Topic: The farm as a business

The place of the farm in the wider agribusiness sector

Students learn to: Outline the importance of farms in the wider agribusiness sector of the Australian Economy
1. Economic Contribution = Farms significantly contribute to GDP (Gross Domestic Product) and are key exporters of agricultural
products.
2. Employment Opportunities = Farms generate thousands of jobs and support the economic stability of rural communities.
3. Supply Chain Integration = Farms are central to the agricultural supply chain, connecting input suppliers with processing and
distribution.
4. Innovation and Technology = Farms foster innovation and adopt new technologies to enhance productivity and sustainability,
through research and development.
5. Sustainability and Environmental Stewardship = Many farms implement sustainable practices that promote environmental
health and climate resilience.
6. Food Security = Farms play a crucial role in ensuring domestic food production and dietary diversity for Australians.
7. Cultural and Social Significance = Farms reflect Australia’s agricultural heritage and engage actively with local communities.
8. Global Trade and Competitiveness = Australian farms enhance the country’s global market position through high-quality exports
and trade agreements.

Students learn to: Describe a wide variety of farm business structures from the family farm to the corporate enterprise.

Family Farm
 Definition: Owned and operated by family members, these farms can range from small subsistence operations to larger
commercial enterprises.
 Characteristics:
o Relies primarily on family labour and decision-making.
o Emphasizes tradition, sustainability, and community ties.
o Flexible in operations and often adapts to local markets and consumer preferences.
 Examples: Small vegetable farms, dairy operations, or mixed crop farms.
Cooperative Enterprise
 An agriculture corporate enterprise is a large, professionally managed business involved in agricultural production, processing,
and distribution.
 Operating on a larger scale than small farms, these corporations invest heavily in technology, infrastructure, and labour, with a
focus on maximizing efficiency, profitability, and sustainability.

Topic: Decision-making process and management strategies

Factors of quality and quantity that influence Decision-making

Students learn to: Assess farm production systems based on measurements of quality and quantity

Decision-making requires farmers to; realise an issue, collect all

relevant info, look for an alternative, choose one course of action,
put that choice into action, determine whether the results are
satisfactory, and take responsibility for the decision.

The quality of products can be measured and tested in various

ways, depending on the product. Payments are often based on
product quality, Quality tests can provide feedback to the farmer,
so the production cycle can be modified and optimised.

Topic: Decision-making process and management strategies

The impact of financial pressures on farmers

Outline the financial pressures that may impact farmers, including the irregular nature of income, high
Students learn to:
expenditure on inputs, the dynamic nature of markets, interest rates, and risk management.

Risk Management

Diversification: a farm with more than one enterprise, which Risk avoidance: Some farm enterprises are regarded as riskier
creates more than one source of income. Allowing farms to than others. Often, the riskier an enterprise is the higher the risk
maintain a continual source of secure income if either enterprise level, but also forgoes the possible financial benefits
is not as successful there is a backup option, although it means
they lose the benefits provided by economies of scale. Production flexibility: Farmers can alter enterprises with
circumstances if the production pattern is not set at the beginning
Off-farm income: The farmer or their spouse may have a part- allowing them to react to new information to improve their profit.
time or full-time job off the farm or have shares/investments, so This includes the use of dual-purpose breeds of animal or plant is
 they can have reliable income. one way that allows the end product to be decided, later in the
production cycle. Another is to avoid investment in specialist
Contracts: A farmer can sometimes negotiate a guaranteed plants.
price in advance for their produce, thus reducing the uncertainty
associated with price fluctuations, and protecting against low Insurance: More things can be insured. Policies can be purchased
prices. that will protect against the risk of damage to people, livestock,
buildings, machinery and crops. However, they are required to pay
Building reserves: Storing resources such as water, fodder and premiums based on the likelihood of damage occurring.
grain can be then used in times of need, and money can also be
put aside for emergencies in a reserve. Although Harvest and Information: Well-informed farmers are better able to make
storage involve expenses some resources will deteriorate with decisions that limit risk. Keeping up-to-date with new
storage. technologies, weather, market information and current practices
can help to increase production and lower costs.

Irregular Nature of Income: High Expenditure on Inputs:

 Long Production Cycles: Farms have a long production cycle or  Agriculture businesses require inputs such as feed, fertilisers
seasonal, so for many enterprises, there may only be a single or tractors to function properly, the costs of these inputs can
annual harvest event and income occurs only once a year, e.g. affect the amount of profit the farm makes in return.
wheat  Ways to combat:
o Dairy farmers get a monthly milk payment. They also o Using technological breakthroughs, for example
have income from the sale of calves and cull cows. genetically modifying organisms, that may not be in
 On a farm that relies on infrequent income the manager needs common us, giving the farmer an advantage over others
to budget carefully to ensure there will be sufficient money to not using the breakthrough
continue operation. o Increasing productivity, for example by using higher
 Issues regarding maintaining an even cash flow due to the yielding varieties or more fertilises
nature of production cycles. o Developing economics of scale
 Nature: Agriculture holds a strong reliance on the natural o Value-adding products so that they are sold for a higher
environment. The environment can alter the quantity and price
quality of products in unpredictable ways o Decreasing the use of inputs or using cheaper input
o Examples: Extreme weather, natural disasters, substitutes.
biological factors (pests and disease)  Fixed costs do not vary with the amount of production. They
will still need to be paid in the same amount even if the size of
the enterprise increases or decreases a moderate amount.
 Variable costs are directly related to a farm enterprise. These
costs will vary with the size of the enterprise.

Dynamic Nature of Markets:

 When exporting agricultural products, farmers are affected not only by the normal variations in price but also by the changes in
value of the $A.
 Dec 1983, $A was floated, which means instead of having a fixed value, the value was variable, depending on the perceived
worth to the currency speculators buying it. This is called the “exchange rate”.

 When the $A is at a relatively high value compared with  When the $A is at a relatively low value compared with
other currencies: other currencies:
o exports from Australia return less to the farmer o exports from Australia return more to the farmer
o imports to Australia, for example, tractors, become o imports to Australia become more expensive
cheaper.

Interest Rates

 Farmers may need to borrow money for a variety of reasons – these become investments in the farm, also called assets that are
needed to help keep production levels high.
o To buy a new tractor, more livestock or land, Build a new dam, fences, sheds or yards, Clear land, Carry out conservation
works to halt soil erosion, Help cash flow while waiting for payments
 Two Important features of loans:
o The interest rate. The bank lends money to the farmer, but as well as repaying the borrowed amount, the farmer has to
repay interest that is calculated on the borrowed amount. Interest rates may be fixed or they may vary with time and with
the reason for the loan.
o The term. Money can be borrowed over varying periods. These can vary from one through to 40 years. The longer the time
taken to repay the money, the more interest is eventually paid on the loan.
 The significance of the amount owed by farms is that not only does this money need to be repaid, but the amount owing will
attract interest that must be paid as well. Interest rates vary and that means that the amount that needs to be paid can vary
significantly.

Use techniques to analyse the financial situation of a farm enterprise, including calculating gross
Students learn to:
margin and return to capital.

A gross margin indicates the profitability of an activity on the farm. The Gross margin includes only variable costs [costs that change
during production], not fixed or overhead costs. Gross margins are worked out on a per-cow or per-hectare basis.
The formula for a gross margin is:  gross margin = total income – variable costs

Return to Capital: This is the return to total assets managed by the farm business (including leased and shared farmed land) and is
the preferred indicator of business efficiency. A figure greater than 8% indicates an efficient farm business.
 Farm capital includes investments in land clearing, fencing, draining, and roads and buildings, as well as investments in tools,
animals, animal feed, seed, and wages embodied in growing crops and animals
 Net Income=Total Revenue−Total Operating Expenses∨Return¿ Capital= ( Total Net
Capital Invested )
Income
×100

Topic: Agricultural Technology

The impact scientific research and associated technology has had on agricultural production and marketing.

Students learn to: Outline the importance of ongoing research related to agricultural industries.

The importance of research in improving production includes Technological impact on the marketing of milk includes:
methods to:  Modified milk, such as ‘lite White’ or ‘Omega 3’
 Improve product quality  Internet marketing
 Improve yield  On-farm pasteurisation, homogenisation and bottling of a
 Increase efficiency of production niche milk type then subsequent marketing of the product
 Produce sustainability

Technological impacts on milk production include innovations such as the use of robotic milking systems, sexed semen and embryos and
the use of tetraploid ryegrass in pasture mixes.

Students learn to: Describe recent technologies and their impact on agricultural production and/or marketing.

Automatic Milk Systems – AMS = VERY EFFICIENT

Advantages Disadvantages
 Reduced reliance on available labour  Initial cost
 Improved, productive efficiency of labour  Operational parameters/technical awareness
 Increased potential to increase operational scale  Farm layout re-investment
 Reduced labour costs  Technical support services
 Improve working routines  Changes to genetic selection parameters may be necessary
 Improved lifestyle possible  Significant increase in electricity use
 Improved animal welfare outcomes  Currently technology integration issues
 Improved monitoring and data collection  Occasional need to deal with operational issues at very
 Management software integration inconvenient times of day/night
 Technology integration potential

Automatic Milking systems can reduce the need for labour in most milking-related tasks and help dairy farmers significantly boost the
efficiencies of their business by removing twice-a-day milking from their daily routine. AMS has been developed into various systems,
including single-box, multi-box, and automatic rotary systems.

The most beneficial of the three systems is the Automatic Rotary System due to its profound ability to perform hygiene tasks, such as
teat washing and drying, applying milk cups, cup removal, cup flushing, and teat disinfection. It comprises an internal, rotary
herringbone platform with cows facing outward, a robotic system located in the centre, and other features.

Topic: Marketing
Marketing Strategies

Students learn to: Discuss strategies available to market farm products, including vertical integration, contract selling, direct
marketing, cooperatives and marketing boards.

Vertical Integration: Horizontal Integration

- The amount paid by the consumer rarely reflects the price that the farmer receives for - Holding multiple venues in one
the raw farm product, so it is in the best interests of the farmer to increase the stage of production  E.g.
product value, that is value added, by getting it closer to what the consumer wants. multiple farms, multiple abs,
- Farmers can value add in two ways: multiple factories
o produce a superior value product on the farm to target a niche market - Liking together of firms at the
o control some or all of the means of processing the product into a value-added same level of processing
product (vertical integration).
- Vertical integration occurs when farmers own or control aspects of the marketing
chain associated with their product and as a result can increase their percentage of
the final amount paid by the consumer.
- Farmers may group to purchase grading and packing facilities, cool stores, a
refrigerated truck or may lease a ‘stand’ at the wholesale markets.

Direct Marketing - Direct marketing is the sale of agricultural goods and products from the farm straight to the
consumer, without intervening distributors or retailers.
 - Those that benefit from direct marketing are:
o small farm operators – that is, those with less than $150 000 in annual receipts, who work and manage their own
operations (this is over 90 per cent of all NSW farms)
o consumers – have access to locally grown, farm-fresh produce and can personally interact with the farmer who grows
the produce
o community – urban communities where fresh, nutritious foods are scarce can gain easy access to food.

A typical direct marketing farmer tends to be: Advantages:

o small scale o increased product quality – because consumers have closer
o diverse in their product range (fruit, vegetables, flowers) ties to the farmer, there is an incentive to maintain high-
o flexible – timing their production schedule with their distribution quality produce
strategy o dealing directly with consumers – allows the farmer to cut
o socially adept – fostering social links with other farmers who out agents, transporters and retailers
o promotion that focuses on low to negligible costs – farmers
direct the market and with consumers.
dealing directly with consumers through markets, roadside
o value adding – farmers who can value add their product, benefit
stalls or the internet have smaller-scale promotions that
from direct marketing target their clients more efficiently and at lower cost
o using sustainable practices – small-scale production and social o prices competitive with chain supermarkets – with fewer
collaboration (farmer-consumer, farmer-labourer, and farmer- overheads the farmers can charge more than they would
farmer) tend to promote social and environmental with other marketing
sustainability. o strategies and the consumers will still get a good deal.

Cooperatives:
- Associations that individual farmers voluntarily form to achieve common commercial objectives more successfully than they
could as individuals
- Range in size and scope, including an informal agreement between neighbours, to formal large-scale, diversified, multi-product
businesses with thousands of user owners
- This is set up to allow farmers to bypass some of the middle operators in marketing as a way to reduce costs. When a member
of a co-op can trade as a group as a way to obtain more bargaining power.

Cooperatives can be classified according to the function that Advantages: Disadvantages

they perform. o Better prices o Lack of start-up funds
o Supply cooperatives – give farmer members the ability to o Cheaper farm inputs o Lack of expertise/time
purchase inputs such as seed, machinery, chemicals or feed o Reduced off-farm costs o Conflict of interest
cheaply through bulk buying. o Improved on-farm expertise o Interpersonal conflict
o Production cooperatives – focus on making better use of o Expert marketing o Sharing responsibility.
machinery and labour, for example, machinery syndicates, o Improved market knowledge
forage-making groups, livestock improvement groups and o More market opportunities
packaging groups. o More economic power
o Service cooperatives – provide members with a service that as o Saving time
individuals they might find difficult to obtain, for example, o Longer seasons
juicing, packaging, grain drying, and pest eradication. o Better quality products
o Marketing cooperatives – provide members with storage,
grading, packing, promotion and farm product selling.

Contract Selling
- When a farmer is under contract to supply their produce for milk includes TV ads, tasting at ag shows, milk carton ads, internet
ads

The contract generally Advantages: Disadvantages

specifies: forward contract is a good way to reduce risk o Contract selling involves an extended set of
o price for both parties. The buyer of the contract negotiation skills and management techniques.
o quantity can eliminate the effects of a price rise in the o only entering into contracts with reputable
o quality – including commodity. The seller can lock in a price now companies, who are unlikely to consider
premiums and discounts to reduce the effects of a price decrease in defaulting on a contract
for any variation the commodity at the time of sale. o banding together with other farmers to
o date of delivery negotiate – this is called collective
o delivery destination of Contracts are used extensively in the dairy bargaining.
the commodity. industry. Dairy farmers negotiate the volume o The cost to buyers in setting up the contract. It is
of milk they will supply to processing and a market for larger corporations, governments and
manufacturing companies and the price per other institutions that have access to credit as a
litre based on a sliding quality scale. regular part of their business.

Marketing Boards:
o Commonwealth boards vs State boards
o Marketing Boards are required to accept all of the products that a producer grows, as long as it meet quality standards.

o Price Control - marketing boards can make use Advantages: Disadvantages

of monopoly powers to set the price of farm o increase the bargaining o Marketing Boards can monopolise the
produce and with no competition between sellers strength of producers, so local or national market, but since
in the marketplace, the price paid by buyers of buyers and sellers of a there is no competition, there may
the commodity is usually higher than if commodity are placed on a also be a reduction in marketing
competition existed more equal level when efficiency and innovation.
o Pools - marketing boards can minimise price negotiating sales o No competition in the marketplace
fluctuations of a commodity over time by selling o achieve economies of scale in means marketing boards have little
through a pool where farmers receive an handling and distribution incentive to adjust rapidly to change.
average price less costs because of their increased o Most Boards are now subject to and
o Storage - marketing boards may elect to store size may be instruments of State or
some, or all, of a product for a time to overcome o devote resources to market Federal Government policy. This high
price falls or even out supply, for example when research and development degree of government and
beyond the scope of an bureaucratic involvement has limited
 the commodity is harvested at the same time individual producer the commercial flexibility of
over a large area and is subject to ‘gluts. o undertake product promotion Marketing Boards.
and market development
campaigns.

Topic: Marketing a specific farm product

The marketing chain for a product

Students learn to: Determine the marketing chain for the product.
The marketing chain for milk involves several stages that connect dairy farmers to consumers, ensuring that milk moves from production
to consumer.

Steps in a marketing
chain might include:
o Farm
o Storage
o Transportation
o Processing
o Packaging
o Sales

Students learn to: Explain various marketing options for the product.
Sales – there are several ways that agricultural products can be Marketing Options for milk:
sold.
- Growers market. Perishables such as fruit, vegetables and
flowers that need to reach consumers quickly are often sold
this way.
- Bulk sales. Often grain is sold in this way, particularly to
export markets. Specialist handling facilities are needed.
- Roadside stalls. Produce is sold directly from the producer
to the consumer.
- Manufacturer to a wholesaler, then distributed to retailers.
- Direct contracts between the producer and the retailer.
- Auction sales. This is the most common method of sale for
some types of livestock and wool.

Topic: Marketing a specific farm product

Government influence on production and marketing

Students learn to: Outline government influence on the production and marketing of the product, such as legislation, regulation
codes of practice, low-cost loans, and tax incentives.

Government intervention in the milk market can affect either the production of whole milk or the marketing of whole milk and milk
products. Three government bodies that influence the production of whole milk are described below: New South Wales Food Authority,
Department of Primary Industries and Environmental Protection Authority.

Influences on Production
Legislation Animal Welfare Code of Practice: (DPI)
 The farmer is responsible for the welfare of the animals on the farm. The animal welfare code of
practice – cattle sets the minimum standards that must be met on the dairy farm. AW regulations
regarding the treatment and husbandry operations permitted to be carried out by the farmer may
result in changes to the husbandry routine of animal management; for example, tail docking of dairy
cows for udder health.

Regulation codes of New South Wales Food Authority

practice  Licenses farms to produce milk and ensures that dairy farmers produce uncontaminated milk that is
safe for consumption.
  Hygiene Practices including, stock management, must meet the predetermined standards.
 Compulsory maintenance of health standards in the milking sheds include serviceable paintwork,
flyscreens, gutters and cleanliness of floors, tiles, milk lines and machines. These areas must meet the
requirements of the Code of Practice for Dairy Buildings.
Hazard Analysis Critical Control Point (HACCP) food safety program.
 Includes keeping milk cold (less than 4 degrees) and away from contaminants. Food safety programs
such as HACCP, ensure consumers obtain a safe and high-quality product, through the observance of
their quality control procedures by farmers

Low-Cost Loans The Low-Cost Loans Initiative (LCLI) assists councils with the cost of new infrastructure by funding 50% of the
interest paid on borrowings related to infrastructure. This helps councils to bring forward the delivery of
infrastructure that enables new housing supply. The RAA administers financial assistance programs including
loans to primary producers, small business operators and not-for-profit organisations on behalf of both the
NSW and Australian Governments.
- Disaster Relief Loans: Primary producers, small business operators and non-profit organisations in
disaster-declared local government areas (LGAs) may apply for a concessional loan to support rapid
recovery.
- The Drought Infrastructure Fund was previously known as the Farm Innovation Fund. The loan
product has been refocused to increase awareness and emphasise that the loan can be used for
drought preparedness and mitigation.
- Through the Drought Ready and Resilient Fund, eligible primary producers can access a low-
interest loan of up to $250,000 to help prepare for, manage and recover from drought.

Tax Incentives Landcare Tax Benefits: The Australian Government provides a range of primary producer tax benefits to
help farmers protect agricultural land. You may be able to claim a deduction for capital costs you incur on a
Landcare operation, and riparian management works. This includes the establishment of shelterbelts on land
used in an agricultural business.

Tax Incentives for engaging in Research and Development Agriculture programs.

Influences on Marketing:
Milk Marketing New South An entity of the New South Wales Food Authority, this promotes and encourages the production,
Wales supply, use, sale and consumption of milk and dairy productions in NSW, for example, by marketing
dairy products at agricultural shows and through the media

Department of Foreign Affairs This organisation promotes and markets dairy products at food shows overseas and offers contracts
and Trade and advice to develop export markets.

Topic: Marketing a specific farm product

Quantity and quality criteria for a product

Students learn to: Assess the quantity and quality of the product.
Testing for the quality of raw milk is performed for several reasons.
- Testing serves to help a dairy producer identify problems in the production of milk
that, if minimized, could help improve profits.
- Testing helps quality control personnel (in dairy plants and regulatory agencies) to
monitor milk quality assuring that the final product on the shelf meets the public’s
expectations for safe and nutritious food.
- Testing raw milk for its components ensures that it is suitable for further
processing into dairy products.

Test Test for Level for Farm influence – How can farm
name acceptance management ensure the best
result?
Sensory Abnormal First-grade milk Keep milk cool and milking equipment
Evaluation odours or must be free of clean.
flavours. abnormal odours or
Maintain pastures free of weeds that may
flavours.
taint milk.
Freezing Water added to Freezing point Drain water from the milking system
point milk after cleaning.
≤ -0.517o C
Quality criteria that a milk consumer is
likely to find important are: Antibiotic The 0.003 μg/mL Use antibiotics, according to the
and measurement of (Penicillin 500μg/l manufacturer’s/veterinary
antimicrobi antibiotics or Iodine recommendations.
Palatability – consumers expect milk to have
al chemical other unnatural
a certain taste and texture, however, the Use iodine teat dips after milking.
residues substances
taste can be affected by several factors.
(Taste) Pesticide Pesticide Nil levels Do not clean udders before milking with
residues residues iodinated chemicals.
Shelf life (how long it lasts before it goes off)
Observe withholding periods for
pesticides.
Purity – if milk is contaminated with bacteria
it is bad for consumers as fats in milk protect
microbes from stomach acids, milk and other
liquids pass through the stomach very
quickly so microbes are not exposed to
stomach acids for very long.  why it is BactoScan Testing for ≤50,000 colony High counts are usually due to poor
pasteurised to prevent disease (no Counts bacteria. forming units per cleaning and sanitizing of milking
contamination) (BC) mL.bonus paid if equipment as well as inadequate cooling
monthly average of the milk.
≤20,000 colony
Nutritional value – Milk is marketed as forming units per ml
healthy food and as such is expected to meet Somatic The Somatic <200,000 cells/ml Test cows for mastitis before milking.
consumers' standards in terms of the amount Cell Count Cell Count is a for top tier bonus.
of protein, fat, carbohydrate, vitamins, It is the milker's responsibility to ensure
(SCC) measure of the
minerals and water. Nil payment for all that the disease is detected early and
number of the
milk supplied if the the milk is diverted for discard or non-
cow’s body
monthly average commercial use. Early detection of the
("somatic") cells
is>600,000 cells/ml. disease is very important. A delay of
that are in the
eight to twelve hours can result in the
milk.
incorporation of poor-quality milk into the
commercial milk and may result in
greater disease costs.
Acid Testing for Rejected if the lactic High acid content is usually due to poor
analysis breakdown acid content is cleaning and sanitizing of milking
products of greater than 0.14 % equipment as well as inadequate cooling
milk. of the milk.
pH Testing for Rejected if the pH is Low pH is usually due to poor cleaning
effects of acids less than 6.60 and sanitizing of milking equipment as
as a result of well as inadequate cooling of the milk.
milk
breakdown.

Topic: Marketing a specific farm product

The importance of product specification in the marketing of a product

Students learn to: Analyse market specifications for the product

Consumer preferences or tastes are increasingly important marketing factors as producers and retailers seek to diversify markets for
their products.
o Quality of products can be measured and tested in various ways, depending on the product.
o Payments are often based on product quality.  If quality not met = lower payments or no payment
o Quality tests can provide feedback to the farmer, so the production cycle can be modified and optimised.
o Consumer preferences are researched by companies so that suitable products can be manufactured.
o Product specifications for the finished product influence the required specifications of the raw product.
o There are processes involved in altering a product from a raw form into one that satisfies consumer demand. This can be
illustrated with a processing pathway.

Topic: Marketing a specific farm product

Problems that may occur in meeting the marketing specifications of a product and methods used to meet requirements

Students learn to: Evaluate the management strategies used to assess and meet market specifications.

Problem Management Strategy

Low Protein Levels  Feed a protein supplement, such as a by-pass protein pellets, dairy meal protein pellets
 Grow quality legume/grass pastures for grazing, such as white clover and Kikuyu
 Selectively breed using high milk protein bulls, artificial insemination (AI) and embryo
transfer (ET)
Low Fat Levels  Protect cows from cold/strong winds
 Feed good quality lucerne hay as a supplement (High fibre)
 Grow the fodder crops oats (winter) and sorghum (summer) for grazing (high fibre)
 Selectively breed using high milk fat bulls, AI and ET.
High Total Plate Counts (TPC)  Wash and dry udders well before applying teat cups
 Keeping the milking shed as clean as possible while milking (wash down if too much
faeces)
 Thoroughly wash down the milking shed after milking, giving time for the area to dry
before being used again.

Quality measurements received in a production report from the factory include lifetime milk (Litres), days dry and calving interval. The
production report also shows the highest milk-producing cow (L/cow/305 days).

Based on the information the farmer can also determine: In some dairies the cows are fitted with
 The cows that could be used as donor cows in embryo transfer programs computerised ear tags or microchip collars that
 The cows that should be culled, such as poor producers; that is those that register each cow as they enter the dairy and
produce low litres of milk/day, or have low protein in their milk collect data on the quantity of ilk produced at
 The need for increased feeding and supplements, such as concentrates, at each milking. The Electronic identification system
milking to get a higher protein percentage in the milk website illustrates the use of electronic collars in
 The effectiveness of treatments performed dairies.
 If the calving interval is too long
 Students learn to: Schedule the timing of operations in a production cycle to meet market specifications.

Farming Operations
Vaccinations:
 5-in-1 Vaccination is given to the Cows 4 weeks before parturition or birth.
It Is an annual booster for the cow and increases the antibodies provided
from the cow to calf in colostrum (first milk).
 Ephemeral fever (3-day sickness) vaccination is performed in the early
summer because biting mosquitoes that are present in the summer and
autumn spread the disease (thus they are protected).
o Cows suffering from EF are very sick, rarely eat become listless and
may dry off if lactating = reduced total milk production.
Pasture Sowing Routines:
 Winter Pastures and fodder crops are established toward the end of
summer and into early autumn. This is to allow good growth of the
pasture before it is slowed by the temperatures of winter. Commonly a
winter oats group or ryegrass is planted on many dairy properties in the
coastal areas of NSW to provide food over winter and so maintain a
constant supply of milk.
Drenching:
 Warm Moist seasons (spring and autumn) are associated with worm
infestations. Drenching is performed to reduce worm numbers and
prevent a fall in milk production (caused by the cow's energy being used
to combat the disease rather than to produce milk).

Mating:
 Occurs generally 3 months after the cow has calved, allowing one calf to be produced per year. Cows need time to come back on
heat. The cow is dried off for 2 months before producing the next calf. The cow needs to conserve energy and protein for the
rapidly growing calf.
 The farmer aims to remate the cows as soon as possible so that the cow calves and returns to lactation quickly. A tight mating
program means that a cow will produce seven calves and have regular lactation periods in its lifetime.
Pregnancy Testing:
 Testin approximately occurs 42 days after mating enabling the farmer to move pregnant animals quickly onto better pastures or to
provide them with supplementary feeding. This is to promote foetal growth. Non-pregnant animals can also be quickly re-mated or
culled.
Feeding Supplements during pregnancy:
 Growth of the calf is most rapid in the last three months of pregnancy. It is necessary to increase the level of nutrition (food
quality and quantity) to sustain the calf's growth and to meet the mother's nutritional needs.

Students learn to: Analyse marketing information such as sales reports for the product

Topic: Marketing a specific farm product

Processing raw agricultural commodities

Students learn
Construct a flow chart of steps involved in processing the raw agricultural commodity into its various forms.
to:
Pasteurisation:
o This involves heating milk to 72c for 15 seconds and cooling immediately. It is done to ensure the destruction of harmful micro-
organisms

Homogenisation:
o This process involves pumping the milk under pressure through very fine nozzles to make the fat globules small uniform in size,
and evenly dispersed. This gives the milk a smooth, creamy texture. If the milk is not homogenized, the fat globules will rise to
the surface, forming a layer of cream at the top of the milk

Composition Adjustment
o Many varieties of special or modified milk require adjustment of com[position, this may involve centrifugal separation of some or
 all of the cream to create reduced fat, low fat or skim milk. Removal of too much cream makes the flavour and texture in the
mouthfeel less attractive. To help overcome this and to increase the level of nutrients such as protein and calcium, extra milk
solids may be added.

Ultra Heat Treatment (UHT)

o Pasteurisation produces milk with very few micro-organisms. If held at the correct refrigerated temperature, pasteurised milk will
last up to 10 days.
o The UHT process destroys all the micro-organisms and so ensures long life even unrefrigerated. The process involves heating the
milk at 132°C for one to two seconds followed by rapid cooling and sealing into packages under aseptic conditions (no micro-
organisms can gain access).
o However, once the package is opened, the UHT milk must be refrigerated and it then has a shelf life similar to pasteurised milk.

Flavouring
Various forms of pasteurised and UHT milk have had flavouring added. To keep the flavouring evenly dispersed in the milk, modifying
agents such as vegetable gums are added. Some sugar is normally added to improve mouth texture and add sweetness. Some varieties
are sweetened with artificial sweeteners such as Nutrasweet. Flavoured milk is available in full cream or reduced-fat varieties.

Culturing
Cultured milk and buttermilks are made by adding special starter cultures to the pasteurised product and allowing time for the cultures
to produce the desired flavour and acidity.

Topic: Marketing a specific farm product

The nature and potential for value-adding to a product

Students learn to: Evaluate ways in which the product can be value-added
Value Adding on the farm:
o Value adding is anything that can be done to make the product more valuable, which can be done on or off-farm. The processes of
value-adding are not just restricted to milk or things done in a factory that change the raw product into a consumable commodity.
o Examples of Product Specialisation: (to produce a line of milk that is different to most others, to satisfy a specific consumer
demand. – niche)
o Extra creamy milk from Jersey Herds
o Organic milk
o Biodynamic milk
o Alpha 2 (A2) milk

Value adding off farm/during processing:

o At the processing stage raw milk from farms goes through several processes. Some of these processes are aimed at standardising
and ensuring milk quality. Other processes are aimed at increasing the variety of products. In each case, value is added to the
milk.
o Country Valley Farm engages in the additional production of Yoghurt in their small onsite factory.

Topic: Marketing a specific farm product

The role of advertising and promotion in the marketing of a product

Students learn
Outline strategies for advertising and promotion of the product
to:

Dairy farmers has developed different drinking milk for different consumers to expand their share of the drinking milk market. The
company has target different consumers as follows.
 Whole milk (good levels of fat for energy, protein for growth, sugar for energy, calcium for growth) is marketed towards families
with growing young children
 Shape (very high protein and calcium, no fat) targets consumers such as middle-aged females to reduce risk of osteoporosis,
elderly that suffer from osteoporosis, athletes
 Skim milk (high protein, no fat, riboflavin) targets consumers such as people at risk of heart disease or who are weight conscious

Strategies used to advertise and promote whole milk The expected outcomes of such market strategies include:
include:  Increased sales and profit
 Promotion on the milk carton  Raised awareness of a wide product range
 Tasting at agricultural shows  Product or brand is well known and recognisable
 Health and nutritional sheets used in primary schools  Improved consumer knowledge about the health benefits of
 Internet promotion, showing the variety of milks available consuming a particular product.
 Television commercials

Students learn
Asses a current advertising or promotional campaign for the product
to:

Campaign Overview: "Got Milk?"

Background: Objectives:
 The "Got Milk?" campaign originated in 1993 by the 1. Reposition Dairy Milk: To reinvigorate the image of dairy
California Milk Processor Board (CMPB) and quickly became milk and make it appealing to younger generations.
iconic with its simple yet memorable tagline. 2. Highlight Nutritional Benefits: Emphasize the health
 The campaign was revived in recent years to address the benefits of dairy milk, such as its protein and calcium
evolving landscape of milk consumption, competition from content.
plant-based alternatives, and changes in consumer 3. Combat Declining Sales: Address the decline in milk
behaviour. consumption due to the rise of plant-based alternatives.

Strategies: Assessment
1. Celebrity Endorsements and
Influencers: Strengths:
o The campaign features various 1. Brand Recognition: The "Got Milk?" tagline is instantly recognizable,
celebrities and social media providing a strong brand recall.
influencers to appeal to a broad 2. Multi-Platform Approach: Effective use of various media channels to
audience. reach a wide audience, especially the younger demographic.
o Examples include athletes, actors, and 3. Health Focus: Emphasizing the health benefits aligns with current
internet personalities who share their consumer trends toward wellness and fitness.
personal stories and experiences with 4. Celebrity Influence: Leveraging the popularity of celebrities and
milk. influencers to enhance credibility and reach
2. Digital and Social Media Presence:
o Active engagement on platforms like Weaknesses:
Instagram, TikTok, and YouTube with 1. Competition from Alternatives: Despite the campaign's efforts, the
creative content, challenges, and competition from plant-based milk alternatives remains strong.
interactive posts. 2. Perception Issues: Some consumers might still perceive dairy milk as
o User-generated content encouraged outdated or less healthy compared to plant-based options.
through hashtags and competitions. 3. Environmental Concerns: Rising awareness about the environmental
3. Health and Wellness Messaging: impact of dairy farming can counteract the campaign's positive
o Campaigns focused on the nutritional messaging.
benefits of milk, with themes like
"Protein to Power Your Day" and "Milk Opportunities:
for Strong Bones." 1. Sustainability Initiatives: Highlighting efforts towards sustainable dairy
o Collaborations with nutritionists and farming could address environmental concerns and attract eco-conscious
health experts to reinforce the consumers.
benefits. 2. Product Innovation: Introducing new dairy products or fortified milk
4. Community and Educational Initiatives: options can diversify offerings and attract different consumer segments.
o Partnerships with schools and 3. Targeted Marketing: Focused campaigns for niche markets, such as
educational programs to promote milk lactose-free or organic milk, to cater to specific consumer needs.
consumption among children.
o Sponsorship of sports events and Threats:
activities to associate milk with 1. Regulatory Changes: Potential changes in regulations regarding dairy
physical fitness and health. farming and marketing practices could impact the campaign.
5. Innovative Advertisements: 2. Economic Factors: Economic downturns or changes in consumer
o TV commercials, print ads, and spending behaviour could affect milk sales.
billboards featuring catchy slogans, 3. Shifts in Consumer Preferences: Rapid changes in dietary trends and
engaging visuals, and relatable preferences could make it challenging to maintain relevance.
scenarios.
o Modern and humorous takes on the
traditional "Got Milk?" theme to
connect with contemporary audiences.

Topic: Marketing a specific farm product

Supply of and demand for a product

Students learn Describe factors affecting the supply of and demand for the product & Interpret supply and demand information for
to: a product.
Demand: Consumer demand for drinking milk is said to be Supply: Farmers are under contract to supply milk for each week
inelastic, which means that they will buy milk even if there is a of the year at contract level plus 10%. The contract specifies the
fairly large change in price, and therefore demand is fairly quantity of milk to be supplied weekly and a base return in cents
constant throughout the year. Demand drops slightly over the per litre is given.
colder months and increases slightly in summer.

 These changes are easily overcome by: Factors affecting supply:

o Decreasing milk production in winter slightly  Pest/disease
o Increasing milk production in summer slightly  Extreme weather or natural disaster
 Demand of dairy milk can decrease due to health information  Any limitation of inputs to then limit outputs
promoting other products, or the introduction of plant-based 
products such as almond milk.