Where are we going? Address to the VFF Annual Conference 11 July 2006 Thank you Simon. [Simon Ramsay, VFF President] And thank you to the members of the VFF for the opportunity to talk to you all today. So, where are we going? It’s a question I’ve been asked repeatedly, in one form or another, since I became NFF President last month. It’s the most important question farming organisations across the country face. But there is a more fundamental question we first need to answer… why are we here? It is often a good exercise to remind ourselves why we are here. In my case, as a relative newcomer to the NFF, it has been an opportunity look closely at the core business of NFF. I commend NFF’s CEO Ben Fargher for leading the charge in developing the NFF’s new Strategic Plan for 2006-09. The new Strategic Plan brings NFF back to focus on its core functions of lobbying and advocacy on behalf of Australian farmers at the peak national political and community level. Of course, this has always been NFF’s charter. But it is often easy to be distracted and go off on tangents. Our new vision… A strong, progressive and sustainable farming sector in Australia isn’t new at all. It’s what NFF has always stood for. However, what this simple, succinct statement gives us is a sharper focus. Dare I say it, the capacity to clearly articulate why we are here and to identify what we do, and don’t do. NFF is not the repository for all farming issues. Grass roots issues need to be handled by grass roots organisations. State farming organisations and commodity councils have the membership of grass roots farmers – not NFF. NFF Speeches – Where are we going? -1- NFF exists to pursue those issues state farming organisations cannot. In much of my time leading up to the NFF Presidential election and, indeed, since then, I have spoken of unity. It is imperative that farming organisations unite under one banner and speak with one voice. Disunity, we know only too well, is death. But it’s not just membership numbers that equate to unity. ‘Unity of purpose’ and cohesion are essential. It seems to me we have numerous organisations running various agendas at varying levels, crisscrossing the country. Of course this is wasteful… but worse, it’s counterproductive. It sends the wrong messages to governments. While, in the broader community, the positive messages are so garbled none of them actually get through. In being ‘progressive’, the NFF is seeking to take a modern, innovative, forward-looking view of agriculture to government and the broader community. ‘Sustainable’ means we are driving forward with economic, environmental and regional community sustainability. Here, community means both the farming community and the perception of farming within the broader Australian community. For NFF, under its new Plan the perceptions of the broader community is a new strategic priority. We have a new Communications Strategy, informed by in-depth market research, to positively re-position agriculture in the mindset of mainstream, metropolitan Australians. Why? Because we’ve failed to remind metropolitan Australians of the vital contribution agriculture makes to the nation – economically, environmentally or socially – for a very long time. In the vacuum that persisted, and on the back of negative issues, we became labelled as whingers. As such, I’m sorry to say, we’ve lost the broader community’s respect. In the eyes of metropolitan Australia, farming is ‘antiquated’, ‘a relic of a bygone era’, ‘not relevant to a modern Australia’. And it’s not their fault they think this. We know this isn’t true. On the contrary, modern Australian farms are embracing new technologies and environmentally sustainable management practices that are making the sector more competitive and giving farmers improving viability – today and well into the future. In fact, Australian agriculture generates $103 billion-a-year in production, drives $30 billiona-year in exports, and supports 1.6 million jobs across our cities and regions. Agriculture and its related industries account for 12.1% of national Gross Domestic Product and has lead the country in productivity growth of between 3-4% each year. Farmers, off their own bats, and over and above the spending of governments, invest $222 million-a-year in NFF Speeches – Where are we going? -2- research and development, driving innovations to be more efficient and internationally competitive. But we haven’t been telling that story. We need to if we want to be taken seriously. Then, and only then, can we re-engage with the broader community and be able to tell the great Australian story of ‘who farmers are, what we do, how and why we do it’. And, importantly, command their attention so they give a damn. Open any newspaper or flick on the television, and if agriculture is mentioned at all it’s because things are ‘crook in the bush’, or because ‘battling farmers are doing it tough’. Name me another industry in the country that chooses to cling to a view of itself as ‘battling’? Every time we do so, what do metropolitan Australians hear? No surprises… ‘antiquated’, ‘bygone era’, and ‘not relevant’ ring loud. If these are the messages that are resonating with metropolitan Australians, and we know they are because NFF has researched it, is it any wonder we’ve lost their respect and their understanding? Therefore, it should come as no surprise that NFF is not in the business of whinging to governments or in the media. What we are in the business of doing is connecting with mainstream Australian in terms that they understand, with counter messages that resonate with them, to make sure agriculture wins back and retains the respect it deserves. This is a key to our mission at NFF and the insight on where we are going. We exist to influence the Australian Government, key decision makers in Canberra and the broader community to achieve a strong, progressive and sustainable farming sector in Australia. We do this through national and international representation and advocacy. To do this effectively, we need to draw upon the collective strength of our member organisations. In essence, we need to all pull in the same direction… with a common purpose. It sounds easy enough. We need to do it with pride. Not looking for handouts, or even a hand up, but with a view to a way forward. Australian agriculture is a success story. As most of you know, I have recently returned from Geneva where the NFF has been engaged in trade talks. Not particularly successful talks. Yet, a massive 98% of Australia’s wool and cotton is exported. Two-thirds of our beef and three-quarters of our wheat heads overseas. Some 80% of our sugar and over half of our dairy production are destined for world markets. NFF Speeches – Where are we going? -3- It is, therefore, vital to the viability of farmers that Australia maintains and improves access to export markets, and can grow. That is why the NFF devotes so much time, effort and resources to dismantling trade barriers and opening export markets to our farm goods… and keeping them open. Since the formation of the World Trade Organisation (WTO) in 1995 the trading circumstances for farmers has improved considerably. Yes, much more needs to be done, but the gains thus far are real. Just a few years ago Australia exported virtually no sheep meat to the US. Today that market is worth $350 million-a-year. New trading rules through the WTO have seen beef tariffs in Japan fall from 70% to 38%, and we have also seen subsidises on dairy produce exported by the European Union (EU) slashed, which have allowed Australian producers to bolster their exports. Trade, both between and within countries, is a fundamental driver of prosperity… even for family farms – the heart and soul of Australian agriculture. Australia’s 136,000 farms are 99% family owned and operated. That’s a remarkable statistic. Putting the number into context, it is the family farm unit that gives Australian farms strength as diverse businesses – enabling them to specialise in commodities, adapt to emerging markets, identify and fill niche market opportunities, and value add along the production chain – and meeting the changing needs of consumers. It’s true that like many areas of the economy, Australian farming has seen increased consolidation over the past 20 years. In fact, we’ve seen a 25% reduction in the number of farms over that time. However, it is younger farmers who are buying up those properties and expanding their operations into larger family farms. Farms are, and farmers view them as, vital community assets. After all, when you make up over 60% of the Australia’s landmass, you are very much part of the natural environment. Farmers make a vital contribution to the environmental management of Australia’s natural resources. Meanwhile, consumers are increasingly demanding greater personal control in all facets of their lives… including demands for leaner, greener production standards. On all of these scores, Australian farmers are leaders. It’s time to celebrate agriculture’s contribution to this country. In the corridors of power, across the mainstream media and within communities, that story must be told with pride to remind all parties of our value and worth… and to win back respect. With your help and support, ‘THIS’ is where the NFF is going. Thank you. [ENDS] NFF Speeches – Where are we going? -4-