1. 1 Australian dairy industry overview Presentation by David Basham, dairy farmer to CIPLE Congreso, September 2011

2. 4% 6% 5% 12% 8% 65%

3. Seasonality of milk production in Australia

4. Typical production system? Many farms feature elements of all these systems - more flexible and opportunistic Rain-fed pasture Irrigated pastureSupplementary grain & concentrate feeding Feedlot

5. Dairy farms and number of cows

6. Milk production and yield per cow

7. A major exporter Domestic market Export markets

8. Exports by country and region: % share

9. Farm gate prices are driven by export returns

10. 10 How is raw milk handled?

11. Supply arrangements: share of production in 2010

12. Risk management issues Deregulated market leaves farmers open to market volatility Milk income Inputs Risk management skills increasingly important to farm profitability and viability of dairy industry in medium term plus Risk management focus is not just on farm gate milk price. Also on Margins Resilience of farm systems Management skills and developing capability to deal with more complex business environment

13. 13 Share of consumer dollar: fresh milk sales in Australia

14. Participation by the state: laws and regulatory framework 14

15. Australian Dairy Industry Council Australian Dairy Farmers Ltd (Farmers) Australian Dairy Products Federation (Manufacturers) Milk producers: how are they organised?

16. Industry representation and service

17. Future trends to 2016: production and marketing of milk globally: developed country perspective 17 Economic growth driven by developing nations Sustainability of supply: can dairy proteins meet future demand? Health and wellness: is dairy an integral part of a balanced diet? Competition from plant proteins

18. Future trends to 2016: production and marketing of milk in Australia Dairy’s importance for rural development and fabric is understood and acted upon by policy makers Encouraging the habit of lifelong and consistent consumption Milk is nutrient rich, that is healthy and tasty Dairy is versatile; can be consumed as a snack or at meals

19. Future trends to 2016: major challenges from a dairy farmer perspective in Australia are: 19 Risk management Innovation along supply chain driving productivity Sustainability of dairying Dairy is “essential” for the diet Dairy farmer leadership Farm inputs; quality of, availability and cost

20. Future trends to 2016: Australian dairy industry involvement in the international market 20 Growth of Australian dairy industry tied to taking advantage of export opportunities

21. 21 Muchas gracias Questions and answers