Dairy Australia - Dairy information for Australian Dairy Farmers and the industry

Dairy Australia Annual Report 2017-18

Dairy Australia’s Annual Report includes statements on our financial activity and key performance outcomes. Download a copy of the report, or individual sections, or scroll down the page to learn more about our activities in FY18.

Dairy Australia continued to deliver relevant research and development (R&D) initiatives to farmers in FY18, while extending our commitment to innovation. Our projects were guided by a set of strategic priorities. These priorities focus on creating profitable and sustainable dairy farms through pre and post farmgate activities, as well as ensuring the development of capable industry people, and instilling trust in the dairy industry with consumers and industry stakeholders alike.

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The Australian Dairy Industry FY18

Australia’s milk production was up across the FY18 season compared to the FY17 total, reflecting a more favourable spring in most regions and incrementally higher milk prices. Facility investments across the industry are encouraging signs for industry confidence. The challenge for farmers and the wider industry in FY19 will be navigating the drought conditions and resulting feed shortages.

*Statistics as at 30 June 2018

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9,289
million litres total annual milk production
5,699
dairy farms
36%
milk production exported

Dairy export

Robust demand for premium products from key importers (particularly China and Japan) and dampened milk production in key dairy exporting countries have supported milk prices in FY18. Thirty-six per cent of Australian milk production was exported in FY18 with major export markets, in decreasing order, being Greater China (CN), Japan (JP), Singapore (SG), Malaysia (MY) and Indonesia (ID).

    *Values displayed are in tonnes

    Our FY18 revenue

    The dairy service levy is collected to fund the activities of Dairy Australia. The levy is deducted from the payments which milk processing companies make to farmers which are then remitted to the Australian Government. Some eligible R&D spending is matched by Australian Government payments. These proceeds are then remitted to Dairy Australia under its Statutory Funding Agreement.

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    *Values displayed in are in $'000

    Our funding allocation

    Funding is allocated across the three strategic priorities (SP) that guide the programs and projects we deliver on the ground. These priorities are as follows:

    • Strategic Priority 1 (SP1) Profitable Dairy Farms – includes pre and post farmgate activities aimed at improving productivity as well as industry sustainability
    • Strategic Priority 2 (SP2) Capable People – focuses on education and training to enhance the capability of industry participants
    • Strategic Priority 3 (SP3) Trusted Dairy Industry – focuses on maintaining the industry’s long-term ‘social licence to operate’.
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    Strategic Priority 1 – Profitable Dairy Farms

    Comprises two streams:

    1. Pre-farmgate activities that contribute directly towards improving farm profitability by balancing cost of production, risk and total return on investment. The majority of this activity is productivity improvement-oriented R&D, ‘best practice’ identification and subsequent program development.
    2. Post-farmgate activities that are focused on improving farmgate sustainability and opportunities through supply chain cost reductions or improved conditions in key international markets.
    View achievements
    $54
    million secured for DairyFeedbase over 6 years^
    cow icon
    DataGene released the world's first Heat Tolerance Australian Breeding Value
    1,132
    dairy farmers received Taking Stock farm business support*
    ^Co-investment between Dairy Australia, the Victorian Government and the Gardiner Dairy Foundation*Between July 2016 and June 2018

    Strategic Priority 2 – Capable People

    Encompasses programs that enhance the capability of industry participants such as extension services (the sharing of Strategic Priority 1 knowledge with farmers and advisers) and/or more general education and training activity.

    This includes:

    • attracting people to the sector
    • the availability of appropriate training
    • assistance in career transitions.
    View achievements
    2,600
    Farmer Safety Kits distributed to farmers
    715
    farmers attended Farm Safety Workshops
    paper and pencil icon
    Transitioned to the DairyLearn model for dairy education

    Strategic Priority 3 – Trusted Dairy Industry

    Focuses on activities aimed at maintaining the industry’s long-term social licence to operate, such as:

    • marketing and communications to build consumer trust and confidence in dairy products and the industry
    • informing policy with industry insights and research
    • collecting, analysing and distributing sector statistics and information for the benefit of industry stakeholders
    • maintaining the sector’s Sustainability Framework which sets and measures goals around sustainability credentials.
    View achievements
    australia icon
    New communications strategy protecting industry's social licence
    11,700
    aged care residents contributed data for Dairy Fractures Trial
    milk bottle icon
    Renewed Unilever accreditation for sustainable Australian milk production

    Chair’s report

    “Long-term investment in innovation is key to keeping our industry sustainable. While farmers are faced with challenges from the impact of tough seasons, climatic variability and labour shortages, I believe the strength of our investments will make a real difference in navigating these challenges.”

    Jeff Odgers, Chair, Dairy Australia

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    Jeff Odgers Chair Report

    Managing Director's report

    “During my nearly nine years as Managing Director of Dairy Australia, innovation has been a driving force behind the programs we have invested in and the projects we have delivered. This past year was no exception. Dairy Australia invested $56.7 million in the industry in FY18, as we continued to provide support and relevant services to farmers, while ensuring the long-term sustainability of the industry.”

    Ian Halliday, Managing Director to 27 July 2018, Dairy Australia

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    Ian Halliday MD Report