1 President’s Message Australian Dairy Farmers (ADF) welcomes 2015 with enthusiasm as we fine-tune our advocacy priories to establish a sound policy plaorm to ensure we can capitalise upon growth opportunies delivered by 2014’s advocacy. The prospects presented through 2014 policy wins, such as the China FTA, prove that dairy is a force to be reckoned with when the whole value chain works collecvely to achieve its aims. However, challenges including limited opportunies for domesc growth, as well as labour and skills shortages, and compeon issues connue to constrain our industry. We must persist in idenfying and addressing these issues and soluons at the Federal level, whilst assisng our State Dairy Farmer Organisaon (SDFO) members at the State level as required. ADF’s 2015 agenda is commied to carrying out whatever we can to progress these policies and help dairy become the best it can be. Over the next 12 months, ADF is focused on addressing five key priority areas: connuing to drive market, trade and farm prosperity; building a highly skilled and producve workforce; developing fair and sustainable access to natural resources; and promong animal health and welfare standards. Under the ‘building a highly skilled and producve workforce’ umbrella, ADF will connue to advocate to reduce the three- hour minimum engagement requirement from the Pastoral Award 2010 and ensure that milking is included as an essenal requirement, alongside feeding and watering of livestock. The Pastoral Award is one of ADF’s 15 key policy priories to Government this year. To find out more about other 2015 policy priories, please stay tuned over the coming weeks to download your copy of ADF’s ‘Policy Priories to Government 2015’. I look forward to working with you throughout 2015. ADIC responds to Agricultural Compeveness Green Paper The Australian Dairy Industry Council (ADIC) lodged its submission in response to the Federal Government’s Agricultural Compeveness Green Paper on 19 December, 2014. In the joint submission with Dairy Australia, the ADIC commented on many of the Green Paper’s policy proposals, with a parcular call on the Government to address four priority areas that affect the industry’s compeveness in the short to medium term; research, development and extension (R,D&E); access to internaonal markets; investment; and people. Recognising the Government’s funding of dairy R,D&E as an acknowledgement of its essenal role in creang a more durable industry, the ADIC encouraged the Government to reaffirm its commitment to these programs. The ADIC welcomed the successful conclusion of the China- Australia free trade agreement (ChAFTA), but highlighted that there are sll opportunies for growth through the conclusion of further bilateral and mullateral trade agreements that provide genuine liberalisaon of all dairy products. The ADIC also sought the removal of hurdles such as technical barriers to trade that need to be addressed. Increased Government support for industry efforts to encourage investment and ensure a posive regulatory environment to underpin confidence and certainty for dairy investment was a further recommendaon. The ADIC also highlighted the need for enhanced Government support for Australian dairy programs designed to aract and retain a highly skilled, producve workforce.
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1
President’s Message
Australian Dairy Farmers (ADF) welcomes 2015 with enthusiasm as we fine-tune our advocacy priorities to establish a sound policy platform to ensure we can capitalise upon growth opportunities delivered by 2014’s advocacy.
The prospects presented through 2014 policy wins, such as the China FTA,
prove that dairy is a force to be reckoned with when the whole value chain works collectively to achieve its aims. However, challenges including limited opportunities for domestic growth, as well as labour and skills shortages, and competition issues continue to constrain our industry.
We must persist in identifying and addressing these issues and solutions at the Federal level, whilst assisting our State Dairy Farmer Organisation (SDFO) members at the State level as required. ADF’s 2015 agenda is committed to carrying out whatever we can to progress these policies and help dairy become the best it can be.
Over the next 12 months, ADF is focused on addressing five key priority areas: continuing to drive market, trade and farm prosperity; building a highly skilled and productive workforce; developing fair and sustainable access to natural resources; and promoting animal health and welfare standards.
Under the ‘building a highly skilled and productive workforce’ umbrella, ADF will continue to advocate to reduce the three-hour minimum engagement requirement from the Pastoral Award 2010 and ensure that milking is included as an essential requirement, alongside feeding and watering of livestock.
The Pastoral Award is one of ADF’s 15 key policy priorities to Government this year. To find out more about other 2015 policy priorities, please stay tuned over the coming weeks to download your copy of ADF’s ‘Policy Priorities to Government 2015’.
I look forward to working with you throughout 2015.
ADIC responds to Agricultural Competitiveness Green Paper The Australian Dairy Industry Council (ADIC) lodged its submission in response to the Federal Government’s Agricultural Competitiveness Green Paper on 19 December, 2014.
In the joint submission with Dairy Australia, the ADIC commented on many of the Green Paper’s policy proposals, with a particular call on the Government to address four priority areas that affect the industry’s competitiveness in the short to medium term; research, development and extension (R,D&E); access to international markets; investment; and people.
Recognising the Government’s funding of dairy R,D&E as an acknowledgement of its essential role in creating a more durable industry, the ADIC encouraged the Government to reaffirm its commitment to these programs.
The ADIC welcomed the successful conclusion of the China-Australia free trade agreement (ChAFTA), but highlighted that there are still opportunities for growth through the conclusion of further bilateral and multilateral trade agreements that provide genuine liberalisation of all dairy products. The ADIC also sought the removal of hurdles such as technical barriers to trade that need to be addressed.
Increased Government support for industry efforts to encourage investment and ensure a positive regulatory environment to underpin confidence and certainty for dairy investment was a further recommendation.
The ADIC also highlighted the need for enhanced Government support for Australian dairy programs designed to attract and retain a highly skilled, productive workforce.
Drought preparedness key to long-term profitability
The percentage of Australian dairy farms reported with negative farm business profit is estimated to have decreased significantly from 67 per cent in 2012-13, to 38 per cent in 2013-14, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).
In addition, the ABARES reported a significant jump in the average rate of return on capital (excluding capital appreciation) to 3.1 per cent in 2013–14, up from 0.9 per cent in 2012–13 and above the ten year average of 2.1 per cent.
Released in December 2014, the ‘Australian dairy: financial performance of dairy farms, 2011-12 to 2013-14’ report correlates improved profitability to the strong rebound in the average farm cash income which increased to $129,000 in 2013-14, around 29 per cent above the 10-year average. Dairy farmers in southern New South Wales, South Australia, Victoria and Tasmania had the largest increases as a result of significant milk price rises, with smaller increases in Western Australia.
Yet, whilst incomes may have ended on a high and negative farm business profit on a low in these states, northern New South Wales and Queensland continue to feel the pinch of higher fodder expenditure and lower production due to dry seasonal conditions, highlighting the relevance of drought preparedness to long-term profitability.
Australian Dairy Farmers (ADF) President, Noel Campbell said whilst many factors, including drought, impact dairy farm profitability, there are some sound principles we can apply to reduce their effects on our farm business returns, with drought preparedness being one of these.
“Farmers need to demonstrate a commitment to long-term sustainable farming through appropriate business and farm practices that embrace effective risk management options,” Mr Campbell said.
“The Government can play a key role in reinforcing its long-
term commitment to drought through providing policy options that support farmers in risk management, for example, tax incentives to encourage fodder and water infrastructure investment by farmers.”
ADF continues to actively advocate on tax solutions and other complementary measures that may assist in drought preparedness, including improving the Government and industry’s investment in seasonal forecasting.
Further development of the Managing Climate Variability Program, which promises greater accuracy in midseason forecasting, will enable farmers to make better tactical decisions around managing their fodder and water resources to maximise profit.
Mr Campbell welcomed Minister for Agriculture, Barnaby Joyce’s announced $100 million in Drought Recovery Concessional Loans in December 2014 and the lower interest rates on drought concessional loans announced earlier in January this year, however stressed that further proactive measures need to be taken to achieve long-term drought policy and ensure the ongoing viability of our dairy farm businesses.
ADF will continue to lobby for a range of measures to support drought preparedness management and security to ensure that dairy farmers are supported in sustainable farming practices to manage whatever Mother Nature may bring.
*The ABARES report data is gathered from the annual Australian Dairy Industry Survey, with a sample size of approximately 300 dairy farmers.
Pasteurisation Importance Following the tragic death of a child possibly linked to drinking raw milk in December 2014, Dairy Food Safety Victoria (DFSV) will oversee regulation of unpasteurised milk sales after the Victorian Government announced a crack down on the product earlier this month.
Previously, unpasteurised milk has been bottled and sold as cosmetic products (labelled ‘bath milk’, ‘for cosmetic purposes only’ or ‘not for human consumption’). While the sale of these products is not illegal, consumption of the product can present a serious risk to the consumer’s health.
DFSV identified four Victorian producers selling ‘bath milk’ and said they will be contacting all licensed dairy farmers to inform them of the new regulations, with plans to use a bittering agent to make it unpalatable.
Dairy Australia Sustainability Manager, Helen Dornom said the incident saddened the dairy industry and underscored the message that consumers should only drink pasteurised milk.
“The law is very clear that the packaging, transport and selling of raw, unpasteurised milk for human consumption is illegal,” Ms Dornom said.
“As farmers and representatives of the industry, we have to be careful not to give the impression that something a farmer might do on-farm and fully aware if the risks, can safely translate to the broader community.”
For more information about raw milk consumption, click here.
NCDEA Oration: People our future
The “three P’s” of our farming future according to Dr Cameron Archer AM, Principal of Tocal College, are: people, people, people.
Delivering the National Centre for Dairy Education Australia’s (NCDEA) first annual oration on 26 November 2014, Dr Archer underlined the importance of well-educated people in producing a respected product and
underpinning the future of Australia’s dairy industry.
“A new technology, a genetic marker, a treatment or medicine, processing method, smart farm technology, breeding strategy, dietary strategy, feed supplements can be around the world in a flash. All of our competitors will have it. What they will do with it - will be up to their people,” Dr Archer said.
“Where we can really have the competitive advantage is through our people.”
Delivered to 90 members of the Australian dairy industry, including the Australian Dairy Farmers (ADF) President and CEO, the oration’s themes reflected ADF’s belief that people are the industry’s most important on-farm asset.
Committed to developing policies and strategies to attract more highly skilled people to dairy, ADF’s People and Human Capacity Policy Advisory Group advocates policies to address Australian dairy’s skilled labour shortage, drive industry innovation and secure long-term prosperity.
NCDEA Manager – Educational Development and oration guest of honour, Sylvia Vagg, was recognised by the Australian dairy industry for her dedicated service to dairy education and training.
2015 PAG registration: Don’t miss out!
Are you a member of Australian Dairy Farmers (ADF) interested in making a contribution to policy for our industry? There is one week left to register your expression of interest in joining one of ADF’s Policy Advisory Groups (PAGs) listed below:
• Markets, Trade and Value Chain• People and Human Capacity• Animal Health and Welfare• Farming Systems and Herd Improvement• Natural Resources
PAGs play a key role in setting business objectives for industry and driving policy formulation. They help to ensure dairy interests are properly represented at a domestic and international level.
ADF President, Noel Campbell said the role of the PAGs was critical to policy formulation for the long-term future of dairy.“We face many challenges as an industry and have always relied on the vision, passion and participation of people within dairy to help find viable solutions,” said Mr Campbell.
ADF PAGs recommend policy settings to the ADF via the National Council and also act in an advisory capacity providing feedback to Dairy Australia, state dairy farmer organisations (SDFOs) and other bodies like the National Farmers Federation and the Australian Dairy Products Federation.
Mr Campbell welcomed and encouraged direct involvement from dairy farmers to drive policy in the right direction.Expressions of interest close on 30 January 2015 and positions are limited. For more information and to download an application form, click here.
Calling all Bright Sparks – Water Innovation Forum 2015
On 18-19 March, the Australian Dairy Industry Council (ADIC) will support the Australian Water Association’s (AWA) Water Innovation Forum in Sydney, which will showcase the best water innovations and technologies across the water,
construction, food and beverage and agricultural industries.
The two day exhibition and conference program held at the Royal Randwick will feature leading experts, including dairy speakers Lion Ground Manager Environment, Meredith Banks and Dairy Innovation Australia Sustainability Leader, David Barr on innovative solutions for water smart cities, agricultural and food manufacturing, disruptive technology, financing the innovation value chain and global water innovation case studies.
For more information on the Water Innovation Forum and to register, see: www.awa.asn.au/innovationforum15
SubmissionsThe following submission was made to Government over the December 2014 – January 2015 period: • Dairy Industry Response to Agricultural Competitiveness
Green Paper
To view more, please visit: www.australiandairyfarmers.com.au/submissions
Upcoming events• Australia’s International Dairy Week, Tatura, VIC (18-22
January)• Sydney Royal Cheese and Dairy Produce Show, NSW (9-12
February)• Murray Dairy Annual Business Forum 2015, Moama, NSW
(11 February)• Australian Dairy Conference, Launceston, TAS (16-18
February)
Are you on Twitter?Follow @AusDairyFarmers to stay up-to-date with industry news, policy developments and submissions, as well as upcoming events and industry initiatives!
Herd 15’ registrations now open
In March, the Australian Dairy Herd Improvement Scheme (ADHIS), in conjunction with industry partners National Herd Improvement Australia, Holstein Australia and Dairy Australia, will host the biennial Herd15’ conference.
The theme of Herd15’ is ‘Stronger Together, Collaboration in Herd Improvement’ and with a program packed with renowned international and local speakers, we are confident this is our best program yet!
To be held 11-12 March at Bendigo, highlights will include:• The value of milk recording: Patrick Baier from AgSource
Cooperative Services, US;• How genomics & collaboration produce results that may
surprise us: Paul VanRaden, USDA; and• New breeding indices for Australia: Jennie Pryce, DEPI-V.
Registrations are now open and tickets are limited so secure your place now!
A chance to hear firsthand about Australia’s new breeding indices...
In conjunction with the upcoming International Dairy Week in Tatura, Victoria, ADHIS will be running two seminars to inform farmers and industry about the three new breeding indices to be released in April. Farmers will have an opportunity to hear firsthand about how these new indices will impact cow breeding in Australia and how best to make use of them in their herds.
For more information visit www.adhis.com.au or contact Michelle Axford: [email protected]
Disclaimer: Australian Dairy Farmers Limited (ADF) Update is provided in good faith and as a guide only. ADF does not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or consequence that may arise from you relying on any information in this publication. You are not permitted to re-transmit, distribute or commercialise the information or material found in this document without seeking prior written consent from ADF. Requests for authorisation should be directed to the ADF Office.
Australian Dairy FarmersLevel 2 Swann House, 22 William Street Melbourne 3000 | ABN 76 060 549 653Ph. (03) 8621 400 | Fax. (03) 8621 4280 | E-mail. [email protected] | www.australiandairyfarmers.com.au
