Dairy Australia unveils ambitious plan to boost farmer profits by $588m
Dairy Australia is aiming for farmers to pocket an extra $588m over the next five years, amid figures that show the number of dairy farms has fallen by a quarter in just five years.
The research and development corporation has set several ambitious goals, according to its new strategic plan, which shows Australian dairy’s farmgate production value has increased 25 per cent in the past five years to reach just under $6bn in 2024-25 - while in the same time period, the number of dairy farms has fallen 25 per cent.
“The goals we’ve set are quite ambitious and we’ve done that on purpose. To give visibility to profitability and productivity for a sustainable industry moving forward,” Dairy Australia chief executive Matthew Shaffer said.
The 5-6 per cent return is to be supported by four shared goals for the majority of dairy farms by 2030:
- INCREASE earnings before interest and taxes by 30c per kilogram of milk solids ($2.27-$2.57);
- BOOST homegrown feed utilisation by one tonne per milking hectare (7.34 to 8.34);
- INCREASE genetic gain by $90 per cow entering the herd ($197 to $287); and
- GROW the number of heifers reaching third lactation and beyond by 12 per cent.
Mr Shaffer said improved profits would positively influence perceptions of the industry as it tries to encourage people to embark on and extend a career in dairy.
“We need to show that the return on assets is competitive against other industries, and that will improve industry pride as well,” he said.
“We hear of people wanting to enter the industry, but they’re just not sure how.”
Australian Dairy Farmers president Ben Bennett said the goals were an improvement in getting back to basics, which had not necessarily been seen as a high priority in recent times.
“Getting back to basics as a driving force to get us back to a more profitable industry, and in due course for us to see some growth and that is what we all want,” he said.
“(We have to) make sure we’re well measured in how we’re managing our financial performance, and we’re having some really positive conversations on that front”.
Mr Bennett said the ADF was finalising its own strategic plan, awaiting some final feedback before its release which is “about a month away”.