Dairy Industry Action Plan

Dairy Industry Action Plan Reset (On going) $360,000 over three years

In accordance with the funding agreement between SADA and SADIF this report is submitted in anticipation of the completion of the second year of the operation of the Dairy Industry Action Plan 2024-2029.

The South Australian Dairyfarmers’ Association (SADA) in partnership with SADIF is pleased to present this report detailing the implementation and achievements of the SA Dairy Industry Action Plan 2024–2029. Launched in April 2024 by Premier Peter Malinauskas and Minister Clare Scriven, the Action Plan serves as a strategic roadmap guiding the state's dairy industry towards sustainability, innovation, and global competitiveness over a five-year period.

1. Previous Plan

The success of the SA Dairy Industry Action Plan 2019–2024 laid the essential groundwork for the current plan. Developed in collaboration with DairySA, Dairy Australia, PIRSA, the South Australian Dairyfarmers’ Association (SADA), and processors, the previous Action Plan offered a clear strategic framework for the industry during a time of increasing economic, environmental, and labour challenges. Its key objective was to stabilise and rebuild confidence within the industry while promoting growth through innovation, sustainability, and collaborative leadership.

One of the most notable successes of the 2019–2024 Plan was its role in restoring industry cohesion. Before its introduction, the South Australian dairy sector faced significant fragmentation between producers, processors, and government stakeholders. Through structured engagement mechanisms and the formation of the Dairy Industry Action Plan Steering Committee, the plan succeeded in fostering a more united voice. The collaborative approach strengthened trust and alignment between stakeholders, contributing to more coordinated responses to emerging issues such as drought, water pricing, and COVID-19 impacts.

In terms of economic performance, South Australia's dairy industry experienced a return to stability during the plan’s lifespan. By 2023, the state's total milk production had stabilised at approximately 490 million litres, and export volumes began to rebound after prior declines. The Action Plan helped guide strategic infrastructure investments and facilitated dialogue between government and industry, encouraging grants for innovation and plant upgrades, particularly in the state's Southeast and Fleurieu regions.

A key priority under the 2019–2024 Plan is farm productivity and workforce development. The plan enables tailored training programs in conjunction with TAFE SA and DairySA, aimed at upskilling young people and encouraging succession planning on farms. Workforce challenges — particularly the aging farmer demographic and labour shortages — are addressed with initiatives such as the "People in Dairy" pilot, which connected jobseekers with on-farm opportunities. These programs are now embedded and serve as a foundation for expanded workforce goals in the 2024–2029 Plan.

Furthermore, the plan was instrumental in raising the environmental profile of SA dairy. With support from DairySA, many farms adopted more sustainable practices, including effluent management, pasture optimisation, and herd health monitoring. The groundwork laid by these efforts has directly influenced the sustainability goals of the current plan, particularly the emphasis on carbon neutrality and regenerative farming.

Finally, the 2019–2024 Plan played an informative role in influencing public policy. Through consistent advocacy and data-backed submissions, SADA used the plan’s framework to inform state and federal policy on trade access, freight infrastructure, and water regulation. These outcomes reinforced the value of having a unified, long-term industry strategy.

In summary, the 2019–2024 Action Plan proved to be a highly effective blueprint that not only addressed pressing issues of the time but also laid the institutional, environmental, and technological foundations for the 2024–2029 roadmap. Its success affirms the importance of strategic planning and positions South Australia as a model for dairy development in Australia.

2.Introduction

The SA Dairy Industry Action Plan 2024–2029 was developed through extensive consultation with industry stakeholders, aiming to build upon the successes of the previous 2019–2024 plan. The new plan focuses on enhancing the premium status of South Australian dairy products, emphasizing sustainability, technological advancement, and market expansion. 

3. Launch of the Action Plan

The official launch of the Action Plan took place at the Brokenshire family's dairy farm in Mount Compass. Premier Peter Malinauskas highlighted the industry's commitment to growth and environmental stewardship, stating: 

“South Australian dairy products are globally recognised and exported around the world, and the plan laid out by industry will aim to build on that reputation and ensure we are also the greenest, and more premium products on the market.”[1]

Minister Clare Scriven emphasized the plan's role in guiding the sector towards sustainable practices and market growth.[2]

4. Strategic Objectives

The Action Plan outlines ten key objectives: 

Increase South Australia's milk production to 700 million litres to meet growing demand. 

Develop South Australian dairy products as premium offerings. 

Expand market reach into Asia. 

Implement a world-class traceability system using blockchain technology. 

Establish an industry centre of excellence. 

Focus on sustainability, aligning with Australia's reputation for clean, green dairy products. 

Demonstrate high animal welfare standards.

Collaborate with the South Australian government on strategic directions.

Develop career paths, training models, and succession plans. 

Promote the industry as one with strong prospects. 

5. Implementation and Achievements

5.1. Sustainability Initiatives

SADA has prioritized sustainability, encouraging practices that reduce environmental impact. The Brokenshire’s dairy farm exemplifies this commitment, featuring waste management systems that recycle nutrients back into pastures, minimizing reliance on artificial fertilizers. 

5.2. Technological Advancements

The adoption of advanced technologies, such as electronic collars for cows and state-of-the-art rotary and robotic milking systems, has improved herd health monitoring and productivity. These innovations position South Australia as a leader in dairy technology. 

5.3. Traceability and Communication

SADA has developed a nation-leading traceability system utilizing blockchain technology, enhancing transparency across the supply chain.  This project has now completed public trials and at the time of reporting the public response is being collated for reporting purposes. 

5.4. Workforce Development

Efforts to attract and retain talent include the development of training models and succession plans, ensuring a skilled workforce for the future. SADA actively collaborates with processors to promote careers in dairy farming aiming to create an SA based National Dairy Centre of Excellence. 

6. Collaboration and Support

The Action Plan has garnered strong support from the South Australian Government and industry partners, including the Dairy Industry Association of Australia's South Australian Branch. This collaboration has been instrumental in driving the plan's initiatives forward. 

7. Monitoring and Evaluation

SADA is committed to transparency and accountability, with periodic reporting on Key Performance Indicators (KPIs) covering production levels, engagement, innovation outputs, and technology adoption. A final year funding review is planned to assess progress and refine strategies as needed in the next 12 months.

8. Conclusion

The SA Dairy Industry Action Plan 2024–2029 has set a clear and ambitious path for the state's dairy industry. Through strategic objectives, technological innovation, and collaborative efforts, SADA is confident in achieving the plan's goals, ensuring a sustainable and prosperous future for South Australian dairy.

[1]Roadmap to the future launched | DAIRYSAFE

[2]Hansard Daily: Legislative Council - Thursday, May 2 2024