RURAL R&D PRIORITIES Productivity and Adding Value Improve the productivity and profitability of existing industries and support the development of viable new industries Supply Chain and Markets Better understand and respond to domestic and international markets and consumer requirements and improve the flow of such information through the whole supply chain, including to consumers Natural Resource Management Support effective management of Australia’s natural resources to ensure primary industries are both economically and environmentally sustainable Climate Change and Climate Variability Build resilience to climate variability and adapt to and mitigate the effects of climate change Biosecurity Protect Australia’s community, primary industries and environment from biosecurity threats Innovation Skills Improve the skills to undertake research and apply its findings Technology Promote the development of new and existing technologies NATIONAL RESEARCH PRIORITIES DAIRY AUSTRALIA STRATEGIC PRIORITIES Promoting and maintaining good health through strengthening Australia’s social and economic fabric and preventive healthcare (healthy food production) An environmentally sustainable Australia Safeguarding Australia Frontier technologies for building and transforming Australian industries DAIRY AUSTRALIA STRATEGIC PRIORITIES o Protect and increase farm business margins, profitability and confidence o Ensure farm and processing sectors remain internationally competitive o Shift emphasis from growing volume milk markets to maintaining and growing markets for higher margin products and components o Improve demand for dairy products at premium to alternatives o Ensure industry access to product mix options to maximise returns o Attract ongoing and new industry investment o Maintain and enhance the dairy industry’s reputation as a valuable contributor to the Australian economy and wider community, and as a responsible user of valuable resources o Dairy recognised (by government and the community) as an efficient, responsible user of resources and inputs o Co-ordinate an integrated industry response to issues associated with climate change and variability Foresight and analysis of emerging issues Accelerate the transfer and commercial application of knowledge and innovation for dairy farming and manufacturing
P E R F O R M A N C E H I G H L I G H T S
SITUATION & OUTLOOK 2006/07
Business group: T&S Program: Information Collection & Analysis
o Unprecedented drought has limited the industry’s ability to capitalise on a strong market
o Resilient farmers have backed the industry by planning for the future and continuing to invest in
maintaining herds and improving on-farm capital
The Dairy: Situation & Outlook Report has become a major tool for building the industry’s capability through
gathering critical information about the operating environment. It provides a clear picture of what is happening
in the Australian dairy industry and expectations for the future. This information enables dairy farmers,
companies and industry groups to make informed business decisions. The report also provides factual material
for banks, governments and suppliers of products and services to the dairy industry.
The report is produced by Dairy Australia, with support from Australian Dairy Farmers, Australian dairy
companies and farmers. It draws upon the National Dairy Farmer Survey results, along with the views and
opinions of global dairy market analysts, retail analysts, dairy company management, farm consultants and
farm leaders.
According to the Dairy 2007: Situation & Outlook Report, which relates to 2006/07 and the prospects to
2009/10, the outlook for the Australian dairy industry is finely balanced.
World dairy demand remains positive with both local and international markets showing great strength and
world prices reaching record levels. But the outlook at the farm level is much less certain as farmers face tough
decisions about their future due to the effects of the drought, uncertainty about future water access and rising
feed costs.
The report shows that 88 per cent of dairy farmers were affected by drought (compared to 78 per cent in
2002/03). While almost 80 per cent of dairy farmers had implemented drought management plans, farmer
confidence has understandably been affected.
The financial impact on farmers was severe and most will record an operating loss for 2006/07. Dairy farm
cash incomes are expected to be 77 per cent lower on average due to reduced milk production and a 45
per cent increase in feed costs. Despite the tough times, many farmers have shown resilience and backed
the industry by planning for the future and continuing to invest in maintaining herds and improving on-farm
capital, resulting in national milk production for 2006/07 of 9.57 billion litres – only 5 per cent down on
the previous year.
Go to top
