China FTA: How does it weigh up?

Dec 03, 2014

As New Zealand (NZ) Prime Minister, John Key has reportedly been working to ensure NZ’s dairy industry receives equal benefits to our industry, it’s clear that Australia’s free trade agreement (FTA) with China has weighed up very well.


With negotiations concluded and a Declaration of Intent signed on 17 November, the China-Australia FTA has delivered a significant confidence boost to the whole dairy value chain, with the outcomes presenting real opportunities for dairy to grow and prosper.


So what does the deal promise and how does it compare to NZ’s existing FTA with China?


While the FTA is currently in its legal review phase, it has secured the following tariff outcomes:
  • Elimination of the 15% tariff on infant formula over 4 years;
  •  Elimination of the 10 ‐ 19% tariff on ice cream, lactose, casein and milk albumins over 4 years;
  • Elimination of the 15% tariff on liquid milk over 9 years;
  • Elimination of the 10 ‐ 15% tariff on cheese, butter and yogurt over 9 years; and
  • Elimination of the 10% tariff on milk powders over 11 years.

In comparison to our trade deal, the China-NZ FTA contains restrictive safeguard measures on a wide range of dairy products, including liquid milk, cheese, butter and all milk powders. These safeguards or quotas mean that China raises the tariff back to the normal rate when NZ’s exports exceed a certain volume of product.

Under our FTA, Australian dairy will only face a discretionary safeguard on whole milk powders, with the safeguard trigger volume set well above current trade levels and indexed to grow annually. For all other dairy products there will be no safeguards and Australia will receive unlimited preferential access.

Australian Dairy Farmers (ADF) President, Noel Campbell said now that the deal has been done, the hard work begins – seizing the opportunities the agreement offers and making them work for our industry.

“The effects of the deal won’t be immediate, and to effectively capitalise on the improved market conditions, on-farm investment and upgrades to the industry’s infrastructure are necessary,” Mr Campbell said.

“The FTA with China opens the gate to the Chinese market, now it’s up to industry to work together to leverage the benefits.”

Mr Campbell thanked Minister for Trade and Investment, Andrew Robb, the Australian government, industry and the broader dairy community for its ongoing support throughout the negotiations.

Click here to download your copy of the Department of Foreign Affairs and Trade’s Implementation Timeline or see www.fta4dairy.com.au for more information.


Outstanding Service Award celebrates first ever dairy duo

Dec 01, 2014


Dairying duo, Lindsay and Ann Jarvis, were recognised as the first couple to receive the Australian Dairy Industry Council’s (ADIC) Outstanding Service Award (OSA) for their collective commitment to dairy at the ADIC Industry Leaders’ Breakfast, 28 November.

ADIC Chair, Noel Campbell said like many men and women who dedicate their lives, professionally and personally to dairy, the Jarvis’ are a team.

“It would be remiss to recognise the efforts of one without the other,” Mr Campbell said.

Addressing a room filled with dairy leaders from across the whole value chain, the couple said they were humbled by the award, which recognises people as the core of what makes the industry work.

“Our ability to thrive (as an industry) requires caring, co-operation, commitment, collaboration and concentration on the wellbeing of our people,” Mrs Jarvis said.

 “The best genetics, soils, research breakthroughs and new markets won’t succeed unless we are all fully are committed.”

Describing their partnership as “one part dreamer, one part doer” the Jarvis’ each bring a unique approach and skill set to dairy.

Having spent 31 years as a director at Murray Goulburn, Mr Jarvis, the ‘dreamer’ of the pair has transformed the couple’s 148 year old, 280 hectare dry-land farm into a contour flood irrigation system, used his welding skills to build a swing-over herringbone dairy.

With a belief in educating and encouraging young people and, particularly, women to engage with new challenges, Mrs Jarvis, the ‘doer’ of the pair, managed the family farm and its workers while Lindsay was off farm.  Mrs Jarvis also spent seven years volunteering for the highly respected Dookie College Advisory Committee.

Actively involved in dairy organisations their whole careers, the Jarvis’ are respected members of United Dairyfarmers of Victoria, and have each received an Order of Australia for their service to the dairy industry.

The OSA award has been traditionally presented at the ADIC Dairy Industry Leaders’ Breakfast since 2006, to recognise individual Australians who, through their leadership, dedication and commitment, have provided outstanding service for the benefit of the dairy industry.

For more information about the ADIC Outstanding Service Award, click here.

Industry R,D&E levies framework endorsed

Nov 28, 2014

Did you know that there are 15 agricultural Research and Development Corporations (RDC) in Australia, yet only two of these have regulated levy polls?

Along with the Australian Wool Innovation, Dairy Australia (DA) is bound by a five-year levy review cycle to ensure that dairy farmers have a say towards the amount they pay for their research, development and extension (R,D&E) levy and how it is spent.

In response to the Senate Inquiry into the system for agricultural R,D&E levies , the Australian Dairy Industry Council (ADIC) has made a submission in support of the RDC model and the opportunities for dairy farmers provided by DA.

Whilst the ADIC considers that the Levy Poll framework provides an important opportunity for DA to talk to levy payers about their levy investment, there is scope to improve the effectiveness and efficiency of the process.

Suggestions the ADIC puts forward to the Inquiry include streamlining the Levy Poll consultation approach, for example through more tailored consultation, use of industry networks, and increased use of technology; improving engagement with farmers about the DA investment throughout the five-year period, not just at the time of the levy poll; as well as, improving the information to demonstrate the returns to farmers from their levy investment. 

As subsidiaries of the ADIC, the role of Australian Dairy Farmers (ADF) and the Australian Dairy Products Federation (ADPF) in R,D&E investment is to represent levy payers by working with DA to drive the development of strategies, highlighting priority investment areas and ensuring tangible benefits reach the dairy community.

For more information and to download a copy of the ADIC’s submission, click here .


ADIC shines spotlight on Australia's Legendairy women

May 01, 2014

 

Australian women’s contribution to the dairy industry was a cause for celebration at this morning’s Australian Dairy Industry Council’s (ADIC) Legendairy Women’s Breakfast.

ADIC Chair, Noel Campbell, said Australian dairy would not be the $13 billion farm, manufacturing and export success story it is today, without the contribution of women over the course of its history.

“Today we shine a spotlight on the many talented, passionate and dedicated women working across the dairy industry,” Mr Campbell said.

“From the farm, to the factory, to the family dining table, today’s ADIC breakfast celebrates the major contribution that women have made, and continue to make, to our industry.”

Australian Dairy Farmers (ADF), CEO, Natalie Collard, said women continue to perform many varied and important tasks across all levels of the industry.

“This is reflected in the fact that 62% of all women working on dairy farms are owner-managers, 25% are employees and a further 13% contributing family members,” Ms Collard said.

“When we also consider the hugely significant role that women play in shaping household budgets and associated purchasing decisions – their significance to the industry from farm gate to supermarket shelf becomes all too clear.”

Scientist and inaugural recipient of the ADIC’s Outstanding Service Award (OSA) in 2010, Dr Anne Astin, described women’s involvement in the industry as an important chapter in the history of Australian agriculture.

“Whether it’s on-farm, in the factory or the complex world of agri-politics, women continue to play a leading, if sometimes unheralded role, within the industry,” Dr Astin said.

“We can and must do more, as an industry and as a community to recognise and celebrate women’s unique and enduring contribution to Australian dairy.”

Mr Campbell thanked the event’s keynote speaker, Carolyn Creswell, founder and Managing Director of Carman’s Fine Foods.

“Carolyn’s success with Carman’s is an inspiration to a generation of young men and women and demonstrates in particular, how it is possible to balance success in business with family life,” he said.

Mr Campbell said in dairying regions and rural and regional Australia more generally, there has been a shift in the workforce, with more women working (46% of the workforce) and more men working part-time.

“This trend reflects the changing face of the modern Australian workforce, and the dairy industry is no exception,” he said.

“Over time, we will likely see more women involved in the industry and it’s important that we continue to focus our efforts in promoting the industry as an attractive career choice into the future.”

Mr Campbell thanked women involved at every level of the industry for their dedication, passion and commitment to Australian dairy.

To view the ‘Celebrating Legendairy Women’ video launched at the breakfast, click here.













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