Cancellation of Murray-Darling Projects Risks Australian Dairy Output
The Australian Dairy Industry Council (ADIC) has voiced strong opposition to the federal government's decision to terminate 14 critical water infrastructure projects in the Murray-Darling Basin. These projects were part of the Sustainable Diversion Limit Adjustment Mechanism (SDLAM) and aimed at modernizing water management without depleting resources from agricultural areas. The cancellation, first reported by The Weekly Times, has led to concerns about an environmental water shortfall of up to 340 gigalitres (GL).
Ben Bennett, the chair of ADIC, highlighted that the decision comes after years of planning and investment, with tens of millions of dollars already spent. The Basin's regional milk pool has decreased by 500 million liters since 2012, primarily due to water security issues. Bennett criticized the government for not extending the project timelines to meet environmental goals through infrastructure improvements instead of resorting to water buybacks.
According to a report by consulting firm Ricardo, commissioned by ADIC, removing 302GL of productive water could increase regional water prices by 17.5%. This would also lead to a potential drop in milk production in the southern Basin by 3 to 15%, affecting local processors and investor confidence.
John Williams, ADIC Deputy Chair, expressed concerns over the lack of transparency regarding the funds spent on these projects. He argued that water buybacks would be a policy failure, impacting regional communities and processing networks. Williams called for a clear account of what has been achieved with the investments before resorting to buybacks.
The ADIC is actively lobbying for a review of the Murray-Darling Basin Plan to focus on practical, infrastructure-led solutions. Retaining the 340GL of water for agricultural use is deemed essential for maintaining Australia's food security, regional manufacturing, and export competitiveness. The council urges collaboration between officials and the dairy sector to achieve sustainable solutions that balance ecological and economic needs.
