Dairy industry sees better ways to protect the environment and communities in Murray Darling Basin

Australia’s peak dairy advocacy body, the Australian Dairy Industry Council (ADIC), is calling for the Federal Environment and Water Minister Tanya Plibersek to drop her plan for water buybacks. ADIC is also inviting the Minister to visit the dairy industry in the Murray Darling Basin, especially in northern Victoria and southern NSW.

This week Minister Plibersek introduced to Federal Parliament changes to the Commonwealth Water Act and Basin Plan that would see water buybacks used to get the full 450GL of water for environmental flows delivered by a new deadline of June 2027.

ADIC Chair Rick Gladigau said he welcomed the much-needed extension but warned buybacks were not the answer. “No one cares more about the Murray River than the communities that live alongside it. But right now, they’re extremely angry and they’re extremely concerned.

“There are alternatives to buybacks and better ways to achieve environmental outcomes. Buybacks permanently remove the water from key food-producing regions, driving up the price of water and increasing the cost of food production and ultimately prices on supermarket shelves. This is the last thing we need when families are struggling to afford to put food on the table and the Government itself is running food security inquiries.

“It feels like the Minister is ignoring the alternatives to achieving positive environmental outcomes, and pursuing buybacks at the expense of rural communities and food production. This is a waste of taxpayer money.

“We encourage Minister Plibersek to visit dairy farmers, dairy processors and associated communities along the Murray River, especially in northern Victoria and southern NSW, and to hear firsthand the impacts this policy would have,” he said. “The dairy industry is calling for an innovative and outcomes-focused approach. Buybacks are a blunt instrument creating trauma for communities, leading to job losses and reduced investment.”

Mr Gladigau said the dairy industry in the Murray Darling Basin, contributed to the employment of almost 7000 people, directly and indirectly, across more than 900 farms and 40 dairy processors, with a farmgate value of over $1 billion. Unfortunately, since the Basin Plan began in 2012 farm numbers have fallen by 47% and milk production has dropped 35%.

“The Minister’s approach to drop the social and economic test has a very real impact on communities, jobs and food production, and effectively throws aside the spirit of bipartisanship that has held for 11 years through other challenges. What we have now is more stress, uncertainty, and frustration for communities in the Basin.”

Mr Gladigau said the industry had provided a range of other options around water efficiency projects to progress recovery. “There’s no easy answer to our water challenges, but just pushing through the first option to hand isn’t going to solve anything.”

(ends.)

Media contact: To arrange interviews or for more information please contact Fiona Davis at fiona@curriecommunications.com.au or on 0434 505 188.

Slow, steady approach welcomed by dairy in free trade race

The Australian dairy industry has welcomed today’s news that talks on the country’s free trade deal with the European Union (EU) have stalled, sending a blunt message “no deal is better than a bad deal”.

Australian Dairy Industry Council chair, Rick Gladigau, thanked Australia’s Trade Minister, Don Farrell, for holding the line and not accepting an inferior agreement without genuine market access concessions from the EU.

“We’re fully supportive of Minister Farrell’s work,” Mr Gladigau said.

Throughout the negotiations, the European Union has sought to impose geographical indications (GIs) on Australian dairy manufacturers. If introduced, this would block Australian companies from using product names such as feta and parmesan. Such a move is expected to result in lost sales, which could cost the industry up to $95 million per year.

“The GIs claim is really just a way of facilitating greater access to the Australian market for subsidised EU product, while stifling genuine competition for Australian products. The claim would also impact the sales, profitability and productivity of Australian dairy businesses. GI’s also hamper the ability of new Australian entrants to the market and goes against the Australian dairy industry’s support of free and fair trade.

“The dairy industry thanks Minister Farrell, along with Agriculture Minister, Murray Watt and the Department of Foreign Affairs and Trade negotiators for their genuine engagement and support to date and looks forward to continuing to work with them.”

(ends)

Click here to watch Rick Gladigau explain dairy’s position on ABC News Breakfast.

Australian dairy mourns the loss of Mike Taylor

The Australian Dairy Industry Council (ADIC) acknowledges, with sadness, the passing of former industry champion Michael (Mike) Taylor AO over the weekend.

Mike worked for ADIC from the late 1980s and served as its chief executive officer from 1990 to 1992.

He steered the industry through both the “Kerin plan” and the subsequent “Crean plan”, which were early steps towards deregulation.

Mike returned to the industry as chair of the Gardiner Foundation from 2010 to 2015.

ADIC chair Rick Gladigau said Mike brought invaluable experience to the dairy industry from his time working as a senior public servant. Mike held senior roles in the Victorian Department of Agriculture and Department of Natural Resources and Environment. He also served as secretary of the Commonwealth Department of Agriculture, Fisheries and Forestry.

More recently, Mike was chair of the Murray-Darling Basin Authority Board.

“Mike was a long-time stalwart and friend of the Australian dairy industry, and his knowledge and guidance will be missed by all,” Mr Gladigau said.

“Mike’s experience and ability to transcend the public and private sectors was highly valued by those who worked with him at ADIC.

“Our sympathies go out to his family.”

(ends)

Media contact:
Mark Paterson, Currie, mark@curriecommunications.com.au +61 (0) 409 411 110.

About the Australian Dairy Industry Council
The Australian Dairy Industry Council (ADIC) is the dairy industry’s peak policy body. The ADIC co-ordinates industry’s policy and represents all sectors of the industry on national and international issues through its two constituent bodies, Australian Dairy Farmers Ltd (ADF) and the Australian Dairy Products Federation (ADPF). It aims to foster, promote and protect the interests of the Australian dairy industry by driving a whole of industry approach to dairy policy and the development of the dairy industry.

 

 

 

Aussie dairy applauds first post-Brexit free trade deal with UK

Australia’s peak dairy policy body, the Australian Dairy Industry Council (ADIC), welcomes the ratification of the Australia-United Kingdom Free Trade Agreement (UK FTA) by the UK Parliament.

“This is the first FTA to be signed with the UK since Brexit,” ADIC Chair Gladigau said. “This highlights the speed with which the Australian government and its negotiators moved to secure this deal.”

The deal eliminates tariffs on dairy trade between Australia and the UK within five years. It provides immediate duty-free access for significant volumes of milk, cream, yoghurt, whey, butter and cheese. Further, the deal increases access to Australian ice cream and infant formula in the UK.

Approximately one-third of Australian dairy production is exported. The UK is a large dairy importer as well as exporter of dairy products. According to UK customs data, it imported almost 1.5 million tonnes of dairy products in 2020, making the UK the second largest importer of dairy in the world. Currently, European Union members supply 98% of the UK’s dairy imports.

“Australian dairy has a reputation worldwide for being a reliable trading partner, supplying quality product. We look forward to the success stories flowing from the Australia-UK FTA,” Mr Gladigau said.

Media contact: Mark Paterson, 0409 411 110, mark@curriecommunications.com.au

About the Australian Dairy Industry Council

The Australian Dairy Industry Council (ADIC) is the dairy industry’s peak policy body. The ADIC co-ordinates industry’s policy and represents all sectors of the industry on national and international issues through its two constituent bodies, Australian Dairy Farmers Ltd (ADF) and the Australian Dairy Products Federation (ADPF). It aims to foster, promote and protect the interests of the Australian dairy industry by driving a whole of industry approach to dairy policy and the development of the dairy industry.

Australian cheese names on the chopping block

  • The Australian dairy industry is at risk of losing the names of over 50 varieties of cheese placing future production and sale at risk if Geographic Indication (GI) protections are imposed in Australia. 
  • A GI system only allows products to use certain names if they are produced in a specific region. For many years the EU has been intent on using GI systems to monopolise the use of common names to favour European producers. 
  • The potential direct cost of Geographic Indications (GI) extension for Australian dairy producers is estimated to be between at least $77-95 million AUD per annum for the first three years, and up to 1,000 jobs lost. 
  • Under the proposed EU GI system, the livelihood of Aussie farmers, and the regional communities where many dairy product manufacturing facilities are located, could be significantly impacted. 

Australians are being urged to stand behind cheesemakers whose livelihoods are under attack as the European Union (EU) seeks to impose Geographic Indications (GI), as part of the Free Trade Agreement negotiations. If the EU is successful, this could have an enormous negative impact on many Australian dairy manufacturers who produce high quality locally made dairy products, with their right to use common cheese names restricted or removed. 

Under an EU style GI system, Australian cheesemakers risk losing the right to call their product a name they have used for generations – this would result in Aussie favourites such as feta, parmesan, haloumi and other more exotic flavours such as pecorino, neufchatel, and gruyere all potentially in danger.  

Indeed, the EU wants to go a step further and restrict the right of cheesemakers to highlight their cultural heritage by banning the use of certain colours, fonts and other branding which it believes could ‘evoke’ European heritage – potentially extending to Greek style yoghurt as well.  

The EU’s trade restrictive GIs regime would impact many local cheese brands and artisans and cost them an estimated $77-95 million per annum in the early years of the GIs regime’s implementation.  

Not only will the livelihood of Aussie farmers be adversely impacted but the economies of regional communities where many dairy product manufacturing facilities are located could be impacted for many years to come with up to 1,000 jobs across Australia estimated to be lost as a result of unfair and unjustified GI protections. 

ADF President and ADIC Chair, Rick Gladigau, said Australia has a rich tradition of cheese making and it’s a core part of our food culture built upon our nation’s proud multicultural heritage.  

“The impact of a strict agreement on GIs cannot be underestimated,” said Mr Gladigau.  

“Forcing cheesemakers to change the name of their product and denying them the right to use their branding due to evoking European heritage is unacceptable. The effects of this will be greatly felt when it comes to farmgate prices, demand for raw milk, and the unfair displacement of local Australian producers and quality made products, putting up to 1,000 jobs at risk.” 

“Many of the GI at risk cheeses have been made in Australia for generations. We must protect not only our beloved cheeses but support the cheesemakers who have been making quality products for generations – small and large.  

“Australia is a multicultural country, and our food culture is a pivotal part of our identity that reflects our proud migrant history. Many European immigrants have built successful cheese businesses that supply Aussies with great tasting, nutritious, cheese.” 

Cheesemaker Mauro Montalto from Floridia Cheese said the introduction of GIs on European cheese will result in more overseas products at our supermarkets, taking up prime space Australian producers currently hold.  

“Our family has been making cheese in Australia for more than 65 years, and the EU’s attempts to restrict common food names is in one word – unjustified. This new system privileges one set of producers, namely those in the European Union, over local Australian producers.  

“If the EU is successful, many family-run specialty cheese manufacturers, like Floridia Cheese, will be unable to use the cheese names that they have been using for decades, and forced to rebrand their products. Further to that, cheesemakers will be put under competition from cheaper European imports – the effects of such changes will be felt for many years to come, and one we cannot turn our backs on, including the potential closure of Australian businesses. 

“We’ve seen the EU GI system challenged within the EU itself, and we know it has been inconsistently applied with trading partners such as Canada, NZ, and Japan, in the past.” 

Show your support for Australian cheesemakers against an unfair EU GI system by buying locally made parmesan, feta, pecorino and other quality Australian made cheeses. 

Learn more at www.dairy.com.au/gi 

-ENDS- 

For media enquiries please contact:  

Peter Somerville, Currie, peter@curriecommunications.com.au +61 (0) 403 868 984 

Mark Paterson, Currie, mark@curriecommunications.com.au +61 (0) 409 411 110 

Dairy cows in a paddock.

Dairy leaders urge Australia to throw “the kitchen sink” at FMD

The Australian dairy industry has enacted the emergency animal disease team to coordinate the dairy value chain’s response to the heightened threat of Foot and Mouth Disease (FMD) and Lumpy Skin Disease (LSD).

Representatives of the dairy industry’s farming, processing and research and development sectors, from Australian Dairy Farmers, Australian Dairy Products Federation and Dairy Australia, are part of this team.

“Together, the dairy industry and the Australian government, are working together to prevent an incursion of FMD in Australia, not just from Indonesia, but from other countries as well,” Australian Dairy Industry Council (ADIC) president Rick Gladigau says.

Mr Gladigau says the dairy industry supports the Australian Government’s increased surveillance and testing of meat and other animal products for FMD, both at the border and through targeted checking of retail outlets as well as the amplified measures as recently announced. The addition of sanitised foot mats at Australian airports and more control measures in Indonesia are welcome, too, and the industry looks forward to these being rolled out as soon as possible at all appropriate airports,” he says.

“We have been working closely with the Government every step of the way. We’re asking the Government to throw everything at FMD, especially at our borders, and take all suitable measures to ensure that FMD does not enter Australia!” says Mr Gladigau.

“Border checks of imported food products – in travellers’ luggage and retailers’ consignments – are vital because the main way FMD is spread worldwide is in food. It’s not just in footwear. It’s not only from Indonesia. Where the Government can do more, then we look forward to them doing so.”

Mr Gladigau says some media outlets reported yesterday that Department of Agriculture, Fisheries and Forestry testing had detected FMD when this was not the case. Viral fragments were detected – not the disease. “We urge the media to use extreme caution in their reporting. Australia is free of FMD and LSD,” he says.

“These detections of viral fragments are a timely reminder that Australia needs the strictest biosecurity measures possible. There are no silver bullets for biosecurity. There is no one measure that works on its own.

“It’s everyone’s job to ensure emergency animal diseases do not enter Australia. Biosecurity is everyone’s business. We all have a role to play in protecting Australia’s livestock industry from pests and diseases.”

The Australian Bureau of Agricultural and Resource Economics and Sciences estimates that a widespread FMD outbreak in Australia would have a direct economic impact of around $80 billion.

 

Media contact: Mark Paterson, Currie, mark@curriecommunications.com.au +61 (0) 409 411 110.

NZ trade deal with EU is “no precedent” for FTA with Australia

Common names for much-loved cheeses could disappear from dairy products in Australia if the European Union (EU) imposes a trade restrictive geographic indications of origins (GIs) regime on Australia through a free trade agreement (FTA), as it did to New Zealand last week, the Australian Dairy Industry Council (ADIC) warned today.

“New Zealand’s deal with the EU, which restricts the use of cheese names such as feta, parmesan and gruyere, does not set a precedent for Australia’s FTA with the EU,” says ADIC President Rick Gladigau.

“The outcome that New Zealand has given up to the EU on GIs will not be accepted by the Australian dairy industry. We will continue to defend the right to call dairy products by their common food names.”

The ADIC has calculated that the EU’s demand to restrict many cheese and dairy product names in Australia could put at risk local products with an aggregate sales value of more than $650 million. The potential direct impact on Australian dairy manufacturers from lost sales and increased marketing costs caused by the strict enforcement of GIs could range from a staggering $70-90 million per year in the early stages of the FTA.

“The blanket adoption of the EU’s demand that an FTA grant GI protection to 56 EU cheese products in the Australian market would adversely affect many local cheese producers and exporters,” says Mr Gladigau. “It would impose considerable and unnecessary costs on local industry and their regional communities.”

Many of the cheese names for which the EU is seeking GI status are widely considered to be common food names not just in Australia but also in many other countries with which Australia has established FTAs.

“Privileging the future use of these names solely to EU producers would unfairly displace Australian product from the local and export dairy markets,” says Mr Gladigau. “It would undermine the future sales, marketing and employment of many long-established Australian dairy brands and businesses, including many processors of these cheeses who are European migrants, and it will ultimately have a negative impact on dairy farmers.”

Mr Gladigau says the dairy industry supports free and fair trade and it looks forward to continuing to work with government on this deal, to achieve a win-win outcome in the best interests of the Australian dairy sector.

 

(ends)

Media contact: Mark Paterson, Currie, mark@curriecommunications.com.au +61 (0) 409 411 110.

ADIC welcomes Agriculture Minister Murray Watt

The Australian Dairy Industry Council (ADIC) congratulates federal Labor in winning a majority government, and welcomes the new Federal Minister for Agriculture, Murray Watt, who will be sworn in as part of the Labor Government today.

“We wish Murray Watt well and we welcome the opportunity to work closely with him throughout this parliamentary term,” says ADIC Chair Rick Gladigau.

“ADIC looks forward to working with all cabinet Ministers to implement its pre-election policies for nutrition standards in aged care, biosecurity and trade. However, there is more to do regarding key issues such as labour, water and food labelling.

“On labour, implementing the National Agriculture Workforce Strategy is one step to address skilled worker shortages in regional Australia. On water, recommendations from the Productivity Commission and ACCC for the Murray-Darling Basin need to be implemented. We also want to see the changes to meat labelling regulations to extend to dairy so consumers can make informed choices about the nutritional benefits of animal and plant-based foods.”

“Dairy manufacturers are under immense pressure to manage a tight domestic milk supply market, with challenges from high raw material input costs, freight and logistics, labour costs and availability, and surging energy and gas prices – challenges which are confounded further due to the retailers’ reluctance to pass through any price increase,” says Mr Gladigau.

While farmgate returns are increasing, the cost of farm inputs continues to skyrocket, says Mr Gladigau. “Farmers continue to exit this industry and we believe there is a clear role for Government in this conversation. A stronger local manufacturing sector is needed to decrease the reliance of Australian agriculture on imported products – chemicals, fertiliser, fuel and machinery – and reduce the operating risk of dairy production,” he says.

“ADIC looks forward to working with the new Ministry as the next three years will be a defining period for the sustainability of the Australian dairy industry. With the right policy settings, the new government can ensure the dairy sector sustains its contribution to life in Australia.”

Media contact: Mark Paterson mark@curriecommunications.com.au +61 (0) 409 411 110.

About the Australian Dairy Industry Council

The Australian Dairy Industry Council (ADIC) is the dairy industry’s peak policy body. It co-ordinates industry’s policy and represents all sectors of the industry on national and international issues through its two constituent bodies, Australian Dairy Farmers Ltd (ADF) and the Australian Dairy Products Federation (ADPF). It aims to foster, promote and protect the interests of the Australian dairy industry by driving a whole of industry approach to dairy policy and the development of the dairy industry.

Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) interim trade deal disappointing for Dairy

The Australian dairy industry is disappointed that the interim trade agreement with India announced today has failed to deliver meaningful market access gains for dairy.

We acknowledge the efforts made by Trade Minister Tehan and government officials in pushing for a dairy outcome in the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) negotiations.

However, it is concerning that India does not recognise the significant benefit of partnering with Australian dairy to complement local India dairy production and fill gaps in the market.

The dairy industry supports the Government’s aim to deliver a comprehensive trade agreement with India, a key economic partner. However, an agreement, interim or otherwise, that does not include market access gains for dairy is a disappointing outcome.

“It is regrettable that a substantial industry such as dairy should be largely left off the table in trade negotiations”, stated Australian Dairy Industry Council (ADIC) Chair, Rick Gladigau stated.

Free Trade Agreements are built on trust and aim to expand trade between countries by reducing barriers and integrating economies.

Grant Crothers, ADIC Deputy Chair stated, “it’s disappointing that India has failed to consider the benefits that can be realised by increasing trade with Australian partners, who are well placed to complement Indian capabilities to provide high quality dairy products into their local food and pharmaceutical manufacturing sectors”.

“We have a proven track record of working collaboratively with our trade partners to support consumer needs and ensure that everyone wins from the relationship”.

The Australian dairy industry’s focus will now shift to ensuring that the subsequent comprehensive deal prioritises dairy market access.

“While disappointing, this interim agreement is not the end of the road when it comes to strengthening dairy trade ties between Australia and India.  The Government has to prioritise dairy market access in the comprehensive deal and must ensure that negotiations for this end deal are not delayed,” said Rick Gladigau, ADIC Chair.

Media contact: Mark Paterson mark@curriecommunications.com.au +61 (0) 409 411 110.

About the Australian Dairy Industry Council

The Australian Dairy Industry Council (ADIC) is the dairy industry’s peak policy body. It co-ordinates industry’s policy and represents all sectors of the industry on national and international issues through its two constituent bodies, Australian Dairy Farmers Ltd (ADF) and the Australian Dairy Products Federation (ADPF). It aims to foster, promote and protect the interests of the Australian dairy industry by driving a whole of industry approach to dairy policy and the development of the dairy industry.

Senate report backs industry concerns about plant proteins

The Australian dairy industry has welcomed the Commonwealth Senate Inquiry report into the labelling of alternative proteins.

Australian Dairy Industry Council (ADIC) Chair Rick Gladigau says the report’s recommendations acknowledge the market failure highlighted by ADIC in its submission to the Inquiry.

“The report recommendations have vindicated the concerns our industry has expressed for years. The false leveraging of the dairy industry has been a long-standing issue. Plant-based products have misused dairy terms and misrepresented dairy nutrition, to the detriment of our industry,” Mr Gladigau says.

He says Australian consumers’ perceptions about dairy products have been affected by the misuse of dairy terms and nutritional information by processed, plant-based alternatives.

“The report’s recommended review of the Food Standards Australia New Zealand Code and exemption of named meat, seafood and dairy “categories” – meaning terms like soy milk should not be permitted – is the first step necessary to address those misconceptions,” Mr Gladigau says.

“Another of the report’s recommendations – the development of guidelines to inform labelling and marketing practices for manufacturers of plant-based protein products – is also an initiative that our industry supports.”

Mr Gladigau says the dairy industry is now keen to see bipartisan support for the report’s recommendations, with the development of a mandatory regulatory framework for the labelling of plant-based protein products, in consultation with industry, prioritised.

“We want to see Australia brought into line with the likes of Europe and Canada which have banned the misuse of dairy terms outright, or the United States which requires the clear distinction between dairy and plant-based products,” Mr Gladigau says.

“Australian consumers should not be misled. Labelling and nutritional information should be transparent. They should have confidence that what they are putting in their grocery trolley, is what it says it is.”

Media contact: Mark Paterson mark@curriecommunications.com.au +61 (0) 409 411 110.

Australian dairy industry welcomes new trade deal with UK

The Australian Dairy Industry Council (ADIC) welcomes today’s signing of Australia’s Free Trade Agreement (FTA) with the United Kingdom (UK).

Under the FTA, Australian dairy products will enter the UK duty free within a five-year timeframe, with substantial transition quotas providing improved access from entry into force.

The UK is a large dairy importer as well as exporter of dairy products. According to UK customs data, it imported almost 1.5 million tonnes of dairy products in 2020, making the UK the second largest importer of dairy in the world. Currently, European Union members supply 98% of the UK’s dairy imports.

Rick Gladigau, Chair of ADIC, congratulated Trade Minister Dan Tehan and the Australian negotiating team for successfully concluding an FTA with the UK within a relatively short time frame.

“The Australian dairy industry has a long history of reliably servicing international markets with high quality dairy products. Attaining improved access into markets such as the United Kingdom is important for farmer profitability and vital for our industry to continue to be successful,” said Mr Gladigau.

“While the Australian dairy industry has no expectations of a return to levels of trade seen prior to the UK entering the European Union, what is envisioned are the emergence of high value, niche opportunities, leveraging our counter seasonal supply to the Northern Hemisphere,” said ADIC Deputy Chair, Grant Crothers.

The Australian dairy industry looks forward to timely entry into force and successful implementation the FTA.

(ends)

 

For further information:

Mark Paterson

Phone: 0409 411 110

Email: mark@curriecommunications.com.au

 

About the Australian Dairy Industry Council

The Australian Dairy Industry Council (ADIC) is the dairy industry’s peak policy body. The ADIC co-ordinates industry’s policy and represents all sectors of the industry on national and international issues through its two constituent bodies, Australian Dairy Farmers Ltd (ADF) and the Australian Dairy Products Federation (ADPF). It aims to foster, promote and protect the interests of the Australian dairy industry by driving a whole of industry approach to dairy policy and the development of the dairy industry.

ADIC calls for fair, truthful food labelling at Senate hearing

Today, the Australian dairy industry called on the Federal Government to stop allowing plant-based products to misuse and leverage dairy terms, and to misrepresent dairy nutrition.

“The issue of plant-based products falsely leveraging the dairy industry is a long-standing problem in this country,” said Australian Dairy Industry Council (ADIC) Chair Rick Gladigau.

At a public hearing for the Senate inquiry into the definitions of meat and other animal products, ADIC representatives called on government to support measures to address this market failure.

Mr Gladigau said the Australian dairy industry had extremely strict standards of identity to be able to call a product milk, cheese or yoghurt.

“We follow strict standards of identity for all our products that gives us permission to use those dairy terms, and unfortunately the plant-based products don’t have that,” the ADIC delegates said. The plant-based products go to market with a huge variation in nutrition, and with little evidence to support the health and sustainability claims that they are making, Mr Gladigau said.

“On our retail shelves, we see plant-based products using dairy terms or descriptors like ‘milk’ and ‘cheese’ despite not having those terms in their ingredients; images of cows being used in marketing despite cows not being part of the production process; and statements that infer nutritional equivalence to or better than dairy despite the contrary,” said Mr Gladigau. “This is a clear market failure in the form of an information asymmetry, which requires government intervention.”

The dairy industry has been advocating for fair labelling and marketing since the 1980s.

Mr Gladigau told the Senators that as a minimum the Australia New Zealand Food Standards Code needed amendment. Specifically, ADIC calls for the removal of Clause 1.1.1-13(4) from the Code. This states that “if a food name is used in connection with the sale of a food (for example in the labelling), the sale is taken to be a sale of the food as the named food unless the context makes it clear that this is not the intention”.

The clause uses “milk” as an example by saying “the context within which foods such as soy milk or soy ice cream are sold is indicated by use of the name soy; indicating that the product is not a dairy product to which a dairy standard applies”.

Mr Gladigau said Australia needed to address its non-compliance with the Codex Alimentarius, the global collection of standards, guidelines and codes of practice adopted by over 180 countries, including Australia. It is governed by a commission established by the Food and Agriculture Organization of the United Nations (FAO) and the World Health Organization (WHO).

The Codex General Standard for the Use of Dairy Terms (CODEX STAN 269) sensibly defines milk as coming from mammals and sets out where, when and how dairy terms may be used and where they may not.

“We find it unacceptable that Australia is a signatory to an international standard or agreement and has consistently failed for a very long time to comply,” Mr Gladigau said.

As Mr Gladigau highlighted to the Senate inquiry, many other countries are ensuring compliance to Codex by either banning the misuse of dairy terms outright, like in Europe and Canada, or by requiring clear distinction between the two, like in the United States.

Mr Gladigau called on Australia to follow suit, saying there was proof that Australian consumers’ perceptions about dairy products had been affected by the misuse of processed, plant-based alternatives to dairy.

He highlighted the results of the annual Dairy Australia Trust Tracker survey that has found every year since 2018, that between 45 and 54 per cent of respondents said the main reason for buying plant-based beverages is because they believe them to be healthier than dairy milk – when that is not the case.

Mr Gladigau heighted the work that Australian Dairy Farmers (ADF), of which he is the President, and the Australian Dairy Products Federation (ADPF) have done in the industry taskforce designed to obtain consensus on this issue.

“In the spirit of this intent and knowing the difficulty we have had previously on achieving regulatory change, we agreed to develop a voluntary industry guideline to resolve this issue,” said Mr Gladigau. “If this can be produced and is successful, then we would be happy with that outcome. If not, then we call on all political parties to agree to a policy of changing the Food Standards Code consistent with what I have outlined.”

Janine Waller, Executive Director at ADPF, said the Australian dairy industry had agreed to a voluntary approach as a pragmatic measure, but that it required clear compliance measures and an early review period. A regulatory change, such as removal of the clause 1.1.1.13 (4) in the Australia New Zealand Food Standards Code remained a long-term goal, Ms Waller said.

Craig Hough, Director of Strategy and Policy at ADF, and Melissa Cameron, Human Health and Nutrition Policy Manager at Dairy Australia, provided policy and technical expertise to the ADIC at the hearing.

 

(ends)

 

About the Australian Dairy Industry Council

The Australian Dairy Industry Council (ADIC) is the dairy industry’s peak policy body. The ADIC co-ordinates industry’s policy and represents all sectors of the industry on national and international issues through its two constituent bodies, Australian Dairy Farmers Ltd (ADF) and the Australian Dairy Products Federation (ADPF). It aims to foster, promote and protect the interests of the Australian dairy industry by driving a whole of industry approach to dairy policy and the development of the dairy industry.

 

Media contact: Mark Paterson, Currie, mark@curriecommunications.com.au +61 (0) 409 411 110.

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