• DemoDAIRY is a profitable business making informed choices about its future.
• DemoDAIRY's agenda is driven by farmers' needs, priorities and initiatives that benefit farm profitability and sustainability.
• The facilities at DemoDAIRY are fully utilised - with a waiting list.
• "DemoDAIRY" is maintained as a respected brand name.
• DemoDAIRY is a key contributor to the adoption of sound farm management practices.
• The industry has confidence that DemoDAIRY's position is independent and evidence-based.
• DemoDAIRY is positioned to select sponsors.

• Define DemoDAIRY’s value-proposition in order to attract additional funding and/or in-kind support
• Promote the DemoDAIRY facility to sponsors and other industry players to strengthen relationships and build knowledge within the dairy farming sector
• Leverage the DemoDAIRY facility as the place in this region to facilitate research, development and extension activities
• Position DemoDAIRY as Australia’s dry land dairy extension centreDevelop a closer relationship between WestVic Dairy and DemoDAIRY to  take advantage of potential synergies

DemoDAIRY is a substantial asset which needs ongoing external resources to maintain its position.  In
July 2003, the Board successfully sought funding to assist the Co-operative to develop business relationships. Continuing support is needed or DemoDAIRY’s position as a stand-alone entity offering value-added services to the dairy industry will be threatened.

In the past, DemoDAIRY has successfully secured funding or in-kind arrangements with business and industry.  The Co-operative must create a clear value proposition if it is to continue to attract external resources and advance its position.  As the dairy industry is the key economic and social driver in the south west of the state, DemoDAIRY should logically appeal to the community and investors.

DemoDAIRY has demonstrable appeal to existing and potential sponsors and partners with over 1000 farmers visiting the facility each year and published information going directly to every dairy farmer in south-west Victoria.  The resource is attractive due to its central location, highway frontage and combination of farm, office and classroom facilities.

  While there is a real opportunity for DemoDAIRY to use its facility to build relationships, a number of physical and intellectual issues will have to be addressed such as improving facilities, contractual obligations, and pricing. 

DemoDAIRY is farmer-owned and therefore its independence enables it to take on activities for private companies in return for sponsorship which other publicly-owned institutions would find difficult.

Unlike other institutions, there are no complications around intellectual property and naming rights.

Compared with the national average of 50%, south-west Victoria is the fastest growing dairy region in Australia achieving a growth rate of 73% between 1990 and 2003.  With over 800mm of average rainfall per year, south-west Victoria is one of the most sustainable dairy farming areas in the nation.  However, this is the only Victorian region without a government dairy research facility. Consequently, DemoDAIRY successfully attracts a significant amount of public and farmer funded research and extension.  The facility is typical of the region and has ready access to local dairy farmers. 

DemoDAIRY’s physical resources and staff capability need upgrading to maintain and increase the facility’s attractiveness for potential research, development and extension.  This will broaden the appeal of the facility and ensure DemoDAIRY is able to partner with a wider range of research and extension providers.

Keeping abreast of emerging farm management practices is essential if dairy farmers are to ensure the profitability and sustainability of their farms and the dairy industry.  This is particularly important in an industry where there have been productivity gains of only 1.4% per annum over the past 10 years. 
There are over 80 groups providing advice to dairy farmers in the south-west, the majority of which are fee for service and ultimately their motive is to sell their product.

Few places exist where farmers can simultaneously learn about dairy farm management practices on the land and in the classroom. Given the nature of DemoDAIRY’s farm and classroom facilities, our relationships with research organisations and key industry players, it has the potential to offer farmers a unique learning experience and position itself as Australia’s dry land dairy extension centre.

With the dairy industry operating in an increasingly competitive market, the coordination of industry-wide activities is crucial for the sector to make best use of its limited resources.  DemoDAIRY and WestVic Dairy were created independently yet have complimentary roles.  However, there is confusion about their respective responsibilities. Although the organisations are co-located, there is no formally agreed working relationship.

Both organisations are undergoing strategic reviews so it is timely to explore and define the relationship. A lack of financial, human and physical resources restricts the growth of both organisations.  Potential exists to work together and share resources maximising the benefit to farmer stakeholders.

• Milk price volatility
• International trading conditions
• Poor image of the dairy industry by the general population

• Trend towards high input farming
• Shortage of skilled labour
• Ageing farmers

• Highly visible, centrally-located resource which is typical of the Western District
• Farmer-owned and managed entity
• Known brand within the dairy industry
• Strong relationships within the industry
• Farm infrastructure and management practices
• The farm has a low risk production system
• Stable facility for long term research
• Have relevant long term research, demonstration and extension in place
• Combination of older and younger people on the Board
• Enthusiastic team – staff, board and management
• Profitable in 2003

• The resource is not easily comparable with a standard dairy farm
• Lack of farmer connectivity to trials
• High debt to equity ratio
• Member and community apathy
• Difficulty in attracting and retaining skilled labour, volunteers and Board members
• The structure and costs of running a transparent business
• The perception in the community that DemoDAIRY is irrelevant and has failed to deliver on research projects
• Disconnection with the target audience
• Experiments are not leading edge, they are seen to be “within the square”
• Previous history still tarnishes DemoDAIRY’s image
• Lack of resources to train staff and Board members
• Lack of an effective media strategy