Breeds

Holstein-Friesian is the main breed in WA accounting for more than 90% of all dairy cows. Prior to deregulation, milk pricing was based on litres and milk quality with little emphasis on milk components. Such a payment system favoured Holstein-Friesians and their male offspring readily fitted into a steer production enterprise.

Since deregulation, the weighting given to milk components has increased. This has seen an increase in the use of other breeds, however Holstein-Friesians still dominant. This is reflected in the average fat and protein tests in WA versus the Australian average. In 2005/06 the WA average was 3.91 % fat versus an Australian average of 4.05%, while protein was 3.16% versus an Australian average of 3.31%. Hence when comparing prices between dairy regions, prices based on $/kg MS is more meaningful than those based on c/L.

As processors have different requirements the emphasis on milk components varies according to the processor and this is starting to be reflected in breed selection. For example the main markets for National Foods and Harvey Fresh are for liquid milk and their pricing structure emphasises litres rather than components. Producers supplying these companies have tended to remain faithful to Holstein-Friesians.

In contrast Fonterra and Challenge Co-operative have markets for both liquid milk and value added manufactured products (ice cream and food ingredients), which is reflected by a pricing structure weighted more towards components not litres. As a consequence producers supplying these processors are exploring NZ Friesian genetics, crossbreeds or other breeds as alternatives to the Holstein-Friesian.

Regardless, the widespread use of purebred Holstein-Friesians has enabled many producers in the industry to take advantage of the export heifer market in particular the Chinese and Mexico markets, and to a lesser extent the Australian domestic heifer market.