AUSTRALIA'S dairy industry has great potential for growth and will likely be a major player in addressing issues surrounding global food security - that's the view of a US-based industry consultant who sees a bright future for dairy given demand from China and advances in innovative technology.
For Graeme Marsh, founder and president of Future Business Concepts and based in Los Angeles, the Australian dairy industry could be on a path of significant expansion in order to meet growing demand.
Mr Marsh, originally from Blayney, has worked in Hong Kong, Japan, and has more recently been based in the US, establishing his company in 1998.
That has involved a lot of work within the US dairy industry, specifically with regard to dairy waste processing and prevention of mastitis and hairy wart in dairy cows.
Mr Marsh said issues of feeding the world and food security were of paramount importance and dairy could play a big role in this domain.
He also said the innovation that was taking place in the dairy industry at the moment, such as in robotics, was impressive.
The Australian dairy industry could also, he said, come to reflect the US industry with a growing emphasis on larger dairy operations.
"I look around, and I see this is what the big trend is - dairies becoming larger, and I think there's opportunities there.
"It comes down to economies of scale."
Mr Marsh said high land prices in California, for example, had driven many dairy farmers from southern California to areas such as south-eastern New Mexico and south-western Texas.
This reflects NSW examples of rising land prices in areas like the South Coast and Southern Highlands, leading dairy farmers to relocate further west.
He said in the future, smaller family dairy farms could amalgamate with others into larger operations to keep costs down.
Mr Marsh said innovation and technology would be "incredibly important" in particular for smaller to mid-tier dairy farms in the future, to ensure efficiency.
The Australian dairy industry in the future could reflect some elements of the US industry now - a mix of large, commercial high volume dairies selling milk to a mass population, alongside a speciality market of smaller dairies focused on organic or A2 milk products.
He said there was strong demand for niche milk products in the US.
"I can see the same thing happening in Australia," he said, with a broadening of the industry as well as an overall increase in volume.
And, he said, exports would increasingly be of importance.
Mr Marsh said China and India would be key markets for Australia.
He said for the Chinese, sourcing a quality product was of utmost importance - therefore high levels of biosecurity and quality control would be of key focus, and something the Australian dairy industry could currently meet given existing high standards in these areas.
Coupled with great opportunities could come challenges for the industry to face in scaling up farms, such as feed demand and water.
He said he hoped government and industry would be able to recognise the growth opportunities in dairy.
SBScibus director and senior consultant Dr Neil Moss, Camden, spoke at the recent Sydney University Dairy Research Foundation Symposium about the NSW dairy industry's pathways for growth.
Dr Moss said the industry was seeing a rise in milk consumption and improved demand for dairy on the back of an increasing population.
"Even if we had an an industry growth of two per cent a year, we are looking at needing about 20 million new litres a year from this state alone," Dr Moss said.
"There is room for growth...what is holding back growth?"
Dr Moss identified issues like the high value of land in traditional dairy regions in the state, red and green tape, ageing infrastructure, labour, input costs and a lack of confidence in milk prices as some of the main "constraints" for growth of the dairy industry.
Technology the key to boosting dairy growth
FOR Ashleigh Wildridge developments in technology and innovation will help contribute to an exciting future for the dairy industry.
The Sydney University PhD student, who works in the Future Dairy research and development program at Camden, is carrying out research into cow traffic in various dairy situations.
Part of her research has involved the dairy unmanned ground vehicle, which can be equipped with various sensors and can perform tasks such as checking a dairy herd at night, and even monitor soil and pasture quality.
Her research has specifically looked at the use of the unmanned ground vehicle in conjunction with robotic milking systems.
Potential impacts include improvement in cow performance and overall health.
Ms Wildridge, pictured with the unmanned ground vehicle on Sydney University's dairy farm at Camden, said technologies such as this could contribute to a dynamic future and growth for the dairy industry.
"We live in a technology-driven world, and in the dairy industry robotic milking systems are a prime example of that," she sad.
"It is all very interesting, and is targeted towards the next generation of farmers.
"Technology is certainly going to become a big part of farming in general."
