Newsletter of the United Dairyfarmers of Victoria

WINTER | June 2014

Inside this issueHelping New Zealanders become permanent residents

ADF National Dairy Farmers' Summit Outcomes Report released

Getting to know the UDV Staff

Johne’s Disease Review Briefing

Fire Services Property Levy cut

Electronic NVDs

UDV has developed a paper describing some reasonably ambitious production growth targets based on profitable dairy farming driving confidence to invest. They are achievable, and require the industry to rise to some significant challenges. These challenges span the supply chain from farm practice to consumer preferences and perceptions. Government has a role to play at a number of levels with international trade conditions being an important one.

On the ABC Country Hour, 23 April 2014, the Minister for Trade and Investment, Andrew Robb stated that his target for Dairy in a trade deal with China is “New Zealand plus”. The industry has decided what that means: Tariffs at the level NZ is paying on the date of implementation of an Australian deal, with the same reduction schedule as NZ, from that date.

As we know, dairy trade with Japan is worth about $520m. On that product we sell to Japan, we pay tariffs amounting to about $110m. That is a large impost in anybody’s language. The Japanese market is mature and has minimal growth potential. Japan is currently our biggest single market.

The Chinese market for dairy is growing rapidly. Since NZ implemented a trade agreement with China in 2008, NZ cheese imports have more than tripled to 20,015 tonnes. In parallel, non NZ origin imports have increased 256% to 27,301 tonnes. It is conceivable that by 2021, the Chinese cheese market alone could be 100,000 tonnes.

The below graphic shows growth rates for a range of dairy products into China.

In 2013, our exports to China were worth $353m. With tariffs ranging from 10 to 15%, the impost was approximately $40m.

In 2012, Australia exported about 60,000 tonne of dairy product to China; NZ exported about 600,000 tonnes. It is important to remember that it is not a two horse race. Production quotas are being lifted in Europe and parts of that industry are gearing up for rapid growth. The US too is gearing up to realise the potential of the export sector. Everybody has access to the same information and can see the same potential. In addition, the EU and US have market support mechanisms which assist them when it comes to reducing the impact of tariffs on their farmers.

If we are going to take advantage of the growth in global demand for high quality, safe, reliable food, our governments must redouble their efforts to gain profitable access to these developing markets. Trade into China could double from the 88,000 tonnes in 2013 to 180,000 tonnes over the next several years. To make this a reality, each and every one of us must spread the word that a favourable dairy trade agreement with China is one of the key ingredients for a confident, growing industry which in 2025 will be contributing much more than the current $13b dollars to the economy and directly employing many more than the current 43,000 Australians.

A good trade deal with China is the biggest game in town this year and the boost in confidence for our industry would be phenomenal.

By Tyran Jones, UDV President

Is China the great hope of the Australian dairy industry?

Dairy retail sales value in China, by category

CAGR ’00-’06 ’06-’12

6.2% 7.2%

19.7%

15.8%

46.6% 9.3%

10.1% 7.6%

31.8% 19.8%

17.5% 18.9%

27.5% 13.7%

8.2% -1.8%

18.1% 26.7% -

10,000

20,000

30,000

40,000

50,000

60,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

US$m Dairy retail sales value quadrupled over the last decade

Fresh/Pasteurised Milk

Flavoured Milk Drinks

Cheese

Infant Milk Formula

Overall

Yoghurt

Milk powder

Long-Life/UHT Milk

Other Dairy

ADF National Dairy Farmers' Summit Outcomes Report released

Helping New Zealanders become permanent residents

4. Worked with the state and federal departments to ensure consistency in requirements, web site information, application processes.

5. Ensured clear ‘how to’ information has been developed for departmental staff and applicants to use.

6. Clarified terms and assessment criteria.

The UDV is confident that now this work has been done, more people will be willing to apply for permanent residency through this process.

Anyone wishing to gain more information can contact UDV Project and Policy Officer Adele Beasley on 9207 5572 or abeasley@vff.org.au

Austral ian Dairy Farmers (ADF) has released the Summit Outcomes Report for the inaugural ADF National Dairy Farmers’ Summit, held on 13 March.

ADF President, Noel Campbell, said the industry’s long-term profitability and future growth prospects headline the report.

“Measures to boost profitability and grow the industry, both on-farm and through the supply chain, featured prominently in the Summit’s discussions and the Summit Outcomes Repor t re f lec ts th is , ” Mr Campbell said.

“If the industry as a whole is to grow and prosper, then improving profitability is key - something which farmers on the day made all too clear.”

The top three industry priorities identified at the Summit and outlined in the report are:

1. Develop an industry strategy for innovation, investment and growth;

2. Identify pathways to success to encourage investment and confidence in the industry; and

3. Government to continue with trade reform that benefits dairy.

The report provides an overview of the event’s discussion topics, results of the Summit’s priority setting process and commentary on key outcomes from the day.

This includes the discussions and priorities identified out of the Human Capacity; Farm Business Fitness; Social Licence – Public Trust; Competitive Value Chain; Market Growth and Cohesive Dairy Community workshops.

Mr Campbell thanked all involved with the Summit, including dairy farmers unable to attend but who contributed written or verbal feedback.

“The involvement of dairy farmers, be it in person or in thought, was key to the Summit’s success and for this and much more, we say thank you,” he said.

The report, including details on the industry’s next steps, is available from the ADF website at:www.australiandairyfarmers.com.au

UDV Project and Policy Officer Adele Beasley outlined the steps involved in applying for permanent residency through the Business Innovation and Investment programme.

The UDV has moved one step closer in helping New Zealanders become permanent residents.

On Thursday, May 29th, the UDV held an immigration information session for over 20 New Zealand dairy farmers who had expressed an interest in gaining permanent residency.

The difficulty former New Zealanders have had in gaining Australian permanent residency, and then citizenship, has been an issue in the dairy industry for over five years, and has been raised as an area of concern by a number of frustrated farmers. For a couple of years, the UDV has made assisting New Zealanders gain permanent residency a part of our work priorities.

The purpose of the session was to update attendees on the progress that has been made in th is area and provide a step-by-step guide on the application process so New Zealand citizens could decide whether they wanted to apply for permanent residency.

The information session provided updates on the UDV achievements so far, including:

1. R a i s e d a w a r e n e s s w i t h i n t h e Department of Immigration and Border Protection of the difficulties facing app l ican ts under the p rev ious immigration requirements.

2. Negotiated to have the key assessment criteria changed.

3. Gained the support of the Victorian government in providing an alternate pathway for applicants.

VFF President Peter Tuohey, together with UDV Mananger Vin Delahunty and UDV Project and Policy Officer Adele Beasley, welcome the participants to the New Zealand Immigration Information Session held on Thursday, May 29th.

Getting to know the UDV StaffI grew up on a Merino sheep and Angus beef farm in East Gippsland. I studied Laws/Arts at Deakin University in Geelong before going back home to be a journalist in Bairnsdale. Then I moved to Melbourne in July last year and was admitted as a lawyer in February this year.

1. Why are you working in the dairy industry?

I was interested in pursuing a career in Agriculture that combined my interests of media, policy, legal affairs and politics. Dairy in particular interested me for a number of reasons. First, it was a different commodity from my upbringing so I couldn’t bring pre-conceived ideas to the position or be influenced too heavily by my family’s opinions. Second, the people in the industry seem to be more politically astute and involved in all facets of the supply chain, not just what happens on farm. It also seems more fast-paced and progressive. Third, I appreciate that it seems to lack the elitism that can exist in other commodities. I think this is due to the fact that dairy can be an easier industry to enter and succeed in, as there are greater sharefarming options.

2. What is your role at the UDV?

My role at the UDV is Project and Policy Officer, concentrating on the policy areas of Markets, Trade & Value Chain and People. One of the major projects in my people policy area is New Zealand Immigration. Since I began working on this, major changes have been implemented and communicated to our members. Recently I also wrote the UDV’s part of the Agr icul tural Compet i t iveness White Paper response, based on UDV Policy Councillor Damian Murphy’s farmer finance scheme, contributed to the Dairy Product Manufacturing submission and the Rural and Regional Committee on increasing exports submission, as well as clarifying the different visas available to employ overseas workers and working on an agricultural training awareness campaign. I am also involved with media liaison and publicity. I enjoy that my job brings varied responsibilities and each day throws up new issues.

3. What has surprised you about your job at the UDV?

Since starting this position five months ago, I have been pleasantly surprised by the sheer amount of highly motivated,

intelligent and interesting people who represent the industry on both a national and state level. Dairy farmers are extremely involved in all aspects of the industry and very vocal on issues that affect them and their wider community.

4. Have you got any observations about improvement to the UDV?

I think we could be better at member engagement to ensure our members are well aware of what their fee goes towards.

Adele Beasley, UDV Project and Policy Officer

I grew up in a small town in Central Victoria and moved to Melbourne to study. I have a degree in Social Science (Environment), which focused on pol icy, statutory p lann ing , and Na tu ra l Resou rce Management. I have also set up a small charity called Friends of Bangladesh which empowers local farmers in Bangladesh.

1. Why are you working in the dairy industry?

Through my studies I developed an interest in the politics of food production and food systems. My introduction to Ag was through a job working on issues for farms on the urban growth boundary and through working with farmers in Bangladesh. I strongly believe that farmers are at the heart of the food system and this is why representative bodies such as the UDV are so important to make sure farmers’ voices continue to be heard. Dairy farming is particularly interesting to me because it is such an intensive and vibrant industry. It is a proactive industry and has a lot of talented individuals within it.

2. What is your role at the UDV?

My role is Project and Policy Officer. The UDV staff work closely with the Central Council and branches to provide policy, research and admin support to our members. My work concentrates on the pol icy areas of Natura l Resource Management, Farming Systems and Herd Improvement, and some Animal Health and Welfare issues. Recently I have written a submission on the BJD TCP3 program which contributed to a full review of the program, produced information on onshore gas for our members and processing facilities, organised the NZ Study Tour, and written an evaluation of the program to secure future funding. I have also been involved in developing the UDV State election priorities, and contributed to the Dairy Product Manufacturing submission to the Productivity Commission.

3. What has surprised you about your job and the UDV?

I’ve found the dairy industry to be full of h igh ly pass ionate and mot iva ted individuals. The people I work with are very knowledgeable and switched-on and also

very welcoming to newcomers in the industry. I think I was most surprised by the amount of business and economic skills involved in running a farm, there is so much thought that goes into it. And this is embarrassing to admit but I was surprised that people walk their cows twice a day!

4. Have you got any observations about improvements to the UDV?

It’s important to get more young people involved.

Yaelle Caspi, UDV Project and Policy Officer

Adele enjoyed milking cows on her recent stay at UDV Policy Councillor, Paul Mumford’s farm.

Yaelle on UDV Policy Councillor, Ron Paynter’s farm.

Disclaimer: This publication is provided in good faith and as a guide only. It may be of assistance to you, but the VFF/UDV does not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or consequence that may arise from you relying on any information in this publication.

United Dairyfarmers of VictoriaFarrer House 24-28 Collins Street Melbourne 3000 | ABN 67 079 980 304Ph. 1300 882 833 | Fax. 03 9207 5500 | E-mail. vff@vff.org.au | www.vff.org.au

Johne’s Disease Review BriefingThere is a review of the operations and effectiveness of the Bovine Johnes Disease (BJD) Test & Control Program (TCP) 3. UDV was instrumental in forming the review and has representation on the Committee with oversight of the review operations. The review will include an opportunity for farmers to contribute.

The review will deal with the broader issue of JD (including the ‘S’ strain). It is recognised that JD management needs to be considered with both animal health and market access implications of JD.

In May UDV is hosted a briefing session where the appointed consultants briefed representatives from the processing companies, DA, ADF, DFSV and the two main dairy breeds.

Cassie Allison (United Dairy Power) and Scott Joynson (Jersey Australia) at the Johne’s Disease briefing.

Electronic NVDsThe Electronic Nation Vendor Declaration (NVD) project has commenced field trials. The trials will cover most of the livestock marketing avenues for sheep, cattle (dairy and beef) and bobby calves.

This includes via the saleyard and feedlot systems as well as direct to processor sales. The trial phase will include marketing chains for bobby calves, chopper cows, sheep and beef cattle. The aim for these trials is to test a range of digital options for generating electronic NVDs at the farm gate and testing their integration with other parts of the supply chain, eg. with saleyard and processor systems. At each stage of the field trials information will be collected from the relevant parties including producers, saleyard managers, a g e n t s , p r o c e s s o r s a n d transporters.

“The project is designed to not just convert the current hardcopy NVD form into an electronic database record but to look at ways to enhance the digital capability across the livestock marketing chain. This could involve sending extra on farm information with the NVD data, integration with existing saleyard and processing systems and links with transport logistical systems” The Chairman of LSAV Cr Stuart McLean stated.

The technology being tested will include a range of physical devices like smart phones, tablets and laptops and all systems will provide internet connectivity as par t of the i r so lut ion. The electronic collection of cattle RFID information will also be tested as part of the trial.

Victorian farmers will gain massive savings from the State Government’s decision to cut the Fire Services Property Levy by a further 21 per cent for 2014-15.

The UDV has welcomed the Government’s decision to cut the FSPL rate from $31.2 cents on every $1000 of a farm’s CIV (Capital Improved Value), down to 24.6c/$1000 of CIV from July 1 this year.

The VFF worked with Premier Denis Napthine and Treasurer Michael O’Brien to cut the rate down to 31.2c/$1000 of CIV for this financial year. And now it will be cut even further to 24c/$1000 of CIV.

This is great news, given we estimate cutting the FSPL rate will deliver savings of $30m to Victorian farmers in 2014-15.

The FSPL was introduced on all properties on July 1 last year to replace the inequitable Fire Service Levy on property insurance.

The VFF has lobbied State Governments to dump the insurance-based levy for 15 years, arguing it more than doubled the cost of insurance and was grossly inequitable.

Under the old system farmers paid 65-85 per cent of the premium again as the fire services levy, then GST and stamp duty on the combined amount.

What we’ve got today is a fairer means of funding our fire services – the CFA and MFB – where everyone who own property that’s at risk of fire pays.

Fire Services Property Levy cut

UDV will be assisting with the organisation of three regional meetings across the state in the coming months.

Please feel free to contact the UDV if you are interested in contributing to the review.

Yaelle Caspi 03 9207 5556 or ycaspi@vff.org.au

Ross Greenaway (Murray Goulburn), Richard Shephard (Herd Health), Scott Williams (Scott Williams Consulting), and Matt Watt (Fonterra) at the Johne’s Disease briefing.