ADPF provides processor members a raft of key tools and resources on issues that have been identified to have an impact on their business at any given time.
In addition, ADPF provides the latest information and guidance to members on what’s happening in government, regulation and policy as relevant to the five strategic priority areas.
Deloitte Report: Economic and Broader Contribution of the Australian Dairy Processing Industry
Australian Dairy Products Federation (ADPF) has launched a new report by Deloitte Access Economics on the Economic and Broader Contribution of the Australian Dairy Processing Industry, that highlights the significant contribution dairy processors make to the Australian economy and regional communities.
ADPF commissioned Deloitte Access Economics to provide the first, singularly focused comprehensive positioning of the dairy processing industry and its economic contribution and value more broadly across Australia – including employment, environment and sustainability, exports, transport and regional development.
Highlights from the report include:
The following resources provide complete coverage of the economic report and include the full report, a summary in the form of an infographic, a link to a podcast discussion and case-studies.
Listen to the Podcast with renowned rural journalist Sue Neales in conversation with ADPF President Grant Crothers, Brownes Dairy CEO Natalie Sarich-Dayton and Fonterra Australia Managing Director René Dedoncker as they discuss the report and provide some insights into what two processors are doing on the sustainability front and to meet consumer demand.
Read about Fonterra Australia’s work in developing sustainable packaging
Read about Western Australia’s Brownes Dairy as they bring back the ‘Milko’ home delivery service
Read about how Burra Foods are investing in their people and their local dairy communities
Read about how Lactalis Australia, in partnership with Booth Transport, have been able to drive strong sustainability gains and environmental outcomes
The Australian Dairy Plan aims to drive a significant turnaround in the industry’s outlook through a range of bold initiatives targeting increased profitability, confidence, and unity over the next five years and beyond.
A joint initiative of Australian Dairy Farmers, ADPF, Dairy Australia and the Gardiner Dairy Foundation, the Plan aims to drive increased profitability, confidence, and unity within the dairy sector over the next five years – with key initiatives to increase Australia’s annual milk production by almost one billion litres, add $500 million of farmgate value for farmers, as well as help create thousands of new jobs. The Plan was informed by nationwide consultation with over 1,500 participants.
The Australian Dairy Plan promises to deliver on five key commitments:
The Milk Value Portal was a key initiative to deliver on Commitment 5 of the Australian Dairy Plan, in restoring trust and transparency between farmers and processors to strengthen industry confidence.
Click here to learn more about progress to date in delivering The Plan.
The Dairy Code of Conduct (Dairy Code) came into effect on 1 January 2020 and aims to improve the transparency of trading arrangements between dairy farmers and those buying milk.
The Dairy Code sets out mandatory elements in supply contracts. It requires processors that intend to purchase milk during the next financial year to publicly publish standard forms of milk supply agreements (MSAs) on their website before 2pm on 1 June each year, including minimum milk pricing.
The Government conducted its first scheduled review of the code in 2021, with the review’s report publicly released in February 2022. The Government response to the review report was then released in March 2022.
The Review Report found that the Dairy Code of Conduct provides a valuable framework for the dairy industry but there are still areas for improvement. To better the function of the Dairy Code, three recommendations have been put forward:
Recommendation 1
The Code should be amended to:
To note: due to the election and the Government in caretaker mode, timings for changes to the Code were delayed.
Recommendation 2
To support the operation of the Code, the Australian Government should:
The development of additional ACCC guidance materials is now complete – refer to the supporting notes below.
Recommendation 3
The Australian Government and industry stakeholders should investigate and gather further evidence to determine suitable solutions to address the following areas for potential improvements to the Code:
Work in this area is expected to commence in the second half of 2022, ahead of the the Australian Government’s second review of the Code which can be announced on or after 1 January 2023.
Click here for the Australian Government’s response to the first review of the Dairy Industry Code.
Dairy Code of Conduct – updated Guidance notes and a new processor checklist now available
The ACCC updated its guidance materials on the Dairy Code of Conduct in May 2022.
The updated guidance provides greater detail on the interpretation of the Code’s ‘single document’ requirement, arrangements for cooperatives and collective bargaining groups, what constitutes a ‘material breach’, loyalty payments and other bonuses, and the requirements to publish dispute reports.
Key updates and changes enclosed in the checklist include:
To summarise the core obligations under the Code, the ACCC has also released a new processor checklist to support the development of a MSA. It covers dealing in good faith, publication requirements, key requirements for executed MSA, variations, terminations, as well as complaints, disputes, and record-keeping.
It is important to note that this checklist is not a complete summary of obligations, and processors should seek specialist advice on how the Code applies to their circumstances.
Access the ACCC’s ‘Processor checklist for the Dairy Code’ here.
Developed with the support of dairy processors – both ADPF members and non-members, the Milk Value Portal (MVP) takes average farmgate milk pricing (FMP) data and puts it in an easy-to-use format that farmers can easily interpret.
The MVP provides answers to the question ‘what is the milk price’ and ‘what drives the milk price in Australia?’ It includes relevant global and domestic intelligence and insights into the dairy market and supply chain influences on price.
At the core of the MVP, is the Farmgate Milk Value Tool that enables an interactive experience on FMP value, based on current and verified processor data.
Farmers can enter their farm parameters such as geography, farm size, and milk components (fat and protein content), to see what the average milk market is paying (in cents/litre or $/kg of milk solids) for a particular time of the year.
Farmers can then use this data to adapt their farms to achieve the best value and know what to expect when contracts are up for renewal.
The data is regularly updated to ensure the Portal remains relevant.
The Milk Value Portal is a fully-integrated one-stop shop for milk price modelling that is available free for use. It can be accessed through a web browser on a desktop or tablet, and is also mobile-friendly.
It’s an incredibly simple and easy to use tool that provides an intuitive user experience. You don’t have to be an economist to get the most out of the tool.
Click here to visit the Milk Value Portal.
Introducing the Milk Value Portal (MVP) - an industry-first one-stop shop that helps farmers understand the value of their raw milk. MVP is ADPF's commitment to rebuilding trusted partnerships between farmers and processors, as outlined in Commitment 5 of the Australian Dairy Plan. This Flip Book outlines the challenge, how MVP helps solve it and an overview of how to use to the tool.
ADPF has developed a 3-year strategy to guide all activity through until 2025. The strategy seeks to help ADPF best represent its members and ensure processors are playing their part to help deliver on the wider industry’s vision to provide nutritious dairy food for a healthier world.
ADPF’s vision is of a profitable and sustainable dairy processing sector, valued and respected throughout the community. Our core purpose is to be the trusted source of advice and strategic lead of public advocacy to government and the community, on the health, economic and social benefits of dairy.
The ADPF 3-year strategy is guided by five strategic priorities and corresponding objectives:
Following the Australian Competition and Consumer Commission (ACCC) inquiry into perishable agricultural goods (PAG) last year, one of the recommendations was for governments and industries to explore measures to increase price transparency in PAG industries, in order to increase competition in those industries.
The program includes:
Co-design Workshops
Each sector in the perishable agricultural goods supply chain will be offered the opportunity to participate in two full day workshops. Industries can either have their own industry-specific workshops, or may hold sector-wide workshops where appropriate. Attendees will include representatives across the supply chain for the relevant sector, RDC(s), DAWE and the ACCC.
Workshops will provide an opportunity to discuss price and market transparency issues in the sector, brainstorm ideas to improve transparency and co-design the details of the project.
The workshops will be held between July and December 2021.
Grants for market transparency tools
Following participation in co-design workshops, RDCs will be invited to apply for funding for projects that generate knowledge, technologies, products or processes that improve market transparency appropriate for the relevant supply chain.
Project bids will need to be co-sponsored by partners from across the relevant supply chains and include non-matching (monetary and in-kind) co-contributions from industry participants. Bids will need to clearly demonstrate how the project will improve market transparency, how the project will be implemented, and an impact analysis across the entire supply chain, and how the proposed market transparency tool will be accessed.
Read the Department of Agriculture, Water and the Environment’s factsheet with more information.
Dairy Sector Food Action Waste Plan Released in July 2023, the Plan outlines 10 key actions to reduce waste throughout the dairy supply chain. The Action Plan was developed collaboratively between the Australian Dairy Products Federation, Dairy Australia and Stop Food Waste Australia, with input from dairy businesses across the country.
The Path to Half The Path to Half explains the true cost of food waste in Victoria and provides the first Australian perspective on the impacts of food waste and food production on climate change, water loss and economic costs.
CEBIC Round 3 Thought Leadership event Designing our future using the ‘waste’ of the past. A thought-provoking and imaginative opening event to our series on reducing food waste.
Launching our Circular Economy Business Innovation Centre Sustainability entrepreneurs from Victoria, Australia and Chile shared how they built successful businesses that embrace circular economy and transformed market gaps into profitable opportunities.
National Food Waste Strategy The National Food Waste Strategy provides a framework to support collective action towards halving Australia’s food waste by 2030. The strategy identifies four priority areas where improvements can be made—policy support, business improvements, market development, and behaviour change.
Dairy businesses – both farms and processing – are the backbone of the economy and the community in many regions of the Murray Darling Basin.
Dairy production and processing in the Basin underpins Australia’s food security, producing 22% of Australia’s milk, a key source of nutrition in the Australian diet.
The region is ideally located for both export and domestic markets, with efficient connectivity through road, port and telecommunications infrastructure.
The following resources provide key data and insights into dairy’s presence in the Murray Darling Basin, and can be drawn on for stakeholder meetings, briefings and submissions.
This fact sheet provides a snapshot of dairy in the Murray Darling Basin and was updated in September 2023.
This document provides an overview and key data on dairy in the Murray Darling Basin. This document will be updated annually with new data. This version was created in September 2023.
The May 2022 Australian Dairy Products Federation (ADPF) Member Forum focussed on the ‘changing profile of the Australian Dairy Farm – who will dairy processors be doing business with in 2030 and beyond’?
Speakers for the event included Richard Eckard, University of Melbourne and Director of the Primary Industries Climate Challenges Centre; John Droppert, Dairy Australia, Geoff Davis, Merricks Capital and Peter Steele, NAB Agribusiness.
The Forum also featured an informative panel discussion with three dairy farm owners and operators across Australia: Alan Davenport (Tas), Daniel Cochrane (NSW) and Kirsti Keightley from Prime Value Asset Management, discussing their business models and how their farms will operate in the future, the likelihood of corporate investment, and the opportunities and challenges of sustainable dairy production.
The Forum was attended by ADPF members, industry representatives, and government bodies.
Select key insights include:
ADPF extends its thanks to all those who tuned in to the webinar and in particular to all the speakers for their time and insights.
An incursion of Foot and Mouth Disease (FMD) and Lumpy Skin Disease (LSD) in Australia would come as a grave cost to the dairy industry.
In response to the heightened threat of FMD and LSD, the Australian dairy industry has enacted an emergency animal disease team.
The team is working closely with the Government, to help mitigate the risk of FMD from entering Australia.
To help the dairy industry keep up to date with information and resources on Foot and Mouth Disease (FMD) and Lumpy Skin Disease, Dairy Australia has launched a dedicated Emergency Animal Diseases page on their website.
This provides farmers and processors with the latest information to help prepare for and reduce the risk of outbreaks.
Click here to access the information: https://lnkd.in/grmi52RQ
Useful resources:
Biosecurity is everyone’s responsibility.
The Australian Dairy Sustainability Framework 2021 Sustainability Report has been released – a collaborative effort between Australian Dairy Products Federation, Dairy Australia and Australian Dairy Farmers. Together, our Dairy Promise is to provide nutritious food for a healthier world.
The Report shows that dairy companies have reduced their GHG emissions by 25.5% between 2010/11 and 2020/21, 94% of dairy farmers have implemented practices to reduce or offset their GHG emissions, and that 71% of farms use some renewable energy.
Marking 10 years since the Australian dairy industry developed the first Australian Dairy Sustainability Framework, it is clear that industry is well on its way to achieving their collective target to reduce greenhouse gas (GHG) emissions intensity by 30 per cent by 2030.
Planning for what’s next is already underway, with industry currently reviewing its goals for beyond 2030.
Read the full Australian Dairy Sustainability Framework 2021 Sustainability Report here: https://www.dairy.com.au/sustainability/sustainability-framework-reports-and-scorecards.
The Dairy Manufacturers Sustainability Council (DMSC) has released its Environmental Scorecard for 2020-21. The DMSC is a nationally recognised community of practice – comprised primarily of environmental and sustainability group managers from Australian dairy manufacturing companies – and is supported by the Australian Dairy Products Federation (ADPF). Highlights from the 2020-21 Scorecard include a 25.5 per cent cut in Greenhouse Gas emissions intensity between 2010-11 and 2020-21 and a 41 per cent reduction in solid waste sent to landfill between 2010-11 and 2020-21. Read the Scorecard here.