Ambitious goals set in dairy plan
Increased earnings for dairy farmers is one of four goals outlined in Dairy Australia's recently released strategic plan.
A sharper focus on farmer-identified priorities, underpinned by ambitious goals aimed at driving profitability and innovation, are at the heart of the plan set to take the industry through to 2030.
Developed following a comprehensive 18-month stakeholder consultation process, the strategy focuses on shaping a profitable, sustainable industry, with farm profitability at the centre of Dairy Australia's investment.
Dairy Australia chair Paul Roderick said the strategy set three priorities that would guide the organisation's effort and investment – unlocking today's potential, innovating for future success and ensuring a profitably sustainable industry.
"These priorities aim to ensure that most farm businesses as well as the broader industry can capitalise on the opportunities generated by dairy," Mr Roderick said.
Underpinning the strategy were four industry goals, developed in collaboration with farmers and industry partners, supporting an overarching goal for every dairy farm to achieve an average return on total assets (ROTA) in the range of five to six per cent through to 2030.
The four goals included:
Increasing the earnings before interest and tax of the majority of dairy farms by 30 cents per kilogram of milk solids. Achieved nationally, this could mean up to $190 million in additional annual profit;
Lifting utilisation of homegrown feed by one tonne per milking hectare. Reaching this goal could deliver up to $230 million in benefits to farmers;
Increasing genetic gain by $90 per cow entering the herd, which could deliver up to $78 million in annual gross benefits; and
Lifting the number of heifers reaching their third lactation and beyond by 12 per cent, delivering up to $90 million in annual benefits to farmers.
"These goals are deliberately aspirational," Mr Roderick said.
"We know it will require significant cross-industry collaboration, effort, and investment to achieve these gains."
"However, we firmly believe that setting high targets will push us to be better, and when we realise these goals, the opportunities for Australian dairy are enormous."
Co-created after 18 months of engagement and consultation with farmers and industry stakeholders, the plan will be delivered in collaboration with Australian dairy farmers, the Australian Dairy Products Federation, research partners, farmers, and government.
