Released on Monday, September 28, the plan has highlighted increased profitability, confidence and unity during the next five years as the key elements of the strategic plan.
Implementation of the plan could see annual milk production increase from 8.7 billion litres to 9.6 billion litres, and will target greater than 50 per cent of farms achieving profit of at least $1.50 EBIT/kgMS, have more than three-quarters of farmers and processors confident about the future, and have more than 75 per cent of farmers and processors positive about industry unity by 2025.
Reform of industry structures is one of five key commitments for change identified during an extensive nationwide consultation involving more than 1500 industry participants.
The plan sets out the need for further consultation and an industry vote as being essential for successful reform.
Independent chair and former Victorian Premier John Brumby said the plan demonstrated a commitment across the whole supply chain to achieve better outcomes.
“For farmers, it is vital that their hard work results in appropriate reward. The plan has a strong focus on providing farmers with the services and tools to achieve consistent profitability in an increasingly challenging operating environment. There will be a roll-out of initiatives to attract new people and investment into the industry, to help farmers grow their businesses.
“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.”
The Australian Dairy Plan has been a divisive issue in dairy regions across the country, with the UDV undertaking a large membership consultation push after some unrest over the body's stance on the plan.
Farmers heavily criticised industry advocacy bodies in a series of workshops held to discuss the dairy plan last year, and also argued that bodies like Dairy Australia should be doing more to lobby for farmers.
Dairy Australia board director and Ardmona dairy farmer Jeff Odgers said the plan would help deliver increased business and risk management skills to navigate an increasingly volatile operating environment.
“Our target is for all dairy farm businesses to have a documented long-term plan and for at least 75 per cent of dairy farms to be using risk management tools and products within five years.”
Australian Dairy Products Federation president Grant Crothers said rebuilding trust between farmers and processors was vital to strengthening industry confidence and unity.
The plan is the first time organisations representing the whole dairy supply chain have worked together to develop a national strategic plan.
Other commitments also include attracting new people and investment, a greater focus on marketing, increasing business and risk management skills and tools, and improving trust between farmers and processing companies.
