Industry: Dairy Industry
Gross value of production |
$45m |
Number of growers |
340 |
Number employed |
700 |
Current annual production |
220 million litres |
1. Description of Product:
Milk for processing and packaging.
2. Location of the Industry:
Dairy farms are located in the fertile river valleys in the north east including Murray, Mitta, Kiewa, King, Ovens and Broken Rivers and Tallangatta Creek.
3. Employment and Labour Requirements
a. Number of Producers
340 - a 30% reduction over past 12 years.
b. Number Regularly Employed
On average each farm employs 1 owner operator, 0.6 time partner or family labour and 0.4 time employed labour. Thus for 340 farms, 700 people are employed directly in production of milk.
4. Annual Production :
In North East Victoria there are 63,000 cows producing 220 million litres of milk. The average annual production of milk fat is 19,000 kg, and protein is 14,600 kg per farm.
5. Value of Product:
The value of dairying to farmers is $45 million. This wealth in turn flows into the community in the form of jobs and provisions of services. This flow on effect adds a further $120 million to the region.
6. Production Trends Over the Next Five Years:
a. Projected:
Although, there has been a decline in number of producers in the past decade, 60% of growers expect to increase milk production by more than 10% in the next five years. Industry predicts a continued decline in farm numbers but at a much reduced rate.
b. Potential
1. The industry is located in regions of suitable climate, soil type, fertility, a reasonably 'safe' area. The climate produces enough rain to grow a good pasture based feed supply.
2. Grain supplements are easily obtained from neighbouring major grain growing areas.
3. Dairy farms are within river valleys of the north east and have access to abundant and reliable irrigation water supplies.
4. An efficient industry infrastructure including an excellent regional production pattern exists in the North East.
5. The region has high quality land resources, with few or minor examples of environmental degradation existing.
6. A high degree of motivation and achievement (personal and industry) exists within the regional dairy industry.
7. Major milk processing units in the region are located on a major transport corridor between Melbourne, Sydney and Canberra giving them a strategic advantage in the supply of liquid milk to interstate markets.
8. The benefits of expanding export markets and increased domestic consumption through product development is transferred to the region by the pricing and supply structure in the industry.
Extracted from the Bright Report
