Argibusiness Outlook 2016 to focus on global demand for Aussie produce

Apr 11, 2016

The Agribusiness Outlook Australia event will explore the strategies for primary producers to access and leverage the global demand for Australian produce. With sessions exploring how to access overseas markets, how to establish a reputable brand, and how to strategically position your organisation for success, this event will provide a platform to share best practice examples, innovative approaches and other strategic ways to secure a profitable and productive future.

In particular, the event will explore the tools to make Australia the next global supplier, due to the considerable economic expectation pinned on the growing appetite for Australian produce.
 
High international demand is great news for the security of Australian agribusiness. For example, when Coles dropped Bega Cheese in February for its private label cheese manufacturing and packaging this could have been detrimental for Bega if it had no further opportunities to access even greater revenue.
 
The dairy producer responded to the change in supply arrangements with Coles by redirecting their supply to other markets, like China, and rapidly growing their infant formula and nutritional platforms to attract much greater margins. Bega’s Chief Executive, Aidan Coleman, has noted that the strong global demand for infant formula will offset the loss of the Cole’s contract, estimated to be around $130 million.
 
Prior to the terminated contract, Bega’s share price had surged more than 42 per cent after announcing a joint venture with Blackmores to develop branded infant formula and sell into China. The positive results attained from the early stages of the Bega/Blackmore partnership indicate a prosperous future for the two companies, and endless possibilities for Australian agribusiness.
 
However, not all producers could bounce back from such an unexpected loss. Transitioning to high-margin products and bigger markets requires significant resources and investment. But this does not limit access to overseas markets to only those who hold noteworthy resources.
 
Bulla Dairy Foods are a great example of how even small business can access markets and opportunities overseas. Although it will still be a few years before Bulla can focus more of their business with China, they are currently preparing by innovating and building a competitive export portfolio to unlock and maximise the benefits available.
 
The Agribusiness Outlook Australia is a not-to-be-missed forum that will examine, amongst other topics, how to leverage global demand through a diverse collection of case-studies including from Bega Cheese, Graincorp, Coles and Bulla Dairy Foods, with the overall intention to secure a productive, profitable and successful future for all Australian agribusiness.
 
For more details about the conference please download the brochure here.
 

ADHIS Update: Dairy cow fertility trends improve

Apr 04, 2016

 

After 20 years of declining dairy cow fertility, the genetic trend has turned around and improved every year since 2011. It is now about 5% higher than cows born in 2011, and similar to cows born in 1996.

 

This finding and others are reported in the latest Herd Improvement Report, published recently by the Australian Dairy Herd Improvement Scheme (ADHIS) and the National Herd Improvement Association of Australia (NHIA).

Michelle Axford from ADHIS said this was an example of the gains that can be made through increased emphasis of fertility in Australian selection indices, particularly in the Balanced Performance Index (BPI) and Health Weighted Index (HWI).
 
“We can expect further gains as the focus on fertility in the indices has increased further in the past couple of years,” she said.
 
“We are now seeing the direct benefits on farm. Cows with higher daughter fertility ABVs get back in calf sooner – that is they have higher 6-week in calf rates.”
 
Michelle said the simplest way to improve the genetics of herds for fertility was to choose bulls from the Good Bulls Guide or app with a high Daughter Fertility ABV (>104). She said recent research had given dairy farmers more choice for bulls with better fertility ABVs and more confidence in those bulls.
 
“The reliability of the Daughter Fertility ABV has improved significantly and there are more bulls with much higher Daughter Fertility ABVs to choose from. This is the outcome of collaborative work between ADHIS and the Dairy Futures CRC,” she said.
 
To find out more about the changing dynamics of Australian dairy herds, download the Australian Dairy Herd Improvement Report 2015 from www.adhis.com.au. For more information contact Michelle Axford at ADHIS, ph (03) 8621 4240 or maxford@adhis.com.au.




 

What does passing of Dairy Levy Poll Bill mean for levy payers?

Mar 21, 2016

The Dairy Levy Poll process is set to be streamlined following the passing of legislation in March 2016 to alter review procedures while retaining a strong democratic process for farmers.

The passage of the Bill provides certainty around the process for the 2017 levy review process and future reviews. Australian Dairy Farmers (ADF) has welcomed the passage of the Bill, re-emphasising that this is not about removing Dairy Australia from scrutiny, but instead about streamlining the process and making sure every levy dollar invested delivers value back to farmers.

ADF thanked the Minister for Agriculture and Water Resources, the Hon. Barnaby Joyce and the Department of Agriculture for championing the Bill on behalf of dairy farmers, who voted to make the changes to the process in November 2015.

The changes mean that instead of a mandatory poll, every five years, an industry advisory committee will review whether there is a need to change the levy or conduct a poll. If no change in the levy is recommended, there will not be a poll. However, a poll must be held if it is recommended there be a change in the levy.

The changes also provide a mechanism to allow dairy farmers to request a poll with the support of at least 15 per cent of levy votes.

Now that the legislation is passed ADF will oversee the development of more in-depth procedures for the revised process.

For further information regarding the Dairy Levy Poll process review, visit www.dairylevypollreview.com.au

February President's Message

Feb 29, 2016

There has been a lot of discussion about investment for a stronger future this month, with a great deal of excitement generated by recent investments in Australian dairy.

Such investment will have positive impacts for farming communities.Investors may be interested in further value added opportunities for milk processing. This could be a generator of new growth and development for the whole industry. Investment that passes our foreign investment regulatory tests continue to the benefit of Australian dairy.

Importantly, our industry recognises that this stronger future depends equally on economic, environmental and social outcomes. Dairy continues to hold itself accountable by not waiting for change to occur, but by initiating positive change ourselves. The industry’s progress is highlighted by the Sustainability Framework’s 2015 Progress Report – set to be released shortly via www.sustainabledairyoz.com.au.

It was my great pleasure to discuss the industry’s performance against the key targets with the Department of Agriculture and Water Resources in late February at the Canberra Dairy Forum, and to share more about our industry’s commitment to retaining our social licence to operate.

I encourage you all to take a look at the Progress Report when it is released in mid-march and provide feedback.

Part of tackling sustainability challenges and helping the industry demonstrate performance to the Australian community, is investing in agile representative structures. On the heels of a period of significant policy achievement, ADF is in the strongest position it has ever been. Much of this we owe to our 2012 restructure which helped build greater transparency and engagement with key stakeholders, particularly decision makers in government.

We recognise that there is room to further improve our representative models, to ensure that we can continue to effectively advocate on behalf of all dairy farmers in all dairying regions. The proposed National Farmers’ Federation’s restructure has begun this conversation and ADF looks forward to furthering this discussion to ensure dairy representation has a future that maintains currency, relevance and accountability.

Simone Jolliffe

ADF President

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