Australian Dairy Plan bid to boost dairy farmer profitability released
A bold plan to boost the Australian dairy industry’s annual milk output by one billion litres — and make more dairy farmers more profitable — within five years has just been released, after two years in the making.
A PUSH to bolster the nation’s annual milk output by almost one billion litres is outlined in the Australian Dairy Plan launched today.
The five-year plan, spearheaded by former Victorian premier John Brumby, aims to add $500 million of farmgate value for farmers through reform of the sector.
An official launch was not held by the report authors due to coronavirus restrictions, with a website outlining the plan going live this morning.
Mr Brumby said the plan provided a path towards unity for the Australian dairy sector after a prolonged period of uncertainty.
“The Australian Dairy Plan demonstrates a collective commitment of industry organisations representing the whole supply chain to pull together to achieve better outcomes for everyone working in dairy and the communities which rely on the industry.
“It’s a plan that has been built from the ground up. One of the biggest listening exercises in the industry’s history identified a common set of issues voiced across the country. These inform the plan’s five key commitments and targeted initiatives to deliver increased profitability, confidence and unity.”
By 2025, the plan aims for more than 50 per cent of farms to achieve a profit of at least $1.50 EBIT/kgMS (average over five years).
The plan also aims to boost confidence within the industry, from below 50 per cent of respondents in the most recent survey to a 75 per cent benchmark.
Mr Brumby said restoring trust between farmers and processors was a key part of the plan.
“There will be a rollout of initiatives to attract new people and investment into the industry, to help farmers grow their businesses,” the former premier said.
“For processing companies, the plan lays out a program of activities that will help to rebuild milk supply.
“There’s a recognition of the need to rebuild trust with farmers and of the opportunities for the industry to collaborate in activities like industry marketing to promote the value of dairy and reasons to consume.
“For dairy communities, the plan provides certainty that the industry is committed to pulling together and overcoming the issues of recent times and offering long term, high quality employment opportunities.
“Our focus now is on implementation. The partner organisations are locked into delivering on the plan’s commitments and there will be regular updates on this progress. This is a good plan that can make a real difference and I encourage everyone to get behind it.”
• Read the full plan here
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