Plan to restore dairy confidence
Initiatives that aim to restore confidence, lift profitability and stimulate growth in the dairy industry are set out in a plan launched at Longwarry on Friday.
The draft Australian Dairy Plan outlines a range of industry wide initiatives and follows a national consultation process that heard the views of more than 1500 people.
Australian Dairy Plan independent chair John Brumby launched the plan at the Versteden dairy farm at Longwarry on Friday.
In the wake of significant challenges and tough times for farmers, Mr Brumby said the plan aimed to restore profitability, restore confidence and restore unity.
He said it was the first time key dairy organisations representing the whole supply chain had come together to form a single plan.
John Versteden, who has farmed at Longwarry for 35 years and been involved in many industry organisations, said the plan was a significant document.
“The industry has been struggling and this is an important collective effort to address that.
“It’s been pretty tough. The plan is about providing support to current dairy farmers but also for our next generation of dairy farmers.
With more than 1200 dairy farmers in Gippsland contributing to a quarter of Australia’s dairy production, Mr Versteden said it was hard to “overstate the importance of the dairy industry in Gippsland.”
“Dairy is the economic engine that provides prosperity in this region,” he said.
Mr Brumby said getting the plan right for dairying was “absolutely crucial.”
“We all know the industry is facing challenges. Much of Australia is devastated by environmental change. Twenty years ago annual production was double the current nine billion litres.
“So it’s under these conditions the four groups have come together to draft a road map. If we don’t do anything, this industry will keep shrinking,” he said.
Mr Brumby said the plan was modelled on moderate growth that had the potential to turn around the drift and decline currently being experienced.
The plan supports about one billion litres of additional national milk production annually by 2025, worth over $600 million per annum to dairy farmers.
Mr Brumby said the additional production would stimulate the creation of at least 1000 direct new jobs, mostly in regional areas.
“The draft plan also focuses on initiatives to help farmers better manage the increased cost of key inputs like feed, water and energy to support the profitability of their dairy businesses. Key commitments and initiatives include: An historic reset of how farmers and processors work together to provide greater transparency and consolidated information regarding farm milk prices, as well as the establishment of a milk price monitor;
Support and funding for every dairy farmer develop farm business plans by 2025;
Renewed focus on attracting new people and investment, to build industry capacity and growth;
More marketing and promotion to build greater levels of consumer trust;
An increased focus on innovation, market development, policy leadership and sustainability; and,
A more unified strategic approach to work with government to stimulate industry growth.
The draft Dairy Plan and details on the feedback process are available at www.dairyplan.com.au The final plan will be published in March 2020.