AUSTRALIA’S dairy industry must grow to remain a major player in the world trade and take advantage of growing appetite from Asia, or lose out to its major competitors.
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It was the message from Taf Shaamano, the author of a recently released ANZ agribusiness report: Looking for A Sign - Unlocking Australia’s Dairy Potential.
The research report challenged the industry to step up production from 9.2 billion to 15 billion litres of milk a year by 2025. It coincides with when Australia’s tariffs drop to zero under many of the recent free trade agreements including China, Japan, Korea and Trans Pacific Partnership.
“At that point there will be a big question asked of Australian producers to say we want you to deliver,” he said.
This potential growth in the coming decade could take Australia from 7 per cent of world trade to 10-12pc behind New Zealand, the European Union and the United States.
Mr Shaamano said dairy had always been one of three agricultural commodity pillars with beef and grains, and now was the time to “fill the gap” left by the mining downturn and lift GDP.
“When I look at the opportunity at the door it is an opportunity for us to generate wealth for generations,” he said.
Mr Shaamano acknowledged there were some challenges including remaining globally competitive, addressing the skills shortage to manage large herds, and fluctuating seasonal conditions.
He set producers an aspiration to target a specific dollar a kilogram milk solids reduction through implementing operational efficiencies.
He said it could be achieved by replicating the winning formula of three-time AFL premiership team Hawthorn making “every pass, every handball, every kick, every mark, every contest count.” “Where we can’t be world best we need to be able to say I have done my best at a farm level with my land, my water, my silage, my cows and with my relationships with my bank,” he said.
Mr Shaamano also advocated government and industry getting together to develop national policy much as New Zealand had done in the early 1990s.
It was crucial to help young people find entry points into the industry such as equity partnerships.
“The average age of a dairy farmer is 53 years in 2015. In 2025 the average age could be 57 years . We could lose 1000 farmers so be down from 6000 to 5000,” he said.
“What happens to their cows? What happens to their skills?”
