Australian Dairy Industry Supply Chain Doc

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Running head: AUSTRALIAN DAIRY INDUSTRY SUPPLY CHAIN
Australian dairy industry supply chain
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AUSTRALIAN DAIRY INDUSTRY SUPPLY CHAIN
Table of Contents
Introduction 3
About the industry 3
Challenges and opportunities 4
SWOT analysis 4
Challenges 4
Opportunities 5
Recommendations 6
Conclusion 6
References 7

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AUSTRALIAN DAIRY INDUSTRY SUPPLY CHAIN
Introduction
Australia ranks third in the world for dairy production. They earn a farmgate value of $A
3.7 million as they export fifty percent of their dairy products. The country boasts of up to 1.6
million dairy cattle in about 7500 dairy ranches countrywide. The average dairy herd rates up to
220 per pack which sees about 9000 million liters of milk produced on average. Only twenty
percent of the produce is drunk as fresh milk, and the rest is manufactured into dairy products
like yogurt, cheese among others. While most of the production happens in the southeast region
owing to the temperate climate, all states have dairy farms adjacent to towns and city to which
the supply dairy produce (Barkema et al., 2015).
About the industry
The dairy in Australia produces for two markets, which are the domestic, and the
international market. In average, 55% of the dairy products in Australia is exported which
accounts for 16% of the world dairy global market (Westhoek et al.,2011). The dairy market
categorizes into the milk market and the manufacturing market. Though the market milk
accounts to 17% of the total milk production, it is the largest domestic food supply providing for
up to 40% of the local food market.
Cooperatives are dominant in the dairy market with them accounting for 78% of market
milk. The main players were: national foods, Parmalat Corporation, and Dairy foods. On the
other and the domestic supply, three players dominate chain; supermarkets, the route trade, and
the food service chains. Most dominant being the supermarkets and the least is the food service
chains which consist of caterers, restaurants, and fast food outlets. The route trade includes
convenience stores and small stores which together account for the second sector in the domestic