AGEN2002 Lecture Notes - Lecture 1: Cadbury Dairy Milk, Volatiles, Barramundi

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AGEN2002 Notes
1) Fresh Produce industries in Australia
Ø Many drivers of trends of consumption: perception of health benefit, convenience, price
Ø Innovation in suitable & ethical production, value adding, supply chain, quality required to
increase Australia’s global competitiveness
Characteristics of fresh produce
Perishable
Long lead times (time between initiation & completion of production process)
Seasonable production
Quality variations between producers and plots
Fast handling
Short delivery time to preserve freshness
Special storage conditions
Special packing demands
Dairy industry (global)
Global demand for dairy is increasing (~ 800 Mt/year in 2013 from ~500 in 1983)
o Population growth
o Rising income
o Urbanization
o Western diets in developing countries (e.g. China, India)
India is the world’s largest milk producer (18% of global)
Most expansion in South Asia since 1970s
Highest milk deficits: China, Italy, Russian Federation, Mexico, Algeria, Indonesia
Volatile (statistical measure of tendency of market to rise/fall sharply within a short period
of time) due to long lead times
Dairy industry (Australia)
3rd largest rural industry
o $13 billion farm, manufacturing, export
o farmgate value $4 billion (net value of the product when it leaves the farm, after
marketing costs have been subtracted)
~ 6700 dairy farms: Production of 9.7 million L of milk annually
Employs 43,000 (on farm & factories); 100,000 indirect employment
Export milk powder to Asia
Trend in dairy products
Milk: increase full cream, decline in low fat; increase in branded & flavoured (coffee)
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Document Summary

1 ) f re sh p rodu ce i ndus t rie s in au st ra lia. Many drivers of trends of consumption: perception of health benefit, convenience, price. Innovation in suitable & ethical production, value adding, supply chain, quality required to increase australia"s global competitiveness. Long lead times (time between initiation & completion of production process: seasonable production, quality variations between producers and plots, fast handling, short delivery time to preserve freshness, special storage conditions, special packing demands. Dairy industry (global: global demand for dairy is increasing (~ 800 mt/year in 2013 from ~500 in 1983, population growth, rising income, urbanization, western diets in developing countries (e. g. china, india) Horticultural produce (australia: highest production in qld > vic > s. au > nsw > wa > tas > act. Irrigated horticulture more coastal: export highest to hk > eu > middle east > jpn > singapore, exports most citrus fruit > potato > banana> stone fruit .

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