Russell Broadbent (McMillan, Liberal Party) Share this | Link to this | Hansard source

Thomas Jefferson once said that all men are created equal. We know in this House that all men and women are not created equal, at least not in the way that some would have us believe. Some are smarter than others, some have greater opportunity by birth, some make more money than others, some women make better cakes than others, some people are born gifted beyond comparison—and then some choose to be dairy farmers. You must have a special gift and a special way with the world to be a dairy farmer. Good dairy farmers grow great grass which makes healthy cows, quality milk and health products for a nation. These people are part scientist, part horticulturalist, part labourer, part shiftworker and part mechanic. They are schooled in hygiene, refrigeration, nutrition and animal husbandry. They are skilled in carpentry, fencing, drainage and road making. They are able to continue to work seven days a week, under any weather conditions, from daybreak to day's end and into the night during calving.

Who in their right mind would choose to be a dairy farmer? In my 50 years, I have spent no more than two days in dairy sheds. In those two days I learned that I was not to become a dairy farmer. But the business we were in grew out of dealing with the dairy farmers. They were the farmers in my community, along with potato growers, swede growers, pea growers and asparagus growers. The biggest area was dairying and, as a youth, most of the farms were about 40 acres. Off that 40 acres, they could educate their family and they could buy a new Holden every two years.

The world has, of course, changed. Since 1950, dairy farmers have had to face deregulation at a local, state and then federal level. That affected every farmer from North Queensland all the way to Tasmania. That deregulation was difficult and made great changes to the industry. In my time, I can remember—and there have been more—three major droughts: 1968, the 1980s and the last one, which lasted from 1997 to 2010 before it rained. They faced floods and they faced fires; I have mentioned the droughts. They faced high interest rates in the early nineties and low milk prices. Today they face rising costs for feed, power, fertiliser and every other area of their work. They are an amazing family.

I remember when one of the young people connected to a dairy farm had won a prize—I do not remember what the prize was. I said: 'We'll deliver it to the farm—it'll save them coming to the office. We'll get in the car and drive to the farm.' It was a cold, horrible, wet, rainy night. The last time I had seen the woman I found at the farm, she had been dressed immaculately for a night-time function. When I arrived at the dairy farm there were water and dirt everywhere. It was pouring with rain. She had gumboots on and three pairs of tracksuit pants with a pair of waterproof pants pulled over them, a great big jacket and a hat pulled down over her head. She did not want me arriving at that time to say hello and deliver the prize. I thought, 'This is dairying.'

I remember another time, in the middle of the drought, I received a call from the brother of a farmer—and I will name no names. The brother lived in the city, and he said, 'My brother's in trouble and he's not telling anybody.' I drove to the farm and the farmer hopped into my car. I said, 'Let's just dive round the farm and you can tell me the story of what's happening.' It was at the height of the drought, and the government had done good things such as sending the drought bus around, but some farmers still did not approach the drought bus. They would not let their guard down enough to say, 'I'm in trouble.' I thought that the only thing I could do for this dairy farmer would be to let him know that it was alright to go to the bus and that there was no crime in admitting that there was an issue there.

We drove around the farm. He showed me the farm and told me how proud he was and what they had done, but there was no water in the dams. He was carting in truckloads of water every day at huge expense just to keep the farm going. At the end of it we sat down and had a talk. I said: 'You're not on your own. I've spoken to a lot of your compatriots that are dairy farmers in this area and around all of my electorate. It's a good thing to go, because we are here to support you in this industry at this time.'

At that time my electorate was not getting the drought relief that many electorates in the rest of Australia were getting. I had to go to the Prime Minister and say that my farmers were at a disadvantage compared to other dairy farmers across Victoria, because they lived in a different shire. John Howard, as Prime Minister of the day, never, ever let me down. From his visit to my electorate, as only a prime minister could do in those circumstances, our farmers received drought relief and support. We turned the corner with government support equal to that for every other farmer suffering from drought at that time across Australia.

That farmer had a good story. He did go to the drought bus and things did turn around. Local members—I praise them all on both sides of the House and I have spoken about my respect for members before—sometimes can make a tiny difference that no one except the family in the situation they were in at the time will ever know anything about. Members do make a difference. I could go into all the statistics and bore you witless about how much better my dairy farmers are than those down in the districts near Geelong—but I will not. There are those who are still fighting the fight to supply fresh milk into Queensland and New South Wales against the onslaught of the big retailers, who want to sell milk at $1 a litre so that they can increase their market share eventually at the cost of the producer, the dairy farmer.

Do I have an answer for that today? I say to the member for Corangamite: no, I have not. I do not know how to address that issue, but I know in the long run it will go all the way back to the producer, the person who grows the grass that produces the cow that delivers the milk. And, remember, we export out of my area some 45 per cent of what we produce. That protein goes to countries that cannot produce that protein. We do things for poorer countries out of the wealth of what we are able to produce.

I take great pride in my dairy farmers throughout Gippsland. Whatever we as members of parliament can do to support them in their daily work, as experts in their field, as highly talented, creative farmers, we should do on every occasion. We should support them and tell them how much we appreciate them.

Darren Cheeseman (Corangamite, Australian Labor Party) Share this | Link to this | Hansard source

Today I rise to speak about the very important contribution that the dairy industry makes to the Victorian economy, and particularly about the contribution out of south-west Victoria. Whilst we have a number of friends in the gallery I will acknowledge the fantastic work that the firefighters union has done in representing the interests of many people in my electorate—the paid firefighters—particularly in terms of the exposure they receive through their duties as firefighters. As someone who has worked very closely with a number of Victorian fire agencies, particularly DSE and Parks Victoria, I know the fantastic contribution that the unions in that sector make. I would like to acknowledge Peter Marshall for his presence today and for the hard work he has put in around the halls of power in making sure that firefighters are looked after. Regarding the chemicals they are exposed to in the course of their duties, hopefully the amendments and the legislation we have been debating will be passed on Thursday, to provide them justice.

Today I take the opportunity to acknowledge the fantastic work of the dairy industry within south-west Victoria, which very substantially provides to the Australian dairy industry. We have somewhere in the vicinity of 22 per cent of the industry nationally in south-west Victoria. It equates to about 38 per cent of the Victorian dairy sector. I share the views that presented by the member for McMillan on the absolutely fantastic contribution that the dairy sector makes. Indeed, I would hazard a guess that, in the federal seat of Corangamite, the dairy industry would be the largest exporter. We have a number of very large exporters in the broader region, and dairy would certainly be right up there. Raw milk production within our part of the world is valued at about $2.4 billion according to the 2008-09 figures. Victoria produces about six billion litres of raw milk. Overall Victoria produces about 85 per cent of Australia's dairy products, largely between the three dairy districts of south-west Victoria, the Murray district and the Gippsland district. This equates to about $1.76 billion worth of exports to the Australian economy. Indeed, the largest single value commodity that is exported from the Port of Melbourne is dairy related. In 2006 there were some 13,232 people employed in the dairy sector and around 8,000 of those were employed in the dairy production sector, which is the manufacturing and value-add component within that.

Australia is a very substantial player in the world market. We equate to about 10 per cent of the international export market, with New Zealand, the European Union and the United States making up the balance of the large export markets. Australian farmers are probably the most innovative dairy farmers anywhere in the world. Australia was one of the very early movers in putting in place arrangements, particularly through the eighties and nineties, to ensure that deregulation took place, which has led to some substantial innovation taking place. But that is not to say that there are not very substantial challenges. Those challenges come from a world where there is not a level playing field. Australia has removed most of its barriers to trade, but many other countries—particularly the European Union and the United States—have put in place trade barriers, which of course disadvantages Australian dairy farmers in the production and selling of milk on the international market.

Dairy farmers in Australia, particularly in my part of Victoria, have been extremely innovative and have looked at the way in which they undertake their business and have put in place a raft of world-leading practices to ensure that they can compete against what is often a very unfair international marketplace, particularly in terms of world's best practice in dealing with things such as feed management, animal management and the use of water. The member for McMillan spoke about the consequences of drought and the difficulties that many dairy farmers have experienced over the last few years with drought. One can only imagine what will take place in the years and decades to come as a consequence of climate change leading to a drying eastern seaboard.

The member for McMillan very eloquently spoke about the type of work and the way work is organised within the dairy sector. It is true that the hours that they have to work are very unsociable, with very, very early mornings and, if they are milking a couple of times a day, late afternoons as well. Dairy farms have changed dramatically in the last 30 to 40 years. In many parts of Victoria where there have historically been dairy farms the farms are much bigger today than they were in the years and decades previously. Indeed, in south-west Victoria we are seeing a lot more neighbours buying out neighbours to ensure that their farms are economic in terms of scale, and I think we will continue to see a lot more of that in the years to come. As I said earlier, the Victorian dairy sector has contributed enormously to the wealth of this nation. Dairy farmers continue to strive to find best practice in the way they undertake their work. I have many thousands of dairy farmers in my part of the world and many thousands of workers that work in the process chain as well. Certainly, I recognise the very substantial contribution the dairy sector makes to south-west Victoria and more broadly to the Australian economy. Indeed, south-west Victorian dairy farms produce goods that are valued in excess of $2 billion. As you can see, it is a very substantial part of the local economy. I acknowledge the difficult times that dairy farmers have been through, particularly through the drought over the last few years, and look forward to working closely with them to ensure they remain competitive on the world stage. The Commonwealth government looks forward to doing everything it can to ensure that their businesses remain competitive.

Dan Tehan (Wannon, Liberal Party) Share this | Link to this | Hansard source

It is with great joy that I rise this evening to support this motion moved by the member for McMillan. I must thank the member for McMillan because when he said he was going to move this motion he asked me whether I would be prepared to second it. It was with great delight that I said I would, and I congratulate him for moving this motion. There are 1,500 dairy farms in western Victoria. They currently produce around 2.1 billion litres of milk. That is nearly a quarter of Australia's milk production. The processing sector processes that milk into cheese, ice cream, drinking milk, milk powder et cetera for the domestic and international markets. In total, the farm and processing output plus the service provider industry value that hangs off it provide about 6,000 jobs and $4 billion to the economy of western Victoria. That is about one third of the region's economic activity.

I stand here tonight to say that the dairy industry is crucial, it is vital and it is terribly important to the economy of western Victoria. It has been interesting to note what the member for Corangamite has said because, sadly, one of the greatest threats to the industry is the level playing field. But it does not come from trade barriers. It comes from the carbon tax because, if you look at the way dairy has been treated in other countries' ETSs compared to how it is being treated here in Australia under the carbon tax, it is going to suffer and suffer significantly. Under the European ETS, all the major dairy manufacturers are exempt from paying the ETS because it is a trade exposed, emissions intensive industry. The reason given is that the Europeans are worried that jobs and industries will move offshore.

I appeal to the government, and it is not too late, to think seriously about the impact that the carbon tax will have on the dairy industry in Australia. You can still make amendments. As a matter of fact, I understand that in March there will be amendments made to the legislation. Think long and hard about the impact that it will have on the dairy industry. There are jobs at risk. Employment could be affected by your carbon tax. All you need to do is say, 'Okay, yes, dairy is trade exposed; yes, it is emissions intensive; yes, in the European Union it was looked after.' If we are to be fair dinkum and if we are to have the so-called level playing field, how dairy was treated in the European Union is how it should be treated here and our processors should be exempt.

I appeal to the government, once again—and I have done this on numerous occasions—to think long and hard about what impact the carbon tax will have on our dairy industry. It is all well and good to come in here and talk about the importance of the sector but we have to remember that it is a trade-exposed sector, and therefore any extra cost you put on it means that it is harder for them to be able to sell those commodities overseas. Ultimately, our dairy processors within Australia have to pass those costs back to the dairy farmer. They cannot increase their prices on the international market, they have to pass it back to the farmers.

The research shows that the carbon tax will cost dairy farmers—this is research which the government has seen—between $5,000 to $7,000 per farm. That is a hit which they cannot take at this stage and, as it has been pointed out to me, that is at a minimum. Larger dairy farmers will have larger costs than that $5,000 to $7,000. So I take this opportunity to applaud the 1,500 dairy farmers in western Victoria for the contribution they make to the local economy, to jobs and to providing ancillary jobs. But I also use this opportunity to say to those members opposite to think about the harm their carbon tax is going to do to this sector. It is not too late: act on dairy farmers' behalf and change your legislation.

Jill Hall (Shortland, Australian Labor Party) Share this | Link to this | Hansard source

This is a motion that is close to my heart. I grew up in a dairy industry area on the north coast of New South Wales. Overwhelmingly, the main industry in that area was dairy farming. In addition to that, my father-in-law was a dairy farmer. Unfortunately, he went bankrupt a couple of times simply because of the hardship involved in dairy farming. The times when he really struggled were not under a Labor government but under a Liberal-National Party government.

There have been many reforms over the years within the dairy industry. As I said, I came from the Mid North Coast of New South Wales and at that particular time there were two separate systems operating. There was the quota system and there were areas like the area I lived in that fell outside the quota system.

If you were in the quota system you are much better looked after financially than if you were in the non-quota area that I grew up in. I had many friends who lived on dairy farms and I watched them and their parents struggle through the years. Some of them managed to survive, but some of them actually had to leave their farms. I think this is indicative of what happened throughout Australia. Over the years, technology has changed and methods of farming have changed; the way people buy and use milk and the way it is supplied—the whole process from farm gate to the supermarket—has changed.

I hate to admit to this, but when I was a young girl we used to have the milkman delivering the milk and cream to our house in the billy can. The father of my best friend at the time used to drive the milk truck and he would go around collecting milk from all the farms in the area I lived in. If you compare that to what has happened today you can see that there has been such a phenomenal change within the industry. Because of that change, in many ways many dairy farmers have been marginalised. We are getting bigger concerns and fewer dairy farmers.

My father-in-law ran a little country farm and he was very embracing of new technologies. He introduced milking machines, which were very new in his area. He introduced technology into his farming that was very scientifically based. But, even doing those sorts of things, he was not able to succeed because there were so many other variables that impacted upon his small dairy farm. My husband and his siblings look back on that time as the best time of their lives. They talk about going to school on the milk truck and all those things that we as a nation have lost.

Today we are talking about dairy farming in a totally different way. We are looking to ensure that a little bit of our history manages to survive, and part of that history is that small dairy farm that is situated in the hills around the town that I lived in and along the river flats. As much as I hate to say it, that is nearly a thing of the past, as are so many things that have changed in our society. I support our dairy farmers, I support our farmers, I support the enormous contribution that they have made to our country and I support the role that they have played in our history. I think that the person I am today and the knowledge that I bring to this parliament have been influenced by the contribution made to our country by dairy farmers. (Time expired)

Nola Marino (Forrest, Liberal Party) Share this | Link to this | Hansard source

I strongly support the motion moved by the member for McMillan and I thank him for bringing it before the House. I am a dairy farmer and I know first hand that the dairy industry in Australia is our third largest rural industry. It is a major regional and urban employer of approximately 40,000 people, directly on dairy farms or in transport, milk processing, manufacturing or the marketing and distribution of high-quality products, as well as in research and development. We in our industry are continually improving herd management, productivity and efficiency and are producing from predominantly pasture-based farming what you might call free-range milk. Each farm has a documented on-farm safety program, HASP quality assurance auditing and full traceability.

The dairy industry was worth $3.4 billion in 2009-10, ranking third behind the beef and wheat industries. It is a leading rural industry in terms of value adding through downstream processing—something that is not well appreciated. It is often the industry that underpins many small communities and local economies. Dairy farmers contribute directly to local volunteer organisations, emergency services and sporting groups. It is often their tractors and farm implements that are used for community projects and fundraising efforts. In Western Australia we only have just over 160 dairy farmers left in the industry. We might need to talk to Coles and Woolies about that as well.

Dairy farmers around Australia have to compete in international markets with many countries that support domestic pricing through a combination of tariffs, subsidies, import restrictions, government purchasing and subsidised disposal of surpluses. Now we have another hand behind our backs because, as we heard earlier, we are going to be hit by a carbon tax. There is no way that someone in a domestic market like Western Australia can pass that cost on—you have to absorb it and wear it in your business. This is a real issue for dairy farmers right around this nation and particularly in domestic market states.

How many of us take for granted the quality of milk products in Australia? I would say just about everyone. Everybody assumes it is always going to be there and it is going to be best in the world, which is what we produce, but I do not know how many understand the nutritional value of dairy foods. It is a unique package of over 10 essential nutrients that are important for healthy blood, nervous and immune systems, eyesight, muscles and nerve function and for healthy skin, energy levels and growth and repair of all parts of our body. Dairy foods such as wonderful icy-cold milk, cheeses and yoghurt contain proteins, vitamins and minerals—magnesium, potassium, phosphorus and all sorts of wonderful calcium. We should all know that we need three serves of calcium every day as part of a balanced diet, to build and maintain strong bones and prevent osteoporosis. This occurs where we lose calcium and other minerals, and the bones become fragile and tend to fracture easily. It affects one in two women and one in three men over 60 in Australia. Healthy Bones Week is in August each year. Over the years we have seen excellent marketing and information campaigns based around the simple message: are you getting enough? In previous years in my role in the industry in a voluntary sense at the royal show, I used to get a lot of feedback from the city based consumers when they would walk into the pavilion and I would ask, 'Have you had it today?' They would look at me with a very interesting look on their faces! What I was referring to of course was whether they had had their milk that day and their three serves. This was a voluntary marketing and promotional effort and I would wear a badge that said, 'G'day, I am a dairy farmer.' A number of city people would come up to me and say, 'You are not really a dairy farmer.' I would ask, 'What do you want to know?' Their response to what I had to tell them about life on a dairy farm was interesting. I was told, 'You do not look like a dairy farmer,' and I would ask, 'Well, what do we look like?'

I also want to mention the efforts of a wonderful group called the Milk Industry Liaison Committee. This is a group of women who have worked tirelessly in the dairy industry in WA in some extreme circumstances. It is an industry under pressure. It is an industry that struggles to drive commercial returns and attract the value into the supply chain that it really does deserve. It is producing a high-quality product every day of the year, day in and day out, no matter what the weather is. I say to every dairy farmer who is out there at the moment in my part of the world, 'Hey, we've mowed, raked and baled,' and I know that all my mates are out there doing exactly the same thing. They milk their cows morning and night and they are out there in the paddocks all day. They do it for no thanks and frequently very minor returns on their investment. They are very good at what they do. I have to say, once again, that we in this country take for granted the quality of food that is produced by our dairy farmers.

Janelle Saffin (Page, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak in support of the honourable member for McMillan's motion that reads:

That this House notes the importance of the dairy industry to the health and well being of Australia.

It is a simple statement but it is one that encapsulates correctly the sentiments about an industry that is of critical importance to our economy, particularly to our rural agricultural base. As we have heard, it is the third largest rural industry in Australia, employing over 40,000 people directly and indirectly.

It is also an industry that is steeped in history, in particular in my home area in the Northern Rivers and my home town of Lismore. Lismore is home to Norco Co-operative Ltd. That is a co-op that is 100 per cent farmer owned and has been in operation since 1895. Now in its 116th year, I am pleased to report that it is still going strong and has been able to rise to all the challenges that it has faced. In the co-op's own words, it says that it has been subject to challenges and a stimulating environment but it has had many successes. With other members' indulgence, I want to read into the public record in Hansard something from the 2010 Norco annual report out of its corporate profile. I read it and thought of different ways I could paraphrase it, but Norco says it so well that I just think it is important to have that on the record. It says:

Norco is a name that is synonymous with the manufacture of quality dairy and other food products such as milk, ice cream and stick lines at three factory locations under the Norco Foods business unit. Norco Foods also retails the range of Nimbin Natural cheese—

which I have in my fridge. I have a lot of Norco products in my fridge—

which is a successful and growing brand for the co-operative. Norco also has a Rural Retail business unit operating 24 rural stores in Northern New South Wales and South East Queensland. This business unit also operates a wholesale division at Darra in Brisbane servicing the needs of other rural businesses along the east coast of Australia.

I think Darra might be in Oxley, is it?

Bernie Ripoll (Oxley, Australian Labor Party) Share this | Link to this | Hansard source

It is, yes.

Janelle Saffin (Page, Australian Labor Party) Share this | Link to this | Hansard source

I had to think then! Growing up in Ipswich, I know Darra; I was just getting the honourable member for Oxley's attention!

Norco also operates an agribusiness division incorporating Goldmix Stockfeeds, Crest Seeds and Meaty Bites that manufacture quality stockfeed, birdseed products and pet food. With 260 active shareholders in 165 dairy farms Norco has a membership capital base of six million and an annual revenue of $351 million. The board has seven directors and the chairman of the board is Greg McNamara who does a brilliant job and has been the chair for quite a few years. He makes sure that that e cooperative stays in good health. I pay tribute, as well, to Brett Kelly, the CEO.

The 2009-10 financial year, which is the one reported on in the most recent annual report, has been, as Norco say, 'stimulating and challenging'. They have undergone the knock-on effects from the global financial crisis which continue to be felt both domestically and internationally. They also say that the focus for 2009-10 financial year was to reduce debt and expenses, and they have done that. They have increased their profitability and have a record improvement of 12.8 per cent over the 2008-09 financial year. That is a real credit to their operations.

The area in which I live was locked out of the Sydney milk market for a long time. I pay tribute to a Labor minister, Don Day, who is a local member and got us into the Sydney milk market. He was respected by everyone on all sides. He was a very good minister and was very able. It was his efforts that got us into that market, and it made a big difference to our area. (Time expired)

Debate adjourned.