AUSTRALIAN Dairy Farmers was saddened to hear of the passing this week of Warrnambool dairy farmer and industry legend John Harlock.

John will be remembered for his strong advocacy, particularly around the adoption of improved dairy farming practices. He was passionate about the herd improvement industry and understanding the benefits which can be derived from improved genetics.

Over the years, John held positions on positions on a number of dairy industry boards and committees, including the United Dairyfarmers of Victoria, Warrnambool Cheese & Butter, Western Herd Improvement and the Warrnambool Co-operative Society.

John was a former chairman of the Australian Dairy Herd Improvement Scheme, Genetics Australia, and was a founding member of Datagene.

Just last week he was inducted into Western Victorian Dairy Industry Honour Board for his contributions to the sector.

Our thoughts are with his wife Shirley and their extended family.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers acknowledges the public comments made by Saputo chief executive and chairman Lino Saputo, Jr. regarding support for a dairy industry code of practice that requires mandatory participation from all milk processors.

We are seeking clarification on whether Mr Saputo expressed support for a legislated mandatory code of practice enforced by the Australian Competition and Consumer Commission or a code of practice which would be enforced solely by industry.

AUSTRALIAN Dairy Farmers has welcomed the release today of the federal Government’s new milk price index.

The index, an election commitment of the Turnbull Government, will provide independent and transparent market information to dairy farmers.

ADF President Terry Richardson said the index aimed to help farmers make decisions about their businesses.

“The index was developed so that farmers have a more comprehensive understanding and are able to better interpret price signals,” Mr Richardson said.

“This is just one tool that dairy farmers can use, and there will be a feedback channel available to allow an opportunity for input into any future adjustments that may be deemed necessary in the future.

The index will be supported by a one-year forecast of prices that will be updated quarterly, along with regular global, national and regional commentary.

A Regional, Retrospective Farmgate Milk Price Index will accompany the index, with farmers urged to provide price data via an online form.

“The purpose of the retrospective index is to help build a marker of actual prices received in each dairy region,” Mr Richardson said.

The Milk Price Index is being managed by the Department of Agriculture and Water Resources, with economic modelling and analysis conducted by Deloitte Access Economics

Education material is being produced by RM Consulting Group, which will be delivered to farmers at dairy industry events.

“The index will include an awareness and education component to help dairy farmers understand what the index means for them and how they could consider it in their business planning,” Mr Richardson said.

“The Government is very interested in engaging with farmers to improve the index over time and is encouraging people to email their feedback to the Department.”

Farmers can access the index at http://www.agriculture.gov.au/milkpriceindex. Feedback and questions can be emailed to milkpriceindex@agriculture.gov.au.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

DAIRY businesses are losing up to $364 million each year in employee turnover, with Australia’s peak dairy farmer group warning the problem will only get worse unless the federal Government acts immediately to solve the industry’s labour crisis.

Australian Dairy Farmers, in a submission to the Department of Jobs and Small Business review of the Skilled Migration Occupation Lists, called on the federal Government to overhaul its skilled migration program to reflect workforce needs.

“Agriculture is a growth industry in Australia with a target to increase our gross value of production from $60 billion currently to more than $100 billion in 2030,” ADF President Terry Richardson said.

“There are many drivers required to achieve this target. A permanent skilled workforce is one of the highest priorities.”

Farmers were set back when the Government abolished the 457 visa system which had been used to recruit skilled overseas labour, a decision made on the back of Fair Work Commission findings that 40 per cent of visa holders were no longer employed by a sponsor or being underpaid.

Mr Richardson said the dairy industry’s 25,000-strong workforce would suffer if other sectors continued to abuse Australia’s record high annual immigration intake of 190,000, most of whom come under the skilled migration program.

“Australian dairy farmers have a reputation for running professional operations and paying above the award rate, but our industry will suffer if we can’t recruit foreigners with either experience on dairy farms or tertiary qualifications in agriculture science from their home country,” Mr Richardson said.

“Unfortunately, many of the locals who are being pushed into these jobs don’t have the necessary skills to handle the roles.

“They find it difficult to satisfy food safety standards, administer veterinary and other animal husbandry requirements, operate technology or are generally unable to fulfil the obligations of a skilled dairy farm manager or leading hand.”

The 457 visa stream was replaced in March by a Temporary Skills Shortage (TSS) visa for short and medium-term employment, but farmers hoping the new visa will solve their labour woes will be disappointed.

The Australian and New Zealand Standard Classification of Occupations (ANZSCO), which determines the roles eligible for TSS visas, lists dairy cattle farming as the dairy industry’s only job, overlooking skilled positions including business manager, production manager and senior farm hand.

Mr Richardson said the Government needed to overhaul its occupation classification and visa systems to reflect the modern reality of the dairy industry, including providing skilled overseas workers access to longer visas and a pathway to permanent residency.

“Dairy farming is currently listed as a short-term skill, meaning anyone who comes out on a TSS visa can only stay for up to two years, with the option of a two-year renewal,” he said.

“Skilled migrants will only apply for these roles when they are guaranteed four, not two, years of employment and have a pathway to permanent residence.”

“Dairy farmers need reliable access to skilled overseas workers and will continue to struggle to staff their businesses unless the Government makes drastic changes to the visa classifications.”

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

PEAK dairy group Australian Dairy Farmers today welcomed DairyBio co-director Dr David Nation as the new managing director of industry services body Dairy Australia.

Dr Nation will succeed outgoing managing director Ian Halliday, who will soon take up an appointment as Australia’s Consul-General and Senior Trade Commissioner in Dubai.

“David has a long history with the dairy industry and I am confident he will bring extensive experience to the position,” ADF President Terry Richardson said.

“Research and development is vital to maintaining the profitability of Australian dairy farms and we look forward to David contributing to this important conversation.”

Dr Nation has for the past two years led DairyBio, a joint venture of the Victorian Government and Dairy Australia to provide five years’ investment in dairy bioscience to deliver a series of practical applications in pasture and herd improvement.

Mr Richardson also acknowledged the contribution Mr Halliday made to the dairy industry over the past nine years as Dairy Australia’s managing director.

“Ian will leave behind an impressive legacy including the delivery of a globally-recognised industry sustainability framework and strengthening Dairy Australia’s regional development programs,” Mr Richardson said.

“We’ve enjoyed working with Ian over the years and we wish him and his family all the best as they embark on this next exciting chapter.”

Dr Nation will officially commence as managing director on July 30.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

ANTICIPATION is mounting over a commodity milk price index, with work on the index well underway and a mid-year timeline now set for its release.

Peak advocacy group Australian Dairy Farmers last week received a briefing on key elements of the index, a major election commitment of former Deputy Prime Minister and Agriculture Minister Barnaby Joyce that aims to help farmers better understand and interpret price signals.

“The index is not a magic bullet, but if done right will importantly provide independent and transparent market information to dairy farmers that is easily accessible and useful in making decisions about their businesses,” ADF President Terry Richardson said.

The index will include:

• an index of commodity prices received by Australian dairy processors for cheese, butter, skim milk powder and whole milk powder exports updated monthly, plus a one-year forecast, which will be updated quarterly;
• a regional, retrospective farmgate milk price index, which farmers will be asked to provide price data via an online form to build; and
• regular global, national and regional economic commentary will accompany the indexes.

“The retrospective farmgate milk price index will depend on the participation of farmers to provide data,” Mr Richardson said. “The more dairy farmers submit their pricing data regularly, the more valuable the index will be.”

Deloitte Access Economics has been contracted to develop an econometric model which will use data from sources including the Australian Bureau of Statistics and Global Dairy Trade.

Education material will also be produced by RM Consulting Group and delivered to farmers at dairy industry events.

“The index will include an awareness and education component to help dairy farmers understand what the index means for them and how they could consider it in their business planning,” Mr Richardson said.

Once the index is released, farmers are encouraged to give feedback to the Department of Agriculture and Water Resources.

Feedback and questions can be emailed to milkpriceindex@agriculture.gov.au.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) chief executive David Inall will swap his bed for the cold streets of Melbourne on the longest night of winter when he sleeps outside to raise money to fight homelessness in the annual Vinnies CEO Sleepout.

The last Australian Bureau of Statistics (ABS) census recorded a shocking jump of 14,000 homeless people in Australia (14 per cent) in the five years to 2016, while Vinnies Victoria has experienced a dramatic rise of 40 percent in the demand for welfare support over the past three years.

Mr Inall has committed to raising $5,000 as part of Vinnies’ goal to reach $1 million in Victoria, which will help the more than 116,000 homeless people across Australia.

“The rate of homelessness in this country is devastating and it is our responsibility to raise funds to help people who are vulnerable and living on the streets,” Mr Inall said.

“I am fortunate to be employed in the Australian dairy industry and I am hoping that others from Australian agriculture will also join and be a part of this cause.

“One night isn’t a lot, but it can make a difference in bringing home the realities of homelessness. This will be an eye-opening experience. I’ve participated twice before in Canberra, but this will be my first sleepout in Melbourne.”

Now in its thirteenth year, the CEO Sleepout has raised $36.5 million since 2006, with organisers hopeful they can raise $6.4 million this year.

You can support Mr Inall by pledging donations here: https://www.ceosleepout.org.au/fundraisers/davidinall

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

The Weekly Times has shown contempt for its readers and the broader dairy industry.

The publication today of unsubstantiated gossip around the Australian Dairy Farmers (ADF) submission to the Australian Competition and Consumer Commission (ACCC) regarding our position on an industry Code of Practice is reckless and lacks credibility.

The article makes a number of false claims and it is appropriate that we correct the record and shed light on the nature of dairy industry relationships.

The ADF Board never held the position that the organisation should support a mandatory code. We have always said that first we must assess how a mandatory code would work and whether this would benefit industry.

We are in the process of reviewing the current Code, and as part of this process we are assessing the implications of a mandatory code.

It is false to state that anyone other than ADF Board and staff had input into drafting our submission to the ACCC.

It is also false to claim that any processor made demands to ADF that we change our position.

We have agreements with 11 different processors and not one of them threatened, bullied or even contacted ADF to try and influence our position on the code of practice

It is common in the agriculture industry for different organisations to have differing views on industry issues. This is not something that ADF tries to disguise.

There was a commitment at the time when the Code was launched in mid-2017that a review be conducted We understand the importance of engaging all stakeholders in the review process, and this process is already underway.

The Code of Practice is a vital part of restoring relationships across industry, and we want to ensure that we get the Code right by strengthening provisions, including more formal dispute resolution procedures

Industry is expected to consult on all industry issues, whether it is animal health and welfare, trade and market access, biosecurity, nutrition, marketing – the list goes on.

These accusations in the Weekly Times have a deep impact on farmer representatives, staff and the health of the entire industry.

We are acutely aware of the myriad of on-farm challenges, and now is the time when we should all be working together to improve the state of our industry.

It is the role of ADF to advocate on behalf of farmers. Every minute wasted responding to spurious claims is a minute lost that should be spent standing up for farmers.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

TAX relief and support for business investment are two of the biggest windfalls in a federal budget that has been largely favourable for dairy farmers.

Australian Dairy Farmers praised Treasurer Scott Morrison for delivering measures that will reduce households’ tax burden, increase exports and supply chain efficiency, maintain market access and reduce the cost of agriculture production.

ADF President Terry Richardson commended a 12-month extension of the Government’s instant asset write-off scheme, which allows small businesses with an annual turnover under $10 million to immediately deduct purchases of eligible assets costing less than $20,000.

More winners in the budget included:

• Biosecurity, which will receive an $86.6m four-year investment to develop a national action plan for dealing with priority pests, $102m to manage biosecurity risks before and at the border, $6.6m for research and development, and $6.6m to manage the impact of established pests and weeds on agriculture
• Trade, which will get a $51.3 million four-year investment to boost market access opportunities for agriculture and food exports, with an additional $15.7m per year in funding after the forward estimates; and
• Irrigators, with the Government allocating $226 million in grant funding and $50 million in concessional loans to projects which will help ensure farmers can access the water they need.

The Government also earmarked $24.5 billion for an infrastructure blitz in new major transport projects and initiatives across the country, while a combined $472m will be used to top up funds to support regional infrastructure projects and community investment.

“There is a long list of rural infrastructure priorities that will improve opportunities for Australia’s multi- billion-dollar agriculture industry,” Mr Richardson said.

“It’s great to see the federal Government put such emphasis on infrastructure projects but we still need to ensure rural communities see the benefit.”

Communities in South West Victoria still recovering from bushfires that lashed the region in March will receive $1.5 million in disaster relief funding to help primary producers undertake clean-up activities.

“It has been a difficult few months for communities in the Barwon South West region of Victoria and this funding will go some way to assisting the recovery effort,” Mr Richardson said.

Mr Richardson said ADF had concerns that the Government did not commit to boosting the successful Mobile Black Spot Program to improve telecommunications infrastructure in regional and remote communities.

“Poor mobile phone coverage and connectivity is still a major problem for many rural communities and one the Government must continue to address,” he said.

Mr Richardson said the farmer group would continue to ensure the interests of dairy farmers were considered as the federal Government heads into an election year.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIA’S peak dairy farmer group has thrown its support behind an independent umpire to mediate contract disputes between farmers and processors as the competition watchdog today released its final report into the dairy industry.

Australian Dairy Farmers President Terry Richardson said the organisation was still working through the bulk of the recommendations delivered by the Australian Competition and Consumer Commission but commended the recommendation to establish an independent mediator as an important safeguard of farmers’ interests.

“It is vital that we have a mechanism to ensure farmers are protected in any disputes and this will form a central part of the current Code of Practice review process,” Mr Richardson said.

“We recognise that there is some support for a mandatory code. However, we established the Code for the very reason that we could bring all of industry together in the one room to have an agreed set of values for processor contracts.

“ADF is taking a leadership role by reviewing the Code in consultation with our members, in line with the strong commitment we made when the Code was introduced, and we will incorporate the ACCC’s analysis into our review process.”

The report also analysed the impact of $1 per litre milk, concluding that farmer earnings remain the same regardless of whether milk is sold as private label $1 per litre milk or branded milk.

“Our concern has always been that selling milk as a loss leader at the rear of the supermarket at price points cheaper than water is a strategy that is not in the long-term interest of this industry,” Mr Richardson said.

“Once money departs the supply chain, it is never returned. We have always strongly argued that $1 per litre milk is not sustainable long term.”

Mr Richardson said ADF remained frustrated that the report again failed to acknowledge the relationship between retailers and processors, but the dairy farmer group will work with the federal Government and industry to ensure the Code presents a strong voice for farmers.

“The ACCC has again highlighted the significant imbalance in bargaining power at each level of the supply chain, and ADF will work closely with all parties to ensure the Code adequately protects the interests of dairy farmers,” he said.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) chief executive David Inall will bridge the gap between farmers and animal welfare groups when he shares the stage with Animals Australia head Glenys Oogjes at the United Dairyfarmers of Victoria annual conference this week.

Mr Inall will sit alongside Ms Oogjes as part of a panel discussion into the power of “everyday advocacy”, which the ADF CEO said would surely spark debate between participants and the audience of mainly Victorian dairy farmers.

“We’re very fortunate to belong to an industry full of passionate people with strong opinions who aren’t shy about sharing their views and ideas,” Mr Inall said.

“I’m certain that the panel members will communicate – in some cases – wildly different ideas, and this is a forum to listen to each other and learn from each other’s experiences. I’m sure this discussion will be fascinating and unpredictable.”

Also on the panel will be former Australian Bankers’ Association chief executive Steven Munchenberg, Minds at Work founder Jason Clarke and Gippsland dairy farmer Paul Mumford.

Mr Inall said the discussion was a perfect opportunity to assist advocates across the spectrum – from farmer organisations to welfare groups – and find out how they connect with a rapidly evolving and sophisticated audience.

“We have seen a dramatic shift over the last 15 years in how audiences receive information and it’s vital that we adapt so we can continue engaging with industry and consumers,” he said.

“It’s now easier to interact directly with your audience through Facebook, Twitter and other social media, but it’s harder to tell fact from fiction because anyone can put a message out there to suit an agenda. It’s really changed the face of advocacy and it’s an issue we need to address.”

The 42nd UDV annual conference is at the MCG on Friday May 4. Registrations are open now.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au