIA’S dairy industry is urging Canberra to pass amendments to gene technology regulations as planned to ensure the recommendations of the science-based Australian Gene Technology Regulator (AGTR) are implemented across the country.

The Senate will today vote on a motion tabled last month by Greens Senator Janet Rice to disallow the Gene Technology Amendment (2019 Measures No. 1) Regulations, which would deregulate certain gene editing techniques (SDN-1), despite thorough risk assessment by the AGTR.

DAIRY farmers have gained crucial political support to reclaim the word “milk”, with the Nationals voting at their Federal Council meeting this weekend to push for a ban on alternative and plant-based products using the term in labelling and marketing.

Peak dairy farmer group Australian Dairy Farmers (ADF) praised the move as a vote of confidence in the industry’s efforts to ensure honest product labelling.

“We are pleased to see that the Nationals are on our side in wanting to ensure more transparency in food labelling,” ADF President Terry Richardson said.

“The dairy industry has long been fighting against the dishonest labelling and marketing of plant-based alternatives that are co-opting the look and feel of dairy and giving the misleading impression that these products are nutritionally equal to dairy.”

A 2017 survey by Dairy Australia showed 54 per cent of respondents bought plant-based milk alternatives because they perceived them to be healthier than dairy milk, while market research firm IBISWorld estimates Australia’s plant-based “milk” product industry has grown at an annualised rate of 4.1 per cent over the five years to 2018-19, to $165.8 million today.

ADF previously wrote to Nationals deputy leader and federal agriculture minister Bridget McKenzie, arguing for a review of the Food Standards Australia-New Zealand and the development of regulations to prevent plant-based alternatives from ‘evoking’ the qualities and values of dairy.

“We are calling for changes to the food standards so that consumers trying to make a healthy choice at the supermarket have the benefit of transparent and accurate product labelling,” Mr Richardson said.

“We’re pleased Minister McKenzie has expressed an interest in attending November’s meeting of the Australia and New Zealand Ministerial Forum on Food Regulation to receive and consider advice on how terms could be better defined or enforced.”

A ban on plant-based products using the “milk” label would bring Australia into line with other countries, after the European Court of Justice in 2017 mandated that dairy terms could not be used on plant-based products, even with clarifying terms.

A petition by the dairy farmer lobby has also gained more than 2,000 signatures. The survey is still active and can be signed at: http://farmers.org.au/campaign/reclaimmilk/

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

A new specialist tasked with looking solely at dairy industry claims to work within the Australian Competition and Consumer Commission (ACCC) has been welcomed by the country’s peak dairy farmer group.

Australian Dairy Farmers (ADF) today congratulated federal agriculture minister Bridget McKenzie on her commitment to delivering on a $22 million election pledge to benefit the dairy industry, including the creation of the new dairy specialist role and an $8.1 million budget extension for the competition watchdog’s agriculture unit.

“Minister McKenzie must be commended for acting quickly on the government’s election promises,” ADF President Terry Richardson said.

As part of the arrangement, a new Dairy Consultative Committee will be established to help enforce the industry’s new mandatory code of conduct.

Mr Richardson said the committee must be given the power to test all claims relating to the mandatory code.

“We believe the committee should focus on the code of conduct and other matters that fall under the remit of the ACCC. This includes acting on all complaints that are brought forward,” Mr Richardson said.

“The ACCC uses a public benefit test to determine which claims it pursues, but in our view this threshold is likely too high for many of the claims potentially breaching the code.”

Mr Richardson welcomed the $8.1 million funding boost for the ACCC agriculture unit, a significant boost to the $2.7 million outlined in the 2020 budget.

“The Coalition’s commitment to ensure continued funding of the ACCC’s agriculture unit is a timely and welcome announcement,” he said.

“This will ensure that the mandatory code of conduct is appropriately resourced, and the decision to appoint a dedicated dairy industry specialist within that unit is an important step in the process.”

The Department of Agriculture and Water Resources (DAWR) is currently drafting the code of conduct following two rounds of consultation. A third round will take place once the draft code is released to gain further feedback.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

VICTORIAN laws should be bolstered to protect farmers’ human rights from animal activists and give police the authority to dole out on the spot fines of up to $12,000 for farm trespass offences, says the country’s dairy farmer lobby.

Peak farmer group Australian Dairy Farmers (ADF) will push the Victorian Government to crack down on people who trespass on farmland, arguing that animal activists are causing “undue hardship to farmers” by falsely presenting the dairy industry as condoning and hiding animal abuse and undertaking criminal activities against dairy farmers.

In a submission to the Victorian government’s inquiry into the impact of animal rights activism on Victorian agriculture, ADF is urging the government to:

• Expand the scope of the Charter of Human Rights and Responsibilities Act 2006 (Vic) to deal with animal activists, extremists or any other private citizen impinging on another person’s human right;
• Increase trespass fines to $12,000, in line with existing laws in Western Australia, and empower police to issue fines on the spot;
• Provide more transparency around convictions and sentencing for farm trespass; and
• Change the Livestock Disease Control Act 1994 (Vic) that enables farm trespassers to be prosecuted for causing an animal disease to claw back costs from offenders.

Currently, the Summary Offences Act 1966 (Vic) offers a fine of up to $4,029.75 or six months’ jail time for trespass offences.

ADF President Terry Richardson said the current penalties were not an effective deterrent and offenders must be held accountable for their actions.

“Animal activists trespassing onto farms or committing other crimes should be held to account by the criminal justice system,” Mr Richardson said.

“No-one is above the law and farmers have a right to farm without the threat of invasion, sabotage or biosecurity outbreak posed by animal activists.

“Farmers are suffering from increased stress and fear of being attacked by activists sometime in the future, just for doing their jobs.”

Previously, ADF – through national farmer group the National Farmers’ Federation – successfully pushed the federal government to broaden the Privacy Act 1988 (Cth) to cover offences committed by extreme group Aussie Farms, which has exposed the activist organisation to fines of up to $2.1 million.

ADF also supported new laws put before federal parliament in July to introduce new offences for the incitement of trespass, property damage, or theft on agricultural land, with penalties of up to five years’ fail time.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIA’S dairy farmers are urging the federal government to change the country’s food standards in a bid to ban plant-based products from using the term “milk” on labels and in marketing.

Peak dairy farmer group Australian Dairy Farmers (ADF) has written to federal agriculture minister Bridget McKenzie and Chair of the Ministerial Food Forum Richard Colbeck, requesting:

• a holistic review of labelling and marketing on non-dairy alternatives, including possible changes to the Food Standards Code; and
• the development of additional regulations to prevent plant-based alternatives from ‘evoking’ the qualities and values of dairy.

ADF President Terry Richardson said the dishonest labelling and marketing strategy gave the misleading impression that plant-based products had a nutritional equivalency with dairy milk.

A 2017 survey by Dairy Australia showed 54 per cent of respondents bought plant-based milk alternatives because they perceived them to be healthier than dairy milk, while market research firm IBISWorld estimates Australia’s plant-based “milk” product industry has grown at an annualised rate of 4.1 per cent over the five years to 2018-19, to $165.8 million today.

“Over the past decade, a growing number of plant-based products have cropped up, using the name milk, co-opting the look and feel of dairy milk right down to the packaging, and trading on dairy’s reputation to gain a marketing advantage.

“We have seen a growing number of plant-based products on supermarket shelves over the last decade, gaining a marketing advantage by using the name milk and co-opting the look and feel of dairy, while claiming to have nutritional equivalency with dairy milk.”

A ban on plant-based products using the “milk” label would bring Australia into line with other countries, after the European Court of Justice in 2017 mandated that dairy terms could not be used on plant-based products, even with clarifying terms.

“We are calling for changes to the food standards so that consumers trying to make a healthy choice at the supermarket have the benefit of transparent and accurate product labelling,” Mr Richardson said.

The call comes on the back of the recent Ministerial Forum inquiry into misleading descriptions on meat and dairy alternatives.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au