1 australian dairy industry overview presentation by david basham, dairy farmer to ciple congreso,...
TRANSCRIPT
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Australian dairy industry overview
Presentation by David Basham, dairy farmer to CIPLE Congreso, September 2011
Seasonality of milk production in Australia
-
200
400
600
800
1,000
1,200
1,400
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Million litres
2001/02 2010/11
Dairy farms and number of cows
0
500
1,000
1,500
2,000
2,500
0
5,000
10,000
15,000
20,000
25,000
No. Farms
Cows milked Farms
No. Cows milked [000s]
Milk production and yield per cow
0
1,000
2,000
3,000
4,000
5,000
6,000
0
2,000
4,000
6,000
8,000
10,000
12,000M. litres
Milk Production Yield per cow
Litres per cow
A major exporter
0%
10%
20%
30%
40%
50%
60%
70%
0
2,000
4,000
6,000
8,000
10,000
12,000Share ExportedM. litres
Domestic market
Export markets
Risk management issues• Deregulated market leaves farmers open to market volatility
• Milk income• Inputs
• Risk management skills increasingly important to farm profitability and viability of dairy industry in medium term plus
• Risk management focus is not just on farm gate milk price. Also on• Margins • Resilience of farm systems• Management skills and developing capability to deal with more
complex business environment
Future trends to 2016: production and marketing of milk globally: developed country perspective
17
• Economic growth driven by developing nations• Sustainability of supply: can dairy proteins meet future demand? • Health and wellness: is dairy an integral part of a balanced diet?• Competition from plant proteins
Future trends to 2016: production and marketing of milk in Australia
9%
12%
8%
14%15%
15%
11%9% 8%
6%
10%8%
15%15%
15%13%
8%
9%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0-5 6-13 14-19 20-29 30-39 40-49 50-59 60-69 70+Age (years)
Share of population vs. share of dairy volume consumed in 24 hours
% share of dairy vol
% share of population
• Dairy’s importance for rural development and fabric is understood and acted upon by policy makers• Encouraging the habit of lifelong and consistent consumption• Milk is nutrient rich, that is healthy and tasty•Dairy is versatile; can be consumed as a snack or at meals
Future trends to 2016: major challenges from a dairy farmer perspective in Australia are:
19
• Risk management• Innovation along supply chain driving productivity• Sustainability of dairying• Dairy is “essential” for the diet• Dairy farmer leadership• Farm inputs; quality of, availability and cost
Future trends to 2016: Australian dairy industry involvement in the international market
20
Growth of Australian dairy industry tied to taking advantage of export opportunities