Expressions of Interest Open for the ADF Board

Sep 15, 2017

Nominations for three Business Director positions and an Independent Director on the Australian Dairy Farmers’ (ADF) Board opened today.

ADF is calling on its members to nominate eligible candidates for three Business Director positions and an Independent Director position.

ADF President, Terry Richardson said that we are looking for dairy farmers who are passionate about advancing dairy farming in Australia and have a strong industry commitment.

“The maximum term a Business Director may serve is three years without submitting for re-election and an Independent Director may serve two years without submitting for re-election,” said Mr Richardson.

ADF currently has two Business Directors who were elected at the 2014 AGM for a three (3) year term, these Directors must retire and may nominate for re-election.

Additionally, following the retirement of a past President in February, a temporary Business Director was appointed in May 2017 to fill the casual vacancy. As required by the constitution, the Business Director must retire and may nominate for re-election.

The Independent Director was elected in November 2015 for a two-year term and must retire, however may seek to be re-appointed for another term.
Director elections will take place at the ADF’s next Annual General Meeting on Thursday 24 November, 2017.

The eligibility criteria for the position of Business Director are:
• Must be in the business of dairy farming
• Must be a member of Australian Dairy Farmers Limited; and
• Must be eligible under clause 4.2.2 of the ADF Constitution (no more than two Business Directors from any one state)

If you wish to receive a nomination form or position description please contact the ADF Office via (03) 8621 4200 or email operations@australiandairyfarmers.com.au.

Applications close midday (AEST) Thursday 28 September 2017.

Terry Richardson

ADF President

 


 


 



Not All Bad News

Nov 11, 2016

The American people have spoken and made their choice. It is amazing how things can change overnight. President Elect Trump’s victory in the United States presidential election has created a little bit of a stir in Australia and around the world.

Australia has an open economy and we are heavily reliant on exports. We depend on international stability and open borders to drive our economic growth. If Mr Trump’s views, which were expressed during the election campaign are realised, then the world trade environment is in for a very bumpy ride.

The Turnbull government promised that the ratification of the Trans Pacific Partnership (TPP) would deliver valuable new markets for Australian dairy. It was an ambitious pact that would have covered nearly 40 per cent of the global economy and solidified US leadership in the Asia-Pacific.

While Mr Trump’s election win has made the ratification of the TPP less likely, it is not all bad news for Australian dairy.

In fact, this election could open Australia to new opportunities and strengthen economic ties with countries in ways we never thought possible.

The China-Australia Free Trade Agreement (ChAFTA), ratified almost a year ago is a partnership that has the potential of becoming even stronger.

Australian Dairy Farmers (ADF) lobbied hard and strong for this once-in-a-lifetime deal and was closely involved in the negotiations.

Our dairy exports to Greater China have increased 46 per cent over five years, making it our largest dairy market export by volume and value. Import values have increased by almost 65 per cent year-on-year from approximately $456 million in 2014/15 to over $750 million in 2015/16.

The first half of 2016 saw the value of Australian dairy exports double. China’s market for Australian consumer goods has become much more sophisticated, with strong sales growth from supermarket chains and convenience stores. A growing middle class of roughly 300 million people want what Australia offers. Our industry’s ability to benefit China with safe, healthy, reliable sources of quality dairy products is essential for us in the long term.

China remains the largest importer of dairy products and it is still growing. About 16 million babies are born each year in China, and with the relaxation of the one child policy, that number is projected to beyond 20 million annually in coming years.

Over the long term, ChAFTA means more jobs across the Australian dairy industry both on farm and in processing plants. It will provide our industry with the confidence it needs to invest for a strong future.

Whatever transpires from the policy direction of a new US President and administration, the Australian dairy industry and Australian Government will do everything possible to ensure any changes in direction on US trade policy does not adversely impact the gains we have won for our dairy products access to markets.

The dairy industry’s long term growth will come from our ability to bounce back and make the most of the all the opportunities that are presented.

David Basham

Acting ADF President


 

 

Setting the Foundations for Long Term Solutions

Oct 28, 2016

Earlier this week, ADF spoke at the Senate Economics References Committee inquiry into Australia’s dairy industry.

We discussed a number of key historical points and highlighted long term solutions we believe will relieve some of the pressures faced by our dairy farmers.

Through consultation with our state member organisations, we proposed a number of solutions:

- The development of the Code of Best Practice on milk supply contractual agreements to ensure transparency and fairness in milk price arrangements

- To ensure that the ACCC review identifies and investigates sharing risk along the supply chain, supply agreements and contracts, competition, bargaining and trading practices in the industry and the effect of world retail prices on profitability

- Incorporating an effects test to show the impact of anti-competitive behaviour

- The implementation of a world dairy commodity pricing index and educational program for farmers to better understand the impacts of the world market price and impact on the domestic market

We reiterated the fact that although the dairy industry has gone through a difficult time, we are a resilient industry with a long, sustainable future ahead and our profitability depends greatly on the continued support of the Australian public.

Which takes me to my last point. The proposed 50 cent milk levy.

Yesterday evening I took part in an extended interview with a major TV network. On several occasions I stated that ADF did not support a levy being applied to drinking milk (50 cents or otherwise).

The 20 cent quote came from a completely different part of the interview (which was not aired) yet edited in a way that was out of context with the questioning. I said, it would be good if Coles were to increase the price of $1 milk by at least 20 cents.

Media does not always represent the facts and important messages can get lost in the push for ratings and dramatic intrigue.

We have contacted Channel 7 News to clarify that the impact of its editing together two different part-answers to two different questions has effectively contributed to misleading Australian consumers.

It is unfortunate when these things happen. Incorrect information leads to confusion in a time when we need open and transparent messaging. Our priorities have always been to work to strengthen the dairy industry’s foundations so we can achieve long term stability.

To get through this difficult period the industry needs strong leaders with one voice.

ADF together with our state member organisations believe a united vision is the key to achieving positive outcomes going forward.

David Basham

Acting ADF President


 

 

The Difference is in the Detail

Sep 23, 2016


Over the last few days, New Zealand based Fonterra lifted its forecast milk payout for the second time. On Wednesday the estimated Farmgate price was boosted by a further 50 NZ cents to $NZ5.25, while the company maintained its dividend payout to farmers resulting in a total amount of $NZ5.75 to $NZ5.85 per kilogram.

Australian companies are between 10 – 20 per cent below New Zealand’s latest forecast. 

While Fonterra's announcement follows the increased global dairy prices at the Global Dairy Trade auctions, Australian farmers are still waiting for theirs. Although there are any number of reasons why we are behind New Zealand, it still makes for an interesting conundrum when Australia has a bigger domestic market and yet our prices remain unadventurously low.

This really highlights how volatile the world milk price is and why we need regular, clear and realistic market signals in Australia.

By establishing a commodity milk price index tool there will be greater transparency to allow farmers to make their own assessments on milk price forecasts. Farmers will be able to better balance risk along the dairy supply chain, especially when it comes to managing the effects of world milk prices.

New Zealand already has a milk price index and it works quite well, as they have over 90 per cent exports, and can set themselves against the world market.

In Australia we have a 65 per cent domestic market and a different export commodity mix which should deliver a higher price for Australian farmers than the New Zealand price in a low commodity market as we are in now. Therefore, Australia needs to have an independent commodity index rather than use New Zealand’s due to our different export commodity mix.

ADF has had extensive discussions with government on the proposed index and we are looking forward to help shaping this important tool. It’s vital we get this right so all farmers have the ability to use the global information to assist them when they negotiate supply contracts with processors.

The index needs to be independent and transparent with easily accessible data that isn’t hard or complicated to use. It needs to be updated daily to capture the latest market intelligence from around the world and should translate commodity market and currency trends back to Farmgate prices across Australia. The index should also deliver a forward-looking price indicator to capture restored certainty and decision-making resulting in improved farmer confidence, better on-farm investment decisions, and ultimately higher farm profitability.

We have no doubt that our processors will increase their milk price forecast which is why we support the index and want to ensure it is a true indicator of commodity prices and meets the requirements of the Australian dairy industry as a whole.

The index will also give farmers the tool to better understand the impacts of world market trends and to be better armed with questions of the company they supply.

David Basham

Acting ADF President

 

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