The paper "Current Structure of the Australian Dairy Industry " is a wonderful example of a Marketing Case Study. The Australian dairy industry dates back to 1788 when Captain Arthur Philip introduced seven cows and two bulls to Australia. The industry has since grown to become what it is today. Today, the Australian dairy industry is worth $13 billion and is one of the largest rural industries. The $13 billion industry consists of farm, manufacturing and export industries with farm gate value alone being valued at $4 billion and has been hailed for enriching regional Australian communities.
Since deregulation in the year 2000, the number of Australian dairy farmers has reduced by about 70% to around 6,000 farmers who produce around 9.7 billion liters of milk every year. The industry has also been credited for employing close to 40,000 Australians on dairy farms as well as in factories. In addition, more than 100,000 Australians have also been indirectly employed in other related services industries (Dairy Australia 2016, par. 2). The dairy industry in Australia is also considered one of the leading rural industries in Australia as far as adding value via downstream processing is concerned.
It is to be noted that most of the processing occurs close to farming areas and hence generates a lot of economic activities in county regions. In Australia, the dairy industry is well established across temperate as well as in some subtropical areas of the country. It is to be noted that the bulk of milk production takes place in the southeast states although all states have dairy industries supplying fresh drinking milk to nearby towns and cities (Australian Bureau of Statistics 2004, par. 4).
The industry also produces a range of high-quality consumer products that include various varieties of fresh milk, yogurts, custards as well as a wide variety of cheese types that are produced in most of the states in Australia. It is worth noting however that the manufacturing and production of longer shelf life products which include cheese as well as specialized milk powders have become more concentrated in Australia’ s South-east region. The dairy industry in Australia today As stated above, the dairy industry is an important rural industry in Australia with on-farm productivity continuing to increase as a result of improved feed and pasture as well as herd management techniques.
Though the industry is pasture-based predominantly, supplementary feeding with grains has of late become increasingly common. All the Australian states led by Victoria have viable milk productions that supply fresh milk to all nearby towns and cities. The industry has become a major regional employer through adding value through the processing of the milk produced thus giving rise to fresh lines including butter, cream, yogurt, as well as cheese.
The industry also produces significant quantities of bulk milk as well as specialized powdered milk. Trends in production, exports, prices and other key variables The production trend since deregulation in 2000 can best be described as having been stagnant for the last fifteen years. Historical milk production for Australia indicates that milk production in Australia significantly increased before the market deregulation with annual increases in production being the norm from the mid-1980s and 1990s. After deregulation, production peaked in 2000, 2001 and 2002. However, after this, Australia’ s milk production has dropped off stagnating at best.
Similarly, Australia’ s dairy exports have also declined during the period (Leduc 2015, par. 4). The graph below compares Australia’ s milk production between 2000 and 2013.