The dairy industry has pinned its economic expectations on the growing appetite for Australian produce - and rightly so. With the huge middle class of China demanding Australian dairy, it does not seem like a shortage in demand will be an issue any time soon.
This is good news for the security of established dairy producers. When Coles dropped Bega Cheese, for its private label cheese manufacturing and packaging, earlier this month, this could have been detrimental for Bega if it had no further opportunities to access even greater revenue.
The dairy producer has responded to the change in supply arrangements with Coles by redirecting their supply to other markets, like China, and rapidly growing their infant formula and nutritional platforms to attract much greater margins. Bega’s Chief Executive, Aidan Coleman, has noted that the strong global demand for infant formula will offset the loss of the Cole’s contract, estimated to be around $130 million.
Prior to the terminated contract, Bega’s share price had surged more than 42 per cent after announcing a joint venture with Blackmores to develop branded infant formula and sell into China. The positive results attained from the early stages of the Bega/Blackmore partnership indicate a prosperous future for the two companies, and endless possibilities for the Australian dairy industry.
However, not all dairy producers could bounce back from such an unexpected loss. Transitioning to high-margin products and bigger markets requires significant resources and investment. However, this is not to say that there are no other ways to access overseas markets, and the growth opportunities available.
Bulla Dairy Foods are a great example of how even small business can access markets and opportunities overseas. Although it will still be a few years before Bulla can focus more of their business with China, they are currently preparing by innovating and building a competitive export portfolio to unlock and maximise the benefits available.
The Agribusiness Outlook Australia event will explore the strategies for big and small dairy producers to access and leverage the global demand for Australian dairy. With sessions exploring how to access overseas markets, how to establish a reputable brand, and how to strategically position your organisation for success, this event will equip those in the dairy industry with the tools to be the next global supplier.
Join Barry Irvin the chairman of Bega Cheese, Simone Jolliffe the President of Australian Dairy Farmers, and Nick Hickford the General Manager of Marketing and Innovation at Bulla Dairy Foods, to discuss strategies to harness the opportunities from today’s domestic and global markets, in order to secure a productive, profitable and successful future for Australian dairy.
For more details about the conference please download the brochure here.
Register before 1 April to save up to $300!