The dairy industry in Australia is estimated to be worth 13 billion dollars, including the manufacturing and processing industry, having a farm gate value worth 4 billion dollars. The industry enriches regional communities around Australia (Council, 2014).
The
The dairy industry in Australia is estimated to be worth 13 billion dollars, including the manufacturing and processing industry, having a farm gate value worth 4 billion dollars. The industry enriches regional communities around Australia (Council, 2014).
The dairy farmers in Australia, who are more than 6000 in number, produce approximately 9.7 billion liters of milk in a year. The industry employs more than 40,000 citizens on the farms and in the factories, at the same time, the indirectly related industries employ more than 100,000 nationals.
Dairy farming is also one of the country's leading rural industries by value addition through downstream dispensation. Much of processing is around the farming areas, therefore spawning economic activity in the rural regions of Australia.
Dairy farming in the country is a well-established industry spanning across temperate and subtropical areas of the country. While the majority of milk production take place in the southeastern states, all the states have dairy productions supplying fresh milk to cities and towns that are nearby. Nevertheless, the processing of long life shelf products such as cheese and specialized milk powders is more focused in the southeast parts of the country (Francis, 2013).
The industry is continuing to be a vital rural industry in the country. Productivity on the farms is increasing due to improved pasture, feeds, and animal management techniques. Complementary feeding with grains is common, but the dairy industry has remained mostly pasture-based. Though the Victoria state is dominant in milk production, all the states have sustainable productions supplying fresh milk to nearby towns and cities. As one of the largest employers in the country, the industry adds value through processing milk to produce cheese,
Yogurt, butter, and cream. One dairy company that has the largest market share in Australia is the Fonterra dairy business. The company is known well across the globe with its operations in Australia and New Zealand forming the foundation of its global operations. The company set foot in Australia in 2001 after acquiring a 25 percent stake in the Victorian processor Bonlac Foods. Since then, the company has bought other well-known Australian businesses such as Borland dairies and the Murrumbidgee Dairy Products. Mid 2006, Fonterra Australia bought Bonlac Foods business. Today, the dairy company has employed 2,000 people, who gather 21 percent of the milk in Australia, operating ten manufacturing locations (Trechter, 2003).
Through legacy actions, the dairy company has been part of the dairy industry in the country for a period longer than 50 years. In a bid to add value and to unlock goodness to their esteemed customers, the company has strategically invested heavily in research and innovation. With further 3,500 natural constituents, milk offers many potentials for improvement to meet the changing needs for dairy nutrition. The company’s dairy science is leading to improve nutrition for mothers and infants while keeping the aging population mobile and putting healthy options on the family menu (Boland, Singh, & Thompson, 2014). Developments at the company’s research center, for example, the spreadable butter, bone nutrition products, functional milk concentrates have opened up opportunities to make more products from dairy ingredients. The company has an open innovation policy which encourages any external partner to contribute to the development of new product and technologies. The company has also partnered with many learning institutions and research centers all over the world. (Heron, 2016)
The company aims at being globally relevant, to build a globally related corporation which makes a change in the livelihoods of more than 2 billion people by 2025. The company has an excellent engagement with people through corporate social responsibility hence a good reputation for the enterprise. Through the company’s investment in both food science and market research, the business aims at building and growing beyond the current client positions, deliver on food service potential, and develop primary positions in pediatrics and maternal nutrition. Fonterra knows that for the company to achieve the strategies put in place, policy alone cannot be enough, but the performance culture is vital for the enterprise to deliver high returns. The enterprise is, therefore, keen on capital and resource distribution, fixing underperforming branches, executing their plans efficiently while focusing on the consumer (Stringer & Heron, 2008).
The company's multi-hub strategy aims at matching the demand growth around the globe. The global partnerships with other global enterprises such as those in Europe and China, (A-ware/ Dairy Crest partnerships and Global Fonterra and Being mate Partnerships), will enable the company to achieve global relevance (Stuart Gray, 2010).
Fonterra Company commits to the highest standards of corporate governance and direction. The company has adopted corporate transformational leadership structure in its various categori