Dairy industry calls for basin plan ag industry advisory group

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 on November 30, the same day the federal government garnered 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," Mr Gladigau said.

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

It would also ensure "all options are on the table" - not just buybacks - as promised by the Minister.

"Further, the group would provide input into the inevitable community assistance packages that will be required from structural change as a result of buybacks." Mr Gladigau said.

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 35pc.

Mr Williams said an industry advisory group was needed.

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

"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."

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.

The Victorian Farmers Federation (VFF) says farming communities have been betrayed by the new water bill.

VFF Water Council chair Andrew Leahy said the Albanese government had trampled over previous commitments it had made to water recovery.

"The Basin Plan as we know and understand has now changed forever without a care for the people who live and work within the Basin," he said,

"The Albanese Government don't care that they are breaking promises made over 10 years ago.

"Tony Burke in 2012 promised no water buybacks for the 450GL, but this is no longer the case"

"Previously water recovery for the 450GL was only possible if a project passed the socio-economic test and had no negative impacts on communities.

"This test has been bypassed in the legislation and negative impacts on communities will now be allowed."

Mr Leahy said the government was "hell-bent on trying to turn our river system into a super pipeline to South Australia to win political points".

"There is no regard for the local environments that are getting damaged along the way," he said.

"It's complete madness.

"The government cannot deliver the 2100 gigalitres it currently has for environmental watering.

"I live along the Murray River and high flows are damaging our local environment with bank erosion."

Mr Leahy warned that consumers would pay the price with food shortages when the next drought hit.

NSW Farmers Water Taskforce chair Richard Bootle, who also lives in a Basin community, said too many policy issues were being dictated by inner city politics rather than the realities on the ground.

"The NSW Government is supporting this by agreeing to the scraps being thrown their way in extending deadlines for water recovery, while being blindsided at the same time with massive changes to the past protections for farmers and regional communities," Mr Bootle said.

"NSW Farmers has been warning that the government's proposed changes to the Murray Darling Basin Plan will drive up the cost of food and have a negative outcome for local economies.

"Politicians have failed to listen to locals who have been warning them about the detriments of water buybacks."

Want to read more stories like this?

Sign up below (select Dairy News) to receive our e-newsletter delivered fresh to your email inbox twice a week.