ADIC calls for balanced water reform in Productivity Commission submission

The Australian Dairy Industry Council (ADIC) has lodged a submission to the Productivity Commission’s National Water Reform inquiry, highlighting growing concerns about water affordability, irrigation infrastructure sustainability and the cumulative impact of water recovery policies on the dairy sector.

The submission emphasises that affordable and reliable access to water is fundamental to dairy farm productivity, processor viability and regional employment, particularly across the southern Murray-Darling Basin, which supports around one quarter of Australia’s milk production.

ADIC warned that further water buybacks under the Murray-Darling Basin Plan could significantly reduce water availability across the region, increasing water prices and placing additional pressure on dairy farms, processors and regional communities. Industry analysis cited in the submission found potential milk production declines of between 2 and 15 per cent under various buyback scenarios.

The submission also called for greater Commonwealth and State co-investment in irrigation infrastructure renewal and modernisation, alongside a stronger policy focus on maintaining affordable and resilient water systems that support food production, regional manufacturing and national productivity.

ADIC said future water policy must balance environmental outcomes with the long-term sustainability of productive agriculture, regional communities and Australia’s food manufacturing capability

Read the submission.