A new report developed by key industry stakeholders has identified five key areas for future development of the industry in the Murray-Darling Basin, stretching across four states.
The report notes the basin’s dairy industry employs more than 10,000 people and produces more than 2 billion litres of milk annually.
While facing some strategic challenges, the chair of the steering committee which developed the new report, Lindy Nieuwenhuizen, said the industry was experiencing what she called perpetual momentum in how it adapts and changes according to circumstances.
“When we look at what is in front of us, obviously technology is redefining what is possible on-farm and in factory,” Ms Nieuwenhuizen said.
“Processors are needing to find higher value product lines, and some of the R&D investment in that space to come up with different production lines. That is an exciting place.
“We have looked at milk, cheese, cream — and now I stand inside factories like those in Shepparton producing nutritionals for body builders, and products for weight loss or infant formulas.
“All these different products that were not possible in the past.
“We are living in an extraordinary era, witnessing the many different ways milk is being utilised.”
The report identifies unique characteristics of the basin’s dairy industry.
The industry’s processors and farms are strategically and geographically located.
“Most of us are enjoying the benefits of irrigation so that makes us very reliable, more stable and quicker to bounce back, than other production regions,” Ms Nieuwenhuizen said.
Dairy creates a steady demand for water which enables other commodity producers to take advantage of the irrigation network.
Irrigation industries rely on dairy as a critical anchor to the irrigation network.
“We produce about 20 per cent of the national milk pool but we process almost 25 per cent of the pool,” Ms Nieuwenhuizen said.
“Our geographic location is an advantage for moving milk around the states.”
Regional communities often express that they need dairy, but dairy also needs regional communities with shared needs, around education, training, housing, services and technical support.
The report identifies five themes for future directions: people and workforce; integrated sustainability; research, innovation and technology; profitability and business confidence; and industry promotion.
“These themes already exist at federal and state government level,” Ms Nieuwenhuizen said.
“Our job is to integrate what we have discovered through this process and supplement it with additional industry data to guide and inform how those strategies play out.
“And to make sure we carve out outcomes for the regions that reflect what we genuinely need.”
The Murray-Darling Basin Dairy Industry 2025 strategic report is available from the Gardiner Foundation and the Committee for Greater Shepparton.
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