PEAK dairy farmer group Australian Dairy Farmers (ADF) has renewed calls for industry unity in finding reasonable solutions to address declining farm gate returns.

Federal Opposition Leader Bill Shorten and Shadow Minister for Agriculture, Forestry and Fisheries Joel Fitzgibbon yesterday announced that Labor would investigate the efficacy of a minimum farm gate milk price if Labor wins the next election.

ADF chief executive David Inall said the organisation this morning held an urgent meeting with Mr Fitzgibbon and Shadow Minister for Rural and Regional Australia Lisa Chesters around the proposal.

“We are committed to working constructively through this proposal because farmers are telling us that something must change to secure the future of the Australian dairy industry,” he said.

“We appreciate the recognition from the federal Opposition and other stakeholders, but there are no immediate or simple solutions to address all problems afflicting farmers.”

“It is vital now that we work with the Australian Competition and Consumer Commission (ACCC) and our members in a dedicated effort to represent dairy farmers in what are unprecedented, difficult times.”

The latest Dairy Australia Situation and Outlook report, out yesterday, attributed a trend of declining farm profitability to soaring productions costs combined with relatively steady milk prices.

Mr Inall said the immediate challenge was to urge supermarkets to raise the price of their discount milk lines on the back of Woolworths move to raise its $1 per litre milk brand to $1.10, with the full 10 cent increase to go directly to farmers.

“Coles has just raised the price of bread due to high grain prices so there is no reason why they shouldn’t also acknowledge the hard work and tight margins of their dairy suppliers,” he said.

“Retailers cannot continue selling cheap milk while simultaneously raising the price of other products to help drought-stricken farmers.”

Coles has refused to follow Woolworths with a similar initiative, instead proposing an industry-wide levy on milk.

Aldi has so far rejected calls to raise the price of its discount milk line, which retails for 99 cents.

“The dairy industry has suffered from the debilitating effects of dollar milk for eight years, since Australia Day 2011, and the retailers have an opportunity to come to the table and help us implement change,” Mr Inall said.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

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E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) welcomes the recognition from the federal Opposition that something has to change to secure the sustainability of the Australian dairy industry, and we look forward to working with policy makers to make that happen.

There is no question that the dairy industry is in difficult times, with sustained high input costs and flat farmgate returns leading to increasing numbers of farmers exiting the industry.

The current proposal to set a floor price for milk would likely have considerable implications for Australia’s domestic and export markets.

We will urgently seek a meeting with the Labor Party to gain further details about the proposal.

This is a national industry and we expect a range of views from different regions around Australia. We will sit down with members to determine a clear position soon.

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 urging retailer ALDI to raise the price of its discount milk line in a bid to give hardworking farming families a fair price for their product.

“Aldi has a unique opportunity to move on discount milk and be a hero to farmers,” ADF CEO David Inall said.

“Farming families put tireless effort and resources into producing a quality product, day in and day out, and to see it devalued to the consumer has a deep and lasting impact.”

ALDI currently sells cheap milk for 99 cents per litre but have, until now, flown under the radar.

ADF’s call follows the announcement by Woolworths yesterday that it would begin raising the price of its $1 per litre milk range by 10 cents, with the entire increase going back to farmers.

“Woolworths has adopted a model where the full 10 cent increase goes back to the farmers who supplied that milk, via an audited process.” Mr Inall said.

“It is extremely disappointing to see that Coles has chosen not to follow Woolworths lead in demonstrating support for farmers. Collecting customer donations at the register is tokenistic, at best.”

Farmers are currently suffering through a severe drought, with production costs skyrocketing due to high grain, hay and water prices.

Alarmingly, the last Dairy Australia National Dairy Farmer Survey (NDFS), undertaken in early 2018 before the drought really started to bite, found 40 per cent of dairy farmers did not make an operating profit in the 2016-17 financial year.

The survey revealed just 47 per cent of farmers felt positive or very positive about the future of the industry; down from a peak of 75 per cent five years ago.

Dairy Australia is forecasting national milk production in 2018/19 will fall below 9 billion litres for the first time since the 1990s, in another blow to industry confidence.

Mr Inall said it was up to retailers to ensure their suppliers received an equitable price for their product.

“Aldi can take a leadership position and ensure their suppliers receive a fair payment for their hard work.

“If more farmers leave because their milk price doesn’t reflect their high production costs, there will be a real danger of Australia soon not having a dairy industry.”

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) has secured a major victory in the fight against discount dairy products with Woolworths today agreeing to raise the price of its $1 per litre milk brand to $1.10, with the extra 10 cents to go directly back to farmers.

ADF and Woolworths have engaged in constructive discussions over recent months around the damage wrought on the dairy industry by $1 milk and other discount dairy products.

We understand that the decision to raise the price of a staple household food item was not easy to make, but it was unquestionably the right one.

Woolworths should be applauded for having the courage to phase out its $1 milk line, and it is now time for other retailers to immediately do the same. No ifs, no buts.

The dairy industry has suffered from the debilitating effects of $1 milk for eight years, since Australia Day 2011.

The latest National Dairy Farmer Survey found farmer confidence in the future of the dairy industry has dropped from 75 to 47 per cent over the past four years. Alarmingly, 40 per cent of dairy farmers did not make an operating profit in the 2016-17 financial year.

Removing $1 milk is not just intended to restore farmers’ financial confidence, but also boost confidence in regional communities and small businesses.

Farming families put tireless effort and resources into producing a quality product, day in and day out, and to see it devalued to the consumer has a deep and lasting impact.

Most shoppers are aware of how difficult the past few years have been for the dairy industry. We have been heartened by the outpouring of support from all Australians, wanting to know which brands they can buy to support farmers.

Consumers can continue to buy fresh milk from Woolworths knowing they are supporting the Australian farmers who supplied it.

We encourage consumers to support Woolworths and urge other retailers to immediately end $1 milk.

DAIRY farmers will gain greater contract termination rights after the Australian Competition and Consumer Commission (ACCC) secured commitments from several dairy processors to amend specific terms in their supply agreements with farmers to comply with federal unfair contract term laws.

The competition watchdog announced in a statement that “most processors have agreed to provide dairy farmers with the right to terminate their contract if the processor varies supply terms such a price or quality requirements, placing the farmer in a worse position.”

Peak advocacy group Australian Dairy Farmers (ADF) called the move a win for farmers who for too long had felt the pressure of unfair contract terms.

“This is an important step in strengthening bargaining power for farmers, which was one of the key issues highlighted by the ACCC in the dairy inquiry,” ADF President Terry Richardson said.

The regulator also flagged concerns about “lengthy notice periods for farmers to terminate their contracts, one-sided termination rights, broad indemnities, and terms that restrict a farmer’s ability to lease a farm or sell their cattle”.

Many of these issues have been addressed in a draft code of practice developed by ADF in collaboration with industry body the Australian Dairy Industry Council (ADIC).

“The ACCC identified a number of areas that need fixing and our aim is to help the Government implement a code of practice that improves the relationship between all parties,” Mr Richardson said.

Under the proposed draft code, processors must provide farmers with 30 days’ written termination notice and 12 months’ written notice for farmers with no alternative milk supply options.

“A new code of practice will aim to address the information asymmetries that currently exist in the industry and strengthen bargaining power for farmers,” Mr Richardson said.

“ADF is pleased that the dairy supply chain, including processors, has engaged in developing the draft mandatory code and we look forward to moving ahead as an industry to build a framework that suitably responds to the recommendations of the ACCC’s Dairy Inquiry.”

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

VICTORIAN dairy farmer Terry Richardson has been re-elected President of the dairy industry’s peak advocacy group Australian Dairy Farmers (ADF).

Mr Richardson, first appointed as an ADF Business Director in November 2015, was returned for another three-year term on the organisation’s Board while also retaining the presidency for a further one-year term.

Mr Richardson first assumed the role of Acting President in December 2016 before being formally elected President in November 2017.

“There is not one day where I have not been rewarded in some way by this role and despite the tough conditions the dairy industry is currently facing, I am constantly reminded of the optimism that inspires individuals to share our experiences,” Mr Richardson said.

“I am committed over the next year to working together to provide a clear vision and purpose for the national dairy farmer body, to finalise our strategic policy and advocacy priorities, and to consider the structural and operational settings of ADF”

Mr Richardson, a long-time member of the United Dairyfarmers of Victoria (UDV), operates a dairy farm with his family in Deans Marsh, South West Victoria, where he has lived since 2004.

He has held several positions in the New Zealand and Australian dairy industries, including as a director of Kiwi Co-operative Dairies, consultant with Agriculture New Zealand, and as Chair of dairy company Warrnambool Cheese and Butter.

Mr Richardson contested the business director position against northern Victoria dairy farmer and United Dairyfarmers of Victoria (UDV) regional councillor Daryl Hoey.

“I want to thank Daryl for putting his hand up for the position because it shows passion and dedication for the industry and I look forward to maintaining a constructive relationship with Daryl in his capacity on the ADF National Council,” Mr Richardson.

The ADF Board is comprised of four farmer directors – Terry Richardson, Simone Jolliffe, Bruce Donnison and John Versteden – and one independent director, Victoria Taylor.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) thanks outgoing United Dairyfarmers of Victoria (UDV) president Adam Jenkins for his service and commitment to the dairy industry.

Adam has been a dedicated fighter for the interests of Victorian dairy farmers and achieved some significant outcomes for the dairy industry during his time as UDV president.

Among his successes, Adam helped secure $970 million for regional Victoria as part of the $9.7 billion deal to lease the Port of Melbourne and lobbied the Victorian Government to invest $30 million to help farmers manage energy costs through improved efficiency and new technology.

Adam has also been a valuable contributor to ADF as a member of our National Council and Chair of our Markets, Trade and Value Chain Policy Advisory Group, leading discussions on a range of issues related to securing market access for dairy farmers.

We wish Adam all the best in his future endeavours and sincerely hope that he remains involved in dairy advocacy.

Adam has expressed his intention to step down in December 2018, and ADF now looks forward to working with the incoming leadership of the UDV.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

DAIRY farmers around Australia are today being celebrated for their hard work, dedication and commitment to producing trusted and nutritious products.

Wednesday November 21 marks the second annual National Agriculture Day, an initiative of the National Farmers Federation (NFF) with support from key industry partners, including Australian Dairy Farmers.

ADF President Terry Richardson said the dairy industry was a key contributor to Australia’s agricultural sector, and a major employer in rural and regional areas.

“The dairy industry is a major economic driver, representing a supply chain value of $13.7 billion,” Mr Richardson said.

“Our industry employs more than 42,000 people across the supply chain in both regional and rural centres, and every year Australian dairy farmers produce around 9 billion litres of milk.”

“Ag Day is a way of thanking farmers for the contribution they make to supplying Australian families with food and fibre.”

An annual poll commissioned by the NFF found 83 per cent of respondents had no, or a very distant, connection with farmers, while 67 per cent of people surveyed said they had no engagement with farmers over the past 12 months.

But the most alarming statistic showed 23 per cent of young Australians aged 18-29 don’t care how their food and fibre is produced.

Given its importance to the economy and society, Mr Richardson said it was important to better connect consumers with the sector.

“The Australian agricultural sector is valued at about $60 billion annually and is consistently ranked among our country’s top export industries,” Mr Richardson said.

The dairy industry is Australia’s third biggest agricultural industry, behind the beef and wheat sectors, but ranks fourth in terms of world dairy trade, with a 6 per cent share and an export value of more than $3.3 billion.

“Australians should be very proud of their dairy industry,” Mr Richardson said. “We’re world leaders in producing clean, green and nutritious dairy products and our sustainable practices are recognised internationally as some of the best in the world.”

National Ag Day is being celebrated at events and functions across Australia. More information is available at www.agday.org.au.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

ALL dairy farmers must see a benefit from any increase in retail milk prices, says the country’s peak dairy farmer group.

Australian Dairy Farmers (ADF) today voiced support for a move by Woolworths to introduce a special range of milk at $1.10c a litre to help drought-stricken farmers across Australia, but the farmer group has cautioned that the extra 10c must be distributed to all dairy farmers.

“Woolworths has announced this plan, but what we really need is clarity around how that extra 10c will be distributed back to the farm gate in a way that all dairy farmers will benefit,” ADF President Terry Richardson said.

“There are many regions of Australia affected by drought with high production costs impacting thousands of dairy farmers.

“We look forward to working with Woolworths on how this will work in practice.”

Coles also announced it will increase the price of its three litre Own Brand milk from $3 to $3.30 until the end of the year, with the extra 30c to be diverted to the National Farmers’ Federation’s 2018 Drought Relief Fund.

Mr Richardson said drought relief milk is only a temporary measure and not a cure as ADF remains committed to pushing for a permanent end to discounted dairy products, including cheap cheese.

“You can’t justify a situation where a litre of milk is being sold on supermarket shelves for less than a litre of water and this must practice must stop. We urgently need a shared solution to assist in building the long-term sustainability of Australian dairy farmers,” Mr Richardson said.

Mr Richardson encouraged the public to help dairy farmers by continuing to buy branded dairy products.

“Farmers put tireless effort and resources into producing quality product and to see it devalued has a deep and lasting impact,” he said.

“There is a groundswell of support for farmers hit hard by the drought and supermarkets have the best opportunity to scrap their discounted dairy products.

“We urge Woolworths to include ADF on their Drought Relief Oversight Committee to ensure the national voice is heard.”

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 a mandatory code of practice for the dairy industry.

ADF advised the federal Government that a mandatory code must guarantee coverage across the entire industry and improve bargaining power for Australian dairy farmers.

The organisation stressed that a future mandatory code must:

• include an independent dispute resolution procedure, with small claims to be investigated;
• outlaw retrospective milk price step downs;
• enforce contract and price transparency; and
• be reviewed within three years, including an assessment of the code’s effectiveness.

This was a difficult decision and one that ADF did not take lightly. There are a broad range of views within ADF’s membership and these views are deeply respected and understood.

ADF’s position comes after several months of working with industry body the Australian Dairy Industry Council (ADIC), which led to the development of a strengthened code.

ADF expects to play a leading role in the development of a new industry code, using the work undertaken by the ADIC as a foundation.

Key elements of the ADIC code, which is still in draft form from guidelines set by the Australian Competition and Consumer Commission (ACCC), include:

• retaining clauses in the current code where there is no stakeholder objection or issue; and
• adding clauses where there is universal agreement between states and processors, such as good faith provisions, standard contract timelines, protection for collective bargaining groups, independent complaints management and dispute resolution processes, penalties regime and improved administrative arrangements.

But ADF warned there are still issues to be resolved around the implementation of a mandatory code of practice for the dairy sector.

The competition watchdog, in recommending a mandatory code, didn’t disclose the costs of administration, investigation thresholds, performance standards and accountability metrics.

The organisation will urge the Government to address these concerns through a Regulatory Impact Statement (RIS), to be disclosed to industry as soon as possible.

It’s hoped the introduction of a mandatory code will be a vital step in rebuilding trust and confidence along the dairy industry supply chain.

The debate over the future of the industry has often been volatile. ADF is now calling for unity in dealing with the immense challenges facing the sector as we move forward through difficult times.

Every step along the value chain depends on strong relationships, and farmers are encouraged to collaborate and support each other to influence positive change for the dairy sector.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

IN a week of intrigue that saw then-Treasurer Scott Morrison ascend to the prime ministership, young representatives from across the dairy industry supply chain stormed Canberra to witness the Australian political process in action.

Fourteen aspiring leaders – farmers, business managers and export sales representatives – networked with political decision-makers and advocated for their communities as part of the Developing Dairy Leaders Program, delivered by Marcus Oldham College and supported by Australian Dairy Farmers and Dairy Australia.

The event was the climax of a two-month journey that saw participants engage in interactive workshops and conduct a research investigation on a topic of their choosing, which ranged from mental health awareness to opportunities presented by equity partnerships.

Hunter Valley farmer Tony Burnett said the experience was eye-opening and strengthened the group’s desire to promote unity in the dairy industry.

“Our core focus during the program – and particularly during the Canberra event – has been to bridge the divide of opinions in the dairy sector while also recognising the many regional challenges primary producers are currently facing,” Mr Burnett said.

Bega farmer Brodie Game used the program to investigate the challenges and opportunities facing young people wanting to break into the dairy sector.

“Dairy farming is a fantastic way for young people to grow wealth in assets very quickly but getting a start in such a large and valuable industry is what blocks most people before they even get a chance,” Ms Game said.

“I was fortunate to share my story as a DDLP participant and gain invaluable personal and leadership development opportunities in our great industry.”

ADF President Terry Richardson encouraged young farmers to participate in the program as a pathway to becoming industry advocates.

“The DDLP is an important step in teaching a new generation of industry representatives how to channel their passion for dairy into effective advocacy,” Mr Richardson said.

“Many of the participants came to the program with little or no exposure to dairy advocacy, but they have now presented and debated ideas, gained professional development and learnt how to manage personal and work priorities.”

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au