Value chain profitability
The Australian dairy industry needs to be viewed as an integrated supply chain. Milk is a perishable product, which must be processed before it can be sold commercially. As a result, dairy production is integrated across the supply chain: dairy farmers cannot operate without domestic processing capacity, nor can processors survive without domestic farm milk supply.
Dairy manufacturing and processing profitability depends on the efficiency of a number of key elements from across the value chain, including supply of raw milk, transportation, energy, labour and water costs, as well as effluent and waste disposal.
- Ensure Australia’s policy, regulatory and institutional frameworks do not impose unnecessary costs on Australian dairy product manufacturers, and back to farm-gate.
- Improve productivity measures on key dairy supply chain elements that influence product manufacturing costs.