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How much change is required to get the dairy industry to a 'better place'? Minor tweaking? Major transformation?
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8 months ago
Key to increasing milk production is to move from processor focus model driving up farm input costs back tofarmer focus, low input costs model
Processing milk has seen a major structural change from farmer owned dairy co-ops to now mainly owned by international companies who have invested billions of dollars upgrading and rationalising the factories they acquired.
The dairy farming industry has also undergone a major restructure with fewer farms, increased number of cows per farm producing more milk per cow.
In theory such a comprehensive restructure of both milk processing a...
Milk Should Be Produced More Humanely By:
1: Selectively Breeding Cows To Be Healthy, Physically Sound, Hornless, And Happy.
2: Putting Limits On How Much Milk Individual Cows Can Produce Per Year.
3: Using Hormonally Induced Lactation – Instead Of Pregnancies – To Produce Milk.
Lactation in Cows, can be induced, by a 7 day course of 17β-estradiol and progesterone.
Milking can begin 2 to 3 weeks later.
[Cows and Goats could also be selectively bred to lactate from false-pregnancies.]
Hormonally induced lactation is a proven, cost-effective technology, that is already use...
There have been many market failures in the Australian Dairy Industry since Reduced Regulation - referred to as deregulation
The one I am most familiar with is the WA industry.
This was written for the ACCC inquiry.
Increasing training, R&D and product development will help Australia return to a market leader situation in my opinion.
This article may raise discussion points.
9 months ago
most of the industry issues are within our farm gate. Cost of production is the biggest issue. if 60+% of farmers in Australia had a cost of production around $5/kgMS we wouldn't be having a Dairyplan or these discussions. Talk about Industry structures and processors is missing the major issue in the industry
Like many others I saw and heard comments, 26.6 on ABC about the State of the Industry. Closing of the Fonterra Plant was featured and story related to workers in the Plant, the Plant Owner, and ultimately comments from farmers, new Chairman and a serious comment predicting "failure" for the industry, reliance on imports and dissatisfaction with the Industry Organization generally. Situation Analysis "Snapshot" on internet also highlights problems. Law suits, Class Actions, Unprofitable Operations, Unfair Market "Players", and almost "unbelievable" contracting met...
Structural change is required.
1. DA seems focused on high productivity “ fill the factories” resulting in high levies for DA to spend. The focus should have been on highly profitable robust farm systems that are capable of withstanding the fluctuations in markets.
Start with Dairy Australia’s bureaucracy by focusing it on the farmers. Move it from South Melbourne to Shepparton, or Warragul. Save a stack on rent as well.
2. RD&E funding structure has railroaded by NRM and Universities. The requirement of boards to “ optimize value” has allowed vested groups to lever a disp...
This article discusses the formation of Fonterra and the good and bad points.
We can learn a lot from this even though the number of Cooperatives left in Australia is small.
I also wonder if the structure of Cooperatives could be changed to a two tiered governance system like our parliament - so there are secondary checks ?
Thank you Keith for great insights as to how NZ. Is developing.
10 months ago
Get the dairy industry to a better place? Easy answer: more profit for dairy farmers. More profit DOES NOT mean more production. It requires managing costs and trying to maintain revenues.
What change is required? Easy answer: Identify strengths and weaknesses and change the weaknesses.
Strengths: quality, price and, so far, supply => thanks to farmers and ,yes even, processors.
Weaknesses: low/unreliable return to farmers, difficulty to long term plan, ageing farmer base => due to poor market structures and supporting free markets instead of free enterprise.
A better place requires gre...
Major transformation is needed ASAP. Our industry bodies have been told and told for years and years and wouldn’t admit there was a problem. I was told last year by a board member from ADF that you should be able to make money at $5kg ms. This shows the arrogance and ignorance of people in these roles! The whole industry needs a more simple structure and as an industry we need leadership. I am yet to see someone with leadership to give me hope there is a future of dairying going forward.
Create a framework of self regulation that engages all stakeholders in dairy, modeled on Canadian framework
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