ADPF is leading greater understanding of the value of milk and instilling the credentials of dairy in Australian diets. We do this through the Milk Value Portal and by promoting the significant contribution dairy processing makes to Australia’s economy.
Australia’s Dairy Code of Conduct requires dairy processors to announce farmgate milk prices 13-months out from the season end.
This risks their viability in a market where the costs of Australian products are not competitive with imports.
The Dairy Code restricts processor’s ability to respond, and this disconnect between dairy farmers and dairy markets affects clear market signals and price transparency needed amongst businesses for planning, investment, and industry confidence.
Complete a genuine and comprehensive second review of the Dairy Code as a priority, to produce a more flexible and commercial document.
Dairy processors sit at the heart of communities across Australia.
From Lismore, to Kyabram, Brisbane, to Bega, Korumburra, Colac, Jervois, Smithton, or Balcatta, they create thousands of jobs and invest in the vibrancy and livelihoods of the people and community in which they live and work.
You don’t have to travel far in regional Australia to find a dairy manufacturing plant.
They transform raw milk – a highly perishable, low value commodity – into safe, nutritious, and premium dairy products for domestic and global markets every day of the year.
From fresh and flavoured milk, to cheese, powdered milk, cream, yoghurts and butter, plus a wide range of high value food ingredient dairy fat and protein-based products.
According to the ADPF’s Deloitte Access Economic Report, in 2019-20 the dairy processing sector contributed more than $12.4 billion to the Australian Gross Domestic Product.
We create more than 70,000 jobs of which about 20,000 (29 per cent) are directly in dairy processing – of this more than half (56.5 per cent) are in regional Australia and a quarter in the top two-highly skilled categories.
Most dairy processing jobs are located within 250km of where milk is produced, generating significant economic activity and employment in regional Australia – one of the most significant of any agricultural industry.
Our reputation for delivering high quality, nutritious dairy products that are enjoyed locally and around the world is second to none, exporting 30 per cent of our milk production valued at $3.7 billion.
Funding to complete an updated Dairy Processors Economic Report
Dairy foods provide a unique package of 10 essential nutrients important for healthy blood, nervous and immune systems, eye health, muscle and nerve function, healthy skin, energy levels and growth and repair in all parts of the body.
Scientific research shows that having enough milk, yoghurt and cheese can be beneficial for heart health, blood pressure and maintaining a healthy weight.
More than this, the Australian Dietary Guidelines say consumption of milk, cheese and yoghurt is linked to a reduced risk of heart disease, stroke, hypertension, type 2 diabetes, metabolic syndrome and colorectal cancer – some of the main causes of death in Australia.
Despite this, 90 per cent of Australians do not consume the recommended daily intake of dairy.
There is a lack of investment on the nutrition and health benefits of dairy, even though we know increasing dairy consumption to the recommended levels could save about $2 billion on healthcare expenditure in Australia.
And similarly, the evidence on the nutrition and health benefits of dairy for aged care residents has shown increasing dairy intake by 1.5 serves a day (from 2 to 3.5 serves) raised calcium and protein intakes and significantly reduced the risk of falls (11 per cent) and all fractures (33 per cent), including hip fractures (46 per cent).
It means, government investing in research and development to unlock other health benefits from consuming milk, cheese, yoghurt, is crucial.
Government collaborates with industry on promoting Australian dairy as a product of choice, supported by research and development, and policy decisions that recognise the health benefits of dairy products. This includes:
In an industry-first, the ADPF with the support of dairy processors – both ADPF members and non-members – have created the Milk Value Portal, designed to provide farmers and analysts data and insights to better understand the milk market and make more-informed business decisions to get the most value out of their raw milk.
At the core of the Milk Value Portal is the Farmgate Milk Value Tool, which takes aggregated FMP data and puts it into an easy-to-use format that farmers can easily interpret.
The tool allows a farmers to enter their farm parameters such as geography, farm size, and milk fat and protein content to see what is the average value of their milk, at a particular time of year – in cents/ litre and $/ Kg of milk solids.
The data is regularly updated to ensure the Portal remains relevant.
The Portal also features insights of the dairy products market (local and global) and supply chain influences on FMP.
Milk Value Portal is ADPF’s commitment – as the peak body for dairy processors – to industry trust and transparency and rebuilding trusted partnerships between farmers and processors, as well as Commitment 5 of the Australian Dairy Plan.
The Milk Value Portal is available through a simple, mobile-friendly website. For more information, visit www.milkvalue.com.au
A one-stop shop designed to provide farmers and analysts data and insights to better understand the milk market and get the most value out of their raw milk