EMsight

Communications specialist, Emily Martyn shares her stories and insights working across Aussie automanufacturing, dairy and fast moving consumer goods.

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Temporary skilled visas crucial for labour shortage

Like many agricultural commodities in Australia, dairy has an acute skilled labour shortage. Although the Australian dairy industry always gives precedence to employing Australian workers, enabling farmers to access skilled overseas workers is a positive way of addressing the gap when suitable domestic labour is not available.

The industry continues to assist farmers in gaining better access to overseas labour, through working to streamline the visa application processes for both farmers and workers. Further work is required by Government in this area to fully address the scope of this issue.

On 30 April 2015, the Australian Dairy Industry Council (ADIC) lodged its submission to the Senate Education and Employment committee’s review into the impact of Australia’s temporary work visa programs on Australia’s labour market and on the temporary work visa holders.

Issues such as the need for improved alignment of the Australian Qualifications Framework and the skill classifications used by the Department of Immigration and Border Protection, as well as the extension of 417 and 462 visas from six to 12 months, were key recommendations put forward by the ADIC.

In the submission, the ADIC highlighted the industry’s strong commitment to attracting, developing and retaining a highly skilled domestic workforce through a range of initiatives, including the National Centre for Dairy Education (NCDE), which provides high quality education and training opportunities for people interested in developing a career in dairy.

The Australian dairy industry wholeheartedly supports fair and equal treatment of foreign workers. Recently, ABC’s investigative journalism program Four Corners featured the mistreatment of migrant workers from Asia and Europe on a few poultry and horticulture farms in Australia. Such behaviour is not condoned by the ADIC and runs counter to the industry’s efforts to ensure that dairy farmers are responsible for their employment practices, including fair workplace relations and migration laws.

The Employment Starter Kit initiative (ESKi), which was developed by Dairy Australia in conjunction with Australian Dairy Farmers (ADF), is an example of this. The ESKi has been circulated to over 1,500 dairy farmers across Australia, assisting them in their understanding of Australia’s legal employment requirements, as well as offering information on how to improve working environments for both employees and employers.

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Social licence on the front foot

Having social licence to operate requires Australian dairy to be proactive, honest and willing to change practices. Likened to building up a bank of goodwill and trust that can be drawn on from consumers, customers and the community when issues arise, social licence is what we continue to maintain and grow as an industry.

At the United Dairyfarmers of Victoria’s (UDV) Annual Conference held in Melbourne on 29 April, social licence was placed at the top of the agenda and a range of issues were discussed and debated, including animal welfare.

Victorian Farmers’ Federation (VFF) Egg Group President and established national egg wholesaler, Brian Ahmed spoke to the conference of 100 delegates about his personal dealings with animal activism.

Mr Ahmed also spoke about the growing disconnect between rural and metropolitan communities being a reason for “big business” animal activism today, and the importance of agricultural commodities uniting together to communicate our animal husbandry and production practices directly with the community.

“These days it is very easy for city-dwellers to assume they know everything about farming through Google...the only way we’re going to get our message out there is by doing it ourselves.

“We need to start campaigning now by focussing on doing the ‘right thing’ and ‘proving it’ in order to change the perceptions of the community five to 10 years down the track,” Mr Ahmed said.

The Australian Livestock Exporters’ Council (ALEC) CEO, Alison Penfold also shared her industry’s experiences with animal activism following the fallout from the ABC Four Corners feature story, “Another Bloody Business” in 2011. Depicting disturbing animal cruelty footage captured in Indonesian abattoirs, the feature ignited public outrage and prompted the Federal Government to place a ban on live exports to Indonesia.

Ms Penfold explained when ALEC failed to face many of the industry’s emerging issues at the time, they fell short of the Australian community’s expectations and left them with the view the live export industry was uncaring towards the animals in its charge. However, since then ALEC has been working hard to earn back the community’s trust.

“The biggest challenge is taking the community along with us. Transparency can be scary at times, but it is also imperative if we are to be honest with ourselves and those around us.

“It’s so important we openly acknowledge where we are now and where we would like to be. By simply telling the positive stories, you can be accused of ‘spin doctoring’,” Ms Penfold explained.

Australian Dairy Farmers (ADF) President, Noel Campbell who also presented at the conference, spoke about phasing out calving induction as an example of how the Australian dairy industry is proactively working to meet community expectations.

“As a farming community, we understand calving induction has played an important role in breeding management on our dairy farms, and that this enables us to perform more efficiently. Yet it is no secret that many consumers find induction and its consequences to be unnecessary.

“The phase out of calving induction is high on ADF’s agenda and we are committed to working with farmers to help make this transition,” Mr Campbell said.

Other aspects of social licence discussed included use of genetically modified crops and mining of coal-seam gas on productive farms, which Australian Dairy Products Federation (ADPF) Executive Director, Dr Peter Stahle provided the dairy processors’ perspective on.

ALEC CEO, Alison Penfold: Sharing the livestock industry's experience with animal activism.

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On-farm factors key to safeguarding business profitability

Over the past decade, Australian dairy farms have faced many challenges to profitability. With the wide range of climatic zones, production systems, operating structures and milk price structures – it’s no wonder there is no silver bullet to ensuring long-term farm profitability.

Following key outcomes from the 2014 Australian Dairy Farmers (ADF) National Dairy Farmers’ Summit, and earlier recommendations of the Horizon 2020 study, the Australian Dairy Industry Council (ADIC) commissioned Dairy Australia to prepare a report on Sustainable Farm Profitability.

The report, released this month, focuses on the on-farm factors that influence individual dairy farmers’ ability to run profitable farm businesses. Macro drivers outside of farmers’ control, such as weather events, milk price volatility and government policy, are put aside to provide a focus on the aspects of technical efficiency, management capability, tactical flexibility, cost control and investment decisions that farmers can make to deal with risk and volatility.

Dairy Australia’s Farm Business Capability Program Manager, Neil Lane said dairy farms are significantly more successful when farmers are good at managing their business across the board, with a combination of technical and financial skills.

“There isn’t a one-size-fits-all approach to sustaining profitability and it can be a challenge for many individual dairy businesses, however in both good times and bad, there are key areas that farmers can improve to better safeguard their businesses,” Mr Lane said.

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Proposed competition overhaul: What could it mean for dairy?

On 30 March, Australian Dairy Farmers (ADF) welcomed the release of the Competition Policy Review Panel’s final report as crucial to creating a healthier, more competitive and successful market place for consumers, food suppliers and retailers.

Also known as the Harper Review, the independent policy review’s stronger focus on balancing market power between supplier and retailers has been well received as acknowledgement of the significant input and recommendations ADF made on competition law and policy.

The Review is the first evaluation of Australia's competition policy in 22 years and recommends strengthening provisions for abuse of market power, as well as proposing changes to collective bargaining that will strengthen farmers’ negotiating power.

ADF President, Noel Campbell said the Review’s recommendation to re-introduce an Effects Test to measure the ‘purpose, effect or likely effect’ of retailer actions on suppliers was particularly positive.

“We support the Panel’s recommendations to increase the focus on dealing with the current imbalance of major retailer market power, through initiatives such as the Effects Test.

“Farmers need every opportunity to improve their negotiating power for profitability and returns at the farm-gate to be achieved,” Mr Campbell said.

Mr Campbell did however express disappointment that there was no meaningful consideration in the review of the role of a Mandatory Code of Conduct, or the need for a Supermarket Ombudsman “with teeth” to address the issue of potential misuse of market power.

“The unequal distribution of market power means that farmers are often backed into a corner when it comes to farm-gate prices. This is a disadvantage that is heightened due to logistical constraints in supplying perishable goods,” Mr Campbell explained.

Mr Campbell said ADF looked forward to the opportunity to respond to the Review’s recommendations to ensure that our nation’s competition legislation is robust and able to protect our dairy farmers going forward.

“ADF will also continue to advocate as legislative amendments are developed to prevent potentially damaging situations, such as retailer predatory pricing in future,” Mr Campbell said.

The Competition Policy Review is one of three significant developments to occur in 2015, alongside the announcement of the Competition and Consumer (Industry Codes – Food and Grocery) Regulation 2015 in March, and the Agricultural Competitiveness White Paper which is due for release later this year.

To view ADF’s submission to the Competition Policy Review, click here.

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Water security linked to regional wellbeing

On 25 March, Australian Dairy Farmers (ADF) participated in the National Farmers’ Federation (NFF) Water Taskforce workshop. The agenda was focused on a discussion about the Murray-Darling Basin Plan and its measured social and economic impact on the wellbeing of people living in the Basin area.

Access to water is important in many ways for the wellbeing of rural and regional Australians. The Murray-Darling Basin Plan is Australia’s largest water reform in recent decades and significantly changes access to water in the Basin. Evaluating the impact of the Basin Plan is complex, particularly separating out the impacts as a result of the Basin Plan compared to changes that would have occurred anyway.

At the workshop, the NFF Taskforce discussed the work to date in evaluating this impact with the Murray-Darling Basin Authority (MDBA) and the Department of the Environment (DoE). In addition, the survey leader of the Regional Wellbeing Survey – undertaken by the University of Canberra, in collaboration with MDB Futures – shared preliminary findings of the 2014 Regional Wellbeing Survey, including trends since the 2013 survey, with the NFF Taskforce.

Among the survey findings, the Plan’s perceived impact on the Basin residents differs depending on whether they are considering the effects on their household, community, or the Basin as a whole. The survey revealed that of the 34 per cent of the survey respondents with an interest in the Basin area; approximately 55 per cent said the Basin Plan would positively or neutrally affect the health of the environment in the Basin. In comparison, over 45 per cent said it would negatively impact farmers in the community.

This highlights the need for balance between providing for agricultural production and the environment. It also demonstrates that reforms to water allocation do have impacts on regional communities. Views about the social, economic and environmental impact vary significantly across different local areas.

Dairy farmer and processor national representative body, the Australian Dairy Industry Council (ADIC) continues to provide input towards the MDBA and DoE’s monitoring and evaluation of the Basin Plan’s impact. Last year, the ADIC contributed towards the development of the MDBA Evaluation Strategy to ensure a strong methodology and meaningful evaluation of the intended Basin Plan outcomes.

Dairy farmers have also contributed to case studies carried out in two dairy communities in 2014. Testing the impact of the Basin Plan on farmers, regional communities and the environment is important to ensure the integrity of the Basin Plan and to inform future reviews and adjustments.

The full Regional Wellbeing Survey will be released in stages throughout 2015. The community wellbeing section is anticipated to be available in May, and the farming section – which will include data on farm performance, development, barriers and farm exit – is expected to be available in June. The full survey will be available later in the year.

For more information on monitoring the Basin Plan, click here.

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Dairy Food Safety on World Health Day

Tuesday 7 April is World Health Day and this year the World Health Organisation is highlighting the importance of food safety with the theme: “From farm to plate, make food safe’.

It’s a theme that rings true when it comes to dairy foods.

Fact is: Australians buy a lot of dairy. According to Dairy Australia, in 2013/2014 we each consumed around 105.7 litres of milk, 13.4 kilograms of cheese, 3.9 kilograms of butter and 7.4 kilograms of yogurt.

But, there can be a fair amount of wastage in consumer land due to how the product has been handled post-purchase.

So, in the spirit of ‘waste not, want not’ and to shine the light on dairy food safety here are a few practical hints that might come in handy:

When the mercury’s rising, store your dairy foods in a cooler bag to transport them from the supermarket to home.

Make the dairy cabinet your last stop on your shopping trip, adding dairy foods to your trolley just before you hit the check out.

Check use-by dates and consider whether you can consume the food before its expiry date.

Take a tip from the supermarkets and pack your fridge like a pro - put foods that need to be consumed sooner at the front so they are used first.

Store milk in its original packaging – don’t transfer to glass bottles or jugs as these allow light in that can cause milk to spoil.

Milk can be frozen and then thawed overnight in the fridge. The milk may appear slightly grainy when thawed, but a good shake will fix this.

Butter is best purchased when required, but properly sealed it can be kept frozen for up to 12 months.

Wrap gourmet cheeses in baking paper and place in a sealed container in the fridge to help them last longer.

Of course, despite the very best efforts we have all been faced with a favourite dairy food that is edging towards its use-by date. But don’t despair – check out these inspirational ideas for using up left over dairy foods from the popular Kidspot blog!

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Country-of-Origin Labelling: Is it really CoOL?

After the recent Hepatitis A health scare through contaminated frozen berry imports, the Federal Government has strengthened their commitment to bring changes to Country-of-Origin Labelling, or “CoOL”, laws in Australia.

While CoOL has the potential to assist consumers in deciphering the difference between products that are 100 per cent Australian-made and those containing only some local ingredients, the new laws could have greater ramifications on the Australian dairy industry. 

Below are some FAQ’s the ADF Update thought you might be interested in:

Why is CoOL important to get right for dairy? Milk is the defining component of all dairy products and its conversion into the variety of cheeses, yoghurts, long-life milks, butter and infant formula in Australia requires a wide range of ingredients. Often these include very low amounts of rennet, starter, cultures, yeasts, vitamins and minerals to facilitate their functional transformation from milk into a product.

However, several of these ingredients are not produced in Australia either because the raw materials are not available, or they cannot be economically and sustainably manufactured here. Other ingredients in dairy products are imported because of seasonality or the need for continuity of supply.

If CoOL requires that use of the term “Australian” can only apply to 100 per cent Australian content and 100 per cent Australian production, then the implication is that only some white milks will be able to carry the Australian made label.

This would mean that most dairy products containing milk produced in Australia, by Australian dairy farmers and converted into Australian dairy products in Australian factories, employing Australian workers would not be able to claim Australian origin.

What is important for the new CoOL laws? The Australian Dairy Industry Council (ADIC) is lobbying Government to ensure that Australian dairy products made with Australian milk in Australian factories can be defined as Australian products under CoOL. The design of any new CoOL laws must provide for provisions such as:

Processing aids - minor ingredients necessary for processing should not be part of any percentage requirements relating to the significant ingredients.

Fortification for healthy Australian communities – the addition of vitamins and minerals not made in Australia to milks or infant formulas in order to promote health outcomes and meet consumer demand, should not prevent Australian dairy products being labelled as such.

Flexibility for seasonal/batch alterations – prescriptive percentages will not work when the origin of product ingredients can alter by season or even by batch, therefore some flexibility needs to be built into the requirements.

Trading protection – labelling requirements need to align with international regulations and trade agreements to ensure the Australian dairy industry is not disadvantaged against our key competitors.

What can you do to help influence dairy’s agenda in the Government’s push for “stronger” CoOL laws? Dairy farmers, processors and industry representatives can take part in a consultation process that the Government has commenced. This will provide an opportunity for us to ensure that dairy’s interests are heard and considered. Click here for information about the Government’s consultation process and to register you interest.

You may also wish to write to your local MP to inform them of the industry’s requirements with CoOL. Click here for a short statement about the areas the dairy industry is seeking for Government consideration on.

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Shared leadership for a strong future

Speaking at the annual Tasmanian Dairy Conference on 26 March in Burnie, ADF President Noel Campbell discussed the importance of the industry working together - not in silos - to achieve a stronger voice and ultimately, a more sustainable future.

“The traditional view of leadership, where the buck stops with the person at the top does not work for our industry.

“The extent to which dairy succeeds in getting where it wants to will rely on the strength of this shared leadership,” Mr Campbell said.

The conference, in its eighth year, attracted over 200 dairy farmers, industry service providers, government and dairy organisation representatives to discuss a range of topics, including industry outlook, future developments, farm investment, and industry sustainability and innovation.

Mr Campbell, a third-generation dairy farmer at his 470-cow dairy farm in West Gippsland, Victoria, said there was a need for farmers to be proactive in the promotion of dairy past the farm-gate.

“The understanding about the relevance and importance of our industry has been and continues to be heard louder than ever before. And we all have a role to play in building on this momentum; to promote the value and good practices of our industry.

“You don’t have to be an outstanding public speaker or the most experienced statesman in the room to be a strong, effective leader. What you do need is vision, persistence and the courage to pursue your cause.

“Everyone in the dairy industry can show leadership to promote the industry... Farmers can invite people onto their farms and show them that, while we're not perfect, we're committed to good practices, and building a stronger, more prosperous industry.

“The more we do this, the more value the broader dairy community will see in supporting us,” Mr Campbell said.

Speaking alongside Mr Campbell at the conference included LEGENDAIRY Ambassador, Michael Klim, Dairy Futures CRC CEO, David Nation and Dairy Australia Managing Director, Ian Halliday.

For more information about the event, download your copy of the conference program here.

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LEGENDAIRY Women in Focus

Community was the topic of conversation at the Warrnambool Women in Focus (IWD) event on 11 March, uniting over 200 regional women from Victoria’s south-west to celebrate their contribution to business, industry, family and the community. 

Australian Dairy Farmers (ADF) CEO and keynote speaker, Natalie Collard shared her agri-business professional experience on leadership, work-life balance, personal wellbeing and the ability to consider the bigger picture.

“Women in dairy wear so many different hats. From the farm gate to the processing plant, all the way to the ADF office - right across our value-chain women are contributing to building a stronger, more sustainable future for our industry,” Ms Collard said.

Ms Collard also explored the importance of goal-setting as her “biggest secret”. 

Referencing a Harvard University MBA graduate program research study, Ms Collard shared that three per cent of the graduate year which had clear, written goals and plans to accomplish them, 10 years later were earning on average 10 times as much as the other 97 per cent of the class put together.

“I set career, personal and wellbeing goals for one, five and 10 years ahead. It is a one-pager that sits on my bedside table... By writing your goals down and affirming them, you’re holding yourself accountable,” Ms Collard explained.

“Goal-setting is not just about earnings, but it really does underscore the power of setting goals as your first step to accomplishing them.”

The IWD Event, hosted by CommBank Women in Focus and LEGENDAIRY South-West Vic Women’s Focus Group, provided a valuable networking opportunity and chance to obtain practical tips for regional women and their businesses.

WestVic Dairy Director, Kirsti Keightley and Operations Manager, Jocelyn Bevin said the day was about bringing together like-minded women within varied leadership positions in the industry.

“It’s important to highlight and focus on the skills and opportunities that can be brought to the dairy industry and wider community,” Ms Keightley said.

“It’s also vital to support our next generation of women in dairying through sharing our knowledge and experiences, which I hope today’s community theme encapsulated.”

LEGENDAIRY women (L-R): Katie Gleeson, Simone Renyard, Bilyana Grazing, Natalie Collard, Janet Moxey and Tracey Luhras.

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Investment in knowledge: Sarah Saxton’s NZ dairy experience

Australian dairy’s herd improvement and genetics is ahead of the game, according to Sarah Saxton. 

“Visiting New Zealand (NZ) made me realise just how engaged and passionate Australian dairy farmers are when it comes to breeding cows,” Ms Saxton said.

“We have the freedom of choice when it comes to semen selection in Australia, and although that can make the decision process a little more complex, it means we have the options open to us to breed the sort of cows we want for our herds.”

Reaffirmed by her recent study tour across the Tasman to the South Island with United Dairyfarmers of Victoria (UDV), Ms Saxton, an Australian Dairy Herd Improvement Scheme (ADHIS) Extension Officer, also noted the dominance of cross-breeding in NZ in comparison to Australia, as well as NZ’s strong focus on growing pastures.

Embarking on the week-long tour with five young Victorian dairy farmers, sponsored by the Geoffrey Gardiner Dairy Foundation, Ms Saxton visited a variety of NZ dairy farms with different ownership structures and farming systems. The Van Leeuwen Dairy Group’s 1500-cow robotic dairy in Timaru was included as one of the farm pit stops.

Ms Saxton, ambassador for the Art4Agriculture Young Farming Champion program, commended the NZ dairy industry for its well defined and supported career pathway structure.

“We met with a NZ young farmer group who all had a very clear understanding about how to progress a career in dairy, from milking cows to eventually farm ownership. This is a real credit to DairyNZ, as it is fostering a young and vibrant future for their industry,” Ms Saxton said.

Ms Saxton was also impressed by the New Zealand Dairy Industry Awards, which are awarded annually to recognise NZ’s passionate farmers of the future.

“These awards not only commend innovative, hard-working dairy farmers in NZ, but also create a opportunity to highlight the progress of up-and-coming dairy farmers. It would be great to see a similar initiative adopted in Australia,” Ms Saxton said.

When asked what advice she would impart to young Victorian dairy farmers looking to apply for the study tour, Ms Saxton replied: “You really need to think about what your future might look like in dairy, and how you’re going to benefit, to get the most out of it.”

“It is a fantastic opportunity and a great way to make new contacts. However, you need to be prepared to work hard - it’s not a holiday!” Ms Saxton said.

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New Feed Saved ABV: First feed efficiency breeding value in world

Victorian dairy farmer, Ron Paynter speaking at the ABV launch with ADHIS General Manager, Daniel Abernethy.

Did you know that dairy farmers next month will be able to identify bulls that can save at least 100 kilograms of dry feed matter per cow, per year while maintaining milk production?

The Feed Saved Australian Breeding Value (ABV), available to dairy farmers from April 2015, is the culmination of eight years of research and development activity by Dairy Futures CRC, in conjunction with a range of local and overseas partners.

It is the first feed efficiency breeding value in the world to incorporate real feed intake data, as well as a prediction of feed required for maintenance purposes, making the trait more relevant for farmers.

Dairy Futures CRC’s CEO, Dr David Nation, said: “The Feed Saved ABV allows farmers to breed cows in a new way: by reducing their maintenance requirements for the same amount of milk produced.

“This is the first practical use of genomic tests to measure a trait that can’t be routinely measured on farm, and the start of more extensive genomic testing to improve the range of traits important to dairy farmers.

“Visually, you can’t spot a highly feed efficient cow, but farmers can now breed for it.”

Victorian dairy farmer, Ron Paynter who spoke at the ABV launch, said it is exciting to see feed efficiency now included in the ABV indexes.

“Feed costs are a significant determinant of on-farm profitability,” Mr Paynter said.

“The new Feed Saved ABV adds further strength to the new Balanced Performance Index developed by the Australian Dairy Herd Improvement Scheme (ADHIS), which aims to maximise profit from selection.”

The Feed Saved ABV will be published for the first time in the ADHIS’ publications, including the Good Bulls Guide. It will also form part of the ADHIS’ three new breeding indices, so farmers who make bull selections using one of the indices will be including feed efficiency in their breeding decisions.

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Brad and Becc Couch: Agvocates for Dairy

Brad and Becc Couch on their dairy farm near Timboon with their kids (nearly) 2yo Charlotte and 3yo Jack.

South-west Victorian dairy farmers, Brad and Becc Couch believe when it comes to profitable dairy farming, the simplest of systems are often the best.

Named The Weekly Times Coles 2014 Farmer of the Year on 20 February, the duo was celebrated for their low-cost and high-efficiency dairy farm operation at Brucknell, near Timboon.

Recognised for their simple yet extremely effective approach to dairy farming, the Couch’s herd is ranked in the top one per cent for milk quality and the couple have cut costs to about two thirds of the district average.

Brad Couch puts their 360-cow farm’s success equation down to seasonal calving, home-grown fodder, selling off empty cows, replacement heifers and proactive mastitis investigation.

“Our bottom line is why we do, what we do – it’s what our parents did, as well as our grandparents,” Mr Couch explained.

“Simple things like ensuring sufficient dry-off periods, utilising as much home grown feed as possible and being vigilant with identifying mastitis, can go a long way towards improved herd fertility, healthy cell counts and a positive cash flow.”

Mr Couch said he and his wife felt privileged to receive the award and hope that it will encourage young people to consider a career in dairy.

“There seems to be a perception that you need to be working your parents’ farm or on a big corporate operation to make a go of it. But I know a few people that have certainly proved that wrong,” Mr Couch said.

“With the average age of dairy farmers now reaching 60 in Australia, we need to have dairy advocates to promote the diverse opportunities dairy has to offer.”

Mr Couch encourages all Australians considering a career in dairy, whether on-farm or off-farm, to: “Go for it – but make sure you’re prepared to put in the hard yards, to reap the rewards!”

Australian Dairy Farmers (ADF) CEO, Natalie Collard commended the Couch’s for their considered and well balanced approach to dairying, as well as their enthusiasm towards promoting young farmers in agriculture.

“It’s wonderful to have Brad and Becc in the spotlight as young, passionate dairy farmers, proactively advocating for dairy,” Ms Collard said.

“I congratulate them both for receiving this award and hope they will inspire young people looking to enter the dairy industry.”

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Drought preparedness key to long-term profitability

The percentage of Australian dairy farms reported with negative farm business profit is estimated to have decreased significantly from 67 per cent in 2012-13, to 38 per cent in 2013-14, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

In addition, the ABARES reported a significant jump in the average rate of return on capital (excluding capital appreciation) to 3.1 per cent in 2013–14, up from 0.9 per cent in 2012–13 and above the ten year average of 2.1 per cent.

Released in December 2014, the ‘Australian dairy: financial performance of dairy farms, 2011-12 to 2013-14’ report correlates improved profitability to the strong rebound in the average farm cash income  which increased to $129,000 in 2013-14, around 29 per cent above the 10-year average. Dairy farmers in southern New South Wales, South Australia, Victoria and Tasmania had the largest increases as a result of significant milk price rises, with smaller increases in Western Australia.

Yet, whilst incomes may have ended on a high and negative farm business profit on a low in these states, northern New South Wales and Queensland continue to feel the pinch of higher fodder expenditure and lower production due to dry seasonal conditions, highlighting the relevance of  drought preparedness to long-term profitability.

Australian Dairy Farmers (ADF) President, Noel Campbell said whilst many factors, including drought, impact dairy farm profitability, there are some sound principles we can apply to reduce their effects on our farm business returns, with drought preparedness being one of these.

“Farmers need to demonstrate a commitment to long-term sustainable farming through appropriate business and farm practices that embrace effective risk management options,” Mr Campbell said.

“The Government can play a key role in reinforcing its long-term commitment to drought through providing policy options that support farmers in risk management, for example, tax incentives to encourage fodder and water infrastructure investment by farmers.”

ADF continues to actively advocate on tax solutions and other complementary measures that may assist in drought preparedness, including improving the Government and industry’s investment in seasonal forecasting.

Further development of the Managing Climate Variability Program, which promises greater accuracy in midseason forecasting, will enable farmers to make better tactical decisions around managing their fodder and water resources to maximise profit.

Mr Campbell welcomed Minister for Agriculture, Barnaby Joyce’s announced $100 million in Drought Recovery Concessional Loans in December 2014 and the lower interest rates on drought concessional loans announced earlier in January this year, however stressed that further proactive measures need to be taken to achieve long-term drought policy and ensure the ongoing viability of our dairy farm businesses.

ADF will continue to lobby for a range of measures to support drought preparedness management and security to ensure that dairy farmers are supported in sustainable farming practices to manage whatever Mother Nature may bring.

*The ABARES report data is gathered from the annual Australian Dairy Industry Survey, with a sample size of approximately 300 dairy farmers.

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Are you bushfire prepared?

As temperatures rise and grasslands dry, December marks the beginning of Australia’s bushfire season. Bushfires pose significant threats to people, livestock and farming properties, and careful preparation and planning is critical.

Under legislation, landowners and managers have a responsibility for the safety of all people living, working on or visiting their property. Landowners and managers are advised to consider safety, environmental and legal issues, and long-term sustainability with safety as a priority.

To ensure you don’t become overwhelmed with everything that needs to be done in a bushfire crisis, it is important you sit down with someone in your family or your staff and make a list of everything that should be considered and the jobs that need to be done.

To assist in this process, you can download the Dairy Farm Fire Plan which covers some essential plans you should consider now, including:

Nominating an emergency coordinator.

Having a routine in place for fire risk days (moving stock and limiting or postponing machinery use, switching off electric fences) and making sure everyone on your property is aware of it.

Knowing your trigger to leave early on fire risk days and the trigger to leave for family members, employees or contractors. Also planning for contingencies, such as children at school.

If you have private fire-fighting equipment, conducting a ‘refresher’ session with family and employees to make sure everyone can use it.

For more information about bushfire preparedness, see Dairy Australia’s ‘Preparing for fire threats’ webpage.

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The risks of drinking raw milk: What farmers need to know

In December, the news of the tragic death of a child possibly linked to drinking raw milk, saddened the dairy industry and underscored the message that consumers should only drink pasteurised milk.

“Farmers, familiar with their cows and own farm hygiene practises, are known to drink fresh milk directly from their dairy but the law is very clear that the packaging, transport and selling of raw, unpasteurised milk for human consumption is illegal,” says Helen Dornom Sustainability Manager for Dairy Australia.

“Milk is a highly regulated biological product in part because of the potential growth of pathogens during storage and transport. It is important to reemphasise that unpasteurised milk can never be consumed without real risks,” she adds.

“As farmers and representatives of the industry we have to be careful not to give the impression that something a farmer might do on-farm and fully aware of the risks can safely translate to the broader community.

“Unpasteurised milk has been bottled and sold as cosmetic products (labelled ‘bath milk’, ‘for cosmetic purposes only’ or ‘not for human consumption’). While the sale of these products is not illegal, consumption of the product can present a serious risk to the consumer’s health.

“The fact is that cosmetic or ‘bath milk’ is not produced under the strict standards or supervision applied to the dairy food industry and without the additional critical controls provided by pasteurisation or equivalent treatments. It may contain pathogenic bacteria that can lead to life-threatening illnesses,” says Ms Dornom.

“Everyone is vulnerable to illness caused by organisms that may be present in raw milk, but the risks are even greater for young children and for people who are elderly or those who have underlying health problems, are Immune compromised or are pregnant.”

The Australian dairy industry has a well-earned reputation for safe dairy products – let’s not jeopardise this and ensure consumers only drink pasteurised milk.

For more information about raw milk, click here.

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Coles announcement highlights need for Mandatory Code of Conduct

On the heels of Coles’ admission to the Australian Competition and Consumer Commission (ACCC) yesterday, Australian Dairy Farmers (ADF) has reiterated the need for stronger competition laws that will protect suppliers against the unjust activities of major retailers.

ADF President, Noel Campbell said that Coles’ announcement was a damning indictment against the supermarket giant, whose actions and continual denial over the past four years have had significant negative impacts on suppliers and dairy farmers affected by $1 per litre milk.

“Coles has misled Australian consumers and Parliament for too long on this issue,” Mr Campbell said.

“They have finally confirmed what ADF, and others, have long said about their unsustainable $1 per litre milk campaign. This admission does nothing to rectify the damage they have inflicted upon processors and dairy farmers, who have ultimately paid for their unsustainable price cuts.”

Mr Campbell said the announcement highlighted the need for a Mandatory Code of Conduct with significant penalties and a Supermarket Ombudsman to enforce the Code.

“Coles must pay suppliers, and ultimately farmers, a fair price for their hard work. They should not be able to force the costs of unsustainable price cuts onto farmers,” he said.

ADF looks forward to the findings of the Harper Review of Competition Law and Policy, with the hope that this will foster a fairer supply sector going forward and end unjust practices such as the $1 per litre campaign.

ADF thanked the ACCC for its persistence in pursuing Coles in this matter, and said it will be watching the court proceedings closely.

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Australian Dairy Industry Sustainability Report: How we’re tracking

The Australian Dairy Industry Sustainability Framework outlines the industry’s commitment to enhance livelihoods, improve wellbeing and reduce our environmental footprint.

To ensure dairy is recognised worldwide as a responsible, responsive and prosperous producer of nutritious food, the Framework sets 11 economic, social and environmental targets to be achieved by the year 2020.

The second Sustainability Framework Progress Report is due to be released in December to benchmark how the industry is tracking towards achieving these targets, including supporting case studies to back these findings.

The ADF Update had the opportunity to preview some of the report’s preliminary findings, which can be found below.

14.5% reduction in volume of green house gas emissions intensity generated by dairy manufacturers’ use of fuel and electricity since 2010/11 – a 30% reduction is the target set by 2020.

46% of on-farm and factory workers now have a documented occupational health and safety (OH&S) plan – by 2020, the framework aims for 100% to have completed OH&S training.

56% of farmers are aware of a new set of animal welfare standards and guidelines for cattle that have been developed – whilst yet to be legislated, the industry seeks 100% compliance with the guidelines’ standards by 2020.

10.5% reduction in water consumption since 2010/11 – a 20% reduction by 2020 is the target set for the manufacturing sector.

44.5% reduction in waste to landfill by manufacturers since 2010/11, which has already met and exceeded the target of a 40% reduction by 2020.

Dairy Industry Sustainability Framework Steering Committee Chair, Chris Griffin said the 2014 Progress Report provides evidence the dairy industry is committed to delivering mutually beneficial outcomes for the community and the environment.

“The Report demonstrates the benefits of the value chain working together to help create value for our industry, our customers and the community,” Mr Griffin said.

“Built on existing industry activities, we hope it will provide guidance to farmers, dairy companies and industry bodies on achieving our shared priorities and commitments."

Click here to view the 2014 Progress Report online.