What needs to change?
What needs to change?
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A new and more agile strategy is required. Both the processing and farm sector need to put aside past mistrust and work together to develop a new industry. Over the last 10 years the industry has been at war with itself
Investments in research should be reviewed and revived. We need to change the priorities and move away from researching marginal improvements in process efficiencies of a derelict industry to reimagining a new industry focussed on high end value add products not beholden to world commodity prices.
The Australian dairy industry doesn’t feature heavily in the investment strategy of the large multinational companies that dominate Australia. Large companies, change is slow, and they have no interest in disruptive innovation. looking at the beer market, the only growth is in the niche craft brewing sector; if it was left to the larger multinational brewers, craft brewing would have never happened. Australian dairy needs a ‘craft brewery’ type disruption to foster growth, change and innovation.
Government must lead the way with clear and detailed education, innovation and technology policies that are funded adequately.
What the new innovation portfolio should consider:
• Being bold, take some risks
• Rebuild innovation research capabilities in Australia
• Invest in research to develop new processing technologies to make these new products
• Invest in new players and start-ups
• Develop and trial new dairy products
• Find new markets
• Develop new marketing techniques
There has been very little local investment in dairy processing, most of the recent investment has come from Asia.
We need incentives for investments in
• New and innovative processing equipment
• Automation, robotics and AI technology
• Energy efficient processing
• Incentives to promote rural investment
• Staff training
• Farm investments
We need to stop driving forward with eyes on the rear vision mirror. What is needed is investment in new players; start-ups, new ideas, new products, new markets, new approaches to marketing.
The plan needs to look at the long term, not just the next season. If the plan depends on a market or a ‘knight in shining armour’ with money, it will continue to stagnate and shrink. The plan needs to bring the disparate parts of the industry together with mutual benefit as its goal. This is not state based, or farmer based, or processor based; it needs to bring the whole value chain along on the journey to engender a robust industry that trusts and backs itself.

User avatar
Neil Buuren
5 months ago · 1 votes · 0 comments
400 words left
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