The Presiding Officers invite Parliamentarians and Staff to a Science Briefing on

Transcription

1 The Presiding Officers invite Parliamentarians and Staff to a Science Briefing on Innovation in Victoria s Dairy Industry Thursday 16th August, 2012, 1.00pm With lunch and a tasting of cheeses from regional Victoria Legislative Council Committee Room The dairy sector is the largest agricultural industry in Victoria and makes a vital contribution to the state s economy. Victoria accounts for two-thirds of national milk production and around 86 per cent of Australian dairy exports, valued at $1.96 billion in Dairy products are exported to almost 100 countries with Japan, Singapore, Indonesia, China, Philippines and Malaysia our major markets. There are around 4,600 farms and more than 20 major milk processing plants in Victoria. Figures from the 2011 National Dairy Farmer Survey report that around 11,900 people were employed in dairy production in Victoria. Based on the latest available figures from 2006, approximately 8,000 people were also employed in the dairy processing sector across the state. Export success is due to the industry s efficient, pasture-based dairy farms, the availability of grain as a costeffective feed supplement, high producing cows and a progressive and efficient processing sector that develops products to suit customer needs. Over the last thirty years, the dairy industry has been able to double milk production with the same number of cows and 35% less grazing land. This has enabled industry to counteract farmers declining terms of trade (ratio of price of produce to price of inputs), and to remain internationally competitive. Research, development and extension have contributed to almost half of total production gains on farm in Victoria s dairy industry. The industry is facing many challenges to remain competitive in the global market, but there are very encouraging prospects with growing demand for dairy products in developing countries. The industry needs to exploit exciting new technologies and develop new products to capture market opportunities. Innovation to increase productivity and build on the industry s reputation for quality will be critical for its success. The speakers will be: Dr Bruce Kefford Deputy Secretary, Agriculture Research and Development Dept. of Primary Industries, Victoria Mr Ian Halliday Managing Director, Dairy Australia The meeting will be chaired by: Dr Glen Kile FTSE The Parliamentary science briefings are organised by the Academy of Technological Sciences and Engineering (ATSE) under the auspices of the Presiding Officers and with financial support from the Department of Business and Innovation Notes on the talks are available on the Parliamentary Intranet. For information or comments on future briefings contact Professor Kerry Pratt on or kerry.pratt@monash.edu

2 Innovation in Victoria s Dairy Industry Science Meets Parliament August 2010

3 Dairy is vitally important to Victoria, Gross value of ~ $2.5 B 2/3 of Australia s milk production Major employer in regional Victoria (~11,900 people in production and ~8000 in processing)

4 especially in generating exports. Victoria produces ~86% of national dairy exports Victoria exported $1.96B of dairy produce in 2010/11

5 The industry has faced many external challenges, Difficult economic conditions Trade barriers Deregulation Droughts and floods

6 and could have gone backwards. 160 Index = Dairy farmers terms of trade have declined

7 Remarkably, industry has doubled production over the last 30 years, Actual production (all drivers) ML milk Gap explained by internal improvements Simulated production without internal improvements (counterfactual)

8 by increasing milk yield both per cow and per hectare, per cow (LHS) per hectare (RHS) 8000 litres per cow litres per ha

9 with the same number of cows and less land, 's cows and hectares Dairying land Cow numbers

10 but this has required adjustment to achieve economies of scale. Australian dairy farm numbers Victoria Other States Source: Dairy Australia ~ less than half the farmers and double the average farm and herd size

11 New products and processing has increased demand and efficiency. Butter Cheese and Powders Cream cheese Whey powder UHT milk processing, automated cheese making and powder drying

12 Research, Development & Extension s contribution has been significant, Actual production (all drivers) ML milk % Contribution of RD&E Simulated production without internal improvements (counterfactual) On Farm RD&E Benefit : Cost Ratio of 3.3 : 1

13 in increasing farm production especially in the areas of: Production & utilisation of pastures Supplementary feeding Cow breeding & genetics Milk harvesting

14 and helping industry to meet consumer and community expectations. Milk quality & animal health Effluent and nutrient management Animal welfare

15 Strategic investments in biotechnology R&D will deliver new opportunities. AgriBio Centre for AgriBiosciences New pasture / forage varieties Genomic selection DNA sequencing of cows Reducing cow methane emissions

16 Mr Ian Halliday Managing Director Dairy Australia Ltd Innovation for future success

17 Dairy Australia (DA) has a leading role in facilitating industry innovation National services body - invests in projects Board, 4,500 member dairy farmers and two peak industry bodies $31 million Dairy Service Levy (2011/12) $19 million - Federal Government matching funding R&D Whole supply chain approach

18 The industry faces many future challenges, Increasing productivity/margin improvement Labour and succession Access to water and land Free trade agreements (Asia, M.E) Reputation management/sustainability Affordability/price conscious consumers Food policy (i.e. dietary guidelines, labelling) China s Dairy Imports (by volume, tonnes)

19 but, there are many opportunities Generally favourable seasonal conditions Population growth Increasing demand in Asia New technologies and practices

20 and RD&E is part of that, both on-farm, Robotic milking Feeding systems Biotechnology in plant and animal breeding Smart farming systems

21 as well as post-farm Processing efficiencies Higher value add products Health and nutrition benefits Product promotion

22 Government and industry investment in RD&E is crucial DA Investment ($51m in 2011/12) DPIV Investment Geoffrey Gardiner Dairy Foundation ($5m invested in 2010/11)

23 Partnership between Government and industry is important Dairy Futures Cooperative Research Centre MOU for Victoria RD&E DPI Bundoora and DPI Ellinbank Dairy Innovation Australia Ltd (DBI)

24 A national approach will improve efficiency and effectiveness National Research Regional Development Local Extension

25 Information Sources Evaluation Report CIE Economic History David Harris Dairy Australia ABARE / ABS GGDF DPIV Thank you Further Information / agriculture / dairy