Literature Review on Dairy in Australia Oz Assignments

Literature Review on Dairy in Australia Oz Assignments

Literature Review on Dairy in Australia Oz Assignments

Introduction

Dairy Australia is a business consist of many small and large farm, this research report helps to understand the local and global demand. It helps in developing a clear concept through positive and negative impact. Australian dairy industry consists of a small and large farm where the Australian government has involvement with the growing market and globalization. The hardship of farmers and pressure from animal right and government has change the dairy industry experience. Dairy Australia has employed more people in a direct and indirect manner. The vast production of dairy has an increasing market scope with more people leaning towards a healthy lifestyle with a balanced diet.

The milk products is recommended as balanced diet and full source of calcium. Victoria is the largest state to produce dairy followed by NSW and Queensland. The main focus of Australian diary industry is profit, man power and investment. The government may have different approach about this subject matter, farmer believes in investment to increase their profit. The government’s main focus has been towards making Australia dairy known to world. The lack of man power and structural changes in market and government for prices in this industry can have effect in its global market.

Project Objective

There is a wide dairy industry in Australia which have a vast range of products that can be sold to different business as well as individual. This project is to understand how Australian dairy farmers have evolve in past market scope compare from past to present and on towards the future. The industry itself have been a great success in present but this research focus on the background of industry. The time where milk and its products could not reach its customers. The hardship of farmers and their ups and down in business. The report also focus on the various sectors of dairy industry, its customer and government involvement throughout its development. The fact and figure that are provided in the report explain the area and involvement of government during various time frame. This report also explain about the changing face of farming as population and demand of people changed.

Market Scope

The scope of dairy industry is big because dairy is considered as big source of calcium which is a major requirement of balance diet. There are different products made from milk that are sold in market cheese, butter, milkshake and other various products. As these products are used in every household, there are also number of other industries that uses dairy products in regular basis i.e. restaurant, cheese factories and small business. The market scope for milk and its product is increasing as the population and the life style of people are changing. The cultured dairy are also new ways for farmer to increase their market scope. The awareness of health and living with healthy food has also increased dairy industry scope.

Literature Review

In 1788, two bulls and seven cows were brought in Australia from England for farming purposes. The steady growth in dairy industry came throughout 18th century, where cheese and butter were produced in spring and summer- when cow produced most milk. By late 1800, breeding and importing of cows and bulls were started. The first commercial cheese factory was established in Tasmania in 1820’s. In 1900’s, various commercialization were started in Australian dairy industry. Throughout 19th century with electricity and refrigerator, milk industry has profited the most because milk can be stored and used in various seasons. The innovation and new technology has also made dairy farming quicker and stable market as farmers can milk their cows with other equipment rather than their hand. These new technology also helps track of herds and there gazing technique as well as their health.

Australian climate and natural resources are very favourable for dairy industry and there are more dairy farms in coastal areas. The moist costal zones have environmental structure for increment of this industry. Now dairy industry is third largest rural industry in Australia with different view, face and market. The national dairy herd is 1.51 million cows with average herd size is of 261 cows. The farmgate production value is $3.7 billion with production of 28% drinking milk, 26% skim milk or butter milk power and 5% whole milk powder. There are approximately 42000 people working in Australian dairy industry. The annual per capita consumption of milk is 103 litres and 13.4 kg of cheese. The industry has further grown globally as milk are exported in Singapore, Indonesia, Japan, Malaysia and China.

Diagram 1: NSW exports (including mixtures) by market 2016 – value share


Source: NSW Dairy Industry Report to NSW Government Final Report 2016

While economic of scale are increasing in farm improving productivity, the size of increasing farm and market volatility is adding commercial risk. The pressure from communities, animal welfare, environmental and labour management including supply chain impacts dairy farmers. The variability in climate and availability of water for animals can impact dairy industry. The innovation and new technology provided new opportunities for improvement of industry. The milk processor are ‘value-added’ for manufacturer to attempt gain in commodity and products. Even with local and external pressure, the long term and global demand has positive impact on farmers and dairy industry.

Dairy Australia has invested $61.6 million in 2016-2017, their main focus was research development and farm improvement. The short time response for delivery with economic development of farm are also main focus of investment. In long term, Dairy Australia has challenges to enable profitable growth at farm, so that dairy sector can take full advantage. The research and development can help farmers with many problems and the farmers can understand about dairy market locally and globally. There main objective is to provide support the farmers profit range where every dollar can go for research and development.

Government’s approach

Australian government are also focused in advanced technology, biosecurity, managing soil and water as natural resources, food and environmental changes. The government has less interference with price provided to farmers and profit of dairy farmers. The lack of program and education provided as well training by government point outs it lack in funding. The government needs to provide fund in the industries for farmers to make use of new technology which can improve dairy sector.

The farmers need to be aware of importance of soil and water to be used as natural resource. The education and training should be provide for farmers and worker to be aware of environmental changes and food source. These are to focus for development of farm and dairy products, which helps create globalization of dairy industry whereas, dairy industry is mainly focused in profitable farm, improved skills and investment in industry. Therefore, Dairy Australia industry invest more to achieve these goals.

Diagram 2: NSW milk sales shares by type & channel ? 2016

Source: The NSW dairy industry in 2016

Pressure on small farmers

The dairy industries main concern among others in near future is skilled manpower. The growing market of dairy can struggle with skilled manpower as there can be limited number of people with appropriate skill. The industry needs to train more people for different farms. As small farms are being lost and bigger farms are taking their places, these farm may need more man power to run smoothly. The growing demand of milk product and globalization has created demand and supply of more workers in farms and other dairy industries.

The smaller farms have more pressure in dairy industry with less than 150 cows. There are more than 500 cows in large farm which helps larger farms to associate with other milk product manufactures. The small farm have difficulties selling their milk products and other seasonal challenges, like dry conditions and prices of fodder. The small farms not only have less production of milk but they are also low in manpower, as only one family handles the whole farm.

Uncertain prices

The prices provided in market by different processor are flaunting as the unstable dairy industry. The farmers are happier with their own businesses than the improvement of dairy industry. The different prices provided to small and large farm does seem to effect global market price. These structural changes and lack of government in such matters has effected dairy industry. The uncertainty of structural changes in dairy industry like price range provided to farmers by milk processors and constant change of supplies will take sometime to settle.

Although, more farmers did make profit last year and farther more are expected to make profit. There are optimistic response among farmers about milk prices, increasing global demand of Australian dairy products. The dry conditions have forced farmers to buy fodder as the seasons have presented more challenged conditions. The prices of hay, grain and irrigation water increases and presents significant headwinds for the season ahead, particularly in dry conditions.

Tactics for difficult times

The tactics of difficult times focuses on difficult the seasonal condition that can effect farmers. Dairy Australia offers farmers with charity to enhance their capability around difficult times. Dairy Australia also provides one-in one support for independent consultant for farmers for their development. There are many workshops, education, training and services for farmers. Dairy Australia believe in support in farmers it not only support their business but also farmer’s families.

Dairy Australia’s Farm Business Management (FBM) program aims to have more dairy farmers consistently making decisions that increase profit, and confidently responding to challenges and opportunities. The main objective of this tactics is to support decision making and provide business information to other farmers. Dairy Australia wants to have action plan form in place to achieve goal even in hard times.

Gap of Literature Review

In order to complete this project, the learner uses secondary data. Those data are collected from books, journals, magazines, websites, newspaper articles and different other sources. Huge number of secondary resources are collected in order to be reliable and authenticate. The gap is created when a learner have vast number of information and sources about a same topic. However, the latest data has been considered in this project. The paid version of the information’s are not collected by learner due to time and financial conditions. Lack of those information may create theory as well as model may effects research quality. Due to existence of these gap, the learner is not able to complete the study as per expected level.

Questionnaires

1. Are Australian farmers doing well with dairy farming?

The farmers in Australia have had profit from their produce in past years. The future also looks promising even with drought, many charity and government are pitching in to help.

2. Does globalization has any effect in dairy industry?

The demand of Australian dairy is more with shift in global market. The more products are being export from Australia, therefore government is more focus on global market.

3. What are main focus of Australian farmers?

The main focus of Australian farmers are their profit and increment of herds.

4. What is main focus of government towards dairy industry?

The government is more focus in globalization of the dairy industry and more export of produce.

5. What is Dairy Australia focus on?

Dairy Australia focus on the investment on research and development of dairy product for benefit of farmers, to train more man power into dairy industry and create more profit for farmers.

6. What are the element farmers need to consider while farming herds for difficult times?

The farmers are required to put track of gazing lands to provide even grass throughout year, provide enough fodder and preserve and recycle water.

Conclusion

Dairy Australia emphasis on enhancing farmers’ capability, human resources management and focus on services of structural transition. It is also focus on employing and training more people on farms and help farmer with decision making qualities in difficult times. Dairy Australia improves meadowland performance that can matches their farm region and feed requirement. Dairy Australia focus on investment on research for profit on farmers dairy products. Dairy Australia delivers programs, tools and services to support farmers and dairy industry.

References

1. Dairy Australia, Australian Dairy Products Federation Inc., Viewed 16th August 2018 <www.dairyaustralia.com.au/publications/dairy-nsw-strategic-plan>
2. Dairy Australia Annual report, Australian Dairy Products Federation Inc., Viewed 16th August 2018 <www.dairyaustralia.com.au/publication/annual-report.
3. Discover Dairy, Dairy Australia products Federation Inc., Viewed 15th August 2018 <www.dairy.edu.au/discoverdairy/learning-resources/background-information technology/s18-dairy-farming-in-australia>
4. Department of Primary Industry, NSW Dairy Industry, Viewed 16th August 2016 <www.dpi.nsw.gov.au/animals-and-livestock/dairy/facts-and-figures>
5. August 10, 2018, Blake Foden, Government won't commit to financial support for ACT farmers, <www.smh.com.au>
6. August 14, 2018, Blake Foden, ACT government to announce financial assistance for struggling farmers, <www.smh.com.au>