Australia endorses the Dairy Declaration of Rotterdam

Today, the Australian Dairy Industry Council (ADIC) proudly endorsed the International Dairy Fund (IDF) Dairy Declaration of Rotterdam, a commitment by the global dairy industry to support the United Nations Sustainable Development Goals.

The Dairy Declaration is a global platform designed to support key sustainability outcomes including ending poverty and hunger and protecting the environment. It was launched at the IDF World Dairy Summit in Rotterdam on Wednesday, 19th October 2016 and has been endorsed by the Food & Agriculture Organisation of the United Nation(FAO).

ADIC Chair, Terry Richardson, said the endorsement of the Declaration reflects our strong support for sustainable development, as evidenced by the Australian dairy industry’s Sustainability Framework.

“The Australian dairy industry is committed to finding innovative solutions and building capacity to develop the sustainable food systems and resilient agricultural practices envisaged by the goals,” said Mr Richardson

“Our industry has a key role to play in protecting the environment, addressing climate change as well as providing nutritious food for consumers and a source of income for millions of people worldwide.”

Dairy Australia Managing Director, Ian Halliday, welcomed the ADIC and wider industry commitment to the Declaration.

“The Declaration provides a positive set of goals for the industry to work towards and complements our existing sustainability framework,” he said.

The ADIC looks forward to working with all IDF and FAO members to implement the Declaration and contribute to the realisation of the Sustainable Development Goals.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

 

Sustainability in Australian dairy industry continues to be recognised

On 29 June, Unilever, one of the world’s largest companies, announced its certification of the sustainability credentials of Australia’s milk production for another 12 months.

Australian Dairy Industry Council’s Interim Chair, Terry Richardson, said endorsement from a company like Unilever is a great achievement and reflects the focus that Australian dairy farmers have for sustainable farming practices.

“The Australian dairy industry is committed to the implementation of actions to support ongoing targets and measures as part of the Australia Dairy Industry Sustainability Framework,” said Mr Richardson

“We want to ensure that the Australian dairy industry is recognised as sustainable in the eyes of customers around the world so that our farmers and processors can be assured that the industry has a long-lasting future.”

In 2013 the Australian dairy industry was the first in the world to be recognised as meeting Unilever’s Sustainable Agriculture Code (SAC) as a 100 per cent sustainable supplier of milk.

The company’s SAC measures 11 key indicators including soil health and fertility, soil loss, nutrients, pest management, biodiversity, energy, water, social and human capital, local economy and animal welfare. Unilever aims to source 100 per cent of their agricultural raw materials sustainably by 2020.

The Unilever certification was underpinned by the dairy industry’s Sustainability Framework and reporting progress against similar targets.

Dairy Australia Managing Director, Ian Halliday, said Dairy Australia supported Australian processors in securing the Unilever certification for the entire industry’s milk supply for another year.

“The benefits of industry collaboration were crucial in gaining the Unilever endorsement and illustrated the value of industry groups working together to achieve a common goal,” said Mr Halliday.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADIC Launches Code of Practice on Contractual Agreements

Today, the Australian Dairy Industry Council (ADIC) launched the first Dairy Industry Code of Practice for standard form contractual arrangements.

Through consultation with state member organisations, farmers and processors, the ADIC has developed the voluntary Code to help ensure greater transparency and fairness in milk supply and pricing.

It is anticipated most of the milk produced in Australia will be covered by the Code.

ADIC Interim Chair, Terry Richardson said it is important that contracts are fair, simple, realistic and easily understood by both parties.

“The Code will address a range of contractual issues which farmer organisations have been trying to address and rectify for a significant amount of time.

“Both farmers and processors sat down to work together cooperatively and in good faith to establish this code”, said Mr Richardson

ADIC Deputy Chair, Grant Crothers said, “we believe the Code will improve contracting arrangements between farmers and processors; and offer greater transparency through earlier and clearer pricing signals for farmers, which means less risk for farmers and more balance along the supply chain.”

The Code will include provisions that:

  • there will be no price changes made retrospectively;
  • ensure all farmers receive payment entitlement that accrued over the term of a contract orsupply agreement (including any ‘loyalty payments’); and
  • If a farmer produces more milk than required or contracted to their primary processor and the processor does not want to purchase the additional milk, then the contract between the farmer and processor must allow the dairy farmer to supply the additional milk to other processors.

The Code was initially drafted on 27th September 2016 at a workshop attended by processors, farmers, Mick Keogh from the ACCC and representatives from the Small Business and Family Enterprise Ombudsman.

It aims to address issues with dairy contracts in a way that works for both farmers and processors and will apply to standard form contracts between processors and farmers, but does not preclude a farmer negotiating an individual contract with a processor.

Mr Richardson said, “by incorporating these principles, the Code will give farmers, or their representative, the opportunity to have a standard form contract or supply agreement which better reflects a balanced supply chain approach between farmers and processors and not simply an agreement which is a ‘take it or leave it’ approach to a farmer’s milk supply arrangements.”

Although the Code is voluntary, it is designed to set out minimum good practice in terms of dairy contracts and will help ensure that supply agreements and contracts comply with the Unfair Contracts law that came into effect on 12 November 2016.

The unfair contracts legislation extends existing protections against unfair contracting practices for consumers to small businesses and is a practical step, that when coupled with the dairy industry Code of Practice, will provide dairy farmers with fairer and more transparent contracts.

“The ADIC will continue to work with farmers, processors and our industry bodies to build a robust supply chain and the Code will provide a new start to rebuild trust and confidence over time”, said Mr Richardson.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADIC welcomes the backpacker tax resolution

The Australian Dairy Industry Council (ADIC) welcomes the resolution of the backpacker tax.

ADIC Chair David Basham said after 18 months of lobbying the agricultural sector finally has a decision that ensures certainty for backpackers and employers.

“It is a good outcome for dairy farmers and small business owners to know that they will continue to be able to rely on backpackers for vital on-farm and off-farm roles which cannot be filled locally and to complement our existing workforce during peak times,” Mr Basham said.

“The impact of months of indecision has been felt across the dairy sector and, for every day this issue remained unresolved, it affected the dairy industry and rural Australia.”

The passage of the bill through the Senate ensures dairy farmers and processors can operate productive and profitable businesses.

“Along with other agricultural sectors, we have consistently said that we believe it is reasonable for backpackers to pay some tax, but the government’s initial proposal was too high,” Mr Basham said.

The decision to reduce the proposed tax rate from 32.5 per cent to 15 per cent tax maintains Australia’s status as a competitive destination for working holiday makers, while ensuring they pay a fair level of tax.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Max Jelbart celebrated for contribution to Australian dairy industry

The Australian Dairy Industry Council (ADIC) has recognised the contribution and dedication of Victorian dairy farmer Max Jelbart, with the 2016, Pat Rowley Outstanding Service Award. The award was presented at this morning’s Dairy Industry Leaders Breakfast held in Melbourne, Victoria.

The award celebrates the lives and careers of industry participants whose contribution has significantly shaped the dairy community and beyond for the benefit of the whole value chain.

Chair of the Australian Dairy Industry Council (ADIC), David Basham said Max Jelbart was an admired intellectual who shared his time and knowledge freely.

“Max was extremely passionate about helping to foster the next generation in dairy, and ensuring they had the right tools to grow their businesses,” Mr Basham said.

“His readiness to share his expertise with industry and the community alike was inspirational – he was a tireless advocate and will continue to be remembered very fondly.”

During his career in dairy, Max served on various industry boards and committees and was a supplier of Murray Goulburn for 38 years – and a director since 2012.

A Director on the ADF Board for seven years and a past President of the United Dairyfarmers of Victoria’s South Gippsland Branch, Mr Jelbart was this year presented with an Order of Australia medal for his services to the dairy industry and the community.

A Nuffield Farming Scholar and member of the Nuffield Australia Investment Committee, Mr Jelbart was renowned for seeking out new ways to develop his capacity as a farmer as well as opportunities to give back.

The industry has bid farewell to dedicated dairy advocate, Max Jelbart who sadly passed away in June.

“On behalf of the entire dairy supply chain, the ADIC celebrates the life of Max Jelbart and his remarkable achievements throughout his career,” said Mr Basham.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADIC Leaders Breakfast: Trade, Markets and Innovation

The future of dairy was the key topic at the Australian Dairy Industry Council’s (ADIC) Annual Leaders Breakfast, which was held today, at the Flemington Racecourse in Melbourne.

Centred around the theme ‘Dairy as a Future: Trade, Markets and Innovation’, ADIC was joined by over 200 dairy industry leaders to hear guest speakers and to discuss the current issues faced by the dairy industry.

Chair of the Australian Dairy Industry Council (ADIC), David Basham said the event is about recognising and embracing the bright future we have in the Australian dairy industry.

Keynote speakers Head of Government Relations Blackmores, Mr Lyall Howard and Director of Dairy Futures CRC, Mr Steve Coats, spoke about the importance of change in building a more competitive future for industry in Australia.

Guest speaker Mr Lyall Howard said international trade deals are like riding a bicycle, you have to keep riding if you want to go forward.

“International business needs to keep moving in Australia, and we as an industry need to demonstrate to government that we want trade deals,” said Mr Howard.

Mr Basham highlighted the need to acknowledge the year that was and to acknowledge what drives the dairy industry forward.

“While we are an industry that has been under intense pressure, we are also an industry that has the know-how and resilience to overcome adversity and thrive in the long term,” Mr Basham said.

“In my view, for all of us in the dairy industry, that path must be global, diverse, and must harness all we have at our disposal to become more efficient and effective.

“The path forward also demands that we work together to ensure a renewed and strengthened industry as we move into the future,” said Mr Basham.

“We are all in the same shifting landscape of market-driven forces, consumer demands and work-altering technologies, the real challenge for us is to not become complacent.

“Complacency means expecting the world to change for us, rather than adapting to the world’s needs. It takes greater courage to reject complacency. It takes futures thinking and an entrepreneurial spirit,” said Mr Basham.

Guests also heard from Ian Halliday, Dairy Australia Managing Director; Prof David Chapman, and Richard Romano,

The overwhelming message from the breakfast was the agreement that the dairy industry’s long term growth will come from our ability to bounce back and make the most of the all the opportunities that are presented.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADIC Welcomes the Proposed Reduction by the MDBA

The Australian Dairy Industry Council (ADIC), welcomed the announcement by the Murray-Darling Basin Authority (MDBA) to reduce the northern basin target.

Chair of the Australian Dairy Industry Council (ADIC) Water Taskforce, Daryl Hoey said he was pleased to see the MDBA proposing to reduce the water recovery targets in the Northern Basin by 70GL following a rigorous socio-economic analysis in the north, which showed significant adverse impacts on agriculture and regional communities.

We now look forward to seeing the MDBA undertake a similarly robust and sophisticated analysis of the socio-economic effects of the basin plan on the Southern Basin”, said Mr Hoey.

Dairy has proved resilient over the past decade in the face of the Millennium drought, floods, and volatility in milk prices. However, socio-economic studies the industry has funded have shown the basin plan impacts are having adverse effects on dairy and regional communities.

“We agree the environment needs more water, and the water recovered so far is helping to make the rivers healthier.

However, a fully implemented basin plan and another low allocation year similar to the drought years would see dairy struggling to survive and barely enough water to operate the irrigation systems.

This would have severe negative outcomes for our regional communities.

Being smarter about how we use what we have will improve these outcomes further, without further undermining the resilience and prosperity of regional communities throughout the basin”, said Mr Hoey.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Water Act amendments a step in the right direction

The passing of the Water Amendment Bill 2015 has been welcomed by the Australian Dairy Industry Council (ADIC), acknowledging it as a positive stride toward improving the Murray Darling Basin Plan.

The Bill provides much needed trading flexibility for the Commonwealth Environmental Water Holder (CEWH). This flexibility will deliver positive environmental outcomes while simultaneously providing the community, farmers and manufacturers with increased certainty on their access to water supplies.

The proposed amendments also deliver more flexible timelines for reviews of the Basin Plan and changes to the Sustainable Diversion Limit (SDL), which determine how much water can be extracted from the rivers for human consumption, including agriculture.

Chair of the ADIC Water Taskforce, Daryl Hoey said that while the amendments don’t solve all of the challenges facing dairy producers in the region, they provide the right platform to discuss further change.

“Passing the Water Amendment Bill provides the Murray Darling Basin community with important flexibility and the confidence that decision makers in Canberra are listening to their concerns,” Mr Hoey said.

“This sets the tone for future decisions on the Basin Plan – favouring quality of environmental outcomes over quantity of water, more flexibility in achieving outcomes and a Plan that doesn’t punish a vibrant and productive agricultural sector.”

The ADIC, in collaboration with state farming members and industry partners has strongly lobbied for these changes, and supports their implementation.

The ADIC is committed to working with Government to improve the management of water in the Basin, achieve the necessary community buy-in, and achieve socio-economic outcomes while meeting environmental targets.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Culture shift essential to improve health, safety and well-being in dairy

To achieve the dairy industry’s well-being targets, the Australian Dairy Industry Council (ADIC) says health, safety and well-being must become part of the everyday conversation and practice across the dairy value chain.

Addressing an audience of dairy farmers, manufacturers and industry leaders at the ADIC’s Business Breakfast with the theme ‘Protecting what matters: ensuring the health, safety and well-being of our people’ in Melbourne today, ADIC Chair Simone Jolliffe said to live up to this and retain a highly skilled workforce a culture shift is required.

“Dairy farms are not typical workplaces. There are many potential risks, and stressful situations – particularly because we are often operating in a family environment, where there is the added pressure of the day-to-day challenges of running a small business,” Mrs Jolliffe said.

“Dairy Australia is already working with state safety regulators and dairy manufacturers to provide farmers with the tools and training they need to operate safely. As an industry we need to work more collaboratively to ensure uptake and implementation, to move the workforce from ‘knowing’ to ‘doing’.”

The Dairy Industry’s Sustainability Framework has set targets for the industry to achieve by 2020. One of the targets is 100% of on-farm and manufacturing workers to have completed Occupational Health & Safety training by 2020. A further target is zero workplace fatalities. Mrs Jolliffe said the industry is falling behind on both accounts.

“Tragically there have already been two confirmed workplace fatalities in our industry this year. Workplace injuries have also risen. Across Australia, one in five people are suffering with mental heatlh challenges. This is not acceptable. We need to lead the industry in prioritising health, safety and well-being – for the benefit of our industry.”

Guests also heard from an expert panel including Dairy Australia’s Program Manager for Industry Workforce Planning and Action, Bill Youl, Worksafe Victoria’s Bruce Gibson, Lion’s Leader for Safety and Well-being Josh Norton, Field Services Manager at Fonterra Robyn Mitchard and Director of the National Centre for Farmer Health, Dr Susan Brumby.

A key focus of the panel discussion was highlighting the benefits that implementing a formal occupational health and safety plan can provide. Bill Youl observed that, as well as being the right things to do, safeguarding the workforce makes sense for farm profitability.

“A safe work environment will ensure accidents are minimised, productivity is enhanced and the full benefits of farm and manufacturing facilities realised. Our physical and mental well- being is intrinsically linked to our industry’s success,” Mr Youl said.

The ADIC made a commitment at the breakfast to drive change across the industry through improved collaboration between service providers, processors and industry representative bodies.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Revised labelling laws progress toward a clearer system

The Australian Dairy Industry Council (ADIC) has acknowledged the revised country of origin labelling system, announced by the Federal Government yesterday, as a positive move toward providing consumers with a clearer understanding of where their food comes from.

ADIC Chair, Simone Jolliffe said the industry provided significant feedback to the proposed system to Government, some of which is reflected in the announced laws.

“We are pleased to see the revised laws will allow for a minimum transition period of two years. This will ease implementation for manufacturers, allowing stocks of existing labels to run out and help ensure that unreasonable regulatory costs are avoided,” Mrs Jolliffe said.

“It will also allow for the development of an education campaign to properly inform consumers about interpreting the new system, so that they can make sound choices.”

The ADIC also expressed its appreciation for the opportunity to state the percentage of Australian product under the revised labelling system.

“The increased flexibility of the sliding scale system as well as the accompanying descriptions of Australian ingredient content on packaging is a positive improvement.”

The ADIC looks forward to reviewing the full detail of the proposed changes to fully understand the impact on Australian dairy products and ensure implementation of the system works for consumers, customers and the Australian dairy industry.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADIC welcomes passing of the Port of Melbourne agreement

The Australian Dairy Industry Council (ADIC) has welcomed the Victorian Parliament’s passing of the Delivering Victorian Infrastructure (Port of Melbourne (PoM) Lease Transaction) Bill 2015.

The ADIC applauded the agreement’s inclusion of a further 10 per cent of port sale proceeds – or potentially up to $700 million – for transport infrastructure projects in regional Victoria.

ADIC Chair, Simone Jolliffe congratulated both the Government and Opposition for reaching an agreement on the Bill.

“With over 85% of Australia’s total dairy exports sent via the PoM, the dairy industry is the fifth largest user of the Port. The PoM is not only the point of export for Victorian dairy but also for the dairy industry located in Tasmania and parts of South Australia and New South Wales.

“The much needed investment in transport infrastructure will help to ensure the export supply chain remains competitive and efficient.”

The ADIC was also pleased to see:

  • Compensation limited to 15 years;
  • Constructive changes to port rents and licensing fees; and
  • Oversight from the Australian Competition and Consumer Commission.

Mrs Jolliffe said the dairy industry looked forward to working in collaboration with the United Dairyfarmers of Victoria and the Victorian government to deliver improvements to key infrastructure priorities for dairy and agriculture more broadly.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

ADIC welcomes the signing of TPP

The Australian Dairy Industry Council (ADIC) welcomes the official signing of the Trans Pacific Partnership (TPP) today in Auckland, New Zealand.

Minister for Trade and Investment, the Hon. Andrew Robb AO MP, is representing Australia at the signing ceremony, which also includes Trade Ministers from the other member countries.

“The industry congratulates Minister Robb and his team of negotiators, in signing another trade agreement that benefits the Australian economy,” ADIC Chair, Simone Jolliffe said.

The ADIC notes the gains made for the Australian dairy industry in improving opportunities in key export markets such as Japan.

The conclusion of the TPP continues a historic period of increased trade liberalisation over the past few years.

The ADIC remains committed to working with Minister Robb and the Australian Government to continue trade benefits for Australia’s dairy exports.

Following the signing ceremony, Australia must go through a domestic ratification process.

Media Contact:

Sarah Chahine, Communications Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

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