Investor Presentaiton

14 The dairy industry in Tasmania A guide for investors 15 Dispose or declare wbying of these reisen she spot Plantaria Fruit and vegetables Seafood, me soll and weeds Dispose of these Dispose of items here Agistment rates Dairy farmers in Tasmania often agist young stock and dry cows off the main farm, in order to maximise the number of cows milked. Agistment rates for young stock vary. The quality of the job may also vary. It has become popular for replacement heifers to be agisted on a weight gain basis, in order to reward the agistment farmer for the result achieved and to encourage the production of well grown heifers. The price paid for winter agistment of dry cows can also vary depending on location and season. Generally the cost will increase as the amount of feed allocated daily to the cow increases. The cost of transport to and from an agistment property should also be taken into account. Thank you! For helping us protect Tasmania Typical costs for budgeting purposes are outlined below. In some cases, yearling heifers are charged on a weight gain basis until April/May and then go on to a per week basis of $13.50-$22.00 per head. Table 6: Typical agistment costs Type of stock Cows Yearling heifers Calves to 12 months Bulls Dispose or declare Dispose or declare restricted i Penalties apply Some of the variation in agistment rates is due to the inclusion, or not, of animal husbandry practises such as drenching and mineral supplementation. The stock owner bears the cost of any drenches, mineral supplements and health treatments. Per week $15.00-$22.00 $10.00-$13.50 Per kg liveweight gain NA $7.00-$9.10 $10.00 $1.50-$1.70 $1.40-$1.60 NA Source: Macquarie Franklin, Agistment Rates, 2017 Biosecurity As an island state, Tasmania has a clear biosecurity advantage. Tasmania's biosecurity system is at the very core of the Tasmanian brand, as its natural environmental values and quality produce rely upon the state's relative freedom from pests, diseases and weeds. The state is free of foot and mouth disease and bovine spongiform encephalopathy (BSE). Research and development The Tasmanian Government, industry and the Tasmanian Institute of Agriculture (TIA), work together to undertake research and development programs. These are designed to address agricultural productivity, safe food production and social and natural resource management issues. TIA is home to the Dairy Centre, which provides dairy research, development and extension of international standard. The Dairy Centre maintains a close working relationship with Dairy Australia and DairyTas, and includes areas of work such as the following. >> Extension program for dairy farmers. >> Feed production - the production and consumption of pasture crops, grazing and harvesting management, water use efficiency and nutrient requirements. >> The factors affecting milk production - supplementary feeding, feed conversion, body tissue mobilisation, milking frequency, genetic merit and developmental epigenetic effects. » Management of the dairy environment - synchronisation of fertiliser use with weather conditions, plant demands and soil properties, nutrient budgeting and management, and improvement of catchment water quality. The TIA Dairy Research Facility at Elliott is a fully operational 340 head dairy farming operation and is home to structured experiments on a wide range of key industry issues. Infrastructure Transport and travel Tasmania has well-developed transport systems, encompassing sea, land and air travel. These provide fast and efficient links between the major Tasmanian centres, mainland Australia and international markets. Each week, approximately 600 flights carry passengers and airfreight into and out of the state. Qantas, Jetstar, Virgin Australia and Tiger Airways all fly into the state from many mainland cities, including direct flights from Sydney, Melbourne and Brisbane. A dedicated freight rail system provides transport for bulk freight. Tasmania has a comprehensive road system linking all of its major cities and towns, which provides access to rural areas suitable for dairying. The relatively short distance between major centres and rural areas allows for commuting with minimal traffic congestion. The state possesses four deep-water sea ports, located in Hobart, Burnie, Devonport and Bell Bay. There are regular shipping services linking Tasmania to Asia, Europe, the Middle East and North America, via other Australian ports. Two passenger, vehicle and freight ships, Spirit of Tasmania I and II, provide daily sailings across Bass Strait, linking the north west city of Devonport to the Port of Melbourne. Energy options Tasmania's energy network complements the state's natural environment. The majority of Tasmania's energy is supplied by renewable hydroelectricity. An undersea power cable linking Tasmania with Victoria has provided further competition to the Tasmanian energy market and allows electricity to be exported during high-priced peak demand periods, while still meeting the needs of electricity customers in Tasmania. Natural gas is delivered via a gas pipeline connecting Tasmania to mainland Australia. This provides greater choice, flexibility and reliability of energy supply to a multitude of customers. Tasmanian businesses and residents are guaranteed a safe, clean and reliable energy source. Importantly, the supply of energy to Tasmania has never been interrupted by industrial action. Sensing Tasmania (SenseT) The SenseT project will see the development of an integrated sensor network across Tasmania for live, online climate monitoring. The network will mesh together historical, spatial and real-time data, and make it available through the web. SenseT has potential application in dairying through localised weather observations and tools to minimise weather-related risk. It also has the potential to monitor stock movements, especially useful with the new robotic milking which is currently being trialled in the state. There is also potential to monitor pasture moisture content, in order to highly refine optimum stock conditions. www.sense-t.org.au Adaptive, flexible and innovative workforce Tasmania has a strong agricultural tradition, with skilled and innovative primary producers, processors and service providers. The Tasmanian workforce is readily able to adapt to meet demand and can offer investors stability, with an excellent industrial relations record. Tasmanian training providers work with local industry to ensure that industry training needs are met. They actively design national and international training programs for accreditation and ensure that high-demand skills are created within the state.

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