Dairy News AUSTRALIA july 2013
8 // news
US boosts export subsidy US dairy farmers have launched a fresh assault on key Australian markets by doubling funding for its export subsidy program. The US Cooperatives Working Together (CWT) body doubled the dollar amount of money it contributes to its export subsidy program. US farmers have backed a levy rise from 2 cents to 4 cents per hundredweight from July 1, effectively doubling
the amount used to subsidise export products. This will make US$60 million in total each year to subsidise exports. The Australian Dairy Industry Council, representing dairy farmers and processors, and Dairy Australia have said they will examine legal options and work with industry and government on other avenues. “It is disappointing that American milk producers feel the need to sub-
sidise their dairy product exports and ciently-produced Australian product will not compete on a level playing in these markets,” Mr Campbell said. “Activity of this type field,” ADIC Farmers now provide only reinforces the need chairman for Australia to sign Noel Camp- US$60 million each key Free Trade Agreebell said. year to subsidise ments such as those “The CWT being negotiated with subsidies pro- exports. Japan, China and Korea gram is targeting key Australian markets in Asia, to assist in ensuring a more level playsuch as Japan, and under-cutting effi- ing field.”
Adelaide University opens dairy teaching unit The University of Ade-
laide has opened a dairy teaching facility for its veterinary and animal sciences students at Two Wells, north-west of its Roseworthy Campus. The Dairy Practice Teaching Unit has been built in partnership with Wirrabank Holsteins at the Wilson family dryland commercial feedlot dairy farm, Bevan Park. University of Adelaide Vice-Chancellor, Professor Warren Bebbington, said the Dairy Practice Teaching Unit brings together the best of theoretical and practical education in modern dairy management and offers students a unique opportunity to learn from those at the forefront of the industry on an innovative working farm. Professor Bebbington said he was very pleased the new Teaching Unit recently received a commendation from the Australian Veterinary Boards Council’s Veterinary Schools Accreditation
Advisory Committee. The Bevan Park unit incorporates a tutorial room, a holding yard, a foot-care area, an examination area, a linear race with three crushes and cattle weighing scales as well as wash-up facilities and storage rooms. Head of the School of Animal and Veterinary Sciences, Professor Kym Abbott, said the teaching of dairy cattle practice was an important component of the veterinary and animal science programs. “This facility is an important learning resource and gives our animal and veterinary sciences students the opportunity to learn in small groups so they can master the skills essential for modern dairy practice,” he said. “Having the unit integrated into a working dairy farm means students will be able to develop their knowledge and skills within the overall context of a commercial farming operation.”
The CWT export subsidies program uses a levy drawn from about 70% of total US milk production for the sole purpose of subsidising product entry into export markets including those where Australia has a major presence. The CWT is not aligned with the US government which allows it to sidestep existing WTO rules and restrictions on export subsidies.
Independents propose stronger competition laws INDEPENDENT Federal MP Rob Oakeshott has
Veterinary Science students Kate Townsend (left) and Melissa Ewens.
introduced a Bill in federal parliament that aims to help farmers and suppliers in a market dominated by large corporations. His bill was debated in parliament but was not listed for final debate before parliament rose for the election. He was hoping for bipartisan support to allow the passage of the new rules in the last two sitting weeks of parliament. Mr Oakeshott has since announced he will not re-contest his seat of Lyne in NSW. He said his proposed changes to the Competition and Consumer legislation would strengthen anti-competitive behaviour rules by giving the Australian Competition and Consumer Commission (ACCC) the “power most Australians think they already have. “It would allow the ACCC judgements to take into account broader market impacts, instead of simply the direct impact on consumers, with a ‘reasonably likely’ test.” Mr Oakeshott said the major supermarkets’ $1-perlitre milk price war, for instance, was found by the ACCC in 2011 to benefit consumers, but did not take into account the long-term harm to the supply chain – the processors and dairy farmers. “If all but the largest dairies struggle to cover basic farm costs as a result of the farm gate price, it is reasonably likely those farmers will leave the industry,” Mr Oakeshott said. “It also is reasonably likely the subsequent impact of fewer suppliers will be higher retail prices. “We cannot undo dairy deregulation, but we can strengthen the rules that guide the consumer watchdog’s decisions.” Queensland Dairyfarmers’ Organisation (QDO) president Brian Tessmann said the legislative amendments proposed by Mr Oakeshott largely mirror what the QDO and Australian Dairy Farmers had itself drafted and have long been lobbying for, but unfortunately with little response or appetite for action from the Federal Government. “The QDO has long been advocating for the need for strengthening the rules around competition, as it is clear that the market has failed farmers with the supermarkets selling milk at the unsustainably low price of $1/litre, and causing downward pressure on farm-gate milk prices, which flies in the face of a booming world market and major steps up in prices now being paid to dairy farmers supplying that export market. “We welcome Mr Oakeshott grabbing that baton and running with it.” Independent Member for Kennedy, Bob Katter, has proposed laws that would forcibly pressure the supermarkets to reduce their market dominance progressively over a number of years. Mr Katter had also tabled a Bill to utilise the Fair Work Act to provide fair farm gate prices to dairy farmers that produce drinking milk. The QDO continues to advocate for a mandatory code of conduct and an ombudsman with real power, and lobbied for this in Canberra late last month.