Dairy in Tasmania

HeadingIntroduction

Dairy in Tasmania is the largest agricultural industry with an estimated annual value of

$350 million, this equates to more than 30% of Tasmania’s Agricultural output. The

industry grows about 2.5% approx per year.

The long term goal is to grow production by additional 350m litres of milk per year in the

next 5 years.

Increase cow numbers by 40,000 to over 200,000 cows in the state.

Tasmania has the suitable land and water resources in traditional dairy areas and from

new emerging areas (Midlands, Derwent Valley) to help produce the extra milk.

The 4 main milk processors have invested in more capacity and now you as the farmer

have their opportunity. Fonterra, Tasmania Dairy Products Co ltd, Cadbury and Lion.

Source: Dairy Tas

HeadingIntroduction

THE TASMANIAN DAIRY INDUSTRY NEEDS YOU

HeadingTasmania’s Dairy Industry

• Last year there were 3950 farmers of all description in Tasmania.

• Only 1065 farmers had a turnover in excess of $200,000. Of those, 437 (41%) were dairy farmers.

• In 2013-14 the average Tasmanian dairy farmer will turn over between $1M - $1.2M.

HeadingTasmania’s Dairy Profile

Tasmania facts (2013-2014)

Dairy herds 437

Total cows 160,000

Milk production 790 ML

Employs 1500 on farm (2500

indirectly)

On farm gate $420 M

Herd size 360

Lts per cow 4,940

Av. farm area (ha) 186

Seasonal calving 64% spring

30% split

6% all yr

Tasmanian Dairy Industry

HeadingTasmanian’s Dairy Profile

Milk Companies Products Contribution (%)

Fonterra Milk powder,

cheese, whey

powder and butter

54

TDP Milk powder 19

Lion Fresh milk, cheese,

butter and cream

16.5

Cadbury Chocolates products 9.5

Other Cheese, cream

bottled milk

1

Milk processing contribution (12-13 estimated)

HeadingTasmanian’s Dairy Profile

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

0

50

100

150

200

250

300

350

400

450

Fonterra Lion Cadbury TDP Other

MLs

%

9%

44%32%

10%

5%0.4%

Milk products 11-12 yr

Fresh milk

Cheese

Powder

Chocolate

UHT

Other

HeadingTasmania’s Dairy Profile

• 10% for drinking

• 5% products consumed in

Tasmania

• 35% products consumed

in the rest of Australia

• 50% exported overseas

Tasmanian milk

HeadingDairy Conversion - Project Management

Good planning and knowledge of Dairy farming will help deliver good

outcomes.

You need to know what it will cost, what allowance for contingencies is

required and when product will be available.

HeadingPoints of interest regarding setting up

Dairy Conversion

Get in touch with Dairy Tas. Discuss the conversion program.

How much land will be required, and do I have the irrigation to do it.

How many cows do you want to milk?

What sought of Cowshed will I need. (Herringbone shed or a Rotary).

How hands on to I want to be, employ staff or engage a share farmer.

HeadingThe Conversion

Pastures, planning of the pasture system and its timing are critical to the farm having

feed ready to go at the start of calving.

Shed sighting, planning of where the cowshed will be on the farm is important.

Things to consider are the distance that cows will have walk. (Aim for the middle of the

farm) cows that have walk to far are using energy that should be put into producing milk.

Along with cowshed sighting elevation needs to be also considered. Elevation is needed

for Shed drainage, effluent you don’t want to be pumping it twice.

Lane ways need to wide 6m plus in width for good cow flow, and must have a good base

with drainage.

The KISS principal,( Keep it simple stupid), should observed. Don’t let the costs run

away at the start because you are going to have enough to do when the cows start

calving.

HeadingOther Dairy Services Opportunities

Agistment

• Backgrounding of younger stock / growing out of heifers

• Wintering of dairy cows

Grain

• Local demand for dairy farmers in excess of 150,000 tonnes pa

Fodder

• Hay

• Silage

• Lucerne

• Straw / bedding / fibre