The Australian dairy industry has applauded the successful conclusion of the China-Australia Free Trade Agreement (FTA), welcoming an FTA with the world’s largest dairy import market. China represents 30 per cent of global dairy imports.

China is Australia’s fastest growing dairy market, with total dairy exports to the region totaling 1.9 million tonnes in 2013 alone, an increase of 40 per cent over the previous year. With demand for dairy in this region to rapidly increase in coming years, stable and open trade with China is a key in order for Australian dairy to capitalise on this opportunity for growth.

Australian Dairy Industry Council (ADIC) Chair, Noel Campbell said in the long-term the agreement will allow the industry to flourish and capitalise upon robust demand in the Chinese market.

“The FTA will strengthen Australian dairy’s competitiveness by providing our industry with a significant advantage compared to other countries in the market that do not have a FTA with China,” Mr Campbell said.

“It also puts the industry on a more level playing field against key competitors in the Chinese market, such as New Zealand.”

Under the FTA, the Australian dairy industry will be able to further develop its long-term relationship with China to the mutual benefit of both our countries, with full tariff diminutions expected over the coming years.

The industry can expect positive flow-on effects throughout the supply chain, in particular through substantially reduced tariffs on key dairy products such as infant nutrition, cheese, milk powder and packaged milk.

While the ADIC has not yet been able to review the agreement in its entirety to fully quantify the benefits to dairy, Mr Campbell has commended the overall outcomes of the deal.

“This is truly a free trade agreement,” he said. “Australian dairy has been a leading commodity in the negotiations with China; we have campaigned long and hard for a positive outcome and are thrilled to see this come to fruition.”

The Australian Dairy Industry Council (ADIC) has lodged a submission to the Federal Government’s Energy Green Paper, urging revision of recommendations that will have negative impact on the growth and competitiveness of Australia’s dairy industry.

To enable the Australian dairy industry to grow, prosper and become more sustainable in future, the Government must act to encourage downward pressure on electricity prices, increase uptake of energy efficient technologies, and improve the reliability of supply.

ADIC Chair, Noel Campbell recommended that the Government adopt policy reforms and investment in infrastructure that consider dairy’s high power needs for milking equipment, milk storage and cooling, and milk processing procedures.

“The ADIC does not support the introduction of cost-reflective tariffs proposed in the Green Paper,” Mr Campbell said. “Such tariffs would distinctly disadvantage consumers in dairy who are unable to alter patterns of energy use to take advantage of cheaper tariffs offered at non-peak times of day.”

The dairy industry acknowledges the Green Paper’s recognition of the limited access regional areas have to reliable and efficient energy supplies. However, the failure to deliver a comprehensive solution to assist dairy regions secure energy supplies without added costs in dairy regions is a significant omission for the Government’s energy policy.

Mr Campbell was disappointed that the Green Paper failed to deliver a viable incentive for dairy farmers and manufacturers to increase their use of energy efficient technologies.

“Dairy has already embraced the use of renewable, efficient technologies on farm and in manufacturing, however this often involves significant capital cost barriers.”

Australian dairy is a $13 billion farm, manufacturing and export industry, directly employing 43,000 Australians and indirectly providing a livelihood for a further 100,000 in related service industries. Dairy’s contribution to the Australian economy and the rural communities it supports is a compelling foundation for Government attention and action.

The actions Government takes in the coming years will be key to ensuring the dairy industry remains competitive, relevant and significant in the global dairy marketplace.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

The Australian Dairy Industry Council (ADIC) has welcomed the release of the Government’s Agricultural Competitiveness Green Paper and its focus on policy settings that will improve the profitability and competitiveness of Australian agriculture for farmers.

The Green Paper identifies nine policy principles to guide Government policy setting, including promoting access to key markets, building infrastructure and supporting strong and vibrant regional communities.

ADIC Chair, Noel Campbell said the Green Paper is a positive affirmation of the steps required to boost Australian dairy’s economic growth, and complemented industry efforts to this effect.

“We welcome policy that will focus on increasing returns at the farm gate, promoting access to export markets and highlighting Australia’s competitive advantages so we are prepared to realise the food demands of our region’s growing middle class,” Mr Campbell said.

“The implementation of these principles will help the dairy industry achieve a more profitable and sustainable future.”

The ADIC recognises the proposed funding of dairy research, development and extension as an acknowledgment of its essential role in creating a more durable dairy industry.

Similarly, the ADIC is pleased with the proposal that water efficiency projects combined with improving existing water infrastructure and developing new infrastructure be implemented as these were key points in the ADIC’s submission on the Agricultural Competitiveness Issues Paper.

The ADIC also acknowledges Government commentary on the use of Australia’s diplomatic network of departmental agricultural specialists, with its on-the-ground presence, as one of our best tools for addressing technical barriers to trade (TBTs).

The ADIC will develop its response to the Green Paper ahead of the close of submissions in December to again highlight the dairy industry’s priorities and ensure policy recommendations in the White Paper deliver tangible benefits for dairy.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

The Australian Dairy Industry Council (ADIC) officially launched the Australian Dairy Vision with a commemorative Dairy Dinner last night in Canberra.

Over 100 parliamentary representatives and industry dignitaries gathered to acknowledge the dairy industry’s significant contribution to the Australian economy over the past 225 years and to mark the formal unveiling of the Dairy Vision.

Guests enjoyed a dairy inspired menu designed to showcase the industry’s world-class produce, including the 2013 Annual Grand Dairy Award cheese winners.

The Australian Dairy Vision was presented by ADIC Chair Noel Campbell, who said he was proud to be a part of a concept that will inspire and drive Australian Dairy over the next decade.

“The Dairy Vision is our industry’s guide for the way forward,” Mr Campbell said. “The priorities it sets will help our industry grow in confidence and prosperity.”

The Australian Dairy Vision sets out five goals for the Australian dairy industry to become more valued, innovative, responsible, preferred and unified by 2025.

Guest speaker, Federal Minister for Agricultural, The Hon. Barnaby Joyce MP praised the dairy industry for its progress and proclaimed that despite challenges facing the industry, its prospects for the future are good.

Mr Joyce said he was committed to working collaboratively with the Opposition in order to reach the goals set out by the industry’s vision.

Shadow Minister for Agriculture, The Hon. Joel Fitzgibbon acknowledged the collective commitment of dairy industry leaders, who have worked together with the ADIC to develop the Dairy Vision as an industry benchmark.

“I note the use of the word “unified” in the vision statement. This is important,” said Mr Fitzgibbon. “The dairy sector is often seen as two distinct parts – export and domestic and to some extent that remains true. But what is good for one is also good for the other and all parts and collaboration is critical.”

Mr Campbell thanked both speakers for their continued support of the Australian dairy industry and highlighted the dinner’s bipartisan turnout.

“It is very encouraging to see agriculture, especially dairy, so highly regarded by politicians from across the political spectrum.”

The ADIC Chair recognised the ongoing involvement of dairy farmers, processors and industry leaders who identified and agreed on the collective goals that compose the Australian Dairy Vision.

“I am confident that this Vision, developed by the industry, for the industry, will mould us into the kind of industry we want to be known for and proud of by 2025.”

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Dairy cows will graze the lawns of Parliament House in Canberra today to celebrate the launch of the industry’s very first Australian Dairy Vision.

Two cows from Cumberoona Holstein Farm will make the short trip from Cowra, NSW under the watchful eye of owners, Ian and Lisa Hindmarsh and neighbour Rose Moxey. As show cows, the duo are at ease with crowds, new places and travel, and will be kept well fed, hydrated and comfortable throughout their expedition to Parliament’s pastures.

The Australian Dairy Vision, “Australian Dairy – Prosperous, Trusted, World Renowned Nutrition” will be officially unveiled by the Australian Dairy Industry Council (ADIC) to federal parliamentary representatives and key industry leaders at tonight’s ADIC Dairy Dinner in Canberra.

“From farmgate to factory, to the family dining table, the Australian Dairy Vision is a statement and set of priorities for the whole of industry to embrace and commit to with pride,” said ADIC Chair, Noel Campbell.

The ADIC Dairy Dinner will commemorate the past 225 years of Australian dairy, as well as celebrating the industry’s future prospects, especially the potential presented by emerging international markets.

Mr Campbell expressed his appreciation of the bipartisan support for the Australian dairy industry, with Federal Minister for Agriculture, The Hon. Barnaby Joyce MP and Shadow Minister for Agriculture, The Hon. Joel Fitzgibbon MP both presenting as guest speakers at the dinner.

“One of the binding elements of our vision, is that dairy will be valued by 2025. By having politicians from both sides of the house in attendance at tonight’s event it demonstrates Parliament’s unanimous support of our industry,” Mr Campbell said.

Mr Campbell also stated that the vision will map out the next decade for Australia’s $13 billion dairy farm, manufacturing and export industry.

“The vision’s implementation plan will not only drive collective action, it will also be a measure of progress throughout the Australian dairy value chain.”

“Tonight we are coming together to celebrate Australia’s rich dairy history and to present an exciting vision and guiding light for our industry,” Mr Campbell said.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

The Australian Dairy Industry Council (ADIC) is disappointed that Russia has imposed trade sanctions on Australian dairy products for a year, along with beef, pork, fruit and vegetable produce, fish and poultry.

ADIC Chairman, Noel Campbell said, “Russia is an important market for the Australian dairy industry.

Approximately 22,000 tonnes of product, the majority of which is butter, worth around $112m in 2013/14, was exported to Russia in the past year, which represents a total of 4% of Australian dairy exports. Russia is ranked as Australia’s 10th and 12th largest dairy export market by value and volume respectively.

The ADIC is also concerned about the potential broader global market implications of the ban. The European Union currently exports approximately 500,000 tonnes1 of dairy products into Russia and with the EU also the target of Russian trade sanctions, wider impacts on the global market are to be expected.

The Australian dairy industry and dairy farmers may be financially impacted due to the ban and Russian consumers will have no access to the high quality and safe products we provide.

The ADIC recognises the sensitivity of the matters regarding MH17 and the Ukrainian conflict.

“We hope that the Australian and Russian Governments can remain in open dialogue and resolve these matters quickly,” Mr Campbell said.

The ADIC is working with the Australian Government to better understand the situation and its effect on Australian industry and dairy farmers.

We also note and appreciate the comments from Minister Bishop that the Government will seek to minimise the impact for affected industries.

Media Contact:

ADF Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

The Australian Dairy Industry Council (ADIC) has welcomed the repeal of the Carbon Tax following this morning’s vote in the Senate.

ADIC Chair, Noel Campbell, said while the dairy industry is not immune to a changing climate, the passage of the Federal Government’s Carbon Tax Repeal Bill through the Senate was positive news for Australian dairy farmers.

“The dairy industry is committed to reducing the industry’s carbon emissions under the Australian Dairy Industry Sustainability Framework. Farms and factories are taking up new technologies and methods such as energy efficient and clean energy alternatives,” Mr Campbell said.

“However, the carbon tax added to the cost of production for dairy farmers and processors and made us less competitive compared to our key international competitors.

“At a time when we face stiff competition into key markets like China, we need government policy that helps the dairy industry to be as cost-effective and competitive as possible, while still achieving our goal of reducing emissions.”

Mr Campbell said the carbon tax needs to be replaced by a credible and effective mechanism to reduce carbon emissions in line with Australia’s international obligations and our international competitors.

“It remains to be seen whether the Direct Action scheme, including the Emissions Reduction Fund (ERF), will offer much of an incentive to the dairy industry and the agricultural sector in general, to further reduce emissions,” he said.

“We expect the Federal Government to meet its commitment to reduce emissions and to make sure its investment in Direct Action and other program achieves this outcome.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

Negotiations on the Trans Pacific Partnership (TPP) must be focussed on achieving an agreement with ‘no exemptions’, the Australian Dairy Industry Council (ADIC) said today.

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

ADIC Chair, Noel Campbell, said efforts by some member countries to shield their agricultural sectors through tariffs, quotas and non-tariff barriers are inconsistent with the spirit and intent of the TPP.

“The TPP, if realised, would be a major international trading agreement and as such, we need a commitment from all parties involved that they will negotiate in good faith, and with broader interests in mind,” Mr Campbell said.

“There must be a higher level of ambition involved in these negotiations, and that must include a genuine willingness to leave self-interest at the meeting room door.

“The reality is that if all countries involved in the TPP were to seek sector-specific exemptions, there would be no point in pursuing an agreement, as there would be nothing left to negotiate about.

“A comprehensive and commercially meaningful TPP would not only deliver flow-on benefits for farmers, but also consumers in all participating economies, who stand to benefit from reduced prices across a range of product lines, including dairy.”

Mr Campbell said the Australian dairy industry already exports almost $3 billion worth of products each year, despite a range of trade barriers and market distortions.

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

Mr Campbell said the ADIC supports the Federal Government’s efforts to negotiate the best possible outcome for Australia on the TPP.

“Negotiations on plurilateral agreements such as the TPP are always challenging and as such, we recognise and support the Government’s efforts in this area.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

The Australian Dairy Industry Council (ADIC) is calling on the Federal Parliament to repeal the Carbon Tax without further delay.

ADIC Chair, Noel Campbell, said the release today of the provisional 2013/14 carbon tax liability numbers by the Clean Energy Regulator highlighted the dairy industry’s arguments in favour of repeal.

“The dairy industry is committed to reducing carbon emissions, however the carbon tax has added to the cost of production for dairy farmers and processors, and makes our costs out of line with our key international competitors,” Mr Campbell said.

“We have significant potential to grow as an industry and create jobs in food production and manufacturing, however to take advantage of international demand, we need the dead weight of the carbon tax lifted off us.”

Mr Campbell said for the typical dairy farm, the carbon tax is adding an average of $1,365 to the electricity cost of running the dairy shed each year, and up to $6,980 for some larger farms.

“This is in addition to farmers paying more for electricity for their irrigation systems as well as the direct cost faced by milk companies,” he said.

“For example, Devondale Murray Goulburn (MG) incurs an annual carbon tax cost of approximately $14 million. As part of a trade-exposed industry dairy companies like MG cannot recoup this cost from the market, therefore directly impacting dairy farmer suppliers.”

Mr Campbell said the dairy industry is not immune to a changing climate and the ADIC supports global efforts to reduce emissions across all sectors.

“The dairy industry has committed to reducing its emissions intensity under the Australian Dairy Industry Sustainability Framework and we are contributing to these global efforts through a number of initiatives,” he said.

“We expect the Federal Government to meet its commitment to reduce emissions and to make sure its investment in Direct Action and other programs achieves this outcome.”

Mr Campbell reminded opposition and minor political parties that the removal of the carbon tax was a key Coalition election commitment.

“While we respect differing views, there can be no doubt the Coalition sought and received a mandate from the Australian people to remove the carbon tax.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

Australian women’s contribution to the dairy industry was a cause for celebration at this morning’s Australian Dairy Industry Council’s (ADIC) Legendairy Women’s Breakfast.

ADIC Chair, Noel Campbell, said Australian dairy would not be the $13 billion farm, manufacturing and export success story it is today, without the contribution of women over the course of its history.

“Today we shine a spotlight on the many talented, passionate and dedicated women working across the dairy industry,” Mr Campbell said.

“From the farm, to the factory, to the family dining table, today’s ADIC breakfast celebrates the major contribution that women have made, and continue to make, to our industry.”

Australian Dairy Farmers (ADF), CEO, Natalie Collard, said women continue to perform many varied and important tasks across all levels of the industry.

“This is reflected in the fact that 62% of all women working on dairy farms are owner-managers, 25% are employees and a further 13% contributing family members,” Ms Collard said.

“When we also consider the hugely significant role that women play in shaping household budgets and associated purchasing decisions – their significance to the industry from farm gate to supermarket shelf becomes all too clear.”

Scientist and inaugural recipient of the ADIC’s Outstanding Service Award (OSA) in 2010, Dr Anne Astin, described women’s involvement in the industry as an important chapter in the history of Australian agriculture.

“Whether it’s on-farm, in the factory or the complex world of agri-politics, women continue to play a leading, if sometimes unheralded role, within the industry,” Dr Astin said.

“We can and must do more, as an industry and as a community to recognise and celebrate women’s unique and enduring contribution to Australian dairy.”

Mr Campbell thanked the event’s keynote speaker, Carolyn Creswell, founder and Managing Director of Carman’s Fine Foods.

“Carolyn’s success with Carman’s is an inspiration to a generation of young men and women and demonstrates in particular, how it is possible to balance success in business with family life,” he said.

Mr Campbell said in dairying regions and rural and regional Australia more generally, there has been a shift in the workforce, with more women working (46% of the workforce) and more men working part- time.

“This trend reflects the changing face of the modern Australian workforce, and the dairy industry is no exception,” he said.

“Over time, we will likely see more women involved in the industry and it’s important that we continue to focus our efforts in promoting the industry as an attractive career choice into the future.”

Mr Campbell thanked women involved at every level of the industry for their dedication, passion and commitment to Australian dairy.

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

The Australian Dairy Industry Council (ADIC) has lodged its submission in response to the Federal Government’s Agricultural Competitiveness Issues Paper.

In its submission, the ADIC calls on the Federal Government to focus on the following four priority areas in the short to medium term, if the dairy industry is to realise its full potential:

• Trade(improving market access in new and existing markets and in particular, China);
• Research, Development and Extension (RD&E);
• OverseasLabourAccess;and
• On-farm capital investment.

Australian Dairy is a $13 billion farm, manufacturing and export industry that directly employs 43,000 people on farms and in dairy processing, while more than 100,000 are employed in dairy service sectors.

ADIC Chair, Noel Campbell, said the dairy industry, with the right business environment, has the potential to grow, boosting Australia’s economic growth and creating additional jobs in food production and manufacturing.

“Dairy farmers and the broader industry are constantly investing, adapting and innovating for a profitable, sustainable and productive future,” Mr Campbell said.

“Building on the industry’s efforts, the actions of the Australian Government will be pivotal in securing not only the dairy industry’s future, but Australia’s hard-earned reputation as a supplier of quality and safe dairy products.

“We are committed to working constructively with the Federal Government in advancing these important priorities for the Australian dairy industry.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au

The Australian Dairy Industry Council (ADIC) has expressed its extreme disappointment about the proposed Australia – Japan Free Trade Agreement (FTA) announced by Prime Minister, Tony Abbott, this evening.

Japan is the single most important market for the Australian dairy industry, with $511 million in exports in 2012/131 19% of our dairy exports by value.2

Under the terms of the agreement, the Australian dairy industry will save just $4.7 million in the first year of its implementation rising to an estimated $11.6 million by 2031, out of a total export market of $511 million. [This is just 0.1 of a cent per litre for Australian farmers in 20 years’ time.]

ADIC Deputy Chair, Robert Poole, said the agreement fell well short of the industry’s expectations with minimal progress having been achieved in reducing a range of trade barriers.

“We are extremely disappointed with the deal announced this evening by the Prime Minister,” Mr Poole said.

“We were hopeful Government had heeded the industry’s message in regards to freeing up market access in Japan, however it now appears our words fell upon deaf ears.

“There has been no movement in this agreement on fresh cheese – the number one objective for Australian dairy, with tariffs to remain at 29.8%. A successful outcome on this tariff line would have delivered approximately $60 million in tariff savings – instead we have received nothing and the tariff stays in place.

“This has been an agreement over six years in the making and sadly from the dairy industry’s perspective, will end up providing no meaningful benefit.

“This deal sends all the wrong signals to our key trading partners and is particularly troubling in the context of the upcoming FTA negotiations with China.

“As we seek to grow dairy exports to China we have one opportunity to get a China trade agreement right and it’s time for the Federal Government to recognise the potential in dairy food export growth and prioritise this in trade negotiations.”

Media Contact:

Karl Liebich, Media Officer

T: (03) 8621 4200

E: media@australiandairyfarmers.com.au