Annual Review 2015/2016 Australian Dairy Farmers is proud to be part of the dairy industry and the voice of dairy farmers. We are a not for profit organisation, and have been advocating for the rights of Australian dairy farmers since 1942.
The Australian Dairy Farmers objectives specifies that we are to provide strong leadership and representation for the continued growth of internationally competitive, innovative and sustainable dairy farming, and:
• act where collective initiatives will lead to better outcomes for dairy farmers and/or State Dairy Farmer Organisations • promote the development of dairy farming and the dairy industry in Australia • co-operate with other primary producer bodies for the benefit of dairy farmers in Australia • support research and farmer extension services, and delivery of appropriate educational resources through the publication of matters of significance and interest to the dairy farm sector to ensure necessary productivity gains are made on farms.
VISION A sustainable, innovative, competitive and valued dairy industry.
MISSION To improve the profitability and sustainability of all Australian dairy farms.
STRATEGIC GOALS The Australian Dairy Farmers Strategic Plan 2012-2017 assists the Executive and staff to focus efforts and resources, and to implement actions in five key areas. – drive sustainable farm profitability – secure market access and maximise value chain returns – develop people and build human capacity – effective communication and engagement – deliver member value and organisational capacity
This Annual Review provides members, staff and interested stakeholders an insight into Australian Dairy Farmers’ strategic focus areas, deliverables, and key partner organisations during the 2015/16 financial year. TABLE OF CONTENTS
President’s Message 2
CEO’s Message 4
Highlights for 2015/2016 7
Board Committees 2015/2016 14
Audit, Risk and Compliance Committee Report 15
Directors’ Report 17
Current Board of Directors 20
Staff Profiles 23
Policy Advisory Groups 28 Animal Health and Welfare Policy Advisory Group Farming Systems and Herd Improvement Policy Advisory Group Markets, Trade and Value Chain Policy Advisory Group Natural Resources Policy Advisory Group People and Human Capacity Policy Advisory Group
Member Organisations 38 New South Wales Farmers’ Association Dairy Committee Queensland Dairyfarmers’ Organisation Tasmanian Farmers and Graziers Association Western Australian Farmers Federation South Australian Dairyfarmers’ Association United Dairyfarmers of Victoria (Victorian Farmers Federation)
Industry Partners 50 Australian Dairy Herd Improvement Scheme Australian Dairy Products Federation Dairy Australia National Farmers’ Federation
Acknowledgements 58
Australian Dairy Industry Structure 60 PRESIDENT‘S MESSAGE
I am pleased to report that Australian chain. Farmers bear more than their Dairy Farmers has fostered a stronger share of risk and financial fall-out relationship with government. We from global market volatility. We want to ensure every Member of need a practical and viable solution Parliament understands the challenges to increase transparency in the way and opportunities facing our dairy the milk pricing system works, and producers. Australian Dairy Farmers to simplify milk contracts to ensure helps our key decision makers the volatility of the market is better understand the value our industry balanced along the supply chain. delivers to Australian consumers, Improving equity and transparency businesses, families and communities, though the supply chain is one of the and highlights how decisions made matters Australian Dairy Farmers is in Canberra affect our capacity to driving with the Australian Competition produce. Australian Dairy Farmers has and Consumer Commission, Small made clear its priorities for the next Business Obudsman, and the Federal government: extend and streamline Government. access to the concessional loans and Targeted short-term assistance Farm Household Assistance for all provided by State and Federal affected farmers; create a safer, more Governments was broadly positive, resilient workforce; ensure secure David Basham first and reflected the immediate needs sustainable access to water resources; of the most affected dairy farmers. It took a position on and address the imbalance of market is crucial that the full suite of support power within the dairy supply chain. the Australian Dairy measures be available to farmers We look forward to continuing these across all dairying regions. Whilst Farmers Board from productive conversations to ensure a still addressing immediate needs; more sustainable, profitable future for August 2005 to 2012, Australian Dairy Farmers is bringing our Australian dairy. and re-joined the board focus back to addressing longer term in November 2014. Australian dairy farmer confidence has aims, and identifying what we need to taken a serious knock since the start of do to get there. David has been the 2016: the major industry report Dairy On behalf of the organisation, I Australia’s 2016 Situation and Outlook Acting President since thank Simone Jolliffe for her tireless released in early June 2016 revealed contribution to Australian Dairy May 2016. fewer farmers are positive about their Farmers as the former President, the industry than a year ago, and a likely industry more broadly, and for her 20% drop in confidence between strong commitment to dairy. I look March 2016 and the end of the forward to working with Simone financial year. This is not surprising to further our shared vision for the given the unprecedented industry industry. shock that has hit dairy farmers and their businesses. Long-term indicators Thank you to the team at Australian in the report suggest a stronger future, Dairy Farmers for your determined and it is this we must focus on to work. Thank you to the board, deliver a better future. National Council, Policy Advisory Groups, State Dairy Farmer Our first interest with State Dairy Organisations, and industry partners Farmer Organisations is dairy farmers’ for your support and commitment prosperity, and our clear intent is to in meeting the collective challenges ensure no dairy farmer is ever again so facing dairy farmers. I look forward vulnerable to processor decisions. We to our continued collaboration as must better balance market volatility we advocate for the dairy farmers of throughout the Australian dairy supply Australia.
David Basham Acting President
2 FROM THE IMMEDIATE PAST PRESIDENT
The Australian dairy industry is The ADIC provides funding for strengthening its commitment to investment in projects for the mutual sustainability by taking a practical benefit of both dairy farmers and approach to doing the right thing dairy processors that will improve the by our people, our animals and our entire value chain’s sustainability and environment. The Australian Dairy profitability. Through the ADIC Annual Industry Sustainability Framework, Investment Plan, funds are allocated led by the Australian Dairy Industry to developing and delivering policies in Council (ADIC), is evidence of our areas where Australian Dairy Farmers commitment to sustainability, and and the Australian Dairy Products continues to evolve. We have taken Federation’s policy objectives are further steps in the 2015/16 financial aligned, including: year towards meeting the targets set ››international market access in the Dairy Sustainability Framework Progress Report and identifying areas ››animal health and welfare that require further attention. ››environmental sustainability The Sustainability Framework tracks ››highly skilled industry workforce our progress and drives practice change to ensure the industry is ››food labelling systems sustainable for the long term. Dairy Simone Jolliffe joined ››farmer engagement and farmers contribute to the industry’s membership of peak bodies the Australian Dairy progress on sustainability under Farmers Board in the Framework whenever they take ››the development of an industry-wide January 2014, was steps to improve their business strategic plan. or their practices, or reduce their Much progress has been made elected President environmental impact. towards the Sustainability Framework in November 2015. goals in the 2015/16 financial year, and Simone held this we are on track in the delivery of these position until she projects in both the long and short term. assumed the role of My intention as Australian Dairy Vice President in Farmers Vice President was to build May 2016. stronger links with dairy farmers and ensure Australian Dairy Farmers focused on long-term strategic initiatives including herd improvement, farm business management and on-farm safety. It has been a great honour to serve as the President: I look forward to continue working with David Basham and my ongoing involvement with Australian Dairy Farmers in the capacity of Vice President.
Simone Jolliffe Former President
3 INTERIM CEO’S MESSAGE
Australian Dairy Farmers is a strong, Australian Dairy Farmers is advocating collective voice to government and for ways to enable farmers to better the community on national issues manage their exposure to financial affecting dairy farmers and their risk, and to advocate for targeted profitability. Since 1942, Australian assistance to help get our industry Dairy Farmers has successfully over the current hurdle. We have lobbied for the rights of dairy farmers continued to work towards structural regarding: trade reform; domestic change that improves fairness and market reforms; irrigation; food brings more balance into the market, standards; animal health and welfare; such as improvements to competition milk pricing, fair competition; labour law via the effects test. reform; and carbon emissions. Addressing non-tariff barriers to trade We continue to further the interests of such as non-standard packaging of dairy farmers in our priority areas: UHT, pre departure product testing, unnecessary compliance requirements ››drive sustainable farm profitability and administrative red tape, are ››secure market access and maximise an industry priority for dairy. The value chain returns Dairy Australia report Comparative evaluation of technical barriers to trade ››develop people and build human for Australian dairy products estimate John McQueen was capacity the total annual impact of technical appointed as Australian ››effective communication and barriers to trade on Australian dairy is Dairy Farmers Interim engagement $1.57 billion. Australian Dairy Farmers is working with the Department of Chief Executive Officer ››deliver member value and Agriculture, Department of Foreign organisational capacity. in June 2016, taking Affairs and Trade and the Australian over from outgoing Australian Dairy Farmers is working Government to reduce superfluous to investigate opportunities for a barriers to trade. CEO Ben Stapley. John Commodity Milk Price Index Tool. Since commencing with Australian returns to Australian Further work will be commissioned Dairy Farmers, I have recognised on collective bargaining to investigate Dairy Farmers, having the diligence of the team, and look opportunities to improve and forward to continue to work with previously been strengthen the current system. them on behalf of the Australian dairy the CEO from 1987 Australian Dairy Farmers continues industry. until 2007. to push for increased transparency throughout the dairy supply chain, John McQueen and to work towards building a fairer Interim Chief Executive Officer pricing system. It is essential that we work with processors to discuss this as a collective, to help protect the future of our sector. While we cannot change the milk price, Australian Dairy Farmers is working hard with our state members to improve the transparency in the milk pricing system and simplify milk contracts.
4 FROM THE IMMEDIATE PAST CEO
I am pleased to report to our Australian Dairy Farmers successfully stakeholders on the significant lobbied for the Seasonal Worker achievements made by Australian Programme to expand to the broader Dairy Farmers during the 2015/16 agricultural sector, increasing the financial year. types of low and unskilled jobs included under the programme. This Australian Dairy Farmers, state programme enables dairy farmers members, and industry partners to secure a returning workforce, as have worked collaboratively with it allows seasonal workers from the government to broker new trade Pacific and Timor-Leste to return to deals which increase access to Asian Australian farms to assist during peak markets. Australian Dairy Farmers times, when local employees are not welcomed the China-Australia Free available. Trade Agreement (ChAFTA) which was ratified late 2015, followed by Following consultation with farmers, further tariff reductions early in 2016. vets, and processors, the dairy ChAFTA places Australia on a more industry agreed to phase-out routine level playing field with key international calving induction. Australian Dairy competitors, and was the number one Farmers, Dairy Australia, vets, and industry trade priority. processors have since been working on implementing the revised calving Former Chief Executive Australian Dairy Farmers has induction policy. Australian Dairy advocated strongly for the introduction Officer Benjamin Farmers and Dairy Australia are of an effects test by the Federal Stapley stepped down working with stakeholders to ensure Government, which will strengthen the phase-out achieves the best from the helm of the competition across the grocery supply animal health and welfare outcomes chain. This provision will address the dairy industry’s peak possible, and that affected farmers unequal distribution of market power are communicated with and actively representative body and encourage transparency to the assisted. in June 2016. Prior to benefit of producers, consumers and Ben’s tenure, Dr Clive retailers. This is a constructive step My sincere thanks to the Australian toward fostering a fairer and more Dairy Farmers Board, National Noble was appointed competitive business environment. Council, Australian Dairy Farmers Policy Advisory Groups, my team, as interim CEO in The Australian Dairy Industry Council stakeholders, and industry, and all the won major awards for the ADIC March 2015. very best for the future. Sustainability Framework: the 2016 Organisation Leadership Award Benjamin Stapley from the United Nations Association Former Chief Executive Officer of Australia; and the 2015 Banksia Food for Sustainable Thought award. The Banksia award recognises demonstrated leadership, innovation and achievement in addressing food security through sustainable food practices.
5 6 AUSTRALIAN DAIRY FARMERS HIGHLIGHTS FOR 2015/2016
China-Australia Free Trade China’s demand for high-quality Nation-wide roadshow Agreement agriculture and food products is Australian Dairy Farmers growing rapidly. The Australian Australian Dairy Farmers, State Dairy representatives, in partnership with Bureau of Agriculture and Resource Farmer Organisations, and industry State Dairy Farmer Organisations, Economics and Sciences predicts partners have worked collaboratively embarked on a series of meetings China will account for 43% of global with government to broker new beginning in Tasmania on 4 May 2016. growth in agricultural demand by 2050. trade deals to increase access to The series of farmer-focused forums Asian markets. We welcomed the The absence of a bilateral free trade offered farmers the opportunity China-Australia Free Trade Agreement agreement with China has meant to engage with national and state (ChAFTA) which took effect in late Australian producers and exporters dairy member representatives on 2015, followed by further tariff have faced significant tariffs on the issues of critical importance to reductions early in 2016. ChAFTA agricultural products, and have been their region. The roadshow was an places Australia on a more level at a competitive disadvantage to opportunity to get up to speed on playing field with key international countries such as New Zealand that progress and developments which competitors. have existing free trade agreements have occurred during the past year, with China. Slowly the trade playing and talk through the industry’s election The ChAFTA agreement lays an field is being levelled. priorities for 2016. historic foundation for the next phase of Australia’s economic relationship Australian Dairy Farmers knows with China, as it unlocks significant that dairy farmers are facing a very opportunities for Australia. China is challenging season. We wanted Australia’s largest market for dairy to ensure that farmers have the exports, by both value and volume. support and tools they need, and to encourage all farmers to meet their representatives, air their thoughts and Summary of the market access result for Australian dairy ensure their interests are effectively represented. Current tariff Tariff phase out period Our aim for these forums was to help Milk and cream 15% 9 years provide clarity on the policy support Skim milk powder 10% 11 years mechanisms secured on farmers’ Whole milk powder 10% 11 years behalf, and facilitate opportunities to make recommendations for future Butter 10% 4-9 years improvements. It’s important that our Cheese 12% 4-9 years farmers know who is representing Infant formula 15% 4 years their interests, and that we are working hard to gain the results needed for successful businesses and succession opportunities in dairy. The industry’s credibility will be reinforced as we closely engage and align with those we represent.
Australian milk in a supermarket in China Representatives from Australian Dairy Farmers and QDO speak with farmers at the Maleny Dairy event in June.
7 AUSTRALIAN DAIRY FARMERS HIGHLIGHTS FOR 2015/2016
Seasonal Worker Programme Calving induction Australian Dairy Farmers and Dairy The dairy industry’s most valuable Following consultation with farmers, Australia are working with farmers, asset is the people who work in vets, and processors, the dairy veterinarians, State Dairy Farmer it, which is why the industry is industry agreed to a voluntary Organisations, processors and other committed to attracting, retaining phase-out of routine calving induction. stakeholders, to ensure the calving and developing the most skilled Australian Dairy Farmers, Dairy induction phase-out achieves the best labour available. Through initiatives Australia, vets, and processors have animal health and welfare outcomes such as the National Centre for Dairy since been working on implementing possible, and that affected farmers are Education, which provides education the revised policy which is: communicated with and assisted as and training through top quality actively as possible. Registered Training Organisations, the ‘Australian Dairy Farmers industry continues to demonstrate its commitment to the local workforce. does not support routine Despite the industry’s efforts, dairy calving induction and still suffers from a labour shortage. will work to phase it out With the Seasonal Worker Programme through improved herd now extended to dairy, the industry improvement practices, can better plan for busy periods with tools and technologies.’ greater certainty that sufficient labour will be available. Australian Dairy Farmers has established a steering group and an Access to a reliable workforce is oversight and engagement panel essential for the dairy industry to to manage the voluntary calving create a strong future. Australian induction phase-out. A survey of Dairy Farmers successfully veterinary practices performing lobbied for the Seasonal Worker inductions was undertaken in 2015. Programme to expand to include The results confirm estimates from dairy, increasing the types of low and previous farmer surveys that the unskilled jobs included under the number of cows induced is declining. programme. On 8 February 2016, the After reviewing the data, the industry Australian Government announced introduced a target for 2016: routine further expansion of the Seasonal calving induction to be limited to a Worker Programme, from primarily maximum of 15% of cows within a horticulture to the broader agricultural herd, unless a dispensation has been sector. These changes will provide granted. significant benefits to Australian agricultural employers and industries, while contributing to the economic development of Pacific Island countries and Timor-Leste. This programme enables dairy farmers to secure a returning workforce, as it allows seasonal workers to return from the Pacific and Timor-Leste to assist during peak times, when local employees are not available. This provides another option for dairy farmers and dairy processors to recruit overseas workers when locals are not available.
The dairy industry has committed to phasing out calving induction.
8 Effects test In addition to an effects test in Section Dairy Service Levy Poll Australian Dairy Farmers has 46 of the Competition and Consumer Australian Dairy Farmers advocated advocated strongly for the introduction Act 2010, we are pursuing: for the Dairy Produce Amendment of an effects test in competition ››higher penalties and harsher (Dairy Service Levy Poll) Bill 2016 to law. Should the effects test be remedies to deter and punish misuse amend the Dairy Produce Act 1986 to adopted, it will strengthen competition of market power remove the requirement for the dairy across the grocery supply chain and industry to hold a dairy levy poll every enable Australian Competition and ››investigation of $1/litre milk for a five years. Consumer Commission to discover potential breach of Section 46 of the The legislation passed in March the true impacts of decisions and Act with regards to predatory pricing 2016 alters review procedures while actions of parties with significant ››amending the definition of retaining a strong democratic process market power. Australian Dairy unconscionable conduct to clarify for farmers. The passage of the Bill Farmers has advocated strongly for what is considered unethical, and provides certainty around the process the change since 2011. The provision, set a non-exhaustive benchmark for for the 2017 levy review process which will be included in Section 46 assessing conduct and future reviews. Australian Dairy of the Competition and Consumer Farmers has welcomed the passage Act 2010, will address the current ››enacting a statutory duty of good of the Bill, re-emphasising that this unequal distribution of market power, faith to ensure acceptable and is not about removing Dairy Australia and encourage transparency to the ethical business in any commercial from scrutiny, but instead about benefit of producers, consumers and relationship streamlining the process and making retailers. This will work in conjunction ››improved collective bargaining and sure every levy dollar invested delivers with the government’s introduction boycott regimes that reflect the value back to farmers. of the Food and Grocery Code, which unique nature of agricultural markets. included a large number of Australian The changes mean that instead of a Dairy Farmers’ recommendations. The appointment of Mick Keogh regular mandatory poll, an industry The introduction of an effects test is OAM as the Australian Competition advisory committee will review a constructive step toward fostering and Consumer Commission’s first whether there is a need to change a more competitive business Agricultural Commissioner, and the levy or conduct a poll. A poll must environment. an Agricultural Engagement and be held if it is recommended there Enforcement Unit, highlights the be a change in the levy. The changes government’s commitment to provide a mechanism to allow dairy strengthening competition across farmers to request a poll with the the supply chain. Our work with support of at least 15% of levy votes. the Australian Competition and Consumer Commission to strengthen Australian Dairy Farmers thanks the mechanisms to mitigate price and Minister for Agriculture and Water input cost volatility gathers pace. Resources, the Hon. Barnaby Joyce and the Department of Agriculture who championed the Bill on behalf of dairy farmers.
9 ADIC HIGHLIGHTS FOR 2015/2016
The Australian Dairy Industry Council ADIC Processor Investment Plan ADIC Sustainability Framework - (ADIC) is a collaborative partnership Australian Dairy Farmers is pleased Progress between dairy farmers and with the support processors provide The Australian Dairy Industry processors: farmers are represented to develop policy in mutually beneficial Sustainability Framework provides by Australian Dairy Farmers and and agreed areas. There have been an opportunity for our industry to manufacturers are represented by consecutive joint processor funding demonstrate its commitment to Australian Dairy Products Federation agreements between the largest dairy sustainability. The Framework was (ADPF). ADIC is the vehicle for the processors in Australia and ADIC. The developed in 2012 by ADIC with industry to work together in areas most recent ADIC Investment Plan Dairy Australia. It sets the direction of mutual benefit to create a more ended December 2015, which enabled for continual improvement, providing prosperous and sustainable future the formation of a new Investment guidance to farmers, manufacturers across the value chain, through Plan for 2016 to 2019. ADIC conducted and industry bodies on our shared industry and government policy a workshop in March 2016 to develop priorities and commitments. The development and advocacy. the policy priorities for the year ahead Australian dairy industry’s 2015 and the longer term goals under the Sustainability Progress Report Australian Dairy Farmers is the new ADIC Investment Plan. continues the industry’s commitment primary body through which The ADIC Investment Plan continues to report our progress against our ADIC operates, including its 2020 targets transparently. communications and engagement with six key areas for the next three with stakeholders, government and and a half years: Although the industry’s immediate community. The partnership enables ››trade, domestic and international priority is to support dairy farmers Australian Dairy Farmers and ADPF market support through the price step downs, the to achieve a whole of industry Sustainability Framework helps approach which is important when ››people and human capacity us keep an eye on the horizon. advocating to government, and is a ››environmental sustainability Importantly, it tracks our progress valuable asset to the industry. and drives practice change to ensure ››animal health and welfare the industry is sustainable for the ››industry strategic planning and long-term. alignment During 2015 there were some notable ››communication and engagement achievements, including: ››ADIC National Dairy Fund. ››industry effort in helping the government secure Free Trade We are pleased with our engagement Agreements with China, Japan with processors and the achievements and Korea to increase our made: we look forward to competitiveness and profitability continuing to deliver on the ADIC’s policy priorities. These important ››reduction of waste sent to landfill by achievements will help deliver a more manufacturers: dropped 46% since profitable and sustainable industry in 2011, exceeding the target the long-term. ››farmers’ nutrient management plans almost doubled since 2013 to 58% ››reduction in routine calving induction: 88% of farmers do not use it compared to 80% in 2014. Whilst we made good progress against some targets, there are others where more progress is needed, such as increasing the proportion of dairy farmers who are aware of, and implement, the standards and guidelines for animal welfare that were agreed in January 2016. Currently, awareness stands at 56% and our target for 2020 is 100%.
10 ADIC Sustainability Framework - ADIC Industry Leaders’ Breakfast ADIC Business Breakfast Awards Victorian dairy farmer and advocate, The ADIC Business Breakfast in April ADIC won the 2016 Organisation Shirley Harlock has been recognised 2016 was a platform for ADIC to Leadership Award from the United for her contribution to the Australian provide leadership and identify an Nations Association of Australia for dairy industry, as the 2015 recipient issue of importance for the industry to the ADIC Sustainability Framework. of the Pat Rowley ADIC Outstanding address. ADIC made a commitment Judges stated that the framework Service Award. The Outstanding at the breakfast to drive change was exceptional and inspiring, Service Award celebrates the lives and across the industry through improved particularly its whole-of-supply-chain careers of industry participants whose collaboration between service focus; rigorous targets and reporting; contribution has significantly shaped providers, processors and industry impacts to date; stakeholder the dairy community and beyond, for representative bodies. Addressing and community involvement; the benefit of the whole value chain. an audience of dairy farmers, and communication. The judges The award was presented to Shirley at manufacturers and industry leaders recognised the framework’s potential the ADIC’s Leaders’ Breakfast on 27 at the event themed ‘Protecting what to act as a model for other whole- November 2015. matters: ensuring the health, safety and well-being of our workforce’, an of-industry approaches for an even Shirley has held local and executive expert panel explored opportunities for broader impact. positions with United Dairyfarmers dairy to improve its workforce safety of Victoria, and was a Director of The ADIC Sustainability Framework and well-being. won the 2015 Banksia Food Australian Dairy Farmers. She served for Sustainable Thought award. as Chair of Dairy Food Safety Victoria The panel included: for ten years. In 2005, Shirley was Established in 1989, the Banksia ››Bill Youl, Program Manager for appointed Chair of the Dairy Australia Foundation works with industry Industry Workforce Planning and Future Dairy project, charged with and community to focus attention Action, Dairy Australia on the recognition of excellence research, development and adoption in sustainability. The Banksia of robotic technology for Australian ››Bruce Gibson, Worksafe Victoria dairy farms. In partnership with Sustainability Awards recognise ››Josh Norton, Leader for Safety and her husband John, Shirley operates Australian individuals, communities, Well-being, Lion businesses and government for Victorian dairy farms in Warrnambool their innovation, achievement and support farms in South Australia. ››Robyn Mitchard, Field Services and commitment to sustainability. Manager, Fonterra The Banksia Food for Sustainable ››Dr Susan Brumby, Director, National Thought Award recognises Centre for Farmer Health. demonstrated leadership, innovation and achievement in addressing Bill Youl observed that safeguarding matters of food security through the workforce and implementing sustainable food practices. formal occupational health and safety plans on farm can benefit businesses and makes sense for farm profitability.
Dr Sinead De Goyer (far left) discusses farmer health with the ADIC Industry Leaders’ breakfast panel.
11 ADIC HIGHLIGHTS FOR 2015/2016
ADIC Dairy Dinner and Cows on the Lawn The second ADIC Dairy Dinner brought together over 100 parliamentarians, advisors, departmental members and industry stakeholders to celebrate Australian dairy’s innovative and dynamic value chain on 14 October 2015 in Canberra. Centred on the theme of Australian Dairy, Thinking Beyond the Box, the dinner provided an exciting opportunity for parliamentarians and industry to discuss the role innovation plays in helping the industry grow and strengthen. With more than $2 billion invested in farm science and technologies since 1980, innovation has been pivotal to boosting dairy’s profitability and productivity. The dinner highlighted the connection between Australian dairy and parliament, with key parliamentarians expressing their support for helping dairy stay ahead of the game. Guests included ADIC directors, state farmer representative leaders, executives from dairy processors, and members of parliament. Minister for Agriculture and Water Resources, the Hon. Barnaby Joyce said ‘the Coalition Government shared the industry’s commitment to innovation as a way of improving dairy farmer productivity and profitability’. Shadow Minister for Agriculture, the Hon. Joel Fitzgibbon commended the industry on working to progress the Dairy Industry Vision for 2025: ‘dairy is increasingly part of Australia’s economic future and it is great to join so many industry Cows on the lawn: Assistant Minister for Agriculture and Water Resources, the Hon. Anne Ruston and Australian Dairy Farmers Board Member David Basham participants who share a vision for a more innovative, efficient, and sustainably profitable sector’.
ADIC Dairy Dinner: (L to R) NFF President Brent Finlay, Minister for Agriculture and Water Resources Barnaby Joyce, Senator Bridget McKenzie and former Australian Dairy Farmers President Noel Campbell.
12 13 BOARD COMMITTEES 2015/2016
All Australian Dairy Farmers Audit, Risk and Markets, Trade and Value Chain Policy Advisory Group Compliance Committee Policy Advisory Group Committee members Tyran Jones Adam Jenkins were appointed on (Chair, appointed 17 December 2015) (Chair from October 2015) 26 February 2015, unless stated otherwise Anne Astin Roma Britnell (Chair, resigned 26 November 2015) (Chair to September 2015) Simon Bolles (Independent Member, Erika Chesworth appointed 1 July 2015) Geoff Cox Terry Richardson Richard Gladigau (appointed 17 December 2015) Tyran Jones Simone Jolliffe (resigned 26 November 2015) Michael Partridge Fred Jones (Secretariat) Brian Tessmann David Losberg (Secretariat) Animal Health and Welfare Policy Advisory Group Natural Resources Policy David Basham (Chair) Advisory Group Phil Depiazzi Daryl Hoey (Chair) Adam Jenkins John Keely Andrew Lester Kate Bartlett Robert McIntosh Dianne Bowles Lynne Strong (to December 2015) Alan Davenport Brian Tessmann James Geraghty Terry Toohey Chris Griffin David Losberg (Secretariat) Robert McIntosh Irene Clarke Farming Systems Policy (Secretariat to May 2016) Advisory Group Betty Helou Tyran Jones (Chair) (Secretariat from May 2016) Patrick Glass Daryl Hoey People and Human Capacity Policy Advisory Group Chris Hofing John Versteden (Chair) Simone Jolliffe Nigel Brock Ross McInnes (resigned 18 January 2016) Brian Wilson Liza Fahey Gary Zweck Tammy Negus Irene Clarke Simone Renyard (Secretariat to May 2016) Jeanne Van Der Geest Dekker Betty Helou Charles Wallis (Secretariat from May 2016) Betty Helou (Secretariat to September 2015) Adele Beasley (Secretariat from September 2015)
14 AUDIT, RISK AND COMPLIANCE COMMITTEE REPORT
Members Key responsibilities The primary objective Anne Astin Key matters considered by the of the Audit, Risk and (Chair, resigned 26 November 2015) committee included: Compliance Committee Simone Jolliffe ››review Australian Dairy Farmers (resigned 26 November 2015) Annual Financial statements and liaise is to assist the with the external auditors (Pitcher Simon Bolles (Independent Member, Australian Dairy Farmers Partners) appointed 1 July 2015) Board in fulfilling its ››review Australian Dairy Farmers Tyran Jones Investment Strategy with investment corporate governance (Chair, appointed 17 December 2015) fund managers (Equity Trustees) and oversight Terry Richardson ››review procedures relating to financial responsibilities, with (appointed 17 December 2015) controls and reporting requirements respect to internal Fred Jones (Secretariat) ››review Australian Dairy Farmers control and compliance, internal policies and procedures risk management relating to Australian Dairy Farmers communications strategy, frameworks, external occupational health and safety accountability procedures, workplace behaviours, responsibilities and staff performance management, and information technology life-cycle monitoring the integrity management policy of financial reporting. ››review and recommendation to the Board of the Australian Dairy Farmers Risk Register and Risk Management Strategy and insurance requirements ››review and recommendation of the Australian Dairy Farmers Business Continuity Plan ››review and recommendation to the Board of the Australian Dairy Farmers Operating Budget for 2016/17.
Meetings The committee met twice during the 2015/16 financial year: ››9 September 2015 ››16 March 2016
15 16 DIRECTOR’S REPORT
Information on directors, national ››Project Streamline and Strengthen T Richardson councillors and company secretary Steering Committee, National ››Owner and partner of a dairy farm in Farmers’ Federation (appointed April Deans Marsh, Western Victoria 2016) Directors ››Director of Australian Dairy Farmers ››Deputy Chair of Dairy NSW (resigned (appointed 26 November 2015) October 2015) N R Campbell ››Director of Australian Dairy Industry ››Owner and partner of a dairy farm in ››Chair of Inland Elite Dairy Network Council (appointed 26 November Yannathan, Victoria (resigned October 2015) 2015) ››President of Australian Dairy Farmers ››Member of Australian Dairy ››Director of Warrnambool Cheese and (resigned 26 November 2015) Farmers Audit, Risk and Compliance Butter Company Committee (resigned 26 November ››Chair of Australian Dairy Industry ››Member of Victorian Farmers 2015) Council (resigned 26 November 2015) Federation ››Chair of Herd Improvement Industry ››National Councillor of Australian Dairy ››Member of Geoffrey Gardiner Steering Group, Dairy Australia Farmers (resigned 26 November Foundation 2015) D Basham ››Director of Australian Dairy Farmers Dr D Woodside ››Owner and partner of a dairy farm in (resigned 26 November 2015) ››Director of Australian Dairy Farmers Mount Compass, South Australia ››Shareholder of Bonlac Supply (appointed 26 November 2015) ››Director of Australian Dairy Farmers Company ››Member of the Dairy Australia Levy ››National Councillor of Australian Dairy ››Shareholder of Genetics Australia Poll Advisory Committee Farmers Cooperative ››Member of Eminent Scientists Group, ››Director Australian Dairy Industry WWF Australia Council Dr A Astin ››Managing Director, Corporate ››Independent Director of Australian ››President of South Australian and Community Sustainability Dairy Farmers (resigned 26 November Dairyfarmers’ Association (resigned International (consultancy) 24 May 2016) 2015) ››Consultant to State, Federal, and ››Chair of Australian Dairy Farmers ››Director of South Australian International Governments on Audit, Risk and Compliance Dairyfarmers’ Association (resigned animal welfare, natural resource Committee (resigned 26 November 24 May 2016) management, invasive species, 2015) ››Director of SA Dairy Industry Fund Ltd community engagement ››President of Australian Institute of (resigned 24 May 2016) ››Indigenous Community Advisor (NT) Food Science and Technology ››Director of Primary Producers SA on animal management, One-Health, ››Director of William Angliss Institute (resigned 24 May 2016) community governance ››Chair of Forum of Food Regulators ››Treasurer of Primary Producers SA ››Co-Director, Dilgry Wildlife Centre, Implementation Sub-Committee (resigned 24 May 2016) NSW (Australia and New Zealand) ››Member of SA Cattle Advisory Group (resigned 24 May 2016) ››Chair of Wellsprings for Women Inc. National Council ››Member of Audit and Risk Committee ››Member of Dairy Australia Trade Reference Group at EnergySafe Victoria N R Campbell ››Member of Clean Technology Food ››Member of Dairy Australia Sustainability Steering Committee ››Owner and partner of a dairy farm in and Foundries Investment Committee Yannathan, Victoria ››Member of New Zealand Government T Jones ››National Councillor of Australian Dairy Inquiry into the Whey Protein ››Partner of a dairy farm in Gruyere, Farmers Concentrate Contamination Incident Victoria ››President of Australian Dairy Farmers ››Member of Health Star Rating ››Director of Australian Dairy Farmers (resigned 26 November 2015) Advisory Committee ››President of United Dairyfarmers of ››Chair of Australian Dairy Industry S K Jolliffe Victoria Council (resigned 26 November 2015) ››Director of Australian Dairy Farmers ››Owner and partner of a dairy farm in ››Director Australian Dairy Industry Limited (resigned 26 November 2015) Wagga Wagga, New South Wales Council ››Shareholder of Bonlac Supply ››Director of Australian Dairy Farmers ››Member of Dairy Constitutional Company ››Director of Australian Dairy Industry Review Committee ››Shareholder of Genetics Australia Council ››Member of Victorian Farmers Cooperative ››Primary Industry Ministers Advisory Federation Council, NSW (appointed October ››Director of Geoffrey Gardiner 2015) Foundation ››Shareholder of Bega Cheese
17 D Basham D Hoey D Murphy ››Owner and partner of a dairy farm in ››Manager and partner of a dairy farm ››Owner of a dairy farm in Dumbalk Mount Compass, South Australia in Katunga, Northern Victoria North, South Gippsland ››Director of Australian Dairy Farmers ››National Councillor of Australian Dairy ››National Councillor of Australian Dairy ››National Councillor of Australian Dairy Farmers Farmers (appointed 23 October 2015) Farmers ››Central Councillor of United ››Councillor of United Dairy Farmers of ››Director Australian Dairy Industry Dairyfarmers of Victoria Victoria Policy Council. Council ››Director of Australian Dairy Herd ››Shareholder of Murray Goulburn ››President of South Australian Improvement Scheme Co-Operative Dairyfarmers’ Association (resigned ››Director of Murray Dairy ››Shareholder of Genetics Australia 24 May 2016) Co-Operative ››Director of South Australian A Jenkins Dairyfarmers’ Association (resigned ››Manager and partner of a dairy farm M Partridge 24 May 2016) in South Purrumbete, South West ››Manager and partner of a dairy farm ››Director of SA Dairy Industry Fund Ltd Victoria in Brunswick, Western Australia (resigned 24 May 2016) ››National Councillor of Australian Dairy ››National Councillor of Australian Dairy ››Director of Primary Producers SA Farmers Farmers (resigned 24 May 2016) ››President of United Dairyfarmers of ››Vice President of WA Farmers Dairy ››Treasurer of Primary Producers SA Victoria Council (resigned 24 May 2016) ››Member of Victorian Farmers ››Member of WA Farmers Federation ››Member of SA Cattle Advisory Group Federation B Tessmann ››Member of Dairy Australia Trade J Keely Reference Group ››Manager and partner in a dairy farm ››Member of Dairy Australia ››Manager and partner of a dairy farm in South Burnett Region, Queensland Sustainability Steering Committee in Cohuna, Northern Victoria ››National Councillor of Australian Dairy ››National Councillor of Australian Dairy Farmers R Britnell Farmers ››President of Queensland ››Manager and partner of a dairy ››Central Councillor of United Dairyfarmers’ Organisation business in South West Victoria Dairyfarmers of Victoria ››Vice President of Queensland ››National Councillor of Australian Dairy ››Shareholder of Murray Goulburn Farmers Federation Farmers (resigned September 2015) A Lester J Versteden ››Vice President of United Dairy Farmers’ of Victoria ››Manager and partner of a dairy farm ››Manager and partner in a dairy farm ››Director of Geoffrey Gardiner in Herrick, North East Tasmania in Longwarry, South East Victoria Foundation ››National Councillor of Australian Dairy ››National Councillor of Australian Dairy ››Chair of Regional Strategic Planning Farmers Farmers Committee ››Chair of Tasmanian Farmers and ››Chair of Dairy Australia Dairy Industry ››Board Member of Catchment Graziers Association Dairy Council People Development Committee Management Authority ››Chair of Animal Health and Welfare ››Member of United Dairyfarmers of ››Shareholder of Genetics Australia Action Group Victoria Policy Council ››Board Member of Winnaleah ››Shareholder of Genetics Australia E Chesworth Irrigation Scheme ››Owner and partner of a dairy farm in R McIntosh Dubbo, New South Wales ››National Councillor of Australian Dairy ››Manager and partner of a dairy farm Farmers in Berry, New South Wales ››Central Councillor of United ››National Councillor of Australian Dairy Dairyfarmers of Victoria Farmers ››Director of Australian Dairy Herd ››Chair of NSW Farmers Dairy Improvement Scheme Committee ››Director of Murray Dairy ››Chair of NSW Farmers Bovine Johne’s Disease Steering Committee ››Member of NSW Farmers’ Association ››Shareholder of Murray Goulburn
18 Company Secretary Board Committee, National Council, Advisory Group and S Chahine Representational Meetings ››Business and Engagement Manager, All Directors and National Councillors Australian Dairy Farmers (Resigned 1 participated in Australian Dairy Farmers September 2015) formally appointed committees, advisory groups and representational B P Stapley appointments. ››Chief Executive Officer, Australian Dairy Farmers (appointed 1 Australian Dairy Farmers had five Policy September 2015. Resigned 16 June Advisory Groups in 2015/16 being: 2016) ››Animal Health and Welfare
F Jones ››Farming Systems and Herd Improvement ››Executive Manager – Operations, Australian Dairy Farmers (appointed ››Markets, Trade and Value Chain 16 June 2016) ››Natural Resources ››People and Human Capacity. Chief Executive Officer Both Australian Dairy Farmers Dr C Noble Directors and National Councillors provide their skills and expertise on ››Interim Chief Executive Officer, an informal basis for all aspects of Australian Dairy Farmers (appointed Australian Dairy Farmers’ operations. 16 March 2015. Resigned 26 August 2015)
B P Stapley ››Chief Executive Officer, Australian Meeting of Directors Dairy Farmers (appointed 1 September 2015. Resigned 16 June DIRECTORS DIRECTORS’ MEETINGS AUDIT COMMITTEE MEETINGS 2016) Number eligible Number attended Number eligible Number attended J McQueen to attend to attend ››Chief Executive Officer, Australian N R Campbell 6 6 - - Dairy Farmers (appointed 17 June 2016) A Astin 6 5 1 1 S K Jolliffe 19 18 1 1 D K Basham 19 19 - - T Jones 19 19 1 2 T Richardson 13 13 1 1 D Woodside 13 12 - -
19 ADF CURRENT BOARD OF DIRECTORS
David Basham, Simone Jolliffe, Acting President Vice President David Basham operates a 380 cow Simone Jolliffe’s passion for dairy farm with his wife, Kate and two agriculture was fostered by her family, daughters. Their property is located and childhood spent on a beef cattle in Mount Compass, on the Fleurieu farm. Simone has embraced the Peninsular in South Australia. David’s commitment, intensity and challenges family has been milking cows for more of dairy since joining her husband, Neil, than 165 years. on the Jolliffe farm in 2000. Simone is involved in all aspects of the business David first took a position on the from livestock and pastures, through Australian Dairy Farmers Board from to finances and human resource August 2005 to 2012, and re-joined the management. board in November 2014. David has been the Acting President since May Simone joined the Australian Dairy 2016. Farmers Board in January 2014, was elected to President in November David is the Former President of 2015, and held this position until she the South Australian Dairyfarmers’ assumed the role of Vice President in Association (SADA), a role he held May 2016. from August 2005 until May 2016. SADA is a membership organisation Simone has a strong community that advocates and develops policies leadership base having been involved to benefit SA dairy farmers. David was with: Young Cattleman’s Union; instrumental in the development of a Holstein Australia, Murrumbidgee new brand of fresh milk, SADA Fresh, Branch; Possum’s Daycare and being sold in one of his state’s major Rainbow Preschool Management retail supermarkets to generate funds committees; and North Wagga for SA industry development. Public School’s Parents and Citizens Association. Simone completed a Bachelor of Rural Science at the University of New England, Armidale and is a graduate of the Australian Institute of Company Directors.
20 Tyran Jones, Terry Richardson, Dr Dedee Woodside, Business Director Business Director Independent Director Tyran Jones is a partner in a Victorian Terry Richardson operates a dairy farm Dr Dedee Woodside has held dairy farm and is a strong advocate for with his family in Deans Marsh, south a number of leadership roles in agricultural innovation. He believes that west Victoria, where he has lived since natural resource management, the sector needs to focus on driving a 2004. The farm has seasonal calving rural community engagement and profitable, growing, industry. His vision pattern and milks 600 cows. international development. She has sets bold targets and mechanisms for held senior posts in government, Terry was appointed as an Australian increasing returns on assets, growing non-government and private industry Dairy Farmers Business Director in milk production, embracing new tools and has been at the leading edge November 2015. and technologies, and establishing of change in how government and Australia’s position as a key global Terry has held a number of positions in industries work with communities to dairy exporter. the dairy industry, both in New Zealand share critical knowledge about natural and Australia. He was a director of Kiwi resources and work collectively to Tyran has been a Business Director Co-operative Dairies for seven years bring about changes on the ground for on the Australian Dairy Farmers Board and a dairy consultant with Agriculture the benefit of all stakeholders including since November 2014. New Zealand for seven years. After the environment. Tyran has held a number of industry moving to Australia he joined his local Dedee was elected to the Australian leadership positions: Former UDV branch and was later appointed Dairy Farmers Board as Independent President of the United Dairyfarmers to the South West Regional Extension Director in November 2015. of Victoria; Former Director of the Committee. He was previously Geoffrey Gardiner Foundation; Chair of Chairman of Warrnambool Cheese Her work has included Australian GippsDairy, and is currently a member and Butter Company and has been agricultural commodities such as rice, of the industry Steering Committees a director of the company for eight cotton, sugar, horticulture, and other overseeing critical research, years, a role he continues in today. sectors such as fisheries, one-health development and extension national Terry has served on many community programs in Indigenous communities, programs. boards and committees. tourism and energy. Tyran completed a Bachelor of Terry completed a Bachelor of Dedee views herself as an innovative Engineering and worked in that Agricultural Economics, a Diploma of thinker and a value-driven change capacity, before returning to the family Business Studies, and is a Member expert with a deep knowledge of farm. of the Australian Institute of Company natural systems and community Directors. engagement.
21 ADF CURRENT BOARD OF DIRECTORS
Noel Campbell, Dr Anne Astin, Former President Former Director Noel Campbell is a third-generation Dr Anne Astin was the first woman to dairy farmer from Yannathan, south receive the Australian Dairy Industry east Victoria. The family operation is Council’s Outstanding Service Award run by Noel and his wife Ann, milking in recognition of her leadership to the 450 cows. Australian dairy industry. Anne was awarded the Public Service Medal in Noel was elected President of the Victorian Division of the Queen’s Australian Dairy Farmers and Chair of Birthday Honours for her services the Australian Dairy Industry Council to the dairy industry, national food in 2012, and held the positions until regulation and rural women. Anne November 2015. Noel was previously was inducted into the Victorian Chair of the Markets, Trade and Value Women’s Honour Roll for her work in Chain Policy Advisory Group for two biochemistry and as an advocate of years and a Director on the Australian women’s leadership. Dairy Farmers Board since 2008. Noel has held positions on various industry Anne was elected to the Australian boards including as a Director of Dairy Farmers Board as Independent Genetics Australia, Chair and Director Director in August 2012 and held the of Bonlac Foods and Bonlac Supply position until 26 November 2015. Company, and Chair of the Fonterra Anne has held senior executive roles Australia Supplier Forum. in State and Federal Governments Noel is a strong advocate for whole of covering food safety and biosecurity, industry unification, believing that with drugs and poisons, public health, a strong, united front Australian dairy primary industries, natural resource will remain on the international stage management and land administration. as a provider of high quality, nutritious She spent four years in post-Doctoral and sustainable food. Noel’s advocacy biochemistry research and lecturing efforts were instrumental in the at Monash University. Anne retired as achievement of a pro-dairy China- the inaugural CEO at Dairy Food Safety Australia free trade outcome, where he Victoria in January 2011. attended the Minister for Agriculture, Anne currently holds Directorships on Barnaby Joyce’s delegation to China a number of government and not-for- and presented as a guest speaker at profit Boards including William Angliss the China Dairy Industry Association Institute, the Australian Institute of conference in Shanghai, 2014. Food Science and Technology Ltd, Safe Noel has a Diploma of Mechanical Fish, and Wellsprings for Women Inc. Engineering and is a Fellow Australian Anne and her husband Peter have two Institute of Company Directors. daughters, Claire and Liz.
22 STAFF PROFILES
John McQueen Adele Beasley John McQueen returned to Australian Adele Beasley joined Australian Dairy Dairy Farmers as Interim Chief Farmers in September 2015 as Senior Executive Officer in June 2016. Policy Manager, and is responsible for the People and Human Capacity policy Formerly Australian Dairy Farmers focus area. CEO from 1987 until 2007, John joined the team in 1982 as the first Prior to joining Australian Dairy Executive Officer of the Australian Farmers, Adele was a Project and Dairy Herd Improvement Scheme, with Policy Officer with the United responsibility to set up and operate Dairyfarmers of Victoria, where she the first national genetic evaluation developed strong policy strategy and system for the Australian dairy industry. persuasive communications skills. She has strong background knowledge As well as developing policy for of the dairy industry and the ‘people’ national and international issues policy issue. affecting dairy farmers, he has represented Australian dairy farmers Previously, Adele was a journalist in at national and international meetings her home-town of Bairnsdale where and conferences for more than 20 she grew up on a sheep and cattle years. property. John is a former board member of Adele has a double-degree in Arts the Cooperative Research Centre (Journalism) and Laws from Deakin for Innovative Dairy Products, was University, Geelong campus. She previously Chairman of the Animal enjoys combining her passions of Health Australia Industry Forum and effective communication and policy was Secretary of the Dairy Group development for the benefit of of the International Federation of Australian dairy farmers. Agricultural Producers from 1996 to 2000.
23 STAFF PROFILES
Sarah Chahine Irene Clarke Sarah Chahine was appointed Irene Clarke was the Senior Policy Business and Engagement Manager in Manager at Australian Dairy Farmers 2014 and held this appointment until from March 2013 until her resignation her resignation in April 2016. She was in May 2016. She was responsible responsible for managing Australian for natural resources policy as Dairy Farmers’ corporate governance well as farming systems and herd and provide secretarial support improvement policy. Irene was to the Australian Dairy Farmers the policy lead in strategic industry and ADIC Boards and Australian projects, including the development Dairy Farmers National Council. In and implementation of the Australian addition, Sarah provided business Dairy Vision, the Dairy Industry support by coordinating the annual Sustainability Framework, and Australian Dairy Farmers and ADIC Australian Dairy Farmers input to Dairy business operating plans, managed Australia strategy. Australian Dairy Farmers and ADIC Irene came to Australian Dairy Farmers events, and played an important role with over 20 years of policy and in building and maintaining effective advocacy experience. Prior to joining business relationships with Australian Australian Dairy Farmers, Irene was a Dairy Farmers and ADIC external consultant for GHD Limited where she stakeholders. prepared strategic plans, submissions Having joined Australian Dairy and project applications. Farmers in 2011, Sarah was previously Irene previously worked for the NZ Executive Assistant to the President local government peak body on policy, and Chief Executive Officer, and Office advocacy and best practice across Manager. a range of issues including energy, With eight years prior experience climate change, food safety, water in corporate events and marketing, management, hazard management Sarah has a strategic planning, and environmental approvals. Irene communication, marketing, and began her career as a planner and has event management background. This an environmental planning degree and contributed to her knowledge of a post graduate law qualification. business and operational procedures.
24 Doris Gauci Betty Helou Fred Jones Doris Gauci joined Australian Dairy Betty Helou joined the Australian Fred Jones joined the Australian Dairy Farmers in April 2014 as an Office Dairy Farmers team in March 2015 Farmers team as Operations Manager Administrator and Receptionist. Doris as a Policy Support Officer. Her main in August 2014, after assisting in a has over 30 years of experience within role is to support Australian Dairy business advisory capacity since a broad range of industry sectors, Farmers’ Senior Policy Managers, and March 2014. Fred brings a wealth specialising in corporate receptionist is responsible for the natural resources of experience in operational, project and office administration roles. policy as well as the farming systems management and staff management and herd improvement policy in the to the role, having worked in the As part of her varied role, Doris interim. commercial and retail environment manages and directs work flow to for over 35 years with Coles and other various departments, maintains the Betty is currently pursuing her iconic retail brands. security pass register, coordinates Masters in Environmental Policy all travel and related logistics and and Management (with a focus Fred was previously the Regional reconciles monthly expenses for on agriculture) at the University of Administration Manager at Target, a senior management. Doris is the Melbourne. Previously, she completed position he held for six years, in an primary point of contact for all general her Honours degree in Canada, area that covered 80 sites across ad-hoc administrative duties. focusing on biological sciences and Victoria and Tasmania. Fred’s extensive genetics. Following her Bachelor’s knowledge in budget preparation, Doris is an integral member of the degree, Betty worked in South Korea auditing and compliance management team at Australian Dairy Farmers; her at an international middle school as a are of significant benefit to Australian input and strong work ethic ensures science teacher. Dairy Farmers given the financial and the smooth operation of the team and governance requirements of the group. broader organisation. With her science background and her knowledge of food policy, planning To support the work undertaken and development, Betty aspires to with the Audit, Risk and Compliance make a difference in the Australian Committee, Fred has recently agricultural food systems. She is completed two certificate courses with eager to learn and gain insight on the Governance Institute of Australia collaboration across diverse sectors, – Certificate in Governance for Not-for- and enriching the national dairy profits and Certificate in Governance industries. Practice.
25 STAFF PROFILES
Patrick Kok David Losberg The Australian Dairy Farmers A Senior Policy Manager, David Accounts Manager, Patrick Kok, has Losberg has been working with an Accounting degree from the U.K. Australian Dairy Farmers since Patrick has been working in finance 2010 where he is responsible for for almost 30 years in a variety of the markets, trade and value chain industries. areas, as well as animal health and welfare policy. With his audit background, Patrick had a short stint with the United Nations David has worked in the Federal Office for Project Services and moved Government at senior levels, has on to finance manager roles in the been involved with rural health policy publishing and membership industries and was manager of government before moving on to marketing relations at a major private health and fashion industries as financial fund. These roles have given David a controller. strong understanding and background in policy development, stakeholder Throughout his career, Patrick has relations and advocacy with made significant contribution to the government. organisations he works with. This holds true since Patrick has joined David has extensive experience Australian Dairy Farmers in its pursuit working with a wide variety of to improve the transparency of the stakeholders to develop unified organisation. national policy and enjoys the challenges of advocating an industry position in a tight fiscal environment.
26 Caroline MacIntyre Shona McPherson Benjamin Stapley Caroline MacIntyre joined Australian Shona McPherson was appointed Benjamin Stapley was appointed Dairy Farmers in June 2016 as Media Officer at Australian Dairy Australian Dairy Farmers Chief Executive Assistant to the President Farmers in September 2014 and Executive Officer in September 2015, and CEO. transitioned to Media Communications and remained in the role until June Manager. Shona’s role involves a wide 2016. With over 30 years of experience, range of responsibilities, from writing Caroline is a highly experienced With a strong background in member and editing outbound communications, administration professional having advocacy, stakeholder engagement, to liaising with media contacts and worked in a broad range of industry policy development and media monitoring media coverage of the sectors including finance, engineering, management, Ben came into the role organisation. retail and the utilities sector. Her after two years as Director of Policy experience includes various executive Prior to her appointment at Australian and Regulation at the Plastics and assistant roles as well as project, Dairy Farmers, Shona began her Chemicals Industries Association. office and facility management career as a contributor and sub-editor Prior engagements have included positions. for online magazine Mildred, where leading policy, regulatory and advocacy she was responsible for developing Caroline’s primary focus at Australian programs for Australia’s chemical original, engaging and eloquent Dairy Farmers is to provide secretarial manufacturers and importers, and content on a range of topics including support as well as diary and travel for Australia’s agricultural chemical political and environmental issues. arrangements for the President and suppliers. She worked as a media liaison for CEO. She works closely with the Office the Small Technologies Cluster, Previous roles with the Administrator/Receptionist, in the writing case studies on bio and Commonwealth Government saw development and implementation of nano-technology projects funded by Ben work closely with industry effective office administrative systems, the Victorian Government’s Small stakeholders to reform and streamline processes and procedures, the Technologies Uptake Program. Australia’s management systems for induction of new staff members and environmentally hazardous chemicals. the management of service providers. Shona graduated from Monash University with a Bachelor of Arts (Media and Communications), and a Masters in Journalism.
27 ANIMAL HEALTH AND WELFARE POLICY ADVISORY GROUP Chair – David Basham / Secretariat – David Losberg
Calving induction herd fertility management plan or by Healthy and well cared for cows obtaining dispensation for exceptional are a priority for every dairy Australian dairy farmers are dedicated to providing a high standard of care for circumstances beyond the control of farmer. Cows are the livelihood our animals, and to changing practices the farmer or herd manager. of Australia’s dairy farms: when in the best interests of our their health and wellbeing is The Oversight and Engagement Panel livestock and to protect the reputation essential to the success of every was established in 2016 and has of our industry. developed guidelines and considered dairy farming business. The requests for exemptions and grant commitment farmers have to The industry is proactive on approvals as appropriate. The panel their herd is demonstrated by measures to support excellent animal is composed of representatives from their animal husbandry practices. welfare outcomes and to meet the expectations of the community, our the Australian Dairy Farmers, the The vision for animal welfare Australian Dairy Products Federation within the industry is for every customers and consumers. Failure to meet these obligations, risks the and the Australian Cattle Veterinarians. dairy animal to be well cared for. The steering group is working with the This vision is underpinned by the introduction of onerous and unrealistic regulations and possible damage to Oversight and Engagement Panel to National Dairy Industry Welfare our reputation and markets. monitor progress and review the target Strategy which encourages each year in order to establish updated responsible animal husbandry for In April 2015, following extensive annual targets. good animal welfare outcomes. consultation with farmers, vets and processors, the dairy industry The industry is working closely To promote continued welfare agreed to work towards the voluntary with veterinarians and reproduction improvement and nationally phase-out of routine calving induction advisors to ensure advice and consistent welfare standards, nationally through improved herd services are available to assist and protect the sustainability of management practices, tools and farmers with fertility management. our industry, the Animal Health technologies. Improving herd fertility is Industry programs such as InCalf, the Repro Right network and InCharge and Welfare Policy Advisory a fundamental requirement to reduce workshops have been enhanced and Group works with processors, the need for routine calving induction the industry is providing targeted retailers, consumers, animal and it delivers many benefits for farm profitability and resilience. reproduction advice to those farmers groups, regulators and the most in need. Farmer and vet forums government. Subsequently a target for 2016 was were held in Tasmania in March 2016 set to voluntary limit routine calving to discuss the industry approach induction to 15% of cows per herd. and highlight the programs available. A steering group was established Regional information forums were held to progress the phase-out. The around Victoria in May. target applies unless an exemption is granted. In 2016, exemptions It is worth noting that the dairy may be granted by implementing a industry’s proactive approach has seen a significant reduction in calving induction through breeding programs such as InCalf and the improvement of fertility by genetic selection. In 2014, fewer than 2% of the national herd were induced (approximately 24,000 cows). The Animal Health and Welfare Policy Advisory Group has played a major role in the phase-out of routine calving induction and will continue to engage with all key stakeholders to make sure that the timing, process and outcomes are right for all involved and the updated annual targets are realistic and achievable.
28 Bovine Johne’s Disease Plan (JDCAP) available across Australia. Self-assessment scheme Animal Health Australia conducted a The JDCAP is currently implemented The dairy industry is in the initial review of Bovine Johne’s Disease in only in Victoria and New South Wales. stages of developing an industry 2015 with public forums, meetings of Queensland, NSW and Victoria have agreed and developed dairy farm the Reference Group and discussion announced that interstate movement self-assessment scheme. The scheme papers released by Animal Health restrictions for Bovine Johne’s Disease will encapsulate all of the areas of Australia. The final framework will no longer be regulated and Victoria animal health, welfare, biosecurity and document was released February has advised that the test and control traceability, and will build on existing 2016: BJD – Where to from here? A program will not be continued but on-farm food safety and quality Fresh Approach to the Management of some financial assistance may be assurance requirements and the dairy Johne’s Disease in Cattle: Management available to support Bovine Johne’s natural resource management self- Plan for Cattle Production Conditions. Disease vaccination until 2019. assessment programs (e.g. DairySAT). Major changes in the management of The beef sector has developed a The self-assessment scheme will Bovine Johne’s Disease outlined in the Johne’s Beef Assurance Score (J-BAS) provide individual farmers with the final framework document included: risk rating tool for beef cattle with ability to benchmark their practices against farmers on similar farms, in ››removal of zoning scores similar to equivalent Dairy Score and work is in progress to the same or different dairy regions and ››reliance on producers to protect develop a Risk Management Program supplying different companies. themselves from disease; a risk rating tool for beef cattle. biosecurity approach It will offer dairy companies the ››market driven approach where opportunity to benchmark their producers undertake practices Cattle standards and guidelines individual suppliers’ practices, and dependent on market requirements During the last six years, the Animal highlight areas where support ››evaluation of the CattleMAP Health and Welfare Policy Advisory programs may be required. Dairy companies will compare company ››development of tools and education Group has been working hard on the trend data against recommended material. draft Australian Welfare Standards and Guidelines for Cattle. The draft industry practices to meet their The final framework was a high- standards and guidelines have been customer requirements. The data level document; dairy industry developed to safeguard the welfare collected will provide industry trend representatives indicated that further of cattle on farms across Australia. data for benchmarking practice change work was necessary to provide detail The Policy Advisory Group has been at company and individual level. on how any revised scheme would be involved in the development of There is an increasing desire for implemented. A communications plan the standards and guidelines from evidence around animal husbandry and an implementation plan for the their inception to their finalisation. (health, welfare and stockpersonship), new Bovine Johne’s Disease approach Australian Dairy Farmers and Dairy biosecurity and traceability practices. are being worked on and industry Australia provided comment and An industry voluntary Self-Assurance representatives are involved in this ensured the standards and guidelines Scheme provides an opportunity to work. were in line with industry policy work with processors, consumers, As a result of the above, in and community expectations. The retailers and government in this area. consultation with State Dairy Farmer recommended standards and guidelines, as they apply to dairy cattle, Organisations, the Animal Health Submissions and Welfare Policy Advisory Group, reflect the dairy industry’s policies, Australian Dairy Farmers, and Dairy including areas that have been ››ADIC response to Biosecurity Import Australia recommended revisions identified as priorities in the National Risk Analysis draft regulation and to the Dairy Score which have been Dairy Industry Animal Welfare Strategy. guidelines, December 2015 ››ADF response to BDJ Framework endorsed. The National Dairy Industry Nationally consistent state and Document for the new approach to Bovine Johne’s Disease Assurance territory legislation is important as the management of Johne’s disease Score will continue to be an important is regulation that is science-based, in cattle, November 2015 tool for dairy farmers and some cost-effective and proportionate to ››ADF response to the Proposed Future refinements facilitate an alternative risk. The Agriculture Ministers’ Forum Strategy to manage Johne’s disease to Cattle MAP for dairy farmers. The considered the draft standards and in cattle, September 2015 draft revised Dairy Score is based guidelines out-of-session in mid- on the current criteria that supports August 2015. ››ADF response to Second Discussion risk-based trading and provides Paper on a recast National Bovine an extension tool to help farmers On 28 January 2016 Animal Health Johne’s Disease Strategy, June 2015. understand how they can achieve Australia announced the standards higher levels of assurance. The score and guidelines had been agreed by focuses on biosecurity measures, state and territory governments. The particularly hygienic calf rearing, with standards and guidelines now need incorporation of herd tests at the to be legislated at State and Territory higher levels to monitor and verify the level to become law and the Animal integrity of the score. Health and Welfare Policy Advisory Group is supportive of this occurring Work is continuing to make the across Australia to ensure national Johne’s Disease Calf Accreditation consistency.
29 FARMING SYSTEMS AND HERD IMPROVEMENT POLICY ADVISORY GROUP Chair – Tyran Jones / Secretariat – Irene Clarke to May 2016, Betty Helou from May 2016
Research, development and Funding commitment is required Research, development and extension for a range of extension delivery mechanisms – both existing and extension (RD&E) strategy, and Ensuring an innovative, competitive, new approaches. Publicly funded the delivery and adoption of and productive industry requires extension in the dairy industry should innovation opportunities such continued investment in research, be recognised for the economic gain as biotechnology (genetic development and extension (RD&E). it will provide, and should form a modification), farm decision- Commonwealth investment in significant part of the total public RD&E making tools, farm business RD&E and dairy farmer and industry investment. management and herd investment, has been crucial in improvement, all play important encouraging Australian dairy to grow Australian Dairy Farmers provides roles in securing the long-term and adapt to changing practices and input to Dairy Australia’s strategic and sustainability and profitability of technologies. annual plans for RD&E investment decisions, and chairs the Dairy Moving dairy farming. These strategies The changing role of state Forward Steering Committee which and opportunities can better governments is a challenge which will oversees the dairy RD&E strategy. The equip farmers for a prosperous have longer term impacts on realising Policy Advisory Group has developed future. The Policy Advisory the value of RD&E. The government an advocacy position and plan Group provides input into can provide leadership in facilitating emphasizing the value of continued strategies through its links with new collaborative extension models investment in RD&E. Dairy Moving Forward and Dairy involving the Commonwealth, the dairy Futures Co-operative Research industry, state governments and the Centre. private sector.
30 Biotechnology Profitable farm business Submissions The Farming Systems and Herd As individual business operators and ››Submission to the Productivity Improvement Policy Advisory Group at an industry level, we are best to Commission inquiry on Regulation of endorses the importance of new focus on the profitability variables Australian Agriculture, February 2016 technologies for the industry’s that farmers and industry can control. ››ADF response to the House of future productivity, sustainability Australian Dairy Farmers is committed Representatives Standing Committee and competitiveness. We consider to developing opportunities to best on Agriculture and Industry on science-led new technologies that may support profitable farm businesses. the Agricultural Innovation Inquiry, increase production, reduce costs, or Over the past decade, many dairy September 2015 improve competitiveness. farmers have questioned their ability ››Collective response to the Economics to sustain or improve profitability while Australian Dairy Farmers recognises and Industry Standing Committee facing both short-term and long-term the potential benefits of genetically on the Inquiry into Technological challenges around the volatility of milk modified pastures and feeds: and Service Innovation in Western prices and input prices, and climatic we support dairy farmers’ rights Australia, October 2015 extremes. to choose between genetically modified organisms and conventional Farm profitability is controlled by two technologies. Australian Dairy Farmers sets of drivers: supports coexistence: the concurrent ››macro drivers: Issues that happen cultivation of conventional, organic, outside of the farmer’s control, for identity preserved, and genetically example weather, milk prices, input modified technologies. Genetically prices, asset value and government modified technology should not policy infringe on the rights of a conventional farmer, and a farmer’s right to use ››micro drivers: Issues that are mostly genetically modified technology should under the individual farmer’s sphere not be infringed upon by regulations of influence, including how well they imposed without basis in science. farm with underlying profitability levels, and how well they prepare Australian Dairy Farmers monitors through risk mitigation strategies. and leads agri-political opportunities to promote gene technology Working alongside other industry developments, and new breeding bodies, including Dairy Australia, techniques that produce non- Australian Dairy Farmers is committed genetically modified organisims. to supporting dairy farmers’ wealth Supported by Australian Dairy Farmers, creation through tactical and strategic Dairy Future CRC’s genetic and new management decisions, including breeding technology research includes those made to minimise the negative commercial delivery, community impacts of macro drivers. perceptions, dairy company positions, state and federal policy, and state and federal regulatory settings. Australian Dairy Farmers supports research and development of new ryegrass varieties, noting its future use will depend on commercialization and market considerations.
31 MARKETS, TRADE AND VALUE CHAIN POLICY ADVISORY GROUP Chair – Roma Britnell to September 2015, Adam Jenkins from September 2015 / Secretariat – David Losberg
China-Australia Free Trade Free trade agreements The Markets, Trade and Value Agreement The Australian dairy industry exported Chain Policy Advisory Group is The China-Australia Free Trade 34% of total milk production in committed to improving dairy Agreement (ChAFTA) was the number 2014/15. We are committed to global farm profitability and ensuring one trade priority for the dairy industry agricultural market reform, and actively sustainable growth for Australian for a number of years – negotiations participate in multilateral, plurilateral dairy production. The Policy with China commenced in 2005. and bilateral negotiations. We are Advisory Group deals with ChAFTA entered into force on 20 seeking a number of free trade issues relating to market insights, December 2015 giving Australian dairy agreements. collective bargaining, health and exporters the first year’s tranche of On New Year’s Day, the Korea-Australia nutrition, sustainable farm input tariff reductions on that date, with a Free Trade Agreement progressed costs, competitive domestic and second round of tariff cuts on to its third year of benefits for dairy international market access, and 1 January 2016. exporters, with further tariff reductions food safety. China is now Australia’s number one and increased quotas for a range dairy export market by both value and of Australian dairy exports. Similarly, volume – this compares to 1990 when the Malaysia-Australia Free Trade China was the 19th largest market. Agreement moved into its fourth China is Australia’s fastest growing year of implementation, translating to dairy export market with demand increased liquid milk tariff rate quotas. for Australian dairy growing strongly. The Thai-Australia and US-Australia ChAFTA places the Australian dairy Free Trade Agreements celebrated industry on a more level playing field a milestone in passing the 10-year with key international competitors, point, and provided improved duty free and helps ensure Australian access quotas for Australian dairy. to the largest global dairy importer. The dairy industry is working ChAFTA enhances the competitive with government, Department position of Australian dairy and provide of Foreign Affairs and Trade, and confidence, investment, growth and other stakeholders to pursue other jobs in the local dairy industry. free trade agreements to deliver Without the implementation of meaningful commercial outcomes for ChAFTA, Australian dairy products our industry in the expanding markets would have tariffs of approximately of India, Indonesia, Taiwan, the $76 million per year, making it difficult Gulf Cooperation Council as well as for the Australian industry to compete through the Regional Comprehensive and gain further market share in China. Economic Partnership. Australian Dairy Farmers thanks the then Minister for Trade and Trans-Pacific Partnership Investment, Andrew Robb, and his On 6 October 2015 agreement team of negotiators, the Australian was reached between the twelve government, industry and the broader Trans-Pacific Partnership negotiating dairy community for its ongoing countries, which together represent support in working to ratify the approximately 40% of global GDP. deal in the 2015 calendar year. This These countries include Australia, agreement lays an historic foundation Brunei, Chile, Malaysia, New Zealand, for the next phase of Australia’s Peru, Singapore, Japan, the United economic relationship with China and States, Vietnam, Mexico and Canada. unlocks significant opportunities for The conclusion of the Trans-Pacific Australia across many sectors. Partnership negotiations continues a historic period of increased trade liberalisation. The Trans-Pacific Partnership will improve opportunities in key export markets including Japan for the Australian dairy industry.
32 The official signing of the Trans-Pacific Effects test needs to be better balanced between Partnership took place in Auckland, Australian Dairy Farmers has retailers, processors and farmers. New Zealand on 4 February 2016. successfully lobbied for the The amended Act will operate in Minister for Trade and Investment, government to implement an effects parallel with other competition the Hon. Andrew Robb AO MP, test as part of Section 46 of the changes including the effects test, represented Australia at the signing Competition and Consumer Act. The the Australian Competition and ceremony, which included Trade 2015 Harper Review of Competition Consumer Commission Agricultural Ministers from the other member policy and law recommendation reads: Commissioner, the Food and Grocery countries. Following the signing Code of Conduct and a Small Business ceremony, Australia must go through ‘A corporation that has a substantial and Family Enterprise Ombudsman. a domestic ratification process as degree of power in a market shall the Trans-Pacific Partnership has yet not engage in conduct that has the Australian Dairy Farmers worked to be ratified and timeframes may be purpose, or would have or be likely hard to get the original monetary impacted by United States domestic to have the effect of substantially thresholds increased from $250,000 to politics lessening competition in that or any $1 million for contracts of more than other market’ one year, and $100,000 to $300,000 Technical barriers to trade The proposed change to Section 46 for the upfront price payable under the contract. We are still working with the Technical barriers to trade are a key of the Act will move Australian law closer to international best practice, government to ensure all dairy farmers priority for the Australian dairy industry are covered by the unfair contracts law. as the industry is heavily reliant on which prohibits unilateral conduct by a exports. The industry exports dairy dominant firm that has a harmful effect products to more than 100 countries on competition. Submissions with a value of almost $3 billion in Australia’s current laws, focusing ››ADIC submission to the Upper House 2014/15. solely on the purpose of the dominant Select Committee Review of the Delivering Victorian Infrastructure Technical barriers to trade have a firm to establish a contravention of (Port of Melbourne Lease Transaction) negative impact on both the volume unilateral conduct prohibitions, are Bill, September 2015 and value of dairy products traded. rarely used as purpose is almost Technical barriers to trade impact impossible to prove. The proposed ››ADIC submission to The Senate on the industry’s ability to seize our amendment includes the key term Foreign Affairs Defense and Trade major competitive advantages (e.g. ‘substantial lessening of competition’ References Committee regarding the strong food safety regimes, credible - how can any reasonable person or China Australia Free Trade Agreement, domestic regulators and reliable organisation oppose this? August 2015 ››ADIC revised submission on the cold storage supply chains) because Australian Dairy Farmers is looking India Comprehensive Economic industry is forced to comply with forward to working with the Cooperation Agreement, June 2015 lowest common denominator import government to ensure that the standards. legislation prevents firms with ››ADIC submission to the Joint Standing Committee of Treaties regarding the The dairy industry conducted a significant market power from engaging in conduct that has the China Australia Free Trade Agreement, study that involved a comprehensive July 2015 analysis of technical requirements purpose, effect, or likely effect of ››ADF comment on the Inquiry into of import markets, technical barriers substantially lessening competition. the Treasury Legislation Amendment to trade, and the impact on industry. The effects test is another tool to help (Small Business and Unfair Contract The estimated total annual impact for provide integrity and transparency Terms) Bill 2015 (Provisions), Aug 2015 individual technical barriers to trade regarding the impact of retailer actions and trade foregone was $1.57 billion. on suppliers. ››ADIC submission to the Joint Standing Committee on Treaties Australian Dairy Farmers welcomed regarding the Trans Pacific Partnership, Unfair contracts the announcement by the Federal March 2016 The Treasury Legislation Amendment Government in September 2015 of ››ADIC submission to the Department (Small Business and Unfair Contract five new Agricultural Counsellors in of Foreign Affairs and Trade regarding Terms) Act 2015 extends unfair overseas markets, as a positive step the potential opportunities and contract term protections in the toward addressing non-tariff barriers impacts of a Free Trade Agreement Competition and Consumer Act 2010 to trade. Each of the new counsellors with the European Union, March 2016 (Cth) to farms and small businesses. is in a key dairy market and reflects the ››ADF discussion paper submitted Brought into effect on 12 November advocacy of Australian Dairy Farmers. to the Competition Policy Review 2016, this amendment is a change We are working closely with the Secretariat on options to strengthen that Australian Dairy Farmers has been Department of Agriculture and Water the misuse of market power law advocating for a significant time. Resources, Department of Foreign (effects test), February 2016 Affairs and Trade and the Australian Farmers are at the start of the value ››ADIC response to Department of Government to reduce technical chain and are at a disadvantage Industry, Innovation and Science, barriers to trade. compared to the larger businesses Country of Origin Labelling - they deal with. As events in the dairy Consultation Regulation Impact industry in April 2016 have shown, Statement, January 2016. farmers bear an unfair share of the risk along the supply chain. The risk
33 NATURAL RESOURCES POLICY ADVISORY GROUP Chair – Daryl Hoey / Secretariat – Irene Clarke to May 2016, Betty Helou from May 2016
Water Amendment Bill Murray-Darling Basin Plan Responsible management of our natural resources is key to the On 14 September 2015, the Senate ADIC submission on the Inquiry on the dairy industry’s long term growth, passed the Water Amendment Bill Murray-Darling Basin Plan was lodged 2015 [Provisions]. This amendment October 2015 and we appeared before and underpins the Australian legislates the 1500GL cap on the Senate Select Committee at a Dairy Industry Sustainability buybacks as part of the 2750GL target hearing in Shepparton on 6 November Framework. The industry has under the Murray-Darling Basin Plan. 2015. Australian Dairy Farmers have a strong record of managing The recommendations sought in the continued discussions on key issues resources such as water and soil, ADIC submission on the Bill can now and solutions with many of the and implementing policies to be sought through future opportunities committee members, their advisers, provide fair and assured access to including the inquiry into the Murray- and politicians. The submission these resources whilst supporting Darling Basin Plan. provided an important statement of dairy’s sustainability initiatives. our position, and a starting point in Passed prior to the election, the our strategy to push for key changes The Natural Resources Policy Water Amendment Bill 2015 amends to the Basin Plan. The Senate Select Advisory Group works towards the Water Act 2007 providing more Committee running the inquiry on the this aim with the technical flexibility in Basin Plan timeframes, Murray-Darling Basin Plan released its support of Dairy Australia implementation of the Sustainable key report on 18 March 2016. through: Diversion Limit, and flexibility in Commonwealth Environmental Water The dairy industry supports reforms ››overseeing the implementation Office trading environmental water. that will improve the environmental of the Murray-Darling Basin Plan Passing the Water Amendment Bill health of the river system across and its Water Recovery Strategy, 2015 sets the tone for future decisions the Murray-Darling Basin. With the advocating for methods to on the Basin Plan – favouring quality implementation of the Murray-Darling reducing greenhouse gas of environmental outcomes over Basin Plan now underway, the dairy emissions intensity quantity of water, and more flexibility industry supports reconsideration of ››investigating changes to energy in achieving outcomes. roles and responsibilities to ensure greater clarity and efficiency in the use and renewable energy An ADIC submission was lodged on delivery of the plan. Water availability options that are affordable for the government review of the design and affordability are key issues for farmers of the Commonwealth On-Farm dairy. Dairy farms are significantly Further Irrigation Efficiency Program in ››promoting sustainable natural challenged by reduced water December 2015. resource programs, such as nutrient management tools, and support dairy farmers’ capital investment in funding these best practices ››improving dairy farmers’ risk management, such as better preparing them for drought and extreme weather events, through improved government policy and tools.
34 availability under the Murray-Darling further issues to the industry which Sustainability Framework Basin Plan. Dairy farms must remain is already dealing with significant Australian Dairy Farmers has been viable businesses for the industry to strain and uncertainty. The Australian focused on its engagement with the have a future in the Murray-Darling dairy industry mobilised quickly Sustainability Framework by providing Basin. with government to provide farmers input and review on the 2015 progress with support. Up to 50 dairy farmers In looking at water infrastructure report; participating in External incurred moderate or severe damage opportunities, it is important that Consultative Forum in October 2015; on their farms to fencing, laneways government considers projects to and engagement with consultative and tracks, farm and irrigation increase water efficiency, and not forum members and other key equipment, some dairy sheds, stock just large infrastructure projects such stakeholders. losses and pasture damage. as dams. For the dairy industry, farm The Sustainability Framework Steering level upgrades will have long-term Committee in 2016 is driving a more Unconventional gas mining impact. Government co-investment thorough materiality study to inform in farm irrigation upgrades is cost The Senate has initiated an inquiry possible adjustments to targets or effective in terms of farm productivity, into coal seam gas. The inquiry will to consider those areas where new competitiveness and regional look into ‘the adequacy of Australia’s targets are needed economic activity. legislative, regulatory and policy framework for unconventional Early 2016, a number of Submissions communications initiatives were gas mining including coal seam ››ADIC response to the Environment deployed. This includes fact sheets gas and shale gas mining’. ADIC and Planning Committee, Parliament on the Murray-Darling Basin and lodged a submission on 24 July of Victoria on the Inquiry into key issues with the Murray-Darling 2015 in response to the inquiry into Unconventional Gas in Victoria, July Basin Plan, newspaper ads/ unconventional gas in Victoria. 2015 opinion pieces/ columns, case To realise the dairy industry’s strong ››ADIC response to the Senate studies, possible regional meetings, potential to grow and remain Standing Committees on Environment etc. A communications strategy competitive in the international dairy and Communications on the Water was prepared and has been an market, it will be critical to address Amendment Bill 2015 (Provisions), evolving reference for advocacy and any risks of unconventional gas July 2015 communications activities. mining activity, ensure there is no ››ADIC response to the Senate Select compromise to the natural resources Committee on the Murray-Darling upon which the industry relies, and Weather extremes Basin Plan on the Inquiry into the ensure there is no loss to market Australian Dairy Farmers endorses Murray-Darling Basin Plan, October access or industry reputation as a preparedness as the primary means of 2015 producer of high quality, safe dairy managing natural disasters. Support products. ››ADIC comment to the Department during, or in recovery, from an event is of Agriculture and Water Resources warranted where conditions have gone on the Commonwealth On Farm beyond reasonable business and farm Carbon emissions Further Irrigation Efficiency Program, management preparedness options. On 11 August 2015, the government December 2015 Extreme weather conditions in announced its proposed emissions ››ADIC response to the Water February 2016 continue to challenge targets for the post-2020 period. The Amendment (Review Implementation farmers across all dairying regions. target is to reduce greenhouse gas and Other Measures) Bill 2015 Bushfires in Tasmania and Western emissions to 26-28% below 2005 [Provisions], February 2016 Australia impacted dairy farms. As levels by 2030. The announcement ››ADIC response to Senate Inquiry into farm businesses may be affected was made ahead of the UN Climate Unconventional Gas Mining, March by elements beyond their control, Change Conference in December 2016 preparing for threats is essential to 2015. The ADIC submission on protect your family, staff, livestock and the post-2020 target did not take business. Australian Dairy Farmers’ a position on the actual target, but primary focus is to ensure famers focused on long-term certainty and are equipped with fundamental an appropriate, supportive policy information and to work with its state framework. Australian Dairy Farmers members with recovery efforts. is engaged as the policy framework is developed, and continues with our Since heavy rains and wild winds key messages around international hit Australia’s south east coast on 5 competitiveness, an emissions June 2016, flooding has significantly intensity approach to allow for growth, affected some dairying regions in and supportive government actions in Tasmania. These floods have added energy efficiency.
35 PEOPLE AND HUMAN CAPACITY POLICY ADVISORY GROUP Chair – John Versteden / Secretariat – Betty Helou to September 2015, Adele Beasley from September 2016
Safety culture that health, safety and wellbeing The dairy industry relies on Planning forums in early 2016 must become part of the everyday the safety and wellbeing of refocussed the priority areas for the conversation and practice across the its people to prosper and People and Human Capacity Policy dairy value chain. The ADIC made a the continued attraction Advisory Group. Identified as the commitment at the breakfast to drive and retention of a highly number one priority for the whole dairy change across the industry through motivated workforce for its industry, farm health and safety has improved collaboration between sustainability. The People and been a key focus of ‘people’ policy service providers, processors and Human Capacity Policy Advisory throughout the second half of the industry representative bodies. Group continues to prioritise financial year. This breakfast was the first step in the people in dairy who are at The April 2016 ADIC Business providing leadership to change the the backbone of our industry. Breakfast was themed: Protecting culture of safety on-farm with an Advocating for improved access what matters: ensuring the health, industry-wide approach currently in to a reliable workforce, ensuring safety and wellbeing of our people. At development. regulations meet the demands this breakfast, the ADIC highlighted of a modern dairy farm and protecting the health of all dairy farmers have been key focusses for the Policy Advisory Group throughout the year.
36 Social and emotional wellbeing Backpacker tax Labour Agreement Supporting the social and emotional Australian Dairy Farmers and other The Dairy Industry Labour Agreement wellbeing of our dairy workforce has agricultural commodities were led was signed on 17 July 2015, finalising been an important focus for the People by the NFF in lobbying against the the conclusion of negotiations with the and Human Capacity Policy Advisory introduction of a 32.5% tax rate for Department of Immigration and Border Group. Recognising the unique backpackers. As part of the 2015 Protection. Under the agreement, challenges that dairy farmers face, Federal Budget, the government dairy farmers can now recruit senior including ongoing market volatility announced that from 1 July 2016 all farmhands from overseas, as well as and extreme weather variables, working holiday makers will be taxed farm managers. Australian Dairy Farmers strengthened at a rate of 32.5% on all income. relationships with organisations who Backpackers form an important part of Submissions support the wellbeing of our dairy dairy’s workforce and allow us to fill ››ADIC response to the Department of farmers and their families. vital roles which cannot be filled locally. Immigration and Border Protection’s If this tax is brought in as it currently Planning the 2016-17 Migration Seasonal Worker Programme stands, backpackers may choose to Programme - Discussion Paper, Seasonal workers will now be able travel to countries with lower tax rates, December 2015 to assist dairy farmers during busy such as New Zealand. This would ››ADIC submission to the Review of the periods when local workers are not be damaging to the dairy industry, Skilled Occupations List available, due to the expansion of regional communities and the tourism ››ADIC response to Department of the Seasonal Worker Programme. industry, as well as the broader Immigration and Border Protection’s Announced on 8 February 2016, the economy. industry engagement on migration expansion of the programme follows Following significant media and temporary entry significant lobbying by Australian attention on the introduction of the ››ADF comment to the Joint Standing Dairy Farmers to provide a returning tax and Australian Dairy Farmers’ Committee on Migration on the workforce to dairy farmers. participation in consultation forums, Inquiry into the Seasonal Worker The dairy industry has a strong track the government announced that they Programme, July 2015 record of contributing to communities would be delaying the introduction in regional Australia and was eager of the tax pending the outcome of a to contribute to communities in review. neighbouring countries in the Pacific and Timor-Leste. Australian Dairy Minimum engagement Farmers will continue to advocate As part of the Modern Award review, a for programmes which make it reduction in the minimum engagement easier for dairy farmers to employ of dairy operators from three to two overseas workers who strengthen rural hours was sought. This was to ensure communities when local employees the Pastoral Award 2010 meets the are not available. realities of dairy farming, which The Seasonal Worker Programme requires herds to be milked twice daily provides approved employers with to ensure the comfort and health of access to seasonal workers from our animals. Pacific island countries and Timor- The claim to reduce the minimum Leste for up to six months, and up engagement of dairy operators, to nine months for workers recruited submitted by NFF, relied on evidence from Kiribati, Nauru or Tuvalu. from eight dairy farmers that the three-hour minimum engagement has acted as a barrier to job creation, limited the capacity of the dairy industry to provide work for employees who need greater flexibility in their work arrangements and drives up farm costs with no productivity return. Modelling was provided which showed the financial cost of three-hour and four-hour minimum engagement laws to the industry.
37 MEMBER ORGANISATIONS – NSW FARMERS’ ASSOCIATION DAIRY COMMITTEE Chair – Robert McIntosh / Executive Officer – Jamie Lovell
NSW Farmers’ Association is THE YEAR IN REVIEW Animal health Australia’s largest state farming Bovine Johne’s Disease has continued organisation, representing a wide $1/litre milk to be a focus for the committee range of commodities. The NSW throughout 2015/2016. Following the The most significant issues for our Farmers’ Dairy Committee is finalisation of the National Bovine dairy farmers has been the price responsible for the creation and Johne’s Disease Strategic Plan Review they receive for their milk. In early execution of all association dairy in early 2016, NSW Farmers has been 2016, unprecedented mid-season policy and represents the interests of engaged with the NSW Department of retrospective price cuts were its dairy farmer members in industry, Primary Industries. State-wide changes implemented by two processors. This state, and federal matters. implemented 1 July 2016 removed incident highlighted the long standing strict quarantine regulations and The Dairy Committee and the entire issue of unsustainably low farm gate shifted focus to on-farm management association was deeply saddened prices and the untenable current of the disease. by the tragic loss of committee situation. The issue was brought to member Howard Lee. He was a the attention of the wider Australian dedicated member of the dairy community through mainstream Infrastructure industry and greatly respected within and social media coverage, and the The nature of dairy farming has often his wider community - he will be response was hugely supportive meant buying or leasing neighbouring missed by all those who knew him. of farmers. NSW Farmers Dairy properties, requiring cattle to In commemoration of his profound Committee has been actively cross a road to get to the milking contribution to NSW Farmers, the engaged on a state and national sheds several times a day. In the association registered and named level representing the concerns of memorandum of understanding signed a new type of Cattleya orchid in his NSW farmers. The committee has with the NSW Liberal and National memory – Cattleya Howard’s Delight. been voicing concerns regarding parties before the 2015 election, the the pressure the industry has faced association was able to secure a following the introduction of $1/litre commitment from the government for milk and home brand dairy products the development of a cattle underpass by the major supermarkets, which scheme. Our farmers in NSW were has lowered the value of dairy in the surveyed to ascertain what locations eyes of the consumer and squeezed would benefit from a cattle crossing. farmers and processors even further. A working group led by the NSW Department of Primary Industries was formed and involved key stakeholders: NSW Farmers; Department of Premier and Cabinet; Treasury; Roads and Maritime Services; and Transport NSW. NSW Farmers continues to assist this taskforce by providing specific coordinates so that other members of the taskforce can model the crossing types and cost estimates. Work will continue on the development of this scheme.
Cattleya orchid named Howard’s Delight
38 PRIORITIES FOR THE YEAR AHEAD The core pillar of the NSW Farmers Dairy Committee will be to improve, enhance and develop our communications protocols with all relevant stakeholders. We will increase our intensity of member communications, enhance our alliance and relationships across the supply chain, and look to increase our contribution to the work of other dairy industry bodies. It is the will of the committee to build a strong working relationship with Dairy Connect and sees this objective as a high priority. In light of the Murray Goulburn situation, there is a need for farmer board education. Targeted training on corporate processes will teach farmer representatives how to ask critical questions, and how to discern the messages being delivered by management. The best outcomes are delivered when people are skilled, have an understanding of the issues, and ongoing support for farmer education. We will continue our focus on markets, access and trade by examining the economy of $1/litre milk and addressing concerns arising from this examination. Market access and trade will be a focus of our collaborative work with Dairy NSW. A new and important priority area for the NSW Farmers Dairy Section will be better engagement with processors. As far as possible, we want collaborative and cooperative relationships. New areas of renewed focus will be the environment and water portfolios. We need greater input into the work of the Murray-Darling Basin Authority and we want to address concerns around red tape and cost as it relates to water allocations. We know that dams are vital infrastructure for all farmers and we will focus on getting policy progression in these areas. In infrastructure, we want the delivery of new cattle underpasses and this will be a focus for our work with the NSW Government. Transport regulations and the movement of agricultural equipment needs to be addressed, as does the issue of effluent. Finally, we want more to be done to progress major infrastructure projects such as inland rail and the Greater Western Highway through the Blue Mountains.
39 MEMBER ORGANISATIONS – QUEENSLAND DAIRYFARMERS’ ORGANISATION
President – Brian Tessman / Executive Officer – Adrian Peake to May 2016, Eric Danzi from May 2016
Queensland Dairyfarmers’ THE YEAR IN REVIEW Effects test Organisation (QDO) is the peak QDO supported Australian Dairy advocacy organisation representing Cyclone Marcia Farmers and other small business the interests of dairy farmers across advocacy groups in lobbying the QDO successfully lobbied the State Queensland. The QDO is proud to Federal Government to commit to Government for additional natural be the voice of Queensland dairy introducing the effects test into the disaster assistance resources to assist farmers, and has an excellent track Competition and Consumer Act to dairy farmers impacted by Tropical record of providing realistic outcomes extend unfair contract protection laws Cyclone Marcia. QDO was able to and solutions for issues affecting our to cover small business. members. deliver on-ground support for farmers by assisting them accessing available financial and support services.
Nambour Christian College promoting dairy
40 PRIORITIES FOR THE YEAR AHEAD QDO is focused on three key priorities that we believe will deliver tangible benefit to our members in the year ahead.
I buy branded milk As a peak body that is committed to getting a long term and sustainable farm gate price for our members, QDO will continue to lobby and advocate for the removal of $1/litre milk. One component of this is the public campaign encouraging consumers to shift their buying habits towards buying branded milk product through the ‘I buy branded milk’ motto. The major focus of the campaign is to get government to force retailers to remove $1/litre milk. By achieving this, processors will be able to pass on the extra revenue generated from the increase in branded milk sales.
Biosecurity Queensland’s recent changes in biosecurity regulations have removed the states’ Bovine Johne’s disease status. QDO will be developing and implementing a Bovine Johne’s disease program in consultation with the State Government to minimise the spread of the disease and limit the financial impact to Queensland dairy farmers.
Electricity prices QDO will be working proactively with the state government to get a better outcome for farmers on electricity prices. With a decade of unsustainable high price rises in Queensland, the issue has become essential to resolve.
Maleny Dairy 18 May 2016
41 MEMBER ORGANISATIONS – TASMANIAN FARMERS AND GRAZIERS ASSOCIATION Dairy Council President – Andrew Lester / Executive Officer – Nick Steel
The Tasmanian Farmers and Graziers THE YEAR IN REVIEW Weather Association (TFGA) is the leading It has been a particularly tough year for representative body for Tasmanian Captive bolts the farming community in Tasmania. primary producers and, according to the Australian Farm Institute, is the The TFGA, in conjunction with the Firstly, we endured an extended most effective farm lobby group in Tasmanian Government, through dry period that spanned nearly five Australia. Operationally, the TFGA is consultation with industry, has seasons, the results of which will divided into separate councils that deal secured a workable change in firearms be felt for at least another year. This with each of the major commodity regulation which means that dairy season’s dry conditions hit Tasmanian areas. We have a number of standing farmers are able to use captive bolt farmers where it hurt. The emotional committees that deal with cross- devices with blank ammunition without and physical ramifications were commodity issues such as climate a gun licence. This is an amazing far-reaching, and the pain in the back change, biosecurity, forestry, water outcome for animal welfare. Through pocket from the extra expenditure on and weeds. connections within the industry we water and feed was a compounding have been able to successfully ensure factor. The TFGA launched its feed and TFGA members are responsible for that industry stakeholders were kept fodder register in the midst of these generating approximately 80% of informed of the good news. trying conditions to provide a one-stop the value created by the Tasmanian shop for farmers who were trying to fill agricultural sector. The TFGA is a gap in fodder production. constantly in contact with farmers and Van Diemen’s Land other related service providers across Company sale Then, as 2015 drew to a close we were the state. As a result, we are well TFGA welcomed the news that the confronted with fires, most notably in aware of the outlook, expectations and Foreign Investment Review Board the north-west of the State. These fires practical needs of our industry. approved the sale of the state’s largest continued to burn for many months. In dairy organisation. The sale of Van some cases, the smoke from the fires The gross value of agricultural Diemen’s Land Company to Moon tainted fodder and pastures, which production in Tasmania in 2014/15 Lake Investments is good news for was potentially detrimental to milk grew to $1.4 billion dollars, with the industry and the state. Moon Lake production and cattle health. dairy being the largest contributor Investments’ continued investment in with a value of $442 million. Directly And then the rains came. For some the sector will reinforce the importance or indirectly, Tasmanian agriculture around the state this came as a of agribusiness and the dairy industry employs one in ten Tasmanians: every blessing as dams were filled and to the Tasmanian economy. We look Tasmanian has a stake in the future barren pastures started to shoot and forward to building a close working success of the agriculture sector. turn green. For many others, the relationship with Mr Lu. rains were devastating – stock losses, major infrastructure losses, income Dairy price streams devastated, and masses of Tasmanian farmers, like those debris across their farms. The dairy interstate, were hit hard by two community losses included whole retrospective price clawbacks from herds of valuable stock and thus major dairy processors. The TFGA has generations of priceless genetics, been in constant contact with dairy irreparable damage to many improved stakeholders and other industry bodies pastures, and millions of dollars to ensure that the best outcome in damage to private and public can be reached for the state’s dairy infrastructure including roads, bridges, industry. We are looking forward to irrigation investments, and farm some much needed price step ups in machinery. the future. Since the floods it has been impressive to see how well Tasmanian and national industry bodies have worked together in an effort to ensure a prosperous future for the industry. Flood recovery will take some time and the effects will remain for years, Andrew Lester: TFGA Dairy Council President, nevertheless the TFGA will continue member of ADF National Council, member of ADF Animal Health and Welfare Policy Advisory to address a range of other issues that Group, Chair of TFGA Animal Health and will require our action, comment and Welfare Action Group. advocacy on behalf of our members.
42 PRIORITIES FOR THE Water for Profit program The program is working with farmers in key areas where there is new or YEAR AHEAD The TFGA continues to work closely with farmers, agricultural agencies and increased access to irrigation. Water stakeholders in the Water for Profit for Profit provides farmers access to Backpacker tax program; a state-wide initiative to help new technologies and online tools The TFGA welcomed the formal Tasmanian farmers maximise their developed through the Tasmanian announcement of the Federal return on investment in irrigation. Institute of Agriculture, detailed land Government’s review into the planned management information through backpacker tax, which would have Water for Profit is a four-year program, Tasmanian Irrigation’s farm water seen working backpackers paying now entering a key outcome stage, access plans, and digital soil mapping 32.5% tax from July 1 2016. consisting of four projects: from Department of Primary Industries, Parks, Water and Environment. We will work with industry ››farmer groups working together and stakeholders to ensure that the supported by extension activities Farmers lead and set the priorities review takes into account the views to help each other maximise the for future irrigation research and and requirements of the Tasmanian potential of their current irrigation development, in collaboration with agricultural industry. Tasmanian systems program partners, through support farmers would ultimately like to see ››online irrigation and cropping tools provided by TFGA, industry groups and the backpacker tax taken off the to help farmers make informed agricultural consultants. agenda. decisions Profitable year ahead Many Tasmanian dairy enterprises rely ››soil management practices under on international workers to fill their irrigation by testing soil physical We are looking forward to a more short-term labour needs. A tax of this properties profitable future for all players in the magnitude would prohibit us from dairy industry. Hopefully we will see being internationally competitive in ››soil mapping information to the benefits of multiple free trade attracting labour from overseas. assist with land-use planning and agreements start to flow to all in investment decision making. the sector. Tasmanian farmers are resilient, innovative, productive, and generally good natured people who are keen to embrace opportunities ahead.
43 MEMBER ORGANISATIONS – WESTERN AUSTRALIAN FARMERS FEDERATION
President – Michael Partridge President / Executive Officer – Kim Haywood
The West Australian dairy industry Increase membership PRIORITIES FOR THE is located in the south west of the WAFarmers, in partnership with YEAR AHEAD state around three main areas: Harvey, Australian Dairy Farmers, have hosted Margaret River, and Denmark on the five Dairy Industry Update meetings Stability in industry south coast. With 145 dairy farms, the across the dairying region of WA. The state produces around 387 million meetings provided WA dairy farmers WAFarmers wants to ensure all dairy litres of milk per annum, contributing with the opportunity to learn about farmers in the short term, have the four per cent of Australia’s total milk the latest developments in industry choice to stay in the industry if they production. The state’s processing products and services, and gave choose. Nine Western Australian sector of the industry is dominated attendees insights into how Australian dairy farmers have been advised by by three key companies along with Dairy Farmers, the national peak Brownes and Parmalat (Harvey Fresh) a number of small businesses and body for dairy and the state farming that their milk will not be collected organic operations. The WAFarmers organisation WAFarmers, were once their current contracts expire in Dairy Council is committed to working to benefit all members. Dairy September 2016 and January 2017. working in the policy field to ensure farmers had the opportunity to raise WAFarmers is working in partnership our industry is involved in shaping their own issues and concerns with with processors and the government the regulations under which dairy some excellent matters being raised on possible solutions to this significant businesses must operate. for both advocacy organisations to issue. take on board. These meetings were THE YEAR IN REVIEW followed by the WA Dairy Industry Long term solutions Conference which saw the biggest WAFarmers is building relationship to Perth Royal Show dairy pavilion attendance to date. The processor achieve long term solutions, especially panel had to deal with some intense WAFarmers, in partnership with balancing seasonal variations and questioning about their farmer Dairy Australia, Western Dairy, milk growth opportunities with new contract decisions and how they could processors and the Royal Agricultural infrastructure opportunities and work with the industry to deal with Society have implemented an initiative investments. To resolve these long oversupply issues. to revamp the dairy industry pavilion term issues, the WAFarmers Dairy at the Perth Royal show at the end of Western Dairy hosted the Dairy Council want an independent review of September. The initiative is funded Innovation Day in April, where a large dairy farmer contracts to make these through income generated by the sale number of dairy farmers shared their fairer between producer and processor. of WAFarmers First branded milk. The thoughts and ideas on the future of Secondly, consideration is being given revamped pavilion will showcase the their industry. WAFarmers had a stand to options that will balance season dairy industry to the large crowds that at the event to promote its activities milk production. attend the show each day. The Dairy and encourage more dairy farmers Industry Fund is supporting two youth to join the organisation. WAFarmers Lifting the value paid for milk scholarships to encourage young hosted the industry dinner after the WAFarmers will continue to advocate people attending Harvey and Denmark event, which 200 people attended. against the $1/litre milk pricing agricultural colleges to further their The evening included the young dairy campaign. This destructive campaign interests in the dairy industry. farmer of the year awards and a is driving down values in the supply charity auction hosted by the landmark chain and has lessened the ability for Harvey Region bushfires auctioneer, Tiny Holly. processors to manage other volatility Devastating bushfires ripped through in the market because of the reduced the region in January causing havoc for margins for liquid milk. WAFarmers dairy farmers with many losing fencing, continues to advocate for the true buildings, fodder and pasture supplies. value of milk to be paid for this The fires caused a major milk shortage important nutritional source. for the state with an estimated 800,000 litres being dumped. However, WAFarmers was able to negotiate with processors to have this milk paid for. WAFarmers set up a fire appeal, which generated strong support from the public; funds were quickly dispersed to affected farmers. WAFarmers recruited the services of Blaze Aid to help farmers rebuild fences damaged by the bushfires.
44 45 MEMBER ORGANISATIONS – SOUTH AUSTRALIAN DAIRYFARMERS’ ASSOCIATION
President – David Basham to May 2016, Nick Brokenshire from May 2016 Chief Executive Officer – Ken Lyons to February 2016, Andrew Curtis from May 2016
The South Australian Dairyfarmers’ ››promote the superior quality, taste SADA Fresh Association was established in 1936 and health benefits of local dairy When the dairy industry was hit with to represent the interests of South products the perfect storm in 2013, triggering Australian dairy farmers. With more ››support the South Australian a series of protest marches and crisis than 60% of the state’s dairy farmers Government ‘Buy Local’ policy meetings in SA, dairy farmers turned as members, SADA is one of the most to SADA for strategies to generate a strongly supported farm lobby groups ››increase demand for South more viable future. SADA responded in Australia. Australian dairy products among by launching its own brand of milk, consumers. SADA Fresh, in Coles supermarkets Encouraging investment Adelaide shoppers were given across the state in October 2013. In Encouraging investment in both the opportunity to taste a range doing so, SADA became the first the farm and processing sectors, of amazing South Australian dairy farmer organisation in Australia to with its potential to increase market products from local processors at the create its own consumer brand, which diversity and demand and farm-gate Do Dairy launch in the Rundle Mall, has been an outstanding success, prices, continued to be a high priority August 3 2013. despite minimal advertising. for SADA in 2015/16. Processing Do Dairy featured in the Department Sales of SADA Fresh milk through commenced at Beston Pure Foods of Primary Industries and Regions SA Coles supermarkets in South Australia Murray Bridge and Jervois plants stall in the Taste SA Pavilion, at the have continued to grow. The brand is in September 2015. Meanwhile Royal Adelaide Show, September 4 now well established and sort after by the new Midfield facility at Penola 2016. Present to open the campaign, many consumers. Under the licensing is in construction with a planned was the Minister for Agriculture, agreement, Parmalat pays SADA 20 commencement in 2017. Food and Fisheries the Hon Leon cents for every litre sold. The changing circumstances in the Bignell MP, Australian Dairy Famers industry has allowed the establishment Acting President David Basham, and of the Do Dairy program which will the South Australian Dairyfarmers’ further develop the relationship Association Acting President Nick between producers and processors in Brokenshire. South Australia. The objectives of Do Dairy are to: ››educate consumers about what dairy products to buy to support South Australian dairy farmers
SADA Acting President Nick Brokenshire
46 SA Dairy Industry Fund The SA Dairy Industry Fund was officially formed in October 2014 to finance projects that directly benefit the South Australian dairy industry and its communities. It is managed by a small board, chaired by Dennis Mutton, a well-known figure in South Australian agriculture with vast experience in the research and development sector. The organisation is funded by proceeds from the sale of SADA Fresh. We are interested in game changing concepts that offer real value for money and genuine potential to improve the productivity, performance, business growth and diversity of the SA dairy industry and any part of its supply chain.
Environmental issues The concept of user pays is becoming all the more common as state governments seek great contributions from industry. In SA, there are rising concerns that water levies could be seen as a source of funding for the general activities of regional Natural Resources Management Boards. SADA is working with a new state farmer organisation, Primary Producers SA, to deliver a united position. Farmers in the south east region are becoming increasingly concerned about coal seam gas mining and fracking, supporting the ‘Lock the Gate’ movement in huge numbers. Thousands of Lock the Gate signs have gone up on properties in the region and a motion raising concerns about unconventional gas mining was passed by the South East Local Government Association in June 2014. A state government inquiry into unconventional Do Dairy Launch, Rundle Mall: Joel Fielke, Joseph Kouts and Patrick Edwards supporting SA’s delicious gas mining is due to hand down its flavoured milk. Photo courtesy of Stock Journal findings this financial year.
Breezeair SA Scorpions Katelyn Pope and Sarah Lowe make a smoothie for Do Dairy.
47 MEMBER ORGANISATIONS – UNITED DAIRYFARMERS OF VICTORIA (VICTORIAN FARMERS FEDERATION)
President – Adam Jenkins / Executive Officer – Vin Delahunty
Victorian Farmers Federation United Dairyfarmers of Victoria The Victorian Farmers Federation (VFF) The United Dairyfarmers of Victoria is a community of farmers creating (UDV) is the collective voice of a profitable, sustainable and socially Victorian dairy farmers, representing responsible agricultural industry. its members to governments and industry at state and local levels. VFF is the largest state farmer organisation in Australia, representing Dairy is Victoria’s largest agricultural over 10,000 members who live industry, and the powerhouse of and work on more than 6,000 farm Australia’s $13 billion dairy farm, businesses across Victoria. manufacturing and export industry. The VFF is an active, powerful lobby Our state’s 4,284 dairy farms produce group dedicated to the interests of more than six billion litres of milk a farmers and making a difference to year and provide work for 16,000 communities. With a strong record Victorians on farms and another of successful political advocacy and 11,000 in milk processing factories. leadership, the VFF has generated Victoria is export-oriented, accounting substantial benefits for the agriculture for 86% of Australia’s dairy exports. sector since its formation in 1979. $2.3 billion a year worth of Victorian dairy products passes through the Even though farming has its own Port of Melbourne, where dairy is the natural challenges from droughts, largest container exporter. bushfires and floods, our members have collectively earned the VFF a reputation as a respected leader, contributor and lobbyist. The VFF consists of seven commodity groups: dairy (United Dairyfarmers of Victoria), livestock, grains, horticulture, chicken meat, eggs and pigs, as well as four committee groups - water, land management, farm business and rural development, and farm security.
48 49 INDUSTRY PARTNERS – AUSTRALIAN DAIRY HERD IMPROVEMENT SCHEME
Chair – John Harlock / General Manager – Daniel Abernathy
The Australian Dairy Herd Improvement Good Bulls app Feeding the Genes Scheme is an Australian Dairy Farmers Launched in early 2016, the Good A key finding of the 2016 Feeding the initiative that receives the majority of Bulls app makes it easier than ever Genes study conducted by Dr John its funding from Dairy Australia through for dairy farmers to identify bulls Morton, was that the daughters of the Dairy Services Levy. that match their breeding priorities. high genetic merit bulls produce more Building upon the success of the milk solids and last as long or longer THE YEAR IN REVIEW Good Bulls Guide, the interactive in the herd, regardless of a herd’s format of the app has been extremely feeding system. High genetic merit Highlights from Australian Dairy Herd popular. Drawing from an expansive bulls are determined by the Balanced Improvement Scheme activities over database of more than 20,000 local Performance Index (BPI). the past 12 months include the Good and international dairy bulls, the Good Bulls App, Feeding the Genes study, Bulls app allows bulls to be sorted fertility improvements and continued on Australia’s three breeding indices: service to Australian dairy farmers. Balanced Performance Index (BPI), Health Weighted Index (HWI) and Type Weighted Index (TWI). Up to 50 filters can be used to find bulls that match specific breeding objectives. Bulls can be filtered by traits including protein, cell count, fertility, mammary system, bull company, pedigree, genetic characteristics, and other factors. The app provides detailed Australian Breeding Values (ABVs) on each The study found similar trends for the bull, making it easy to compare three Australian breeding indices: BPI, between bulls and shortlist bulls HWI and TWI. In addition to producing of interest. Shortlisted bulls can more solids, the results showed the be exported to a trusted advisor to daughters of high index sires are facilitate purchasing decisions. The more likely than other cows to last in app is updated three times a year the herd, in all pasture-based feeding with the April, August and December systems. In feedlots herds, there is no releases of ABVs. Once downloaded marked effect of a cow’s sire’s BPI on on a smart phone or tablet, the app her longevity in the herd: daughters of can be used without internet service. high BPI sires are just as likely as their herd-mates to last in the herd.
The Good Bulls app makes it easier than ever for dairy farmers to identify Allison Potter using the Good Bull app, Poowong bulls that match their breeding priorities.
50 While the analysis was complex, can be achieved by selecting high PRIORITIES FOR THE Dr Morton’s conclusion was clear: BPI/HWI sires from the Good Bulls regardless of their feeding system, Guide/App that have high ABVs for YEAR AHEAD herd managers should select high daughter fertility. Over time, continued The coming year, 2016/17, will see the ranking sires (based on BPI, HWI or improvements in herd fertility are delivery of two major developments in TWI) from the Good Bulls Guide with expected, as more cows with better herd improvement: DataGene and new Australian Breeding Values that are genes for fertility enter the milking software for genetic evaluation, GESII. aligned to the breeding objectives herd, combined with management for the herd. Regardless of level of practices to improve reproductive DataGene supplement feeding, all farmers would performance such as nutrition, heat benefit from a clear focus on genetics. detection, artificial insemination, and The establishment of an Australian bull management. Herd Improvement Centre of Excellence ‘DataGene’ has the Fertility potential to significantly boost the Genetic selection has played an Servicing dairy farmers profitability of Australian dairy farmers. important role in halting the downward From Bunbury to Bundaburg, the DataGene is expected to bring the trend in reproductive performance Australian Dairy Herd Improvement functions of Australian Dairy Herd in Australian dairy herds, according Scheme team has supported farmers Improvement Scheme and MISTRO to a recent analysis of the impact of make breeding decisions easier herd test centre software into a single, the daughter fertility ABV. The study through presentations to more than industry-owned organisation. The new found that daughters of sires with 2,600 people in 2015/16, and over organisation a key recommendation higher ABVs for daughter fertility 420 published media articles. The of the Herd Improvement Industry have markedly better reproductive genomic testing of females, Good Strategic Steering Group, which was performance than daughters of Bulls App, Genetic Progress Reports established in 2013 to investigate how sires with lower daughter fertility and ABVs were popular topics as the industry can best meet the needs ABVs. The study concluded that farmers continue to strive for improved of Australian dairy farmers. continual selection of sires with a high genetics that contribute to building DataGene will enable industry to Balanced Performance Index (BPI) profitable dairy herds. address the significant changes resulted in small but permanent and occurring within the herd improvement compounding improvements in herd sector, including the widespread use reproductive performance. However, of genomics, increasing focus on faster genetic gain for herd fertility animal health traits in genetic selection and the declining participation in herd recording. The transition of Australian Dairy Herd Improvement Scheme functions across to DataGene are expected to occur by December 2016, creating a new herd improvement framework to build upon the foundations established by Australian Dairy Farmers more than 30 years ago.
Genetic evaluation software An important activity during 2016/17 will be the redevelopment of the genetic evaluation software used by Australian Dairy Herd Improvement Scheme to calculate breeding values and indices. Developed 20 years ago, the software had become inefficient, cumbersome and limited. Scheduled for completion in mid-2017, the new software, GES11, will integrate with the new central data repository to enable more frequent ABV runs, including female genotypes and allow faster delivery of reports to farmers for making more timely decisions.
51 INDUSTRY PARTNERS – AUSTRALIAN DAIRY PRODUCTS FEDERATION
President – Robert Poole / Executive Director – Peter Stahle
Australian Dairy Products Federation THE YEAR IN REVIEW consequent low dairy prices. The (ADPF) is the peak policy body for resultant depressed market conditions commercial/non-farm members of ADPF has participated in continued will weigh heavily along the whole the Australian dairy industry. The collaboration with Dairy Australia and of the industry value chain for the federation members include Australian Australian Dairy Farmers, particularly foreseeable future, and will test registered businesses engaged in the through the ADIC Investment Plan, to the determination of producers and processing, manufacturing and trading actively promote and advocate for the processors to hold the line. of dairy products. industry on a wide range of issues. The ongoing company support for the Industry dialogue on contentious ADIC fund is a manifestation of the domestic issues, such as the mutually beneficial and close working acceptance of genetic modification, relationship of the key industry bodies. recombinant Bovine Somatotropin, and adoption of new technologies The impact of unfavourable growing have and will remain germane to conditions, and high input prices industry priorities and plans for the in Australia have exacerbated the future. ramifications of global oversupply and
52 PRIORITIES FOR THE YEAR AHEAD Company engagement and further development of the Dairy Industry Sustainability Platform will play an important role in consolidating the reputation of the industry domestically and internationally. Importantly, a demonstrated commitment to the three priority areas of the platform – Enhancing Livelihoods, Improving Wellbeing, and Reducing Environmental Impact will underwrite the industry’s social licence to operate. Active promotion of the National Health and Medical Research Council - Australian Dietary Guidelines will play an important role in ameliorating the impact of flawed government initiatives such as the Health Star Rating Scheme and attempts by some international non-government organisations to undermine the credibility of dairy products as an important source of human nutrition. In light of global supply issues, maintaining existing and developing new trade opportunities continues to be high on the agenda for the Members of the Australian Dairy Products Federation. Particularly: supporting the Trans-Pacific Partnership which has the potential to unravel as a result of US politics, reducing the impact of technical barriers to trade with various trading partners, and pursuing the development of meaningful new free trade agreements with the EU, India, Indonesia and Britain.
53 INDUSTRY PARTNERS – DAIRY AUSTRALIA
Chair – Geoff Akers / Managing Director – Ian Halliday
THE YEAR IN REVIEW Dairy Futures CRC DataGene A challenging season became more 30 June 2016 marked the end of the The Herd Improvement Industry difficult during April and May 2016, Dairy Futures CRC seven-year term. Strategic Steering Group identified that the industry structure was as late-season farm-gate price cuts Dairy Futures CRC was established in insufficiently equipped to address were announced for most farmers in 2010 as a research initiative for dairy the changes occurring within the the southern, export-focused regions. bioscience. The CRC has delivered herd improvement sector: changes in The impact of these developments innovations that will continue to shape farm data collections and application; continues to unfold, and the need the future of dairy cattle and pasture the increasing use of genomics; an to revise budgets and strategies to breeding in Australia by working increasing focus on animal health accommodate lower late-season closely with major partners: Dairy traits; and a declining participation in incomes was an unexpected impost Australia; the federal and Victorian herd testing. for many farmers. Confidence has Governments; 22 industry and been impacted, with potential flow research organisations in Australia; On the recommendation of Herd on effects for on-farm investment and 36 international collaborators. Improvement Industry Strategic and future growth. Lower than Steering Group, DataGene was The legacies of the CRC include: expected opening prices have dented established in 2016. This collaborative confidence and set 2016/17 up as a ››genomic technology to dairy cattle herd improvement organisation will challenging season. breeding in Australia, enabling bulls bring together the pre-competitive The events of April–May 2016 to be marketed that are at least herd improvement functions of the triggered a tactical response from five years younger than traditional Australian Dairy Herd Improvement Dairy Australia to help restore proven bulls Scheme, the MISTRO herd testing software and a new central database stability and confidence that have ››reliable fertility trait, with the result into a single, industry-owned been impacted by late season that 58 of the top 100 bulls now organisation, creating efficiencies and pricing downgrades. This response is have a very high fertility breeding economies of scale. encapsulated in the Tactics for Tight value Times program, comprising initiatives such as Taking Stock, DairyBase, ››new breeding value for feed Sustainability FeedBase and a range of tools and efficiency, the eedF Saved ABV, which is projected to save up to $30 The Australian dairy industry remains regionally tailored resources to assist committed to achieving ongoing dairy farmers and their businesses. per cow per lactation in feed costs by using Australian breeding indexes improvement to ensure a sustainable future for the next generation of ››new approach to pasture breeding farmers and dairy consumers. The that delivers improved varieties more industry’s Sustainability Framework, quickly, and is capable of improving led by the ADIC and underpinned by multiple traits simultaneously Dairy Australia, is evidence of that ››hybrid breeding method for ryegrass commitment. that realises a 20% gain in yield The 2015 Progress Report tracks the ››varieties of ryegrass that deliver an performance of dairy farmers and extra 1 megajoule of metabolisable manufacturers towards achieving 11 energy to a grazing animal, with economic, social and environmental potential impact modelled at targets. We are proud to have made $450–750 per hectare per year. progress on key targets – for example, our farmers and manufacturers continue to improve nutrient, land DairyBio and water management, reduce In late 2015, the Dairy Australia consumptive water intensity, Board reaffirmed our commitment to greenhouse gas emissions and waste continued dairy bioscience through to landfill. a joint venture agreement with the Victorian State Government to establish DairyBio. Dairy Futures CRC is succeeded by DairyBio, allowing Dairy Australia to maintain critical R&D capability to deliver further innovation and productivity gains in the area of feed-base and animal performance.
54 PRIORITIES FOR THE YEAR AHEAD While there are local and international pressures on the industry, the long term outlook for demand remains positive – domestic dairy consumption appears stable and global demand for quality sources of protein (led by Asia) will continue to grow. Investment is occurring at the milk processing level in response to demand growth, and to enable production expansion for value-added dairy products. Further investment in the dairy sector will be predicated on supply growth. The longer term industry challenge is to facilitate profitable growth at farm level so that the Australian dairy sector can leverage the anticipated global demand growth over the next decade. The Dairy Australia Board and Management Team have initiated changes in investment priorities that are reflected in the 2016/17 to 2018/19 Strategic Plan.
Farm performance Genetic improvement of animals and feedbase will remain our R&D priority. This will take place through the newly established DairyBio. DataGene will consolidate the activities related to genomic improvement of dairy cattle, from base research and data collection through to farmer adoption and measurement. Dairy Australia will continue to enhance extension and farm business management capability across the dairy regions
People capability Dairy Australia has expanded its people development services to farmers to include farm business and HR management programs, which were impediments to profitability and growth. Dairy Australia is providing services around structural transition (market entry, career paths) to assist in employment continuity and industry growth.
Industry reputation Our attention has shifted to our social license to operate. Our approach will centre on maintaining positive consumer and influencer sentiment towards the industry. We look forward to the support of our stakeholders in the implementation of our strategies and take this opportunity to thank the ADIC, Australian Dairy Farmers and the Australian Dairy Products Federation for their valuable contribution to our investment decisions. Our thanks go to all dairy farmers who have contributed to the future of our industry via the Dairy Service Levy.
55 INDUSTRY PARTNERS – NATIONAL FARMERS’ FEDERATION
President – Brent Finlay / Chief Executive – Tony Mahar
The National Farmers’ Federation (NFF) THE YEAR IN REVIEW The NFF helped lead a campaign is the peak national body representing advocating for an effects test to farmers and, more broadly, agriculture 2015/16 was a significant year for be included in Section 46 of the across Australia. The NFF’s members the nation’s peak farm body, further Competition and Consumer Act – a include state farm organisations, progressing our digital and policy move to rebalance the power for national commodity councils, and agenda. farmers. other affiliated members. The NFF The NFF, together with Australia’s In workplace relations, abolishment of works with these organisations—such Prime Minister Malcolm Turnbull the Road Safety Remuneration Tribunal as Australian Dairy Farmers, to MP, announced three initiatives to and expansion of the Seasonal Worker represent the interests of the help digitally transform Australian Programme have been key wins over agricultural sector at the national level. agriculture – including the Australian the past year. Farmers online platform designed for industry participants to stay informed The Murray-Darling Basin continued and have it’s say on the issues that to be a high priority; with the NFF and matter. members managing to secure $15 million in funding for the Carp Herpes The NFF continued to work across all Virus and to amend the Water Act agricultural policy-making, including 2007 which would cap water buybacks infrastructure, natural resources, at 1500GL. telecommunications, trade and market access, and workplace reform. The past year saw the implementation of several free trade agreements and the development of an industry strategy to reduce non-tariff barriers.
Prime Minister of Australia Malcolm Turnbull MP and NFF President Brent Finlay at our digital transformation launch in December 2015. Location: Menangle, NSW.
56 PRIORITIES FOR THE YEAR AHEAD There are a number of key priorities for the year ahead, including scrapping the backpacker tax and bridging the data divide in rural and regional Australia. The NFF continues to lead a national campaign to bring an end to the backpacker tax, which poses a significant threat to the farm sector’s access to workers. The NFF has made several submissions to government and continue to consult with industry on the best way forward. While NFF has gained bipartisan support for the mobile black spot programme, much more needs to be done to improve access of reliable and quality telecommunications in the bush. Leveraging the new online platform, we hope to garner greater public support for improved accessibility in rural Australia. Energy, foreign investment, and securing a stronger, more sustainable workforce continue to be a major focus of the NFF’s policy and advocacy efforts over the next twelve months. In a genuine move to more effective national farm advocacy, work is underway to further develop a new unified body to streamline and strengthen farm representation for Australian farmers. The NFF will host the biennial NFF 2016 National Congress, with a focus on innovation, technology and ideas that will enable Australian farming to remain ahead.
NFF Chief Executive, Tony Mahar
57 AUSTRALIAN DAIRY INDUSTRY ORGANISATIONS STRUCTURE
58 FARMER / MANUFACTURING AGRI-POLITICAL SERVICE SECTOR SECTOR SECTOR
FARMERS GROUP A MEMBERS
MANUFACTURING STATE FARMER SECTOR ORGANISATIONS
AUSTRALIAN DAIRY AUSTRALIAN AUSTRALIAN DAIRY DAIRY AUSTRALIA PRODUCTS DAIRY FARMERS HERD IMPROVEMENT LTD (DA) FEDERATION (ADPF) LTD (ADF) SCHEME (ADHIS)
AUSTRALIAN DAIRY GROUP B MEMBERS INDUSTRY COUNCIL (ADIC)
59 ACKNOWLEDGEMENTS
Editor: Caroline Nitya Gatenby Australian Dairy Farmers thank our state members and industry partners Writers: Caroline Nitya Gatenby, who have contributed to this report. Fred Jones, Betty Helou, Adele Beasley, David Losberg Printer: Hindsight Design Photographs: Dairy Australia, Australian Dairy Herd Improvement Scheme
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Australian Dairy Farmers Limited Level 2, Swann House 22 William Street Melbourne Victoria 3000
Phone +61 3 8621 4200 Fax +61 3 8621 4280 www.australiandairyfarmers.com.au