Why invest in the dairy industry in Western Australia?

Western Australia is an ideal location to establish a dairy enterprise. It has competitive advantages over other regions including:

Availability of resources including land for pasture based dairy production or grain for pasture/feedlot based dairy production. High quality dairy genetics are available and the state’s dairy herd is free from major diseases.

A reliable climate that has shown itself to be less susceptible to climate change than other dairy regions of Australia.

Competitive costs with many dairy farms having costs of production much lower than the average. Milk in WA can be produced for less than US$15 per 100 kg or $3.36/kg MS. Major tariff reductions and a continuing program of privatisation and deregulation of utilities have occurred lowering prices and increasing service levels.

A safe and predictable business environment provides stability required for investment with an inflation rate that has helped to control costs.

Ready access to Asian markets as Perth is within easy access of all Asian capitals.  Proximity gives WA a transport advantage to SE Asia relative to Australia’s eastern dairy industries. Increasing volumes of liquid milk are to Singapore from WA.

Low capital cost to establish a dairy farm in comparison to other countries.

INDUSTRY POSITION

In January 2008, Western Australia’s four major processors - Challenge Dairy, Harvey Fresh, Fonterra and National Foods, together with the WA dairy farm industry (represented by Western Dairy and WA Farmers Dairy section) and government represented by the Department of Agriculture and Food, agreed to a set of common industry principles in relation to the future of the WA dairy industry. This truly representative group has agreed on the following:

  • A commitment to sustainable, profitable growth across the supply chain.
  • Increased positive image and sentiment across the industry
  • A proactive and innovative approach to production and investment
  • To emphasise the competitive advantages of the WA dairy industry
  • Collaboration between all processors, government and industry to achieve industry goals.

The group agreed that a minimum of 85 million litres of additional milk was required from WA over the coming years to meet increased market demand.