Dairy to join forces to set industry agenda

THE dairy industry will come together to define the future of Australian dairy through the development of a collective Australian Dairy Plan, it was announced by industry leaders in Melbourne today.

The official launch at the 2018 Industry Leaders’ Breakfast, outlined a consultation program to seek the views of farmers and dairy communities across Australia to define priorities for the next five years and beyond.

Terry Richardson, Australian Dairy Farmers President and Australian Dairy Industry Council Chair, said the industry faces multiple challenges and opportunities and needs to prioritise its focus.

“There is no doubt that we have been challenged with rising costs of production, retail price stagnation, tough seasons and changing global markets.

“A plan that sets the agenda on a national scale, is needed to provide direction and focus,” Mr Richardson said.

“A strong dairy industry needs both farmers and processors to be successful, as well as the businesses and communities that play an integral role.

“A confident dairy industry can navigate the current challenges and be more self-assured when looking to the future.

“It is also critical that we are more united, working together on a national scale and dealing with uncertainty with a show of strength,” Mr Richardson said.

Mr Richardson was joined by Mr Jeff Odgers, Chair of Dairy Australia, Dr Bruce Kefford, Chair of Gardiner Dairy Foundation, and Mr Grant Crothers, President of Australian Dairy Products Federation in making the announcement.

Mr Odgers said Dairy Australia fully supports the whole-of-industry initiative.

“Consultation with farmers and people connected with the industry, contributing to a national plan will be key to identifying priorities and defining the future of the Australian dairy.

We encourage everyone to participate in consultation that will be held across Australia, starting in autumn next year,” Mr Odgers said.

Dr Kefford said the Gardiner Foundation had a track record of bringing the dairy industry together and regularly organised speakers and events to challenge and stimulate discussion around the future of the industry.

“We agree it is now time for broad participation in setting the future direction, and we see enormous value in a single industry plan that provides guidance for all,” Dr Kefford said.

Mr Crothers said one of the core strengths of the dairy industry was the ability for the whole supply chain to work together.

“The Australian Dairy Products Federation supports this initiative and encourages opportunities for farmers and processors to speak with one voice,” Mr Crothers said.

Further information on the Australian Dairy Plan and consultation process, will be made available from December 2018.

Media Contact:

Susan Hunter, Dairy Australia Media Relations Manager

M: 0417 540 059

E: media@dairyplan.com.au

Terry Richardson re-elected ADF President

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 thanks UDV’s Adam Jenkins for service to dairy industry

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

Celebrate dairy farmers on National Ag Day

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

10c milk announcement a good start – more to be done

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

ADF supports mandatory dairy code

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

New generation of dairy professionals bring leadership to Canberra

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

Vic dairy industry mourns the loss of John Harlock

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

ADF seeks clarification on Saputo comments

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.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

Milk Price Index arrives

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

Skilled migrant labour vital for dairy, says peak body

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

ADF welcomes new Dairy Australia managing director

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.

Before this he spent six years as the chief executive of the Dairy Futures Cooperative Research Centre and five years as a program manager at Dairy Australia.

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

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