Dairy Goat Manual

Dairy Goat Manual
by Arthur Stubbs and Gaille Abud
April 2002
RIRDC Publication No 02/025 RIRDC Project No PTP-११आ

Executive Summary
Foreword
This Manual of “Dairy Goat Notes” was compiled as part of the RIRDC Project PTP-11A, “Improving Productivity and Specialty Cheese Production in the Australian Dairy Goat Industry – Phase 2”. The Notes were compiled by the project researchers, Gaille Abud and Arthur Stubbs.
Information contained in this Manual is provided as general advice only. For application to specific situations, professional advice should be sought.
RIRDC and its research agents have taken all reasonable steps to ensure that the information in these publications is accurate at the time of publication. Readers should ensure that they make appropriate enquiries to determine whether new information is available on the particular subject matter.
This manual, an addition to RIRDC’s diverse range of over 800 research publications, forms part of our New Animal Products R&D program, which aims to accelerate the development of viable new animal industries.
Most of our publications are available for viewing, downloading or purchasing online through our website: • downloads at www.rirdc.gov.au/reports/ • purchases at www.rirdc.gov.au/eshop
Peter Core Managing Director

Sample Chapter

1.1 Industry and Markets
Industry development

Dairy goats have been present for a long time, largely as a cottage industry on the fringes of cities, supplying fresh milk to a local market, and well outside the mainstream farming sector.
Usually the farmer has been responsible for the whole enterprise; farming, packaging, marketing and distribution. Sometimes a small distributor has been involved, often someone with their own milk to place. Other products have usually been added to improve viability of the operation (goat yoghurt or other food items). Some early attempts at manufacturing (powdering) in Victoria failed for a variety of reasons, including very high production costs, loss of a health subsidy and quality assurance problems.
The growth of demand for specialty cheeses in Australia provided an opportunity for development on a scale that is ideal for an emerging industry. The focus moved from small farms often on city fringes, to larger scale farms on more suitable land. Farms were able to establish and develop in partnership with expanding factories, local markets continued to grow and development was relatively smooth.
Inadequate and very seasonal milk supply was the main limiting factor until 1999 when oversupply became an issue. Several options were explored, firstly the possibility of developing the export market for cheese, and secondly the manufacture of other products. Both of these options remain open. However supply has now decreased with some producers leaving the industry due to peak season milk being oversupplied. There will possibly still be a winter shortfall. Some farms have demonstrated various ways that this can be overcome.
Victoria and Tasmania are the main manufacturing States. Victorian cheesemakers processed 1,145,000 litres of milk in 2000-2001, and Tasmania 348,000 litres. It is difficult to get information on ‘commercial’ production in other States but the total excluding Victoria and Tasmania is probably about 1,100,000.
Industry organisation and information are very basic, and opportunities will open up as these progress। The Australian Specialist Cheesemakers’ Association (ASCA) includes goat amongst other specialty cheeses, and the Australian Goat Milk Association (AGMA) was formed in 2000 to represent the whole of the industry.

Several R&D projects have been funded by RIRDC and DNRE.
Worldwide, dairy goats as an agricultural alternative in developed countries have followed a similar pattern to Australia, reflecting a global interest in product. Traditional countries such as France, which has long been the world leader in dairy goat production, have encouraged new large scale systems and an enterprising product development and export push.
Dairy goat farmers need to understand how the whole industry works; of all agricultural enterprises, farmers’ understanding cannot stop at the farm gate।

Farms
Successful goat dairy farms are operating on systems developed for cow dairying. Several of these are focus farms for a RIRDC project. Dairying models are generally useful and little adaptation has been necessary in areas such as grazing management, despite many common myths to the contrary.
Housed systems are widely used overseas for stock. They appear to offer more control including over seasonal conditions such as drought. However they are inflexible and costs in setting up and running, are high. Bought-in feed costs climb during shortages. Whilst they offer advantages with regard to some health problems, eg parasites, they carry their own health risks.
Mixed systems are common in Australia, ie some grazing and some housing. This appears to not offer the best of both worlds, with problems associated with each system being seen, and the main advantages of each being negated. For example, pasture quality cannot be maintained so dependence on hand feeding increases, and parasites can become intractable.
Prices paid for milk range from 65c/litre to $1/litre, and this has been stable for some years.
Sometimes a seasonal incentive is paid and sometimes price is based on solids. Farmers usually deliver their own milk and a delivery fee is either built in to the price or paid separately. A consideration for farmers who may be more familiar with the dairy cow industry, is that on occasion surpluses do occur for a variety of reasons, and product may have to be dumped.
Small factories may experience cash flow problems and payment for milk has been delayed on occasion.
The possibility of developing an on-farm cheese factory should be regarded with caution. There are some successful, high profile instances with high product recognition, but the workload is enormous, usually with those involved learning everything as they go. Small enterprises may not be able to afford the labour units that they need for their diverse undertakings. Marketing is a difficult area and the field is very competitive.
Potential outlets for milk should be explored by intending farmers, and the size of this market quantified as far as possible. Manufacturers who express interest in taking milk may not have any idea of the amount that may be supplied, especially those outside Victoria/Tasmania.
Location of farms should be in productive dairy type country as close as possible to outlets.
It is likely that estimates of a viable herd size will go up, but at present 250 appears reasonable.
Production per head is usually over estimated. Information from Australia and overseas, using various management systems, indicates around 500 litres/head/year average, with a wide variation between individual goats. Production gains need to be made by both genetic improvement and management, but size in numbers is as likely to remain significant as it is in mainstream dairying, and for the same reasons.
Regulation varies between States, with either the dairy authority or the health department licencing farms.

Markets
Fresh milk
Markets for fresh milk are difficult to service due to small quantities required and a wide distribution area, compounded by problems of QA and shelf life. Pasteurisation has been strongly resisted by some suppliers despite its potential advantages in these areas, citing consumer demand for unpasteurised product. States such as Victoria and Tasmania do not allow the sale of unpasteurised milk. Milk QA is supervised by dairy authorities or health departments. It is likely that demand has lessened due to other products such as soy drinks being readily available. Health food stores are seen as a natural market.
Interest is high amongst some sectors of the recently deregulated dairy cow industry. A large dairy company in Queensland is currently supplying pasteurised goats milk locally and interstate, using its established distribution networks, and reports very encouraging growth.
The size of the potential market is difficult to determine but an assessment in 1989 (Susan Young, Dept of Agriculture & Rural Affairs, Vic, Agdex 417/840) quoted USA figures of 6-9 litres/week per 1000 population, and expressed doubts as to whether this level could be reached in the medium term in Victoria. Estimates of market size in NSW 1984 were for 1.2m litres/year (Paul Greenwood, Dept of Agriculture, Agfacts Agdex 471/01). Estimates of actual sales suggest 1000 litres/week for 122,500 population is the highest achieved in Australia (northern Tasmania in the 80’s) (pers.comm. L Mance).
Liquid milk in UHT form produced in NZ has been marketed here and local production has been proposed for export। Many enquiries are received from Asia for this and other products and RIRDC/DNRE Victoria have a current project looking at this potential. Flavour issues are perceived to be a limiting factor.

Goat cheese
As mentioned above, this has been the growth area. Australia-wide production in 1999 was valued at $3.2m (ASCA). Recent market surveys (RIRDC) predict continued growth but this has not been quantified, and last spring oversupply was not absorbed by the current markets.
Main outlets are restaurants, delicatessens and increasingly supermarkets, which offer an enormously expanded market. Goat cheese is available much more widely than a few years ago, and this has occurred in the absence of specific paid advertising. Goat cheese has benefited from the interest in specialty cheeses, including promotional activities such as ASCA’s annual Specialty Cheese Show, but mostly from the food press. It is used widely in cooking and especially in easily prepared foods such as salads. There is interest within the industry in the Australian Dairy Corporation’s role being expanded to include goat and sheep products.
Affluent to middle income areas are the main home of chevre, or French style goat cheese, with fetta style increasing in popularity. Fetta is available in some ethnic areas (Greek and Balkans) where chevre is not common. Fetta is most commonly made from cows milk but there is a common perception that it is goats milk. This is a problem, as cow cheeses are much cheaper and there is considerable price sensitivity.
Competition from imports continues. It may not have impacted on local growth very much but has the potential to put pressure on prices. Local product costs more to make than the retail price of some imports, even with a low A$. Scale is one reason for this, but there are also industry supports in Europe. The local industry needs to take full advantage of its strengths.
In the past, local cheese quality and consistency have been described as poor, but these do not seem to be major problems now। Customer expectations appear to be met. Australian cheeses were well received at an international conference in France in 2000, and some imports are felt to be inferior to local product.

Other products
Goat milk powder in bulk or tablet form is attractive and there are regular enquiries from Asia.
The NZ industry has developed with a very strong export orientation and its principle product is powder. Unlike cows milk powder, goats milk powder is a high return product at this time, selling here for around $10,000/tonne, and powder based products such as infant formula offer even better returns. Considerable effort has gone into development and promotion of these lines.
There is some competition possible from Europe.
The major problem in embarking on powder production is in securing supply of the quantity of milk, on a regular basis, to profitably operate powder plants and to meet export market demands।

Further information
Information and expertise in larger scale economic production is not readily available.
Courses designed for dairyfarming are an excellent starting point. Some goat farmers are very productively involved in Target 10 (Vic) or similar groups.
An accredited goat course (fibre, meat and milk) is available at some tertiary institutions.
Farm consultants especially with dairying expertise can be valuable. Goats do have some particular needs and information needs to be evaluated, but less so than is often thought.
The Australian Goat Milk Association, RMB 2830 Settlement Rd, Childers, 3824.
The Dairy Goat Society of Australia (Vic Branch) Herd Improvement & Producers’ Association, 395 Flat Rock Rd, Hurstbridge, 3099।

References
RIRDC: Milk Production from Pasture, Murrindindi 1996 Dairy Farm Surveys 1996-1999 Market Surveys 1998/9, 2000 Report on IGC, France 2000 Market Survey, Susan Young, Dept of Agriculture & Rural Affairs, Vic, Agdex 417/840 Paul Greenwood, Dept of Agriculture, Agfacts Agdex 471/01

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Last updated: 29 May 2002 Copyright RIRDC http://www.rirdc.gov.au/reports/NAP/02-025sum.html