For 2006/07, Dairy Australia refined its strategic direction from its original seven key issues to three business
objectives to ensure a focus on delivering sustainable profitability to Dairy Service Levy payers. The Company’s
focus is to:
1. Increase farm productivity
2. Maintain and develop high margin markets, channels and products, and
3. Promote and protect the benefits of Australian dairy.
Chart 1: Transition from key issues to business objectives
ISSUE 1
Developing product markets
ISSUE 2
Influencing customer and consumer demand
ISSUE 3
Enhancing supply chain culture and competitiveness
ISSUE 4
Developing farm business success and profitability
ISSUE 5
Enhancing community and environmental sustainability
and integrity
ISSUE 6
Building industry capability
ISSUE 7
Enhancing Dairy Australia’s performance and delivery
OBJECTIVE 1
Increase farm productivity
OBJECTIVE 2
Maintain and develop high margin
markets, channels and products
OBJECTIVE 3
Promote and protect the unique
benefits of Australian dairy
By taking an holistic approach to delivering outcomes across the dairy supply chain, Dairy Australia expects to
increase its value and effectiveness, and its flexibility to adjust its strategies to meet changing industry needs.
Table 1: Dairy Australia’s business objectives
OBJECTIVE 1
Increase farm productivity
Farmers have little individual ability to increase the prices they are paid. The best strategy for
on-farm profitability is through increasing sustainable farm productivity (outputs divided by inputs)
by reducing costs or increasing volumes for the same costs. Key areas of Dairy Australia focus
include farm business management, feedbase development, natural resource management and
vocational education and training.
OBJECTIVE 2
Maintain and develop high
margin markets, channels
and products
To sustain its future, the Australian dairy industry needs vibrant and growing markets for its
products. Dairy Australia seeks to create value off-farm, but in ways that appropriately redistribute
value back to farmers. This includes maintaining existing and developing new markets,
products and channels to provide options for processors to find the most profitable places to
put Australian dairy products. Industry also needs the appropriate knowledge, information,
technology and products to respond to the emerging threats and opportunities. Dairy Australia
works with industry partners to promote higher margin channels, markets and products, and
helps the processing sector to commercialise innovation and maintain competitive market
access.
OBJECTIVE 3
Promote and protect the
unique benefits of Australian
dairy
Industry success depends on dairy continuing to be seen as a nutritious, healthy product
and the industry as a responsible user of scarce resources. Dairy Australia’s objective is to
see that dairy products are appropriately differentiated and valued so that the demand for,
and competitiveness of, dairy products over alternative fats, proteins and other constituents is
maintained and expanded. Success also depends on maintaining a positive image of dairy
products, farming and processes, and a positive regulatory environment. At the industry level,
the right and ability of farmers and manufacturers to continue to operate in a preferred manner
depends on commercial and community-wide
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