Negotiations for the Australia – Japan Free Trade Agreement (FTA) must deliver improved market access for Australian dairy products in Japan, according to the Australian Dairy Industry Council (ADIC).

ADIC Chair, Noel Campbell, said a commercially meaningful FTA that reduced tariffs and freed up market access for Australian dairy was absolutely essential if the local industry was to grow in future.

“Japan is too significant and important a market for us not to get the fundamentals right in negotiating an Australia – Japan FTA,” Mr Campbell said.

“We already enjoy the benefits of extensive trade links with Japan. It is the single most important market for the Australian dairy industry, with $511 million in exports in 2012/131 19% of our dairy exports by value.2

“Despite this, we still face a significant range of trade barriers and market distortions, including on products like cheese and butter which face tariffs of up to 35% on some lines.3

“These tariff imposts cost Australian dairy exporters over $116 million in 2011/12 alone.4”

Mr Campbell said a commercially meaningful FTA with Japan would provide a significant boost to Australian dairy, and support the jobs of 43,000 Australians directly employed within the industry.

“In a time of difficulty for Australian manufacturing, it’s important that we focus our efforts on supporting jobs in areas such as food processing and manufacturing,” he said.

Mr Campbell said the dairy industry looked to the Federal Government to provide the leadership needed to secure a better, fairer and more open deal in negotiations for the Australia – Japan FTA.

“The stakes are too high, for Australian dairy farmers and the many men and women who work in the broader industry, not to grasp this opportunity with both hands.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

The Australian Dairy Industry Council (ADIC) has lodged its submission in response to the Federal Government’s Emissions Reduction Fund (ERF) Green Paper.

In its submission, the ADIC calls for a more flexible and targeted ERF that would assist the dairy industry to achieve its ambitious emissions reduction target of 30% by 2020.

ADIC Chair, Noel Campbell, said compared to other primary producers, Australian dairy is disproportionately exposed to electricity costs due to its high power requirements for milking machinery, cool milk storage and milk processing.

“The ADIC recognises that the ERF, if appropriately designed, will support Australian dairy continuing to reduce its greenhouse gas emissions, as well as reducing production costs linked to emissions,” Mr Campbell said.

“Energy efficiency in particular, is a significant opportunity for the industry and the ERF needs to be designed to support investment in energy saving technologies by farmers and processors.”

Key features called for in the ADIC submission include:

• Sector or activity funding bands, to enable energy-intensive agriculture sectors (farming and processing) to access the ERF;
• Funding for a National Energy Efficiency Scheme along the lines of the Victorian Energy Efficiency Target, to reduce transaction costs for carbon abatement for industries such as dairy with many small to medium enterprises; and
• Calculating emissions per unit of production (emissions intensity) to provide for industry growth while also reducing emissions.

Mr Campbell said the industry recognised that growth to meet rising international demand for dairy products, particularly in Asia, may impact on future emission levels.

“However, the industry’s desire to grow does not alter our determination to play a constructive role in reducing our emissions intensity, now and in future,” he said.

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

The next round of Trans-Pacific Partnership (TPP) negotiations, represent a major opportunity for Australian dairy, according to the Australian Dairy Industry Council (ADIC).

The TPP is a multi-country Free Trade Agreement (FTA) currently under negotiation between Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, Japan, the United States, Vietnam, Mexico and Canada.

ADIC Chair, Noel Campbell, said the 21st round of negotiations, to be held in Singapore this weekend, is of huge interest and importance to the local industry.

“The ADIC views the TPP negotiations as a major opportunity to achieve a high quality agreement that frees up market access and delivers positive commercial outcomes for Australian dairy producers,” Mr Campbell said.

“This is essential if we are to grow our industry by capitalising on rising international demand for dairy products, particularly in Asia.

“The Australian dairy industry already exports almost $3 billion worth of products each year, in spite of a range of trade barriers and distortions, and seeks a level playing field if the industry is to build on this figure in future.”

Of the top ten Australian export destinations in 2012/13, four countries are TPP members:

• Japan($511million);
• Singapore($218million);
• Malaysia($174million);and o NewZealand($157million).

A further three countries are potential members:

• Indonesia($148million)
• Philippines($90million);and o SouthKorea($88million).

Mr Campbell said the potential for growth in Australian dairy exports to TPP member countries, highlighted the scale of the opportunity for the local industry.

“If the industry can achieve export figures like this in spite of significant trade hurdles, then one wonders what could be achieved through a commercially meaningful TPP agreement,” he said.

Mr Campbell said a key focus in the negotiations should be the prohibition of export subsidies including those funded by producers such as Co-operatives Working Together (CWT) in the United States.

“Additionally, we seek genuine reform of non-tariff barriers as a means of facilitating trade between member countries,” he said.

“These should be based around sound science, adherence to international standards and appropriate information sharing and co-operation.”

Mr Campbell said progress on TPP negotiations should not impact upon, or delay efforts to secure commercially meaningful FTAs with Japan and China.

“If realised, these bi-lateral agreements have the potential to be of huge benefit to the dairy industry, and should remain a prime focus for the Federal Government.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

The Australian Dairy Industry Council (ADIC) has welcomed the publication today by the Federal Government of the text of the Free Trade Agreement (FTA) with Korea.

ADIC Chairman, Noel Campbell, said what is needed now is prompt ratification of the agreement by Parliament to kick-start the liberalisation process.

“We welcome today’s release of the text of the FTA with Korea as a further step forward on the path towards trade liberalisation in Asia,” Mr Campbell said.

Relevant highlights in the agreement for dairy include:

• A majority of dairy tariff lines are on a pathway to duty free access over specified time lines; and
• Tariff-free access for specified volumes of cheese, infant formula and butter under Country Specific Quotas (CSQ) from day one of the agreement.

Mr Campbell said to allow tariff cuts to commence the agreement must be signed as soon as possible.

“Korea is a significant dairy market for Australia and currently ranks 10th by value with $88 million worth of exports in 2012/13,” he said.

“In 2011/12 Australian exports to Korea were $116 million.

“Key commercial rivals such as the USA and EU already have FTAs with Korea and Australia’s FTA with Korea is vital to stop continued market erosion.”

Mr Campbell said the ADIC appreciates the Federal Government’s and Department of Foreign Affairs and Trade’s (DFAT) engagement with the dairy industry during the negotiation process.

“We thank them for their efforts and look forward to their involvement in helping secure an improved deal for dairy in negotiations on the Trans-Pacific Partnership and FTAs with China and Japan, which are vital to the future of our industry,” he said.

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

The Australian Dairy Industry Council (ADIC) has described today’s announcement by the Federal Government of a Free Trade Agreement (FTA) with Korea, as a step forward on the path towards further trade liberalisation in Asia.

ADIC Chairman, Noel Campbell, said while the industry acknowledged the deal had not delivered all that had been hoped for, it will provide access to a range of new opportunities in an important regional market.

“We welcome today’s announcement of an FTA with Korea as a step forward on the path towards trade liberalisation in Asia,” Mr Campbell said.

“Korea is a significant dairy market for Australia and currently ranks 10th by value with $88 million worth of exports in 2012/13.”

Relevant highlights in the agreement for dairy include:

• A majority of dairy tariff lines are on a pathway to duty free access over specified time lines; and
• Tariff-free access for specified volumes of cheese, infant formula and butter under Country Specific Quotas (CSQ) from day one of the agreement.

Mr Campbell said however that the implementation periods for ‘out of quota’ lines still remain significantly longer than the USA and EU.

“The commercial reality of this is that Australian dairy liberalisation will be five to seven years behind key trade rivals, the USA and EU,” he said.

“To ensure we do not fall further behind our competitors, it is vital that the FTA is implemented as soon as possible to kick-start the liberalisation process.

“There are a number of aspects to this deal that are still unknown. We await further detail, full text and confirmation on implementation schedules before we can fully assess the impact across all dairy lines.”

Mr Campbell said the ADIC appreciates the Federal Government’s engagement with the dairy industry during the negotiation process.

“We thank them for their hard work and look forward to their contribution in helping secure a better deal for dairy in negotiations for the China and Japan FTAs, which are vital to the future of our industry,” he said.

Media Contact:

Karl Liebich, Media and Communications Officer

T: (03) 8621 4200

E: adfcommunications@australiandairyfarmers.com.au

Dairy farmers and processors have expressed disappointment at the news that the US Cooperatives Working Together (CWT) body will be doubling the dollar value of the amount that is contributed to its export subsidy program.

“It is disappointing that American milk producers feel the need to subsidise their dairy product exports and will not compete on a level playing field,” said ADIC Chairman Noel Campbell.

From 1 July 2013 US farmers have backed a levy rise from 2 cents to 4 cents per hundredweight, effectively doubling the amount used to subsidise export products. This will make available US$60 million per annum for subsidising exports.

“The CWT subsidies program is targeting key Australian markets in Asia, such as Japan, and under- cutting efficiently-produced Australian product in these markets,” said Mr Campbell.

“Activity of this type only reinforces the need for Australia to sign key Free Trade Agreements such as those being negotiated with Japan, China and Korea to assist in ensuring a more level playing field.

The CWT export subsidies program uses a levy drawn from approximately 70% of total US milk production for the sole purpose of subsidising product entry into export markets including those where Australia has a major presence. The CWT is not aligned with the US government which allows it to side-step existing WTO rules and restrictions on export subsidies.

The ADIC and Dairy Australia are examining legal options in relation to this case and working with industry and government on other avenues.

Media Contact:

ADF Office

T: (03) 8621 4200

Australian Dairy Farmers (ADF) has expressed its dismay at the passing of the Migration Amendment (Temporary Sponsored Visas) Bill through Parliament.

The Bill, passed by the Senate last Friday, will place stronger regulations on employers seeking to sponsor skilled migrant workers on Subclass 457 visas.

ADF President Noel Campbell said this disadvantages dairy farmers who have a genuine need to seek overseas workers due to the lack of available local labour.

“At a time when there is a critical shortage of skilled dairy workers, the dairy industry heavily relies on skilled migration to bolster its workforce and help our farmers fill labour shortages,” said Mr Campbell.

“Many dairy employers rely on skilled migrants brought to Australia under 457 visas to fill core on-farm roles.”

“The current application process is complex and laborious, prolonging the length of on-farm vacancies. Instead of addressing farmers concerns and streamlining the application process, the Government’s changes will make an already challenging situation even more complex, placing and even greater workload on farmers and affecting health and wellbeing,” said Mr Campbell.

The ADF is working towards increasing workforce participation in the dairy industry, through its partnerships with organisations and programs focussed on developing skills and workforce.

“The ADF is committed to upskilling the dairy industry’s existing workers and growing our workforce and we call upon both sides of Government to place agricultural education on the National Priority Band for compulsory HECS-HELP repayments, to encourage more students to enrol in agricultural studies,” said Mr Campbell.

“The benefits of initiatives will take time to flow to the workforce, so for the short term, migration programs such as the 457 visa program are vital so farmers can fill labour shortage gaps. Any restrictions on these programs will only make it harder for farmers to find staff.”

Media Contact:

ADF Office

T: (03) 8621 4200

The Australian Dairy Industry Council (ADIC) welcomes today’s announcement by the Legislative and Governance Forum on Food Regulation that the nutrient profiling on the front of packaging of dairy products will be examined more closely over the coming months.

Under the voluntary labelling system, there will be a star rating out of five on the front of food packaging that is based upon the levels of individual nutrients such as saturated fats, rather than looking at foods as a whole.

ADIC Chairman Noel Campbell said the dairy industry was concerned that without further investigation, the star system could have meant that products such as milk and cheese, which are recommended under Australian Dietary Guidelines, could be seen by consumers as an unhealthy option.

“The Australian Dietary Guidelines acknowledge that adequate intakes of milk, yoghurt and cheese are linked to a reduced risk of several chronic diseases including heart disease and stroke. This evidence relates to all varieties of milk, cheese and yoghurt including regular, reduced-fat and flavoured varieties.”

“By breaking foods into separate nutrient components, some dairy products may have received fewer stars which would have led to consumer confusion about whether or not they should eat dairy as part of a well balanced diet.”

“The dairy industry welcomes the continued examination of the system and its impact upon this core food group. It is essential that this new labelling system clearly aligns with Australian Dietary Guidelines so consumers can make positive food choices that are based on recommended daily intakes.”

Media Contact:

ADF Office

T: (03) 8621 4200

The Australian Dairy Industry Council (ADIC) held its Annual Industry Leaders Breakfast today in Melbourne. The event’s theme of Eating & drinking in 2050: Consumers and markets of the future was discussed and debated heavily among attendees and prominent members of the dairy industry.

According to research by the United Nations Food and Agriculture Organisation, by the year 2050, the world’s population will reach 9.1 billion, a 34% increase on today’s current headcount.

With this surge in population, demand for food will increase by 70% – this is a statistic the dairy industry does not take lightly. Providing for a much larger population will challenge the dairy industry and its supply chain to remain sustainable and united, a topic widely discussed at the breakfast.

“Sustainable growth is vital for survival in any industry. Dairy farmers and dairy companies across Australia must continue to grow and adapt to the challenges presented so that they may thrive in the future” said Chris Griffin, outgoing Chair of the ADIC.

The keynote speaker for the event was world renowned economist Professor Neville Norman, ably supported by Mr Steve Spencer of Fresh Logic and Mr Charles McElhone of Dairy Australia.

The ADIC Annual Industry Leaders Breakfast debuted in 2006 and provides a forum for the dairy industry’s most valuable members to congregate and discuss issues important to them.

The event attracts over 200 members of the dairy industry, ranging from farmers to manufacturers to industry leaders. It is a celebration of growth and a chance to encourage unity in the dairy industry.

Media Contact:

Natalie Collard, Chief Executive Officer

T: (03) 8621 4200

The dairy industry’s national peak policy body, the Australian Dairy Industry Council (ADIC), today honoured the late Mr Niel Black at its Annual Dairy Industry Leader’s Breakfast, held at Flemington Racecourse in Melbourne.

“We only wish Niel was still with us today to accept this award himself. However, we take solace in his excitement in learning of his achievement only four days before his tragic accident” said ADIC Incoming Chair Noel Campbell.

Niel is survived by his wife Eve, who accepted the Award on Niel’s behalf, and was supported by their family and close friends.

Mr Black was a pioneer of herd improvement in Australia, a founding partner of DemoDAIRY research centre in Terang Victoria, President of the Noorat Show committee and a long time advocate and supporter of United Dairy Farmers of Victoria.

Mr Campbell said “Niel has made an enormous impact on the dairy industry, he has implemented innovation and change, improved process by sharing knowledge and has left a lasting legacy.

His personal style was one of modesty and quiet achievement. He was active on farm and within an industry that he helped to shape during the span of his farming life”.

“Niel was a fast learner and a great teacher, his generosity in sharing knowledge with newcomers was a renowned trait of his. His list of achievements within the industry and outside of it were vast to say the least” said Mr Campbell.

The Outstanding Service Award recognises and celebrates collaborative leadership provided to the Australian dairy industry. The award honours individual Australians who, through their leadership, dedication and commitment, have provided outstanding service for the benefit of the entire industry.

Media Contact:

Noel Campbell, Chair

M: 0417 381 108