Australia: Livestock Farming Innovation October 2016
WHY AUSTRALIA? As one of the world’s leading agricultural producers, renowned for safe, healthy and high quality food, Australia is located close to markets in Asia that are driving growing global demand.
EMPLOYMENT, EXPENDITURE, EXPORTS AND TURNOVER EMPLOYMENT BUSINESS R&D EXPENDITURE (PERSONS: FULL TIME & PART TIME) (A$ MILLION) 298,945 $205.537 213,065 $689.006 TOTAL: 512,010 TOTAL: $894.543 EXPORTS TURNOVER (A$ BILLION) (A$ BILLION) $21.441 $73.392 $20.206 $99.976 unprocessed TOTAL: $41.647 TOTAL: $173.368 processed 8% GROWTH 6.1% GROWTH IN 12 MONTHS IN 12 MONTHS Sources: EMPLOYMENT – ABS Catalogue 6291.0.55.003 Labour Force , Australia, August 2015. TURNOVER – ABS Catalogue 8155 Australian Industry 2013-2014 , June 2015. R&D EXPENDITURE – ABS Catalogue 8104.0 Research and Experimental Development, Businesses, Australia 2013-2014. EXPORTS – Based on DFAT, Composition of Trade, Australia 2013-2014. Note: figures exclude forestry.
COMPOSITION OF AGRIBUSINESS EXPORTS Source: Based on DFAT publication, Trade in Primary and Manufactured Products, Australia 2013-2014 4
TOP EXPORT DESTINATIONS FOR AUSTRALIAN AGRIBUSINESS PRODUCTS Source: DFAT. Country and Commodity pivot table – FY2006 to FY2014 5
GROWTH OF THE MIDDLE CLASS (2009 VERSUS 2030 FORECAST) Source: Kharas, H. 2010. Working Paper No 285: The emerging middle class in developing countries. OECD Development Centre 6
A SOPHISTICATED LOGISTICS NETWORK 7
AUSTRALIAN FARMLAND TOPS THE GLOBAL TABLE FOR INVESTMENT OPPORTUNITIES Source: Savills Research, International Farmland Focus 2012. 8
A REPUTATION FOR SAFE, QUALITY FOOD • Uses lowest amount of agricultural chemicals per hectare in the world (2014 World Ranking: Food Safety Performance; Conference Board of Canada) • World-leading regulatory standards and quarantine policies • Free of many pests and diseases, including BSE and foot and mouth disease. 9
WORLD-CLASS R&D DELIVERS EXCELLENCE • Broad deployment of high-quality technology • Global best-practice farming techniques • High degree of professionalism and technical expertise. 10
FREE TRADE AGREEMENTS Asia and the Pacific: comparison of FTAs in force Australia USA Canada EU NZ ● ● ASEAN ● ● Brunei ● ● ● ● ● Chile ● ● China ● Hong Kong ● Japan ● ● ● ● ● Korea ● ● Malaysia ● ● ● Singapore ● ● Thailand ● ● Trans-Pacific Partnership Agreement* *Negotiations concluded 11
OPPORTUNITIES BY SECTOR
BEEF AT A GLANCE SECTOR ATTRIBUTES • Clean and green image, disease-free status Total output 2,464,700 tonnes • Individual, electronic traceability system Volume of exports 1,732,100 tonnes (NLIS) Share of world trade 18% • Comprehensive grading system (MSA) Output exported 75% • Efficient farm production methods • Diversity of production regions and systems Top three markets Japan, USA, China • Low-cost land supports grass-fed production • Innovation well supported by R&D infrastructure • Proximity to key Asian markets confers a freight advantage in terms of cost and time to market 13
BEEF - OPPORTUNITIES INVESTMENT OPPORTUNITIES • Investing in northern farm infrastructure to improve stocking rates • Developing integrated supply chains through joint ventures to supply growing export markets • Commercialising processing and product technologies to improve cost-competitive delivery • Developing value-added meat exports based on grass-fed, organic and provenance attributes • Commercialising world-leading sensing and objective measurement technologies in processing to improve cost-competitiveness of supply chains 14
AUSTRALIA'S TOP FIVE BEEF MARKETS VERSUS COMPETITORS Source: UN Comtrade (United Nations Commodity Trade Statistics Database). Accessed September 2015. 15
DAIRY AT A GLANCE SECTOR ATTRIBUTES • High food safety and biosecurity standards, Total output 9.7 billion litres coupled with advanced product traceability A$13 billion incl.farm, systems manufacturing & export • Globally competitive, high-quality milk Farmers Over 6000 production Employees 40,000 • Regional diversity Value of exports A$3.2 billion • Well-developed and organised R&D sector supporting primary and processing sectors Share of world trade 7% • Smaller-scale manufacturing facilities offering Output exported 38% agility and flexibility Top three markets China, Japan, Singapore • Produces a diverse range of functional, ready- to-consume value-added products and ingredients 16
DAIRY AUSTRALIAN DAIRY IS…. • Leading rural industry in terms of adding value through downstream processing. Much of this processing occurs close to farming areas • Well-established industry across temperate and some subtropical areas of Australia. While the bulk of milk production occurs in south-east states, all states have dairy industries that supply fresh drinking milk • A range of high-quality consumer products, including fresh milks, custards, yogurts and a wide variety of cheese types, are produced in most Australian states. The manufacturing of longer shelf life products, such as cheese and specialised milk powders, is becoming more concentrated in the south-east region of Australia. • While supplementary feeding with grains is becoming increasingly common, the Australian dairy industry remains predominantly pasture-based. Presentation Title 17
DAIRY OUTLOOK OCTOBER 2016 SOURCE: DAIRY AUSTRALIA AUSTRALIA’S OUTLOOK EXPORT SIGNIFICANT PRODUCT OCTOBER 2016 SHIFTS • Australian manufacturers • Export volume trends • Liquid milk (+21%) capitalised on better returning (Tonnes): 816,944 • Cheese (+9%) cheese markets, at the • Total volume change: +7% • WMP ( – 17%) expense of Whole Milk • Butter and blends ( – 24%) Powder production. • Butter production is increasingly consumed domestically, while liquid milk exports saw further growth. 18
AUSTRALIAN DAIRY INDUSTRY LOCATIONS Source: Dairy Australia, Dairy Industry in Focus 2014. Numbers may not add up to 100 due to rounding errors. 19
DAIRY - OPPORTUNITIES INVESTMENT OPPORTUNITIES • Development and consolidation of dairy farms to improve productivity • Developing dedicated supply chains offering milk-to-product specification and delivering traceability • Co-investment to combine cost-competitive primary production, leading processing technologies and export market access • Developing specialty products with existing manufacturers for high-value target markets • Farmland investment for capital gain at prices that represent a relatively low barrier to entry 20
AUSTRALIA’S CAPABILITY IN ANIMAL SCIENCE CSIRO • Animal health and welfare • Precision livestock management • Helping farmers breed better livestock http://www.csiro.au/en/Research/AF/Areas/Animal-Science Australia’s national science agency Commonwealth Scientific and Industrial Research Organisation (CSIRO) is among the world’s most esteemed scientific institutions. It is: • in the top 0.1% in agricultural sciences, plant and animal science, environment and ecology, and geosciences • In the top 1% of global research institutions in 15 of 22 research fields 21
INNOVATION IN ANIMAL HEALTH AND WELFARE CSIRO • Breeding Hornless Cattle - A discovery by CSIRO scientists is central to the Australian Poll Gene Marker test, which is helping Australian cattle breeders select the best breeding cattle for their herds. It may also help the industry end the painful practice of dehorning beef cattle. • Measuring how farm animals “feel” - researching ways to improve the welfare of livestock by developing scientific methods for assessing how animals 'feel' in response to common management practices. • Improving conditions for livestock on the road - working with Australia’s farming industries to ensure objective science underpins animal welfare standards for road transport practices. Presentation Title 22
INNOVATION IN PRECISION LIVESTOCK MANAGEMENT LOCATING CATTLE WITH UNMANNED AERIAL VEHICLES - CSIRO • Working to develop, test and demonstrate the latest thermal remote sensing technology on an Unmanned Aerial Vehicle (UAV) to identify the location of livestock in extensive rangelands • Image: Eagle quad-rotor helicopter UAV platform with a thermal imaging camera attached. Presentation Title 23
INNOVATION IN PRECISION LIVESTOCK MANAGEMENT MEASURING CATTLE BODY CONDITION REMOTELY - CSIRO • Remote monitoring of cattle body condition through various imaging technologies has the potential to improve the efficiency and cost effectiveness of livestock production systems • LiDAR – "Light Detection And Ranging". LiDAR is a laser imaging technology that measures three-dimensional structural data with millimetre to centimetre accuracy. It can generate a detailed 3D 'picture' of the animals shape and surface characteristics. • 3D imaging using stereo vision. Similar in concept to human binocular vision, stereo vision uses two cameras to obtain two images from which 3D shape information can be obtained. • Connected to the Digital Homestead project which brings together new technology and information streams from both within the farm and external to it, in order to make better beef farm management decisions. Presentation Title 24
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