To make all the dairy products (milk, cheese, butter, yoghurt, Ice-cream etc) consumed by the average Australian requires about 1 litre per day or 365 litre per year.
2019 population is 25 million
This means Aus needs about 9.125 Billion litres of milk
This years estimated production 8.75 Billion
We still export about 3 billion litres of milk equivalent
The short fall is made up of imports from NZ, USA and Eu.
Actually, Australia needs an extra 30 cows coming into production every day !!
Production is dropping
- cost of feed is higher than milk returns!
USA reports this as a milk revenue over feed cost - See middle graph in the right at this site
Aust reporting does not report this. WHY?
Aus needs to look where more milk can be produced and what incentives will develop production in these areas.
Australia WAS a leader in dairy product technology ( making all sorts of products) NOW Australia IS A FOLLOWER ????
IF WE CANT MAKE WORLD CLASS PRODUCTS OUT OF WORLD CLASS MILK - there will be NO premium.
The contribution of Dairy exports to Australia’s Balance Of Payments In 2019 dollars has gone from about $4 billion DOWN to less than $1 billion. AND IS FALLING !!!
1 - estimate Australia’s milk requirement over the next 20 to 50 years.
2 - identify where it COULD BE PRODUCED. Note : in some places the processors are small and so are high cost - which is a problem in areas where there ARE EFFICIENT DAIRY FARMERS. For example - WA, the WET tropics (Atherton Tablelands is FNQ) and the Northern Rivers Of Southern Qld and Southern Queensland.
3 - Develop plans based on DOMESTIC & INTERNATIONAL DEMAND
4- Australia grew under the MILK POOLING system of The South Eastern States and is failing under the current system. At the same time NZ, USA, Denmark and other countries are growing - THEY HAVE DIFFERENT INTERNAL RULES. Investigate these rules.
5 - Develop a regional “Milk Revenue Over Feed cost” graph / report to support milk pricing discussions.
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