RESEARCH, development and extension has led to a 5541 litres-a-hectare increase in milk production in 30 years, a new report says.
The impact of innovation on the dairy industry over the past 30 years, an independent report by the Centre for International Economics, said that there was a $3.30 economic benefit for each dollar invested in research and development from 1980 to last year.
Prepared on behalf of Dairy Australia and the Department of Primary Industries the report was launched last week in Melbourne by Victorian Agriculture and Food Security Minister Peter Walsh.
While he admitted to the crowd he could be putting his "head on the chopping block" he took the opportunity to recommend farmers support the 10 per cent rise at next year's Dairy Service Levy vote - the amount farmers financially contribute to Dairy Australia.
He commended the industry's leadership in recommending farmers vote for a 10 per cent increase and said maintaining the status quo would result in a "gradual erosion" in research and development.
The report said that purchased feed costs rose from a low of less than $100/ha in 1980-81 to a peak of $1500/ha in 2007-08.
Hired labour costs increased by about $100/ha during that period, while "other cash costs representing a number of farm overhead costs" declined rapidly in the mid-1980s to end just below $600/ha - slightly lower than the $600/ha in 1980-81.
