Australian dairy industry welcomes ratification of Korea FTA

The Australian Dairy Industry Council (ADIC) has welcomed the confirmation that the Korea Australia free trade agreement (KAFTA) will enter into force on 12 December 2014, as a positive step toward improved trade liberalisation with Asia.

Once entry into force occurs, Australian dairy exporters will experience the first year of tariff reductions for dairy exports to Korea as agreed under the KAFTA agreement. This will be followed by a further reduction in tariffs on the 1 January 2015.

“Korea is a significant dairy market for Australia and currently ranks 12th by value with $92 million worth of exports in 2013/14,” ADIC Chair, Noel Campbell said.

“The Korea FTA places Australia on a more level playing field with key commercial rivals such as the EU and USA who already have FTAs with Korea.”

The ADIC thanked the Federal Government and the Department of Foreign Affairs and Trade for their efforts and continued engagement with dairy throughout the trade negotiations process.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Australian Dairy says innovation key to on farm profitability

Over 230 of Australia’s leading dairy representatives from across the whole value chain, gathered in Melbourne this morning for the annual Australian Dairy Industry Council (ADIC) Industry Leaders Breakfast.

Centred on the theme of ‘sustainable farm profitability and innovation’, the Breakfast provided the opportunity for members of the industry to discuss the innovative use of genomics to grow and strengthen dairy going forward.

Irish dairy farmer and genetics innovator, Patrick Kelly was the keynote speaker at the Breakfast, sharing his insights into how herd improvement strategies have helped Irish dairy farming to flourish.

“Genetic gain is a crucial component of farm profitability and provides excellent returns on investment,” Mr Kelly said.

“Ultimately, profitable dairy farmers underpin a profitable dairy industry.”

The Breakfast also marked the official launch of two key industry initiatives that will contribute considerably to the future prosperity of dairy; the Australian Dairy Herd Improvement Scheme’s National Breeding Objective and the Dairy Industry’s Model Share Farming Code of Practice.

ADIC Chairman, Noel Campbell highlighted that it is projects such as these that strategies and projects would help the industry achieve improved prosperity in the long term.

“While many factors that impact dairy farm profitability are beyond our control, there are some sound principles we can apply and achieve for sustainable and profitable farms,” Mr Campbell said.

“By taking proactive measures to minimise our industry’s environmental footprint, ensure the wellbeing of our people and animals, and maximise our returns we can ensure the enhance our livelihoods and secure a prosperous future for dairy.”

The ADIC Industry Leaders Breakfast is an opportunity for key leaders of the dairy industry to discuss the challenges and opportunities facing the whole supply chain, and celebrates the industry’s contribution to the economic and social wellbeing of Australia.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Dairy Industry celebrates Lindsay & Ann Jarvis: ADIC Outstanding Service Award

The Australian Dairy Industry Council (ADIC) has today honoured Kiewa Valley dairy farmers, farming couple Lindsay and Ann Jarvis, with the ADIC’s Outstanding Service Award. The award was presented at this morning’s Dairy Industry Leaders Breakfast held in Melbourne, Victoria.

Celebrating the Jarvis’s ongoing contribution to the industry, this esteemed award recognises the tireless efforts of both individuals, and their ongoing commitment to improving the industry’s sustainability.

Lindsay Jarvis has dedicated his dairying career to the management of natural resources, actively advocates the use of sustainable on farm practices. Lindsay also spent 31 years as a Director at Murray Goulburn. Ann Jarvis has devoted her time to educating, training and supporting the people of agriculture, particularly women and young farmers.

ADIC Chairman, Noel Campbell commended the achievements of the dairying duo who have been engaged with dairy for over 47 years.

“We are fortunate in the dairy industry to have many men and women with outstanding talent and ability,” Mr Campbell said.

“This year Lindsay and Ann Jarvis were unanimously selected by the ADIC Board, for their active participation and promotion of sustainable farm practices in dairy.”

Actively involved in farming organisations such as United Dairyfarmers of Victoria since they first began dairying, the Jarvis’ have consistently volunteered their time, sharing their wealth of knowledge with the farming community.

Describing their partnership as “one part dreamer, one part doer”, Lindsay and Ann practice what they preach, transforming their 280 hectare farm from dry-land irrigation into a contour flood irrigation system, and taking the time to teach young farmers how to make their businesses more sustainable.

“Lindsay and Ann are committed to the ongoing improvement of our industry and are exceedingly generous with their time.”

“Their reputation as passionate advocates for dairy is well earned.”

With a strong dedication to community involvement, the Jarvis’s are also involved in volunteer activities beyond dairy. Lindsay has been a member of the local Country Fire Authority for over 50 years, while Ann donates her time to mentoring students of agriculture, and developing programs such as UDV Professional Dairy-farmer Project.

On behalf of the entire dairy supply chain, the ADIC congratulated Lindsay and Ann Jarvis on their remarkable achievements, and wished them every success going forward.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Australian Dairy celebrates FTA with the world’s largest dairy import market

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 ADIC thanked Minister for Trade and Investment, Andrew Robb, the Australian government, industry and the broader dairy community for its ongoing support throughout the negotiations and for working hard to ensure that the China FTA was a commercially meaningful deal for dairy.

“We hope to see this FTA come into force quickly to allow the significant benefits to reach the Australian economy as soon as possible.”

In 2013 Australia exported 109,790 tonnes of dairy product worth AUD $461 million to China, 16 per cent of total Australian dairy exports by value for the calendar year.

Media Contact:

Shona McPherson, Media Officer

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Sound Energy Policy: Imperative for the Future of Australian Dairy

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

ADIC Welcomes Release Of Green Paper

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

Bright future for Dairy, as Industry Celebrates over 225 years

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 comes to Parliament: Official launch of the Australian Dairy Vision

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

ADIC disappointed at Russian trade sanctions on dairy products

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

ADIC welcomes repeal of the Carbon Tax

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 TPP should focus on ‘no exemptions’ says ADIC

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

Carbon tax must be removed sooner rather than later: ADIC

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

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