Dairy Australia recognises the integrated nature of dairy production and marketing and the potential affect of changes in one part of the dairy supply chain on industry profitability and sustainability at all levels. Therefore the Company takes an holistic approach to delivering outcomes. By maintaining this approach, the Company increases its value and effectiveness, while maximising its flexibility to adjust to changing industry needs. The need to take an holistic approach can be illustrated in a number of ways. Farm profitability and sustainability depends directly on farmers being able to adopt farm business and decision making systems that will effectively address emerging challenges on resource availability and complexity. Gains on-farm can also have positive effects for down-stream processing sectors. At the same time, farm sustainability is inextricably linked to the dairy industry having continued access to profitable and growing market outlets for milk and its myriad components. The industry’s sustainability is also based on broad community recognition of the inherent qualities and value of dairy at a product and industry level. Dairy Australia’s core business objectives recognise these linkages. They also reflect the extra value that Dairy Australia can generate by fully leveraging its existing resource base and taking a cross-functional approach to strategy development, business program resourcing and delivery. Dairy Australia’s strategies are implemented through a series of strategic programs managed by the following business groups: o Farm Productivity & Delivery (FPD) o Technical Issues (TI) o Value Chain Innovation (VCI) o National Marketing (NM) o Trade & Strategy (TS) o Corporate Affairs (CA). Corporate Affairs (CA), Corporate Services (CS) and Human Resources (HR) also run programs to manage various stakeholder relationships as well as providing essential corporate development and support services. Chart 6 on the following page sets out the core programs Dairy Australia invested in during 2006/07. The positioning of the programs is based on their primary objective fulfilment. This table does not reflect the rich cross functionality between many of the programs and the business groups that manage them. The progress made by each program during 2006/07 is detailed in the Program Performance section beginning on page 43.
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