Investor Presentaiton
ii
The dairy industry in Tasmania
2
Tasmania
4
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a unique island of opportunity
The Tasmanian dairy industry - history
5
The Tasmanian dairy industry - the industry today
10
Value proposition
18
Indicative costs of buying a dairy farm in Tasmania
26
Dairy conversion opportunities
32
Investment regulations and business entry
33
Assistance for investors
ST
A guide for investors
Contacts
This marketing document was developed by Dairy Tas in collaboration with the
Office of the Coordinator-General and the Department of State Growth.
Disclaimer:
The information in this paper has been prepared with care, but no warranty
is given as to the accuracy of the information, or for any advice given, or
for omissions from this paper. Readers rely on the information at their own
risk and should seek their own independent legal and financial advice.
State of Tasmania January 2019.
Images courtesy of Dairy Tas, Chris Crerar, Simon de Salis, Tony Crehan,
Mitch Osborne, Adam Gibson, Biosecurity Tasmania, Peter Mathews,
Clint & Bethanie Creative, Bjorn Qarfordt - DeLaval, Tourism Tasmania and
Rob Burnett
Key reasons for investing in the
Tasmanian dairy industry:
≫ significant scope for profitable
expansion of low-cost milk
production could see Tasmania's
milk output almost double to
1.5 billion litres per year
>> a growing industry - Tasmanian milk
production increased by around 38
per cent over the past 10 years'
>> substantial factory investment has
occurred, providing major support
for new dairy farm investment
>> Tasmania's environmental
advantages comparative natural
water advantage, irrigation
investments, absence of major
animal diseases and an ideal climate
for pasture-based dairy production
≫ international and national market
recognition of the quality of
Tasmanian dairy products
» increasing global demand for dairy
products
>> low production costs through
pasture-based farming
» highly competitive land prices - land
values in Tasmania are lower than
many other Australian states and
dairying areas in New Zealand, with
the north west, north east, Upper
Derwent Valley and Meander Valley
regions all offering opportunities for
investment
>> a higher return on total assets than
other Australian states, increasing
from 3.6 per cent to 5.1 per cent
YE 16/172
» opportunity to capitalise on climate
change driving Australian milk
production to cooler, wetter parts
of the country
>> forecasts for a climate-changed
world point to a long term and
profitable future for the Tasmanian
dairy industry³
» first world infrastructure and a
well-organised, cohesive dairy
industry sector with clear,
demonstrated capability that
includes multinational, national and
Tasmanian dairy manufacturing
companies operating both large and
small processors.
1. Dairy Tasmania milk produce and price
YE Dec 2018
2. Dairy Australia Situation and Outlook
October 2018-provisional data
3. Antarctic Climate and Ecosystems CRC,
Climate Futures for Tasmania, Impacts on
Agriculture http://acecrc.org.au/
climate-futures-for-tasmania/View entire presentation