ADIC: Dairy industry sees better ways to protect the environment and communities in Murray Darling Basin

Australia’s peak dairy advocacy body, the Australian Dairy Industry Council (ADIC), is calling for the Federal Environment and Water Minister Tanya Plibersek to drop her plan for water buybacks. ADIC is also inviting the Minister to visit the dairy industry in the Murray Darling Basin, especially in northern Victoria and southern NSW.

This week Minister Plibersek introduced to Federal Parliament changes to the Commonwealth Water Act and Basin Plan that would see water buybacks used to get the full 450GL of water for environmental flows delivered by a new deadline of June 2027.

ADIC Chair Rick Gladigau said he welcomed the much-needed extension but warned buybacks were not the answer. “No one cares more about the Murray River than the communities that live alongside it. But right now, they’re extremely angry and they’re extremely concerned.

“There are alternatives to buybacks and better ways to achieve environmental outcomes. Buybacks permanently remove the water from key food-producing regions, driving up the price of water and increasing the cost of food production and ultimately prices on supermarket shelves. This is the last thing we need when families are struggling to afford to put food on the table and the Government itself is running food security inquiries.

“It feels like the Minister is ignoring the alternatives to achieving positive environmental outcomes, and pursuing buybacks at the expense of rural communities and food production. This is a waste of taxpayer money.

“We encourage Minister Plibersek to visit dairy farmers, dairy processors and associated communities along the Murray River, especially in northern Victoria and southern NSW, and to hear firsthand the impacts this policy would have,” he said. “The dairy industry is calling for an innovative and outcomes-focused approach. Buybacks are a blunt instrument creating trauma for communities, leading to job losses and reduced investment.”

Mr Gladigau said the dairy industry in the Murray Darling Basin, contributed to the employment of almost 7000 people, directly and indirectly, across more than 900 farms and 40 dairy processors, with a farmgate value of over $1 billion. Unfortunately, since the Basin Plan began in 2012 farm numbers have fallen by 47% and milk production has dropped 35%.

“The Minister’s approach to drop the social and economic test has a very real impact on communities, jobs and food production, and effectively throws aside the spirit of bipartisanship that has held for 11 years through other challenges. What we have now is more stress, uncertainty, and frustration for communities in the Basin.”

Mr Gladigau said the industry had provided a range of other options around water efficiency projects to progress recovery. “There’s no easy answer to our water challenges, but just pushing through the first option to hand isn’t going to solve anything.”

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About ADIC
The Australian Dairy Industry Council (ADIC) is the peak national representative body of the Australian dairy industry. The Chair of ADIC is Australian Dairy Farmers (ADF) President Rick Gladigau, the Deputy Chair is Australian Dairy Products Federation (ADPF) President John Williams.