Dairy leaders call for MDB Ag Advisory Group

Dairy leaders say an agricultural industry advisory group must be established for the implementation of the Murray-Darling Basin (MDB) Plan to ensure the livelihood of dairy farmers, processors and communities.

Australian Dairy Industry Council Chair Rick Gladigau and Deputy Chair John Williams met with the Federal Minister for Environment and Water Tanya Plibersek in Canberra yesterday, on the same day the Federal Government got the Senate support it needed to pass the Restoring our Rivers Bill.

“We expressed our significant concerns to the Minister about the Bill and the risks it poses to our industry, our farmers, and our regional communities,” Mr Gladigau said. “All at a time when milk production is at an industry 30-year low.

“We also sought details on the new amendments to the Bill that were passed and made it clear that the government must now genuinely engage with dairy farmers, processors and communities to ensure they are not destroyed in this process.”

The Bill passed the Senate with minor amendments that included a consideration of socio-economic impacts and options to lease water for the environment.

“We proposed to the Minister establishing an agricultural industry advisory group so that government genuinely engages with industry in the implementation and roll out of the new legislation.

“The group would endeavour to minimise negative impacts of buybacks by ensuring ongoing government accountability including the consideration and reporting of socio-economic impacts.

“Also, by ensuring that “all options are on the table” as the Minister has said, not only buybacks and to provide input into these options. Further, to provide input into the inevitable community assistance packages that will be required from structural change as a result of buybacks.”

Twenty per cent of the nation’s total milk production comes from the Murray Darling Basin region. It is home to 912 farms and 42 dairy processing facilities, creating almost 7000 jobs and generating about $2 billion of value to the region and local communities.

Mr Gladigau said since the introduction of the MDB Plan in 2012, dairy farm numbers in the region had fallen by 47 per cent and raw milk production dropped by 35 per cent.

Mr Williams said: “It’s so important we have an industry advisory group to consider the application of socio-economic considerations, the workings of community assistance packages and alternative measures to buybacks.

“Every day, dairy processors are fighting to ensure the continuation of the decline in milk production does not continue.

“Dairy processors are feeling the pressure to remain profitable, to maintain jobs for workers and keep the doors open,” he said. “Many are at breaking point and unsound water reform could be the final push.

“To put it simply, less water means less milk production. Less milk production means less processing. Less processing means less jobs and less Australian dairy products. All this increases food costs at a time when consumers are struggling through significant inflationary pressures.”

“We understand and support the need to provide water for the environment, we must also protect the livelihoods of local communities, the dairy industry and our processors.”

While in Canberra, Mr Gladigau and Mr Williams, accompanied by Australian Dairy Products Federation Executive Director Janine Waller and Australian Dairy Farmers CEO Stephen Sheridan, also met with Assistant Minister for Manufacturing Tim Ayres, Shadow Minister for Water Perin Davey and the Prime Minister’s office.