An attractive option for trainees
The perception of dairy as a career path is changing, according to a mid-Canterbury training provider.
The report notes that the scale of the decline in milk prices this year has shaken the belief of many that a step change had occurred in commodity prices, driven by insatiable demand for milk products from consumers in emerging markets.
Proudfoot says the key learning from the milk price decline is that the primary sector in New Zealand has no exclusive right to sell its products in any market at a premium. He says to create value NZ needs to understand the steps in the supply chain in detail and be proactive in managing how products flow through the chain to meet the needs of the ultimate consumers.
Proudfoot touches on the issue of the changing nature of the dairy industry: more processors are entering the market and they can offer attractive supply packages versus those offered by Fonterra.
“Many scenarios were suggested, but few had Fonterra retaining more than 70% of total supply and most had 15-20 companies picking up milk within the next 10 years,” he says. “As a result, overcapacity in dairy processing was raised as a real risk to the industry for the first time; particularly given expectations that demand for liquid products will outpace powders into the future.”
