Transcript Document

Overview of the Australian Dairy
Industry
Presented by: Janine Teese, Executive Officer, Subtropical Dairy, June 2008
Subtropical Dairy is a Dairy Australia regional development program
Presentation snapshot
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Where are the farms located?
The market and product mix
What do the farms look like?
Who are the support organisations?
Why is this being called the brave new era?
Opportunities and Challenges
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Australian dairy production areas
Cairns
Northern
Territory
Queensland
Western
Australia
South
Australia
Brisbane
NSW
Victoria
Tasmania
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Rainfall Distribution
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Location
Strong correlation between rainfall and dairy
industry location. Why?
- Located close to reliable feed and water
sources. Need either irrigation or reliable
rainfall.
- Perishable product. Located near
population centres.
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Domestic Product mix 06/07
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Product mix 06/07 by state
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
National Market
Supermarkets account for majority of sales
Consumption of flavoured milks continue to grow
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Market and Product Mix
Northern Industry is predominantly fresh milk
sales. Annual growth of 6%,
Southern Industry export focused with whole
milk powder (WMP), skim milk powder
(SMP) and cheese.
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Market and Product Mix
Industry is open to imports:
26% of cheese and 15% of butter consumed
was imported
New Zealand accounted for 80% of cheese
imports and 90% of butter
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
International market prices
EU & USA skim
milk powder
stocks
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
The world & their
export %’s
United States exports
as % of world trade
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
What do Australian farms look like?
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herd size was 247 in 2008 up from 237 in 2007.
9% of dairy herds contain 500 or more cows, larger
herds account for 25% of the national herd.
The average farm has about 164 ha of dairy land.
An average of 18% of dairy land is irrigated (37% of
land is irrigated on farms that irrigate).
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
What do Australian farms look like?
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average grain use was 1.7 tonnes per cow per year,
which was up from 1.4 in 2007.
42% of farms were high grain users (up from 29%),
feeding more than 1.5 tonnes per cow per year.
74% of farmers buy grain as and when required;
21% use forward purchase arrangements for later
delivery.
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
What do Australian farms look like?
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Split calving (36% of farms), seasonal (once a year)
calving occurs on 35% of farms.
Year round calving is dominant in regions with a high
supply requirement for fresh products, but accounts
for 29% of farms nationally.
Sharefarmers are involved in 18% of dairy farms.
24% of dairy farms are operated by the ownership
couple.
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
What do Qld farms look like?
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Average 158 cows, producing 890,000 litres, or
64,080 kg of milk solids annually.
Average dairy land area is 137 hectare.
35% of farms in the region are staffed by family only.
87% of the regions dairy farmers have been affected
by drought or flood
all round calving on 88% of farms, while split or batch
calving is used on 4% of farms and 7% of farms use
seasonal production.
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Dairy Industry Organisations
• Dairy Australia (DA) – levy funded with cocontribution by Australia government
• Dairy Australia Regional Development
Programs
• Australia Dairy Farmers (ADF) – advocacy
and lobbying: funded by membership
• State Farmer Organisations
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
‘Brave new era’
Unchartered waters:
- High grain prices
- High price of substitutes
- High milk prices
- Shortage of protein worldwide
- Resource constraints
- Impact of carbon trading and more unknowns….
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Challenges
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Drought
Variable climate
Urbanisation of traditional dairying areas
Changing regulatory environment
Scarcity of resources: human, land, water,
animals, grains
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
3 year rainfall data to Apr 2007
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3 year rainfall data to May 2000
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Challenges for Northern Industry
All of the above plus more:
• Cattle tick – Boophilus microplus
• Buffalo fly – Haematobia exigua
• Heat stress
• C4 grass  high fibre, low digestibility
• Short and unreliable ‘rainy’ season
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Subtropical Dairy
Dairy Australia Regional Development Program
Purpose
Coordinate and manage the regional delivery of:
- programs and projects,
- research,
- development,
- extension and
- education initiatives in the northern dairy industry
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Organisational Structure
Dairy Australia
Regional Development Programs (8)
Sub Tropical Dairy
Board of Directors (6)
Executive Officer
Janine Teese
Management Committee (11)
NSW DPI, QDPI&F, processor
reps & SD Board
Technical Advisory Group
Regional Groups (7)
Members include local farmers
and service providers:
Central Qld
Far North Qld
Burnett
Darling Downs
South East Qld
North Coast NSW
Mid North Coast NSW
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Example of Subtropical Dairy
activities
• Young and Future Farmer Networks
• Empowering Farmers project
• Herd Health Workshops
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Future Farmer Networks
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Between 20 to 50 farmers in each network
Open to anyone ‘young at heart’
Priorities and activities set by farmers
Regular events in each of the regions
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Future Farmer Networks
Activities include:
• Workshops
• Farm Walks
• Discussion forums
• Monthly e-newsletters
• Social events: cricket, skirmish, ten pin
bowling, BBQ’s
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Empowering Farmers
Computer training
• Topics: Internet and Email Training,
Quickbooks accounting, Microsoft Excel,
General computer operation
• Three years trained: 275+ farmers across
Subtropical Dairy area
• Currently doing 1 on 1 training
• Project ends June 2008.
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Herd Health Workshops
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Lameness and Hoof Care
Milk Quality and Mastitis
Herd Fertility
Monitoring heifer growth rates
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
Summary
• Spread over huge geographic and climatic
range
• Range of production systems to suit climate
• Cost price squeeze with high cost of inputs
means new ways of doing things
• Industry is positioned strongly for the future
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281
The Future
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Pasture monitoring from space
Automatic milking systems
Individual animal monitoring
GPS farming systems linked to crop
harvests and agronomic activities
Subtropical Dairy - PO Box 491 Gatton QLD 4343 t: 07 5482 2281