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

The Federal Government is playing regional communities for fools if it thinks $1.77 billion over 10 years will buy acceptance of what remains a deeply flawed Basin Plan, the Australian Dairy Industry Council (ADIC) said today.

“Today’s announcement is just smoke and mirrors, to distract attention from the fact the Government is yet to deliver an acceptable solution to closing the gap to 2750GL,” said ADIC president Chris Griffin..

“The Prime Minister knows 3200GL can’t be delivered without flooding farms, towns, roads, caravan parks and tourist attractions like the Tocumwal beaches. Raising a couple of low-lying bridges to let more water flow under safely just makes it easier to run the river at the same level that flooded hundreds of homes in Morgan in February 2011.

“So where’s the money to buy the flood easements, build levee banks, and repair roads and eroded river banks after each flood? Without that, today’s announcement is just an expensive way of getting one State over the line for no actual environmental gain.”

Mr Griffin said the Government had to focus on fixing the real problems with the Basin Plan.
ADIC Basin Response Taskforce Chair Daryl Hoey said environmental outcomes similar to or better than 2750GL could be achieved with up to 2100GL in entitlements and at least 650GL in environmental offsets.

“We want a guarantee that the 650GL in environmental offsets will be adequately funded and that the Murray Darling Basin Authority’s models will enable the Sustainable Diversion Limit to be adjusted by the full amount,” Mr Hoey said.

“So far, all we have seen from the Government is a commitment to an adjustment that only goes in one direction – up.

“The fact is that while recovering water through on-farm works is preferable to outright buybacks, it still means another 450GL of irrigator entitlements transferred to the environment. That means less water in the collective pool for irrigation, and higher water prices. All current and new funding should be directed to first closing the gap to 2750GL, including achieving the 650GL in environmental offsets.

“We urge the Coalition, the Greens and the Independents in Parliament not to be railroaded into a quick vote on amending the Water Act and accepting the Basin Plan by the end of the year. We will all need time to carefully consider the detail in this legislative instrument, to make an informed judgement on whether it really can deliver what the Government claims.”

Media Contact:

Chris Griffin, ADIC Chair

M: 0402 846 239

Daryl Hoey, ADIC Basin Response Taskforce Chair

M: 0407 582 982

The Commonwealth and the States risk a big compensation bill for farms, tourism and infrastructure if they pursue a 3200GL water recovery target, the Australian Dairy Industry Council (ADIC) warned today.

ADIC president Chris Griffin said the 3200GL scenario involved more frequently flooding thousands of hectares of farmland, as well as caravan parks, access roads, prime tourism attractions such as the Tocumwal beaches, and South Australia’s holiday ‘shacks’ on the Murray River.

“The impacts are clearly identified in reports by the SA Government, and the Goulburn Broken and NSW Murray Catchment Management Authorities,” said Mr Griffin.

“The inescapable fact is that the Commonwealth and the States will face a hefty bill to buy flood easements on affected properties, and compensate caravan park owners and businesses in tourist towns like Tocumwal.

“And that is even before they get the repair bill for fixing access roads and low-lying bridges after each flood has passed through.”

ADIC Basin Response Taskforce Chair Daryl Hoey said there were smarter ways to achieve healthier rivers and wetlands than just stripping ever larger volumes of water out of irrigation communities.

“We know there is widespread political support for a 2100GL cap on water buybacks and infrastructure savings, plus at least 650GL in offsets such as environmental works and improved river operations.

“This formula will deliver similar or better environmental outcomes – including protecting the lower lakes, Coorong and Murray mouth – than just taking 2750GL or 3200GL of water away from irrigators.

“The MDBA should be forced to get serious about finding at least 650GL in offsets first, so we can close the gap to 2750GL without the need for even more buybacks,” Mr Hoey said.

“The priority should be on delivering this win-win outcome first, and we appeal to Mr Burke to direct the Authority to become part of the solution, not the problem.”

Media Contact:

Chris Griffin, ADIC Chair

M: 0402 846 239

Daryl Hoey, ADIC Basin Response Taskforce Chair

M: 0407 582 982

The Federal Government needs to reveal the deal on the Basin Plan before Parliament votes on amending the Water Act, the Australian Dairy Industry Council said today.

ADIC president Chris Griffin said Parliament and stakeholders first had to be confident that the Basin Plan actually delivered what the ministerial council intended.

“We know there is widespread political support for a combination of up to 2100GL in entitlements and at least 650GL in environmental works and measures,” Mr Griffin said.

“We want to be confident that the Basin Plan and associated documents clearly and unambiguously set out how this will be achieved, before a vote on amending the Water Act.

“We also want to be sure that water saved from any additional infrastructure works will count first towards closing the gap to the 2750GL benchmark, before any is credited towards environmental outcomes beyond that goal.”

ADIC Basin Taskforce Chair Daryl Hoey said the dairy industry was wary of giving the Murray Darling Basin Authority the final say on adjusting the Sustainable Diversion Limit (SDL), given its poor record on consultation.

“Unfortunately, the Authority has a history of making a show of listening, even to senior Basin officials, but then just doing what it wants regardless,” Mr Hoey said.

“It also has a history of moving the goalposts. We are especially dismayed by its attempt to exclude The Living Murray works as environmental offsets, despite telling us all for more than a year that these works would be counted to help reduce buybacks.

“For this reason, any Water Act amendment must require the Authority to do more than just consult with the Basin Officials Committee – it must also comply with reasonable requests.

“We think it is also important that the Water Minister, at least, retains some discretion on SDL adjustments, otherwise the Authority will be even more a power unto itself.”

Mr Hoey also said the SDL adjustment mechanism must allow a plus/minus variation of at least 6%, not the 5% proposed in the amendment.

“Otherwise it is only possible for the surface water SDL to be adjusted by 540GL, not the full 650GL in environmental offsets,” he said.

Mr Hoey explained that the amendment rolled surface and groundwater SDLs together for the purposes of a net +/-5% adjustment, giving a potential variation of 710GL. “But this aggregation is not hydrologically or scientifically sound, and should not be supported.”

He said new measures in the amended Basin Plan that potentially neutralise the capacity to adjust the SDL by the full 650GL must also be removed. Examples include the undefined ‘initial conditions of development’ and arbitrary ‘safety net’ provisions.

Media Contact:

Chris Griffin, ADIC Chair

M: 0402 846 239

Daryl Hoey, ADIC Basin Response Taskforce Chair

M: 0407 582 982

The exclusion of The Living Murray environmental works from the latest draft Basin Plan could cost taxpayers more than $1 billion, the Australian Dairy Industry Council (ADIC) warned today.

ADIC president Chris Griffin said excluding the works meant the Government would have to buy 650GL instead, for no environmental gain.

“This will cost taxpayers more than $1billion, if past buybacks are any guide,” Mr Griffin said. “Not to mention further undermining the viability of irrigation districts and driving up the price of water for those farmers who remain.”

The Living Murray works make up the bulk of the 650GL in offsets proposed by the Basin State ministers as part of an adjustable Sustainable Diversion Limit (SDL) mechanism.

“The offsets will enable similar or better environmental outcomes to be achieved using less water than the 2750GL the Murray Darling Authority wants to recover,” Mr Griffin said.

The MDBA told several parliamentary hearings over the last 12 months that The Living Murray environmental works would be considered as offsets.

But the amended Basin Plan released last week excludes these works, claiming they were already factored into the modelled 2750GL baseline.

ADIC Basin Taskforce chair Daryl Hoey said regional communities were shocked that the Authority could try to move the goal posts at the last moment.

“It seems the Authority is determined to preserve its 2750GL recovery target, no matter what,” Mr Hoey said.

“It is not just the Living Murray works – new provisions such as ‘initial conditions of development’ and targets for the lower lakes have also been introduced.

“These provisions will stymie attempts to adjust the SDL using offsets such as environmental works and improved river operations.

“For the Government, this should be very simple: the more environmental offsets that can be found, the more taxpayers’ money it can save by not having to buy the water from irrigators instead.

“And the environmental outcomes will be similar or even better this way. It seems like a no-brainer.”

Mr Hoey explained that the Commonwealth had paid an average $1700/ML for high reliability and general security water in the southern Basin; these water entitlements are likely to continue being the target of future buybacks.

“So, they could save more than $1 billion if they don’t have to buy 650GL, and achieve similar or better environmental outcomes through The Living Murray offsets instead.” he said.

“We are urging the federal and State water ministers to reinstate the Living Murray works in the offsets equation, and remove the new provisions that stymie any SDL adjustment using offsets.”

Media Contact:

Chris Griffin, ADIC Chair

M: 0402 846 239

Daryl Hoey, ADIC Basin Response Taskforce Chair

M: 0407 582 982

The latest Murray Darling Basin Plan remains an exercise in maximising buybacks and undermining the viability of regional industries and communities, the Australian Dairy Industry Council said today.

ADIC chair Chris Griffin said the dairy industry supported an adjustable Sustainable Diversion Limit mechanism, but not the proposed formula.

“This formula is designed to ensure that any reductions through environmental works will be offset by infrastructure savings,” Mr Griffin said.

“We believe the Murray Darling Basin Authority does not have the will or capacity to resolve this matter and we call on Minister Burke to conclude the discussions with the States in line with the recent consensus document.”

ADIC Basin Response Taskforce chair Daryl Hoey said the MDBA was trying to move the goalposts on environmental offsets and infrastructure savings at the 11th hour.

“It is disturbing that the MDBA is refusing to assess The Living Murray environmental works as potential offsets, despite promising to do so in its hydrological reports1 in February,” Mr Hoey said.

“Equally concerning is that any additional savings from new infrastructure works or on-farm efficiencies won’t count as reductions against the 2750GL benchmark. That leaves buybacks as the only option to close the gap.

“The dairy industry is already facing significant pain of adjustment in water affordability and availability even if the Government did not buy back another drop,” Mr Hoey said. “Yet here we have the MDBA coming up with a formula to support continued buyback tenders.”

Mr Hoey said the dairy industry supported:

• An adjustable SDL mechanism operating within a net range of at least plus or minus 6%, which translated to a water recovery range of 2100-3400GL.
• A 2100GL cap on water recovery in the form of entitlements, including buyback; current and future infrastructure savings projects; and, current and future on-farm works.
• A Commonwealth commitment for no further buybacks before the SDL adjustment review, unless the proposal is community-led, community-supported, and agreed by the relevant State.

• The Living Murray works fully included in the assessment for potential SDL offsets.
• An explicit work program that pools the remaining buyback and infrastructure funding, and prioritises its investment into environmental works and measures, improved river operations, and further water-saving infrastructure and on-farm works.

Media Contact:

Chris Griffin, ADIC Chair

M: 0402 846 239

Daryl Hoey, ADIC Basin Response Taskforce

M: 0407 582 982

The Murray Darling Basin Authority has shown its utter contempt for regional communities with the release of a Basin Plan little different from its damaging 2010 Guide, the Australian Dairy Industry Council said today.

“The new MDBA chair Craig Knowles last year assured regional communities that he wanted to work with them to come up with a Basin Plan that genuinely balanced environmental, social and economic needs,” ADIC chair Chris Griffin said.

“It is just plain insulting for the Authority now to dismiss thousands of regional Australians as having nothing worthwhile to contribute to a Plan that directly affects their economic and social wellbeing.”

Mr Griffin urged Federal Water Minister Tony Burke and State Water Ministers to address the fundamental flaws identified in the draft Plan, and not abandon regional communities.

ADIC Basin Taskforce chairman Daryl Hoey said the Basin Plan released today would remove slightly more water from the southern Basin than was proposed in the Guide 18 months ago – 2289 gigalitres compared with 2274 gigalitres.

“Today’s outcome is a betrayal of the community’s goodwill to give the MDBA another chance to work with regional communities and get this right, after the debacle of the Guide,” Mr Hoey said.

“A cut of this size is as unacceptable now as it was 18 months ago – especially in the face of the authority’s own evidence that similar or better environmental outcomes could be achieved with less water by investing in environmental works and other measures instead of buybacks.

“It is also shocking that the authority has conveniently dismissed the integrity of all socio-economic studies – even its own commissioned studies – that do not support its fanciful claims that regional communities will not suffer any serious or lasting impacts.”

Mr Hoey said he was particularly concerned about misleading information in the socio-economic summary report delivered to the State and Federal water ministers.

He said an example was the claim that irrigators only face a 19% reduction in water, after accounting for infrastructure savings. However, this is a proportion of all water diverted in the Basin, including for Adelaide, other towns, manufacturing and mining, as well as agriculture.

“In truth, the reduction will be about 30%, based on ABS data of actual irrigation water use – and the Government is only targeting irrigators’ water for purchase for the environment,” Mr Hoey said.

“Further, the Authority has failed to tell Australians the whole story by including colour-coded maps showing that the environmental benefits of recovering 2400GL would be little different to 2750GL, according to its own studies.

“The Authority is trying to palm off the hard decisions to the 2015 review, when it knows full well that it is legally locking the Federal Government into buybacks as the investment priority in the meantime. So by the time we get to 2015, the socio-economic damage will have been done.”

Media Contact:

Chris Griffin, ADIC Chair

M: 0402 846 239

Daryl Hoey, ADIC Basin Response Taskforce Chair

M: 0407 582 982

Water recovery targets should be set lower and environmental objectives met by investing in infrastructure and environmental works and measures, the Australian Dairy Industry Council has urged in its submission on the draft Murray Darling Basin Plan.

ADIC chair Chris Griffin warned that the draft Basin Plan imposes unnecessary hardship on irrigation dependent communities, when the MDBA itself recognises that similar or better environmental outcomes can be achieved with less than the proposed 2750GL.

“The draft Plan does not pass the test of being achievable, practical or cost-effective. Furthermore, the plan does not optimise social, economic and environmental outcomes,” Mr Griffin said.

“The Government’s Water Recovery Program, with its heavy reliance on buyback for most of the environmental water, will not deliver communities that are better adapted to reduced water availability.”

“But the draft Plan as it now stands doesn’t have the flexibility for less than 2750GL in entitlements to be recovered, regardless. Without this flexibility, there is no incentive for government to invest in programs other than buybacks when it is needed for infrastructure and environmental works.”

“The Basin dairy industry will struggle to sustain its current size, much less grow and prosper in future, in the face of this double whammy in cost pressures. And when family dairy businesses close down, that means fewer local jobs in processing, transport and service industries.”

Mr Hoey said the environmental water holders must demonstrate they can use the water already recovered without unacceptable third-party impacts such as flooding properties, before any more water is removed from productive use.

In the meantime, the ADIC want the remaining buyback and infrastructure funding (~$2 billion in Water for the Future Fund + $1.4 billion committed for further buyback 2015-2019) pooled and reprioritised. The ADIC has identified a range of projects (outlined in the ADIC submission) utilising this government funding such as on-farm efficiency, irrigation infrastructure upgrades, environmental works and supplementary licences.

Media Contact:

Chris Griffin, ADIC Chair

M: 0402 846 239

Daryl Hoey, ADIC Basin Response Taskforce Chair

M: 0407 582 982

New analysis has proven the water recovery targets proposed in the draft Basin Plan will cripple the dairy industry and its communities in the Goulburn Murray Irrigation District (GMID), the Australian Dairy Industry Council (ADIC) warned today.

The modeling shows milk production in the GMID could dip to drought-like levels of 1.6 billion litres if the Federal Government pursues further general water buyback tenders to meet the 971-gigalitre „shared‟ target in the southern Basin for downstream needs.

The number of farms would also drop to about 1000 in the district, which produces 78 per cent of milk in the Murray Dairy region covering northern Victoria and southern NSW.

ADIC Chair Chris Griffin said the Government should instead focus on environmental works and measures and improved river operations to meet the Basin Plan‟s environmental objectives.

“Dairy farmers were already stretched to the limit adapting to produce more milk with less water, and surviving the drought came at a high price with rising production costs and debt,” Mr Griffin said.

“With the recovery in water storages and improved milk prices, the dairy industry is now in a position to rebuild herds, increase milk production back to pre-drought levels and start paying down debt.

“The challenge with the proposed water recovery targets will be avoiding milk production contracting further from the current, drought-affected level of production.

“It puts pressure on regional processing which is already under-utilising capacity. And in a region where dairy is a high service industry, we will see a domino effect across the community – fewer jobs, business closures, declining population, decreased need for services.”

If the Government stops now with the water recovered through buyback to date in Victoria and infrastructure projects planned and underway, the analysis shows milk production will stabilise around 1.8 billion litres and the number of dairy farms would sit at around 1200.

ADIC water taskforce chair Daryl Hoey said with further productivity gains, GMID dairy farmers could get production back to pre-drought levels above 2.3 billion litres and support current processing capacity.

“But this would require substantial further government co-investment in on-farm irrigation efficiency projects if dairy farmers are to adjust by 2019, given their high debt levels,” Mr Hoey said.

“The Government needs to commit additional funding to extend this program to 2019 to assist farmers in adjusting to reduced water availability under the Basin Plan.”

Mr Hoey said the devastating impacts could be avoided in a number of ways, including government co-investment in irrigation infrastructure on and off farm (including irrigation districts in NSW), strategic buybacks linked to efficiency projects, improved river management to use environmental water more efficiently and investing in infrastructure to improve the watering of environmental sites.

Media Contact:

Daryl Hoey, ADIC Water Spokesperson

M: 0407 582 982

Chris Griffin, ADIC Chair