Threats, opportunities in dairy’s next decade

DairySA hosted two workshops in the past few weeks, at Strathalbyn and Mount Gambier, discussing the next big thing in the industry.

A mix of dairyfarmers, managers and industry representatives brainstormed some of the threats and opportunities that the industry will face during the next decade.

Niche marketing was one growing area, with smaller, premium, processors established during the past couple of years.

Dairy manager Ty Maidment, Strathalbyn, said that at Strathalbyn there were plenty of opportunities in the industry with new processors emerging who typically paid more for milk because they produced a high-end product.

"They're turning a litre of milk into a $15 reel of brie or camembert," he said.

"It's a premium product, so consumers pay more but they're getting more."

Foreign investment was seen "as a threat and an opportunity".

Langhorne Creek dairyfarmer James Stacey said there was scope for people at both ends of the industry.

"If older farmers want to get capital out of agriculture, it would be a good vehicle for that," he said.

"It also provides opportunity for people to get involved in agriculture but don't have the capital to do it."

Mr Maidment said he was one who could benefit as a farm manager rather than owner.

"I am a realist - it would have to be managed properly," he said.

The growing population was also a factor named in the next few years, but the discussion centred on the fact that plans needed to be made to drive profit from all these opportunities.

At the Mount Gambier meeting, the need to upskill managers and employees to meet the changing nature of the industry was a key topic.

SA Dairyfarmers Association president David Basham said events like this were "hugely useful".

"Without these conversations we don't know where farmers want to go and how to help them get there," he said.

Mr Basham said the industry had experienced a big lift in optimism, even the past two years.

Convenor Dairy during SA's Louise Stock said the workshops were part of a bigger project, along with discussion groups with farmers, value-chain mapping and an electronic survey, to identify potential projects.

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