AUSTRALIAN Dairy Farmers (ADF) believes that more competition for milk is healthy and that this Coles initiative to source milk for Coles Brand 2 and 3 litre products directly from farmers in Victoria and South and Central NSW, has the potential for greater transparency within the dairy supply chain between farmers and retailers.

We are hopeful that Coles will use this measure to build closer relationships with farmers, but we are seeking further engagement on how the initiative will work.

Coles has confirmed that this new arrangement will not change their commitment to pass the 10 cent increase to their 2 and 3L fresh milk brand back to suppliers in other regions via their processor.

However, Coles must also commit to ensuring that $1-a-litre milk never returns to their shelves after the price was raised to $1.10 per litre in March.

The most unsustainable part of the dairy industry is the lack of value being returned to farmers through the domestic market.

It is imperative that value is delivered through the supply chain, with farmers receiving their fair share for the hard work, risk and investment that they have in this industry. This includes farmers securing their fair share of future retail price increases across the dairy cabinet.

Coles has also announced it will invest $1.9 million through a new Coles Sustainable Dairy Development Group to fund research into improving the sustainability of Australia’s dairy industry.

ADF would welcome the opportunity to work with Coles in ensuring this new development group delivers productivity gains to dairy farmers across Australia.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

PEAK dairy farmer group Australian Dairy Farmers (ADF) will receive $450,000 for two projects to benefit farmers as part of a $22 million funding package for the dairy industry if the Coalition wins the May election.

Federal Agriculture Minister David Littleproud announced a swag of funding and policy commitments today, including that ADF would receive $300,000 to develop a real time dairy payment system and supply chain information sharing capacity using blockchain technology, and $150,000 to develop with processors a simple standard form contract that incorporates requirements of the industry’s mandatory code of conduct.

ADF President Terry Richardson said the organisation supported this windfall for the dairy industry.

“It is fantastic to see a real plan for the dairy industry and delivers on a number of key imperatives that we know will assist the industry,” he said.

“The Coalition has clearly listened to the concerns of the industry and we look forward to delivering on these projects if the Coalition is returned to government.”

In addition, the Coalition has pledged:

• $10 million to support dairy farmers investing in more energy efficient equipment to reduce energy costs through more energy efficient equipment
• $8.1 million to extend the Australian Competition and Consumer Commission’s (ACCC) agriculture unit, a significant boost to the $2.7 million outlined in the 2020 budget;
• $3 million in grants to assist farmer groups to establish farm cooperatives and other collaborative business models;
• $500,000 to services body Dairy Australia to continue its financial and legal advice service to farmers, and to improve legal and financial literacy for contract negotiations with processors; and
• and a dairy industry specialist position within the Australian Competition and Consumer Commission’s (ACCC) agriculture unit.

Today’s funding announcement builds on the Coalition’s $560,000 commitment for ADF to facilitate the development of a new dairy industry trading platform, as well the implementation of a mandatory code of conduct.

Mr Richardson said the organisation was pleased with the commitment to ensure continued funding of the competition watchdog’s agriculture unit.

“This is a timely and welcome announcement that will ensure 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 Coalition’s funding commitment aligns with the election platform released last week by the Australian Dairy Industry Council (ADIC) and available on the ADF website.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

PEAK dairy farmer group Australian Dairy Farmers (ADF) will facilitate the development of a new trading platform for the dairy industry if the Coalition wins the May election.

Federal Agriculture Minister David Littleproud announced today that a Coalition government would invest in a platform to create flexibility and price transparency with more choice in sales contracts.

ADF President Terry Richardson said handing this responsibility to the farmer organisation was a logical course of action.

“As a farmer, I think this process has potential and is worth investigating, and we welcome this announcement from the Minister,” Mr Richardson said.

“We are always looking for projects that could have substantial benefit for our industry.”

The Australian Competition and Consumer Commission (ACCC) in its review into the dairy industry found that a lack of farmer bargaining power was driving unfair and inefficient industry outcomes.

Under the industry’s new mandatory code of conduct, farmers will also receive the right to sell milk to third parties, which will provide year-round competition driving industry efficiency.

The 2018 National Dairy Farmer Survey found farmer confidence in the future of the industry had 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.

Mr Richardson said ADF appreciated the recognition from the government that the dairy industry is under considerable pressure that is coming at dairy farmers from many directions.

“It is incumbent on organisations like ADF to ‘kick over every log’ to explore a range of options that can assist farmers, return confidence and improve investment in the Australian dairy industry,” he said.

“It is imperative that farmers have as many options and tools as possible at their disposal as they collectively navigate this complex environment.”

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

DISTRESSED farmers are urging state and federal lawmakers to crack down on bullying against regional communities amid safety fears sparked by vegan protests across Australia.

Peak dairy farmer group Australian Dairy Farmers (ADF) has called for all state governments to beef up trespass laws to include imprisonment and a minimum fine equal to the cost of police intervention.

“It is critically important that each state allocates police resources to these matters and provides a directive for officers to remove and prosecute offenders,” ADF President Terry Richardson said.

“This campaign of bullying, intimidation and harassment by militant vegans must stop, and the only way we will see a deterrent is for strong and binding penalties to be put in place.”

The current penalties for trespass offences vary between states. New South Wales imposes a maximum fine of just $550 for unlawful entry of public or private land enclosed by a fence under section 4 of the Inclosed Lands Protections Act, while in Western Australia, section 70A of the Criminal Code Act Compilation Act offers a maximum penalty of 12 months’ jail time and a $12,000 fine.

Mr Richardson said more transparency was needed around sentencing for farm trespass related offences across jurisdictions.

“Governments need to implement rigorous reporting around the enforcement of trespass laws so that we can understand how effective the penalties are in deterring this destructive behaviour,” he said.

Protesters on Monday blocked major intersections in capital cities and organised demonstrations outside abattoirs across the country.

Mr Richardson slammed the protests as a disgraceful act of intimidation.

“Farmers are just trying to do a job, just like everyone else, and they deserve the freedom to run their businesses without harassment or intimidation,” he said.

“Australia has some of the highest animal welfare standards in the world, and our farmers care enormously for their animals.

“State and federal governments need to act now to preserve the peace and ensure regional communities are protected.”

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

THE federal government has opened a gateway for skilled migrants working on dairy farms to move permanently to Australia in a bid to help solve the industry’s labour shortage crisis.

Under changes to the Dairy Industry Labour Agreement (DILA), skilled overseas workers on Temporary Skill Shortage (TSS) visas and the defunct 457-visa can apply for permanent residency.

To be eligible, workers employed under a DILA must be on either visa for at least three years and be nominated for an Employer Nomination Scheme (ENS) visa by the same employer.

Peak dairy farmer group Australian Dairy Farmers (ADF) praised the outcome, after the organisation last year wrote to Immigration Minister David Coleman urging him to help the industry secure a permanent skilled workforce.

“This is a terrific outcome and we appreciate the Minister’s efforts in listening to the industry and working constructively with us in addressing the shortage of skilled labour that is hurting dairy businesses,” ADF President Terry Richardson said.

“The pathway to permanent residency is vital to ensuring Australian dairy farmers can attract skilled overseas workers who will avoid Australia if they can obtain permanent residency in other countries.”

The change will bring the dairy industry’s labour agreement into alignment with the meat and pork industries.

“Dairy farmers need reliable access to skilled overseas workers and it’s pleasing to see the government amend our industry labour agreement to reflect the modern reality of the dairy industry,” Mr Richardson said.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

DAIRY business owners are one step closer to securing a permanent skilled workforce with the federal government amending its occupation classification list to make it easier for farmers to attract experienced and skilled overseas labour.

Under changes to the Australian Skilled Occupation List, high level dairy farm managers who have responsibility for overseeing farming operations are eligible for the Temporary Skills Shortage (TSS) visa entry to Australia for up to four years with the possibility of renewal and permanent residency via the 187 visa.

Peak dairy farmer group Australian Dairy Farmers (ADF) praised the outcome after the organisation last year pushed for an overhaul of the occupation classification system.

“The experience of regional communities around Australia is that migrant farmers not only fill labour shortages, but they also bring with them new technological insights gained overseas to apply to Australian farming and revitalise local communities,” ADF President Terry Richardson said.

“The pathway to permanent residency is vital to ensuring Australian dairy farmers can attract skilled overseas workers who will avoid Australia if they can obtain permanent residency in other countries.”

The changes will apply to migrant workers on TSS visas who have an undergraduate qualification or at least five years’ experience.

The TSS visa for short and medium-term employment last year replaced the 457 visa stream, which had been used to recruit skilled overseas labour.

ADF argued to the government that dairy businesses were losing up to $364 million each year in employee turnover as a result of the industry’s labour shortage crisis.

“Dairy farmers need reliable access to skilled overseas workers and it’s pleasing to see the government amend its job classification system to reflect the modern reality of the dairy industry,” Mr Richardson said.

“The dairy industry is taking positive and comprehensive steps to address the widespread skills shortage in the dairy industry, and this is one of a range of measures that will address the problem.”

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

MANY dairy farmers across Australia will receive a much-needed income boost from tomorrow, with supermarket giant Coles committing to raise the price of their discount milk lines by 10 cents to $1.10 per litre, with the entire price increase going back to the farm gate.

Peak dairy farmer group Australian Dairy Farmers (ADF) praised Coles for the move.

“Coles has made the right decision to increase the price of its discount milk brand and they should be commended for their initiative in working to end this price-freezing practice,” ADF chief executive David Inall said.

“Farming families put tireless effort and resources into producing a quality product and there is no question that supermarket discounting has had an incredibly demoralising and negative financial impact on the Australian dairy industry over the last eight years.

The price of Coles Brand two litre milk will rise to $2.20, with three litres rising to $3.30 as a result of the increase.

The supermarket said in a statement it will “work with dairy processors to ensure that the benefit of this retail price increase will go directly to the dairy farmers who supply Coles Brand milk to our customers.”

Mr Inall said the price announcement was the culmination of extensive talks between Coles and ADF.

“We have had a number of constructive meetings with Coles executives and we now welcome the opportunity to re-engage under these circumstances and continue the discussion regarding those medium-to-long-term issues that will assist this industry to move forward.”

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

PEAK dairy farmer group Australian Dairy Farmers (ADF) supports the federal government’s commitment to pursuing a mandatory Code of Conduct for the industry.

ADF has always said our aim is to address the information asymmetries that currently exist in the industry and strengthen bargaining power for farmers, while respecting commercial realities and supporting innovation and market dynamics.

We understand that a new mandatory code will include provisions to

Importantly, it will also establish a dispute resolution mechanism to resolve contract disputes between farmers and processors.

ADF’s support for a mandatory code of conduct follows an extensive review of the dairy industry’s existing voluntary code.

The Australian dairy industry is experiencing many challenges, and the government should be commended for progressing this important piece of work.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) has unveiled a revised risk-profiling score to assess and manage the likelihood of Bovine Johne’s disease (BJD) in dairy cattle.

The revised Johne’s Disease Dairy Score has been developed in consultation with industry veterinarians, Animal Health Australia and State Dairy Farming Organisations to:

• Provide an easily interpreted score for dairy farmers to profile their risk of BJD;
• Enable farmers to introduce or sell dairy animals with some assurance as to their BJD

  status; and

• Clarify how vaccination can be used to control and reduce risk of BJD.

This revised score commences immediately but has transitional arrangements until September 30, 2019 for herds with low risk of the disease.

The new system includes three outcome levels to BJD management (first steps-progressing, managed risk of clinical disease, and managed risk of infection).

There are eight scores within these levels to be obtained, with this revised score including both vaccination and testing interventions for farmers wanting to improve the score of their herd.

The Dairy Score, which was last revised in March 2016, has been developed to meet the specific needs of the dairy industry.

It is vital for all farms to have an active biosecurity plan that meets industry assurance and regulatory requirements.

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 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

M: 0407 766 153

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