Australia’s dairy industry is bracing for a fight over the name “haloumi”, after the European Union last week voted to restrict cheese manufacturers outside of Cyprus from marketing haloumi cheese under that name.

The move could have severe consequences for any future trading relationship between Australia and the EU, with the powerful trading bloc insisting that Australia adopt its Geographical Indications (GIs) system to protect products that the EU believes possess qualities or a reputation associated with certain regions.

Peak dairy industry body the Australian Dairy Industry Council (ADIC) has campaigned against the EU’s GI system and urged Australian trade negotiators not to cave to the EU’s demands. While haloumi is not listed as a GI request under the pending Australia-EU free trade agreement (FTA), this latest development could see it added once the trade deal comes into effect.

“The EU has already made a list of unreasonable demands to stop Australian cheese manufacturers using common cheese names,” ADIC Chair Terry Richardson said.

“Now they have opened up the possibility of adding to that list once the agreement is finalised, and it is simply going too far. We need to prevent this FTA from allowing the EU to take over our cheese names.”

Australian haloumi is both sold in supermarkets and speciality stores throughout the country and exported, predominantly to Asia.

Mr Richardson said the dairy industry wasn’t persuaded by the EU’s argument that haloumi should be protected as a GI because it is unique to Cyprus.

“Haloumi is a cheese that can be, and is, produced anywhere in the world,” Mr Richardson said.

“The origin of the cheese is irrelevant because the name is generic and associated not with the region in Cyprus, but with a certain taste, texture, and functionality.

“Geography doesn’t enter into it. Claiming there is a special knowledge that only producers in Cyprus possess is absurd and will lead to an unfair and anti-competitive outcome.”

The ADIC estimates that the EU’s demand to restrict cheese and dairy product names 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.

Media Contact

Ashley Mackinnon, Public Affairs Manager

M:0407 766 153

E: media@australiandairyfarmers.com.au

The dairy industry’s target to recycle 100% of plastic silage wrap waste on farms by 2030 has received a big boost, with the award of $965,400 grant to Dairy Australia from the Commonwealth Government’s National Product Stewardship Investment Fund.

The funding has been awarded by the Department of Agriculture, Water and the Environment to develop a collection and recycling system for plastic wrapping used for silage making on farms.

Many farms, including dairy farms, use plastic wrap when making silage. This project aims to help provide a solution whereby that plastic can be recycled responsibly.

Australian Dairy Industry Council President Terry Richardson said the grant will accelerate a key recycling target within the Australian Dairy Industry Sustainability Framework, which sets agreed sustainability commitments across dairy farming and manufacturing.

“This Federal Government grant will accelerate our ambitious target to recycle 100% of plastic wrapping used in silage making on farms each year. It will enable us to set up collection infrastructure across dairy regions and we are also assessing opportunities to partner with other collection schemes to maximise efficiency of transporting waste to recycling centres,” Mr. Richardson said.

Assistant Minister for Waste Reduction and Environmental Management, Trevor Evans, congratulated Dairy Australia on their successful initiative: “This funding will support Dairy Australia to develop a new recycling scheme to help farmers keep single use plastic silage wrap out of landfill.

“This is one of 15 schemes that will move the dial in Australia as we shift our mindsets to see our waste as a valuable resource. The Morrison Government’s seed funding, along with the reforms in our Recycling Act, empowers industry to take more responsibility for the entire lifecycle of the products they produce and sell,” Assistant Minister Evans said.

Dairy Australia prepared the grant funding submission on behalf of the industry and will be responsible for rolling-out the new recycling scheme via its network of eight regional offices.

Dairy Australia Managing Director David Nation said: “We thank the Government for this funding, which will support a nationwide approach to eliminating the environmental impact of farm plastics over the next decade.

“As part of this project we will work closely with key stakeholders including suppliers, plastics re-processors, farmers, and other successful stewardship schemes to ensure that the systems developed remain practical for farmers and commercially realistic for all involved.

“Our industry’s sustainability framework provides the transparency needed to give the community confidence that our industry is taking responsible action now and in the future,” Dr. Nation said.

To download the Australian Dairy Industry Sustainability Report 2019 or for further information visit: https://susoz.dairyaustralia.com.au/

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

AUSTRALIA’S dairy industry will benefit from tax cuts and a cash splash aimed at boosting jobs and growth in regional industries over the next four years, announced in this year’s Federal Budget.

Peak dairy industry group the Australian Dairy Industry Council (ADIC) praised the Federal Government’s plan to stimulate economic recovery from the COVID-19 pandemic, arguing that the Government’s initiatives help facilitate key outcomes of the Australian Dairy Plan and deliver on key priorities identified in the ADIC Election Policy Platform.

“The dairy industry has just released an industry-wide strategy to improved profitability, productivity and unity over the next five years. Many of the measures announced in the Federal Budget help achieve these goals,” ADIC Chair Terry Richardson said.

The government’s flagship $74 billion JobMaker package includes many initiatives designed to increase consumer spending, increase the size of the workforce and create incentives for business investment. Key measures for the dairy industry include:

• Businesses with turnover up to $5 billion can write off assets until June 2022.
• Businesses can carry back tax losses from the 2019-20, 2020-21, or 2021-22 income years to offset previously taxed profits in 2018-19 or later income years.
• Businesses employing a new staff member over and above their usual headcount will receive $200 per week if they hire an eligible employee aged 16 to 29 years or $100 per week if they hire an eligible employee aged 30 to 35 years.
• $1.5 billion has been provided over five years from 2020-21 to support the Modern Manufacturing Strategy which is focused on building competitiveness, scale and resilience in the Australian manufacturing sector. Food and beverage manufacturing are one of the government’s six priority industries.
• $328.4 million has been provided over four years from 2020-21 for a package of measures to improve the ease of doing business for agricultural exporters.

Investment in building and modernising regional infrastructure is also a key priority in the Budget:

• $2 billion over ten years from 2020-21 for the development and delivery of a 10-year rolling program of priority water infrastructure investments that support agricultural output, increase water security and build resilience.
• $269.9 million over four years (and $9.8 million per year ongoing) for a package to achieve a sustainable and certain future for Murray-Darling Basin communities, industries and the environment.
• $155.6 million over four years for a package of measures to support farmers and communities in drought, including $50 million to extend the On-farm Emergency Water Infrastructure Rebate Scheme.
• $187.6 million over four years from 2020-21 to support investment in energy generation with a particular focus on gas.
• $100 million over two years to facilitate Regional Recovery Partnerships with states, territories and local governments.
• $30.3 million over two years to extend Round One of the Regional Connectivity Program to support the delivery of reliable, affordable and innovative digital services and technologies in regional Australia.

Mr Richardson said the Government’s investment in regional infrastructure, particularly in water and the Murray Darling Basin, is critical for regional development and industry growth.

“In the ADIC Election Policy Platform we asked for more water and energy infrastructure investment in the dairy regions to reduce the cost of doing business. We also called for the Government to implement recommendations from previous reviews of the Murray Darling Basin Plan,” Mr Richardson said.

“By Government investing in regional infrastructure and job creation initiatives they are saying that we have confidence in your industry to help Australia recover from this global pandemic.”

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

TIME is ticking for State, Territory and Federal Governments to agree a solution on opening up borders to keep food producers in business, says the nation’s peak dairy industry group.

The Australian Dairy Industry Council (ADIC) has joined the chorus of producer groups calling for an urgent outcome on an Agriculture Workers Movement Code, as the National Cabinet is set to meet again today.

The Code, which would aim to ensure consistency in cross-border movement rules for agriculture workers while also ensuring coronavirus safety, was originally promised following the National Cabinet meeting on August 21.

ADIC Chair Terry Richardson said agricultural industries needed certainty on border issues, as the COVID-19 pandemic dragged on into September.

“Our responsibility is to feed the nation, but we are being prevented from doing this effectively while we are being restricted by border closures,” Mr Richardson said.

“We understand how delicate this situation is, but there is a stretch of land from Mildura in Victoria to Longreach and Queensland where there are no COVID-19 positive cases, and it doesn’t make sense to keep our regional industries restricted under these circumstances.

“It is time for our political leaders to agree on a sensible, risk-based approach that would safely allow agricultural industries to return to business.”

The National Farmers’ Federation (NFF) has launched a petition calling on Premiers and Chief Ministers to put politics aside and re-open Australia’s food bowl.

You can sign the petition here: https://nff.org.au/border-petition/

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

ALL tariffs on Australian dairy exports into Indonesia will eventually be scrapped as part of a new economic partnership agreement between the two countries, providing millions of dollars in savings for Australia’s dairy industry.

The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA- CEPA), which comes into force today, will build upon the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) by immediately removing existing tariffs on skim milk powder, whole milk powder and grated and powdered cheese. Remaining tariffs on liquid milk will also be phased out by 2033, giving Australian dairy a competitive advantage over major dairy competitors in that market. Importantly, the agreement will also address non-tariff measures.

Peak dairy industry body, the Australian Dairy Industry Council (ADIC), welcomed the deal, saying it will create a closer relationship with one of Australia’s largest trading partners.

“As Australia’s close neighbour with strong existing ties with our dairy industry, launching IA-CEPA will enhance the naturally emerging opportunities that are presenting themselves in Indonesia,” ADIC Chair Terry Richardson said.

“This is a positive result for the Australian dairy industry and we thank Trade Minister Simon Birmingham and the Australian Government for delivering this outcome.”

The IA-CEPA and AANZFTA will together provide an estimated saving of over A$10.5 million in tariffs that would otherwise be levied on Australian dairy exports to Indonesia if neither agreement was in force.

Indonesia is a large and growing importer of dairy that is becoming more important for Australian exporters, ranking only behind Greater China and Japan as Australia’s third largest dairy export market on value terms. In 2018/19, Australia exported 56,647 tonnes of dairy to the Indonesian market, valued at A$192 million.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

THE Australian dairy industry is taking the impact of COVID-19 extremely seriously.

The Australian Dairy Industry Council (ADIC) has convened a National Response Group to provide guidance to federal and state governments and a united voice on behalf of the Australian dairy industry.

Providing a safe work environment for all workers in the dairy supply chain remains a priority for the dairy industry. In these challenging times, dairy manufacturers and farmers together with others in the supply chain have been working to keep milk flowing and on shelves without risking the health of dairy people.

A whole of industry working group has been collaborating to manage issues related to COVID-19 and is comprised of representatives from Australian Dairy Farmers (ADF), Australian Dairy Products Federation (ADPF) and Dairy Australia.

As containment measures around Australia continue to escalate, governments have acknowledged that food and agriculture businesses, including dairy and all supply components, are essential services and are implementing measures to keep supply chains operating.

COVID-19 presents challenges for all agricultural sectors and the working group is responding to issues as they emerge by developing industry specific advice to support dairy businesses. Some examples include:

• How to milk cows while maintaining social distancing;
• How to manage staff coming on and off farm;
• How to address supply issues that may disrupt operations for farms and factories;
• Protocols for managing milk collection; and
• Questions consumers may have regarding the safety of dairy operations.

To see the growing library of resources, visit the industry’s Dairy Industry COVID-19 Directory pages online.

The ADIC has also written to all federal and state agriculture and health ministers for their support to ensure dairy operations across Australia remain open during escalating restrictions.  We are working with the National Farmers’ Federation (NFF) and other organisations to ensure that all agriculture and food production is protected as an essential service.

ADIC Chair and ADF President Terry Richardson is available for media related to the dairy industry’s response to COVID-19.

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au

The progress of Australia’s dairy industry in meeting its 2030 farming and manufacturing sustainability goals and targets is detailed in the latest Australian Dairy Industry Sustainability Report.

Published today by the Australian Dairy Industry Council together with Dairy Australia, the report reveals the status of a broad range of goals and targets aligned to United Nations Sustainable Development Goals. It includes new targets on human rights, climate change, food waste and antimicrobial stewardship.

Manufacturers have agreed to a new commitment for 100% of dairy packaging waste to be recyclable, compostable or reusable by 2025, in line with Australian Government commitments. Progress will be monitored against data provided by all dairy companies to the Dairy Manufacturers Sustainability Council and Australian Packaging Covenant Organisation.

This year’s report also incorporates a new industry wide commitment for a 30% reduction in greenhouse gases in the next decade, with consideration to accelerate this commitment to carbon neutrality.

Speaking at the 2019 Australian Dairy Conference in Melbourne, dairy farmer and Chair of the Dairy Sustainability Steering Committee and Consultative Forum, Chris Griffin, said the report showed progress, along with areas for improvements in the commitments of the Australian Dairy Industry Sustainability Framework, which was first launched in 2012.

“Sustainability issues are front of mind with consumers around the world, particularly following the recent bushfires. Our Sustainability Framework presents a shared vision for continuous improvement, building confidence in the community that the Australian dairy industry is committed to being sustainable, while providing nutritious food for a healthier world.

“In practice this means farmers investing more in renewable energy, working to reduce emissions and increasing water-use efficiency. It means dairy manufacturers ensuring that 100% of their packaging can be recycled or composted, that more waste is diverted from landfill, and the intensity of greenhouse gas emissions and water consumption is reduced.

“This report shows where and how we are delivering on these targets, meeting our commitments to the community, our people, the environment and our animals, and where additional effort is required to ensure we are at the forefront,” said Mr Griffin.

Chair of the Australian Dairy Industry Council and President of Australian Dairy Farmers, Terry Richardson, said the report put the Australian industry among the most progressive in terms of industry wide commitments and transparency.

“The Australian dairy industry’s approach to sustainability issues is quite unusual, in that the targets we have set are industry wide and agreed to by both farmers and manufacturing companies. Sustainability and community trust are interdependent and critical to our long- term viability. We have ambitious targets to deliver measurable outcomes and hope this report provides the transparency needed to give the community confidence that our industry is taking responsible action now and in the future,” Mr Richardson commented.

Grant Crothers, President of Australian Dairy Products Federation said sustainability was an important pillar of the Australian Dairy Plan which will be finalised in the coming months.

“Sustainability is a central component of the Australian Dairy Plan and we look forward to supporting its priorities through our Sustainability Framework. Assisted by the tools, research and services from Dairy Australia, Australian dairy farmers and manufacturers will continue to make progress on sustainability as we look to meet our 2030 targets,” Mr Crothers said.

To download the Australian Dairy Industry Sustainability Report 2019 or for further information visit: https://susoz.dairyaustralia.com.au/

Media Contact:

Ashley Mackinnon, Public Affairs Manager

M: 0407 766 153

E: media@australiandairyfarmers.com.au