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Jon-Pierre Espinasse Oakhill

Milk Production
Agribusiness input:

Grazing Plan Transport Feed Agronomist Accountant

Marketing Strategies:

Health Promotion of milk Originally = Statutory Marketing Boards in each state had a monopoly, restricting interstate trade, etc. Selling through a co-operative agreement milk bulked and processed or sold by many farmers Direct selling to the factory Vertical integration owning further marketing facilities (e.g. farm, factory, corner shop)

Specification info about milk in ads:

3.3% butterfat No chemicals or antibiotics Different fat levels skim/normal(3%) Green Farming = cartoon cows, green meadows

On-Farm problem in meeting market specs:

Chemicals reside in animal longer than set holding period Drought reducing feed quality Inability to measure cant test feed quality on property

Off-Farm problem in meeting market specs:

Problems in quality found during tests and rejected

Government intervention:

Deregulation of the industry reducing the profits of many farmerso 1st July 2000 o 53c per litre 28c per litre o Six state industries (different standards) = one industry o Originally market milk or manufacturing milk = price discrimination o 18% Australia wide was used for market milk with NSW making up a third. Vic, SA and Tas did not have much market milk. o An equitable marketing strategy was introduced where all farmers were paid as if 6% of their milk was market milk and 94% was manufacturing. Therefore more milk was better

Jon-Pierre Espinasse Oakhill

Processed into other products:

Skim Separation (whey), Pasteurization Butter Separation (cream), Pasteurization, Churning Cheese Homogenization, Pasteurization, Addition of starter culture and Rennin, Coagulation, Incubation Milk Powder Homogenization, Pasteurization, Evaporation, Drying Long life Homogenization, UHT

Quality Criteria and end use:

White, no chemicals, higher protein, higher butterfat = Fresh Milk Lower protein level, lower butter fat = Cheese, cream, milk powder, Butter


Consumers dont buy a product if they dont like it The preferred types of the product sell better Desire for bulk, pre-packaged, processed, organic practices

Measure of Production:

Milk produced per cow per day = Quantitative Protein level of Milk = Qualitative

On-Farm factor that can affect quality:

Nutrition Genetics Drought

Managing financial pressures:

Diversification Staggered breeding cycles of dairy cows Economies of Scale