Pasture Livestock - Dairy

Dairy

 

Dairy Industry Overview

Dairying is one of G21 Region’s, Victoria’s and Australia’s most significant agribusiness industries. This agribusiness industry encompasses:

  • Dairy farmers; predominantly dairy cattle, but with increasing diversification into production of goat, sheep and buffalo milk. Dairy farming in Australia has an annual revenue of $3.9 billion.

  • Milk and cream processing. Milk and cream processing in Australia has an annual revenue of $2.2 billion.

  • Butter and dairy product manufacturing (excluding ice-cream and cheese).

  • Ice cream manufacturing, with an annual revenue of $997.4 million in Australia.

  • Cheese manufacturing. Milk and cream processing in Australia has an annual revenue of $2.6 billion.

  • Milk powder manufacturing, with an annual revenue of $757 million in Australia.

ABARES estimates Australian milk production in 2016-17 to be 9 gigalitres (or 9 billion litres) from 1.6 million cows. This volume is a 5.7% decrease on the production in 2015-16. Influencing factors include:

  • Globally depressed prices has impacted on large dairy corporates operating in Australia, bringing farm gate price reductions to local producers.

  • The ongoing consolidation in the industry reflects a trend towards fewer, larger dairy farms

  • There are continued improvements in productivity and an increasing average yield per cow

  • There has been some development of new products

  • There is saturation in the domestic market, but there are new growth opportunities in export markets.

At The Farm

  • Production and milk processing levels, dairying is currently experiencing a period of volatility. Drought, floods, fluctuating demand, global industry impacts, and continuing industry deregulation are all part of the ongoing risks and variability experienced by Australia’s dairy farmers. Most recently, the industry has been heavily influenced by falling global prices.

  • Dairy farmers are located at the ‘price taker’ end of an increasingly competitive agribusiness industry, with only a few opportunities to differentiate their product from other farmers:

  • Production efficiencies due to scale, automation, genetic improvement and/or management practices.

  • Organic and/or bio-dynamic production which has been attracting price premiums.

  • Value-adding, through either activity or ownership in a business at the processing stage of the supply chain; For example, making cheese, yoghurt, whey protein derivatives, milk powder, ice cream, long-life products (UHT).

Dairying in the G21 Region

  • Victoria is the heartland of Australian dairy production, with 67.3% of dairy farming establishments and more than 50% of dairy processing operations. Total industry $3.915 billion 6,706 establishments, of which 4,500 are in Victoria.

  • G21 Region has an estimated 356 dairy farming operations with 95,000 dairy cattle. Unlike other agricultural sectors in G21 region, dairy farming is dominated by commercial scale enterprises, and the majority of farmers are in the west of the region (Colac Otway Shire):

  • 97.7% of G21 region dairy farms had an EVAO (estimated value of agricultural operations) of more than $40,000 in 2014-15.

  • 2.3% of G21 region dairy farms had an EVAO of $5,000 to $40,000 in 2014-15.

  • 14.3% of G21 region dairy farms are located in Greater Geelong, Golden Plains and Surf Coast, with 85.7% in Colac Otway.

  • There are also some emerging goats milk and sheep milk producers.

G21 Region Dairy Industry Value Chain

Additional Information.

Biosecurity, Agriculture Victoria: https://agriculture.vic.gov.au/biosecurity

Livestock and animals, Agriculture Victoria: https://www.vff.org.au/fact-sheet-category/farm-safety/

Farm safety, Victorian Farmers Federation: https://www.vff.org.au/fact-sheet-category/farm-safety/

Farm management, Agriculture Victoria: https://agriculture.vic.gov.au/farm-management

Climate and weather, Agriculture Victoria: https://agriculture.vic.gov.au/climate-and-weather

Animal health, welfare and biosecurity, Victorian Farmers Federation, StockSense: https://www.vff.org.au/project/stock-sense/

Report roaming livestock or a dog attacking livestock to the City of Greater Geelong: https://www.geelongaustralia.com.au/pets/task/item/8d9be4359405bda.aspx . If it is an emergency phone 03 5272 5272.

Report roaming livestock or a dog attacking livestock to the Colac Otway Shire: https://www.colacotway.vic.gov.au/My-property/Pets-animals-livestock/Pest-problem-animals. If it is an emergency phone 03 5232 9400.

Report roaming livestock or a dog attacking livestock to the Surf Coast Shire: https://www.surfcoast.vic.gov.au/About-us/Council/Laws-and-regulations/Animal-laws . If it is an emergency phone 03 5261 0600.

Report roaming livestock or a dog attacking livestock to the Golden Plains Shire: https://www.goldenplains.vic.gov.au/resident/pets-and-animals/livestock If it is an emergency phone 03 5220 7111.

G21 AgriCollective acknowledges that much of the material presented in this profile and the links is general in nature. If you have a specific question related to G21 region small-scale sheep and lamb marketing please email info@theagricollective.com.au and we will provide a response either by return email or phone call.