Specialty

Goat Cheese
Improving Productivity
in Australia

A report for the Rural Industries

Research and Development
Corporation

by A.K. Stubbs and G.L. Abud

Primary Tasks Pty. Ltd.

November 1998

RIRDC Publication No 98/116

RIRDC Project No PTP-8A
© 1998 Rural Industries Research and Development Corporation.
All rights reserved.

ISBN 0 642 57891 5

ISSN 1440-6845

"Specialty Goat Cheese - Improving Productivity in Australia"

Publication No. 98/116
Project No. PTP-8A

The views expressed and the conclusions reached in this publication are those of the author and not
necessarily those of persons consulted. RIRDC shall not be responsible in any way whatsoever to any person
who relies in whole or in part on the contents of this report.

This publication is copyright. However, RIRDC encourages wide dissemination of its research, providing the
Corporation is clearly acknowledged. For any other enquiries concerning reproduction, contact the Publications
Manager on phone 02 6272 3186.

Researcher Contact Details

A.K. Stubbs
Primary Tasks Pty. Ltd.
Unit 58, Level 2,
247 Drummond Street
CARLTON VIC 3053

Phone: 03 9844 1135

Fax: 03 9844 4554

RIRDC Contact Details

Rural Industries Research and Development Corporation
Level 1, AMA House
42 Macquarie Street
BARTON ACT 2600
PO Box 4776
KINGSTON ACT 2604

Phone: 02 6272 4539

Fax: 02 6272 5877
Email: rirdc@netinfo.com.au
Website: http://www.rirdc.gov.au

Published in November 1998

Printed on environmentally friendly paper by the DPIE Copy Centre

ii
Foreword
The sector of the dairy goat industry involved with cheese production in Australia has grown
rapidly, in a fragmented way, since the start of this decade in response to increasing market
demand for goat cheese. It has reached the point where it now needs co-ordination and
direction to be a viable and sustainable rural industry of the future.

Various technical and commercial aspects of production, processing and marketing need
research and development to consolidate the gains made to date and the industry itself must
play a leading role in guiding these activities.

This publication outlines progress being made by the industry and gives recommendations for
future initiatives to help secure and advance the position achieved to date. Proposals made
will assist careful guidance of development towards a profitable, self contained and controlled
Australian Goat Cheese Industry.

The project is part of RIRDC’s New Animal Products Sub-Program which aims to develop
marketing models across new animal industries and identify future research and development
needs.

This report belongs to RIRDC’s range of over 200 research publications and forms part of our
New Animal Products R&D program which aims to accelerate the development of viable new
animal industries.

Peter Core
Managing Director
Rural Industries Research and Development Corporation

iii
Acknowledgements

Development, planning and conduct of this project was encouraged and assisted by Dr Peter
McInnes, Research Manager, and his support is greatly appreciated.

Much of the information collected, opinions formed and conclusions reached would not have
been possible without the willing co-operation of many producers, manufacturers, distributors
and marketers, and representatives of government, industry and service organisations, many
of whom are listed in the Appendix. Their inputs are gratefully acknowledged.

A key component of the project was the Production Demonstration Field Days held on the
properties of Malcolm & Darlene Barton, Jo & Robert Hall, and David & Christine
McKenzie. Their co-operation and hospitality was greatly appreciated. A highlight of these
days was the lead role played and the valuable information obtained from consultants, Jim
Shovelton, Peter Notman, and Viv Hannaford. Special thanks are due to these people.

The hospitality of people visited in New Zealand is warmly acknowledged and particular
thanks are due to Bill & Julia Cook of Takapau who assisted with the organisation of the tour.

iv
 Table of Contents

Foreword ............................................................................................................................... iii

Acknowledgements ................................................................................................................ iv

Authors .................................................................................................................................. vi

Executive Summary ............................................................................................................... vii

Introduction ........................................................................................................................... 1

Objective ................................................................................................................................ 2

Methodology .......................................................................................................................... 2

Results & Discussion

Information System .......................................................................... 3

Industry Statistics ............................................................................ 3

Production Demonstrations .............................................................. 5

New Zealand Visit ........................................................................... 5

Future Research ............................................................................... 9

Industry Development ....................................................................... 10

Implications & Recommendations ......................................................................................... 12

Appendix 1 Dairy Goat Notes ………………………………………………………….. 13

Appendix 2 Dairy Farm Survey ………………………………………………………… 25

Appendix 3 NZ Tour Party, Interviewees, Meeting Participants ……………………….. 31

References ………………………………………………………………………………. 33

v
Authors
Arthur Stubbs (B.Agr.Sc.) is currently Director of Primary Tasks Pty Ltd, Agricultural
Consultants, and formerly held positions with the Victorian Department of Agriculture, ICI
Australia, and the Herd Improvement Organisation. He has a strong background in dairy herd
improvement, agronomy and grazing systems with recent experience in rural industry analysis
and development.

Gaille Abud (B. A.) is Secretary of the Herd Improvement & Producers’ Association, Dairy
Goat Society of Australia, Victorian Branch. She has extensive knowledge and experience of
the dairy goat industry, dairy goat farming and manufacture and marketing of dairy goat
products.

vi
Executive Summary
Introduction
Expansion of specialty cheese demand and production in Australia since the late 1980’s has
provided the base for unprecedented expansion of goat cheese production. This prospect has
underlined the need for the dairy goat industry to transform itself into a more organised,
market oriented and commercially viable form, rather than the scattered network of small
producers that presently exists. The dairy goat industry has addressed important issues such
as having dairy goats included under the Victorian Dairy Act 1992 with regard to quality
assurance and, since 1988, has organised many training days including on farm pasture
production training with specialist consultants during 1996/97.

In response to increasing demands from specialist cheesemakers, the industry organised

several meetings of cheesemakers and large scale goat milk producers in 1996 to identify
constraints to the expansion of specialty goat cheese production and opportunites for
improvements in milk quality. Major constraints to the expansion of the industry are:
Insufficient total milk supply; Peaks and troughs in milk production; Variations in milk
composition; and Animal health problems

Australian imports of goat milk specialty cheese in 1996 exceeded 1,600 tonnes compared
with total potential Australian production, if all goat milk was made into specialty cheese, of
about 150 tonnes. Clearly, this represents huge market potential and considerable
improvement in balance of trade figures for expansion of locally produced specialty cheese.

Objective
To assist expansion of specialty goat cheese production in Australia by demonstrating on-
farm techniques for improving consistency of supply, quantity and quality of goat milk, and
developing industry structures.

Methodology
There were several separate but inter-connected phases of the project as follow:

Information System
This phase of the project was aimed at collecting all relevant Australian and overseas
information on production, supply and quality requirements of goat milk for cheese, and to
determine best means of information dissemination.

Industry Statistics
A system for annual collection of vital statistics on herd and goat numbers, location and
production, and collation of data on production, management, herd improvement practices
and cost of production was proposed.

Production Demonstrations
Three Production Demonstration Field Days were conducted during the project on farms in
North East Victoria, Gippsland and Tasmania.

vii
New Zealand Visit
An industry group of 15 persons visited New Zealand to evaluate the dairy goat industry in
that country, particularly the techniques used for maximising use of pasture feed.

Future Research
Priorities for future research projects relevant to the objective were considered and
investigated during the project.

Industry Development
Options for industry consolidation and development were also considered and investigated
during the project, based on a future structure for Victoria and Tasmania as an example.

Results & Discussion

Information System
Six issues of loose leaf, updateable fact sheets, called “Dairy Goat Notes”, have been drafted
following perusal of the more recent and relevant literature available (see References).
Subjects addressed to date include:
“Mating Management”; “Herd Improvement”; “Pasture Feeding”; “Worm Control”;
“Kid Rearing”; “Annual Farming Calendar”. (see Appendix 1)
These sample publications are being circulated through the industry for comment preparatory
to printing for wider distribution and release to newsletters and magazines.

Industry Statistics
A “Dairy Goat Farm Survey” was completed and analysed for the year 1996/97 (see
Appendix 2). An Industry Report has been prepared and individual Farmer Reports were
returned to respondents. The survey revealed a considerable range in herd size, stocking
rates, production levels, feeding regimes and costs, and highlighted the great potential for
productivity improvement within the industry at the moment. Another important indicator
was the intention of almost every dairy goat farmer to increase herd size, and consequently
production, twofold by the end of the decade.

Production Demonstrations
Three Field Days were held, in North East Victoria, Gippsland and Northern Tasmania, each
in a central location for groups of farms and cheese factories. An average of 30 current and
intending dairy goat farmers attended each day.
The field days provided an opportunity for local producers to see what is happening in their
vicinity and to discuss what can be achieved, with each other and with the pasture consultant
present on each occasion. An understanding was gained of the basic principles of soil
fertility, pasture species, rotational grazing management, and related issues such as parasite
control. The advantages of pasture as the lowest cost feed, contrary to some opinion, were
explained and clearly demonstrated. Some simple misconceptions that could have a huge
impact on management and profitability, eg, the reputed adverse effect of superphosphate on
curd formation, were able to be clarified.
The major benefit from the field days was enabling farmers to learn simply by seeing and
evaluating management practices different to their own. The impact of actually seeing
something work is immense, and thinking through the implications is even better. Discussion
of issues, sharing experiences and observations face to face also make these days invaluable
for communicating the right messages and for industry development.

viii
New Zealand Visit
The industry group of 15 people, including a project task force of five, spent one week in the
North Island of New Zealand, where the dairy goat industry is concentrated. Visits were
made to eight farms, two cheese factories, headquarters of the Dairy Goat Co-operative, and
the Livestock Improvement Corporation. (see Appendix 3). A summary of the tour, with
inferences for Australia, was prepared.

Future Research
Project PTP-8A has revealed that there is a dearth of current information and parameters on
the actual effects on dairy goat productivity of various approaches to feeding, via pasture,
supplements and concentrates, to goat health, through worm control measures, housing and
vaccination schedules, and to mating, by use of drugs and other influences on cycling
patterns.

It is recommended that a project be implemented investigating the effect of farm management

practices on dairy goat productivity with the objective of determining best practice on-farm in
feeding, health and mating management to achieve consistent quantity and quality of supply
of goat milk at minimum cost for cheese making.

In association with this project, and following on from PTP-8A, the phases of that project
concerned with development of an Information System and Industry Surveys will be
continued.

Industry Development

Interviews
During the course of the project, industry issues were canvassed with a wide range of
producers in Victoria, Tasmania, South Australia, New South Wales and Western Australia.
In addition interviews were held with most of the major goat cheese manufacturers,
distributors and marketers in Victoria and Tasmania (see Appendix 3).

There was general agreement that the rapid growth in Australian goat cheese consumption
during the 90’s, mainly through food service outlets (restaurants) and supermarkets, and due
to the ‘healthy’ and ‘trendy’ image of goat cheese, still had good potential but needed more
marketing information and promotion. Australian cheese has gained considerable market
share and there is little sign of this situation not continuing subject to maintenance of product
supply and standards, and increasingly, attention to price competitiveness. Consistency of
milk supply and quality were important to satisfy a fairly even demand for fresh cheese
throughout the year and to match the quality of imports.

It was acknowledged that accurate market statistics and forecasts were lacking at the moment,
even with imported goat cheese quantities and sources, and were urgently required for
production planning and promotional efforts. Promotion through the Australian Specialty
Cheesemakers’ Association, and possibly the Australian Dairy Corporation, was suggested
although some financial input from the dairy goat industry was considered necessary to
receive Corporation assistance. The concept of an industry levy for use in promotion,
research and other activities was generally acceptable.

ix
Industry Meeting
These issues were also discussed in forum at a ‘Goat Cheese Industry’ meeting, which
included producers, manufacturers, distributors and marketers (see Appendix 3), held in
May,1998, to review the project and consider aspects of future industry development. The
prime objective of the meeting was to consider options for industry consolidation and co-
ordination.

The meeting agreed that the most urgent industry requirement was for accurate measurement
of production and sales of goat cheese by a market survey, to be instigated as soon as
possible. Initial funding for this could be allowed for in the future research proposal.
Promotion of Australian goat cheese was also seen as an important objective to maintain
market growth.

Industry co-ordination was discussed and the role and relationships between current goat and
cheese industry bodies considered. It was acknowledged that there was no appropriate
organisation to represent the interests of the ‘goat cheese industry’, explore the introduction
of an industry levy, promote goat cheese, conduct surveys and similar beneficial activities.
Of several alternatives considered, it was agreed by the meeting that a new, commercially
focussed association should be formed, representing the various industry sectors, including
dairy goat farmers supplying licensed cheese factories, cheese manufacturers and distributors.
A name suggested for this body was “Australian Goat Cheese Association”.

Implications & Recommendations

The project has made substantial advances in furthering the knowledge of dairy goat farmers,
establishing industry measurement systems and creating the foundation for a goat cheese
industry organisation. There is great potential for increased production of cheese, from a
higher number of more productive farms with increased herd sizes, based on a low cost,
pasture feeding system.

It is now critical for the industry to work together to match supply with demand and to secure
and improve market opportunities to cope with anticipated production increases. A strategy
must be developed, with input from all sectors, to maintain consistency in quantity and
quality of milk supply and cheese production, to match output with the requirements of
various market segments, and to be price competitive with imported cheese.

The following actions are recommended:

1. Information System
Issues of “Dairy Goat Notes”, with the latest information on subjects of major importance to
dairy goat farming, should be continued and a means of perpetuating the publication and
updating of this system by the industry be determined.

2. Industry Surveys
Two types of industry survey should be implemented and continued on a regular, annual basis
to provide all sectors of the industry with vital statistics on production and marketing trends.
The Dairy Goat Farm Survey, initiated in this project, should be continued in similar form
with adjustments made as required from time to time.
A Market Survey should be commenced as soon as possible to gather accurate statistics on
cheese production, sales, imports and exports, by value, type and market segment.

x
3. Focus Farms
A research and development project as proposed under ‘Future Research’, based on
monitoring management practices and effects on three ‘Focus Farms’, should be supported to
discover optimum approaches to low cost production with consistent supply and quality of
goat milk to cheese factories.

4. Industry Organisation
An industry association should be formed to provide a forum for all sectors of the commercial
goat cheese industry, to represent the industry in government and business circles, to establish
funding for promotion, research and development, and to act in the general interests of the
industry.

5. International Liaison
Consideration should be given to establishing more formal links with other countries with
important goat cheese industries, particularly France. A study tour, for examination and
discussion of farm and herd management, herd improvement, cheese production and
marketing techniques, should be given high priority within the next two years.

xi
Introduction
Expansion of specialty cheese demand and production in Australia since the late 1980’s has
provided the base for unprecedented expansion of goat cheese production. Goat milk is in
demand for specialty cheese production for both traditional European cheese styles and some
very successful local variations, eg, goat “camemberts”.

This prospect has underlined the need for the dairy goat industry to transform itself into a
more organised, market oriented and commercially viable form, rather than the scattered
network of small producers that presently exists. The dairy goat industry has addressed
important issues such as having dairy goats included under the Victorian Dairy Act 1992 with
regard to quality assurance and, since 1988, has organised many training days including on
farm pasture production training with specialist consultants during 1996/97.

In response to increasing demands from specialist cheesemakers, the industry organised

several meetings of cheesemakers and large scale goat milk producers in 1996 to identify
constraints to the expansion of specialty goat cheese production and opportunites for
improvements in milk quality. Major constraints to the expansion of the industry are:

• Insufficient total milk supply - to meet demand and maximise efficiency of cheesemaking
operations.

• Peaks and troughs in milk production - creating marketing problems for cheesemakers due
to the fluctuating use of plant and to milk quality variations related to stage of lactation.

• Variations in milk composition - affecting consistency and quality of the end product.
Cheesemakers perceive greater variations in goat milk than in cow milk, perhaps related in
part to the greater number of smaller milk suppliers.

• Animal health - general health status due to adequacy of feeding, incidence of mastitis and
parasite burden affect the composition and yield of milk. Effect of particular infectious
diseases,eg, Johnes disease, Caprine Arthritis Encephalitis (CAE).

Australian imports of goat milk specialty cheese in 1996 exceeded 1,600 tonnes compared
with total potential Australian production, if all goat milk was made into specialty cheese, of
about 150 tonnes. Clearly, this represents huge market potential and considerable
improvement in balance of trade figures for expansion of locally produced specialty cheese.

Other important benefits from this project will include:

• More economical milk and cheese production through adoption of low cost pasture
production systems on farm and consistency of supply which will assist both export and
import competitiveness.

• Increased supply of goat milk specialty cheese to satisfy developing export markets in
USA, Japan and Asia, and price competitive exports to traditional markets in Europe.

• Improved milk quality and consequently cheese quality ensuring satisfaction of market
demands for uniformity and reliability of product.

• Establishment of guidelines for an industry structure and measurement system specifically

1
 directed towards an autonomous and sustainable goat milk specialty cheese industry.

• Definition of priorities for future projects for further development and advancement of the
industry.

Objective
To assist expansion of specialty goat cheese production in Australia by demonstrating on-
farm techniques for improving consistency of supply, quantity and quality of goat milk, and
developing industry structures.

Methodology
There were several separate but inter-connected phases of the project as follow:

Information System
This phase of the project was aimed at collecting all relevant Australian and overseas
information on production, supply and quality requirements of goat milk for cheese, and to
determine best means of information dissemination.

Priority topics to be addressed initially were:

* Mating Management - for optimum cycling and spread of kidding.
* Pasture Production - for maximum availability of low cost pasture feed.
* Grazing Management - for maximum utilisation of pasture feed.
* Animal Health - emphasis on parasite control and udder health for improved goat health and
productivity.

Industry Statistics
A system for annual collection of vital statistics on herd and goat numbers, location and
production, and collation of data on production, management, herd improvement practices
and cost of production was proposed. This included recommendations for reporting to
farmers on interfarm comparisons and to industry on trends and predictions. Sample
collection of statistics for 1996/97, based on the proposed system, were undertaken for
Victoria and Tasmania.

Production Demonstrations
Three Production Demonstration Field Days were conducted during the project on farms in
North East Victoria, Gippsland and Tasmania. These days covered aspects of farm and goat
productivity including pasture production, grazing management, herd recording, mating
management, parasite control and efficient, economical production systems.

New Zealand Visit

An industry group of 15 persons visited New Zealand to evaluate the dairy goat industry in
that country, particularly the techniques used for maximising use of pasture feed. The
opportunity was taken to examine the industry structure and relationships with the Ministry of
Agriculture, Fisheries and Food, NZ Dairy Board and the Livestock Improvement
Corporation.

Future Research

2
Priorities for future research projects relevant to the objective were considered and
investigated during the project.

Industry Development
Options for industry consolidation and development were also considered and investigated
during the project, based on a future structure for Victoria and Tasmania as an example.
Roles of producers and manufacturers, the need for regional and/or product groupings, and
relationships with current organisations were evaluated. Contact was made with other States
to incorporate any particular features necessary to provide for a national structure.

Results & Discussion

Information System
Six issues of loose leaf, updateable fact sheets, called “Dairy Goat Notes”, have been drafted
following perusal of the more recent and relevant literature available (see References).
Subjects addressed to date include:
“Mating Management”; “Herd Improvement”; “Pasture Feeding”; “Worm Control”;
“Kid Rearing”; “Annual Farming Calendar”. (see Appendix 1)

These sample publications are being circulated through the industry for comment preparatory
to printing for wider distribution and release to newsletters and magazines.

Production of issues on other topics and updating of current publications will be dependent,
for the time being, on future research and development funding pending establishment of an
industry funding mechanism.

Industry Statistics
A “Dairy Goat Farm Survey” was completed and analysed for the year 1996/97 (see
Appendix 2). An Industry Report has been prepared and individual Farmer Reports were
returned to respondents. The survey revealed a considerable range in herd size, stocking
rates, production levels, feeding regimes and costs, and highlighted the great potential for
productivity improvement within the industry at the moment. Another important indicator
was the intention of almost every dairy goat farmer to increase herd size, and consequently
production, twofold by the end of the decade.

Survey Summary
25 survey questionnaires were returned out of a total of 53 distributed, a response rate of
47%. Responses by State were: Vic - 11; NSW - 6; Tas - 4; SA - 3; WA - 1; which are in
close proportion to the overall response rate.
3
All except three respondents, who were just starting in 1997/98, were involved in goat dairy
farming in 1996/97, the survey year.

Farm Details
a) Area
20 respondents were using their dairying area mainly for grazing, the size ranging from 2 - 81
hectares. Two respondents had goats intensively housed.

b) Stocking

3
The number of milking does run on the dairying area averaged 79, with a range of 11 - 350.
Range of herd sizes was: 10/50 does - 9 farms 101/150 does - 2 farms
51/100 does - 9 farms 151 + does - 2 farms
Kids, goatlings and bucks were usually run on the dairying area. Only 3 farms used agistment
or run/off and 2 farms used contract rearing for kids.
c) Stocking Rate
Effective stocking rates on the dairying area in ‘milking doe equivalents’ were calculated
based on kids as 0.33, goatlings as 0.5 and bucks as 0.7 ‘doe equivalents’.
Stocking rates ranged from 0.3 - 10.1 doe equivalents/hectare. 7 farms had stocking rates
greater than 5.0 doe equivalents/hectare.
d) Feed
21 farms brought in grain/pellets, 16 brought in hay and 5 brought in ‘other’ feeds for feeding
on the dairying area.
Total amount of feed used, based on the ‘grain equivalent’ (as calculated on energy content)
ranged from 0.05 - 1.81 tonnes per doe equivalent.
e) Dairy Shed
11 dairy sheds were swing/over herringbone, 3 were double/up herringbone, 2 were
walk/thru, and 7 were other types, mostly single/side herringbone.
6 farms planned to upgrade their sheds in 1998. 18 farms had one operator in the shed, 5 had
two or more. Average peak season throughput was 61 does/hour with a range of 12 - 120.
f) Milk Storage/Delivery
Vat storage capacity ranged from 45 - 2000 litres.
Cooling systems used were: Pre-cooling - 12 farms; Direct expansion vat - 15 farms;
Cool room/ice - 2 farms
Self delivery, twice a week, was the most common method and frequency of milk transport.
g) Fertiliser
15 farms reported fertiliser use, usually superphosphate with some using potash also.

Dairy Herd Details

24 farms planned to increase herd numbers in each of the next three seasons, only one herd
was to remain the same size.
Average number of milking does expected by year is:
96/7 - 79 (11-350); 97/8 - 90 (14-380); 98/9 - 135 (22-700); 99/0 - 179 (30-850)
Nearly all farms forecast kidding to be concentrated between August - November, including
ten suppliers to cheese factories. Only three farms planned a spread of kidding through the
year.

Herd Improvement Details

7 farms were using herd testing and one using AB in a small way.

Production Details
16 farms sold milk to factories, 7 sold milk for other purposes, and 10 used milk for other
purposes.
Average actual production per milking doe was 508 litres with a range of 209 - 938.
Potential production per doe, based on feed consumed by young stock and bucks run on the
dairying area, averaged 686 litres with a range of 234 - 1313.
Feed cost, based on grain equivalent at $170/tonne and adjusted production figures, ranged
from 1 - 35 cents per litre.

Management Details

4
The majority of farms were managed and operated by owners/family with a combination of
full and part-time involvement. Three of these had a part-time involvement only. 7 farms had
full-time or part-time employees assisting owners/family and one farm was operated solely by
employees.

Production Demonstrations
Three Field Days were held, in North East Victoria, Gippsland and Northern Tasmania, each
in a central location for groups of farms and cheese factories. An average of 30 current and
intending dairy goat farmers attended each day.

The primary focus of these days was on pasture production and grazing management. The
intention was to demonstrate and discuss pasture improvement and measurement, and match
these to goat requirements for maintenance and milk production. Herd improvement was also
a focus, with the emphasis on herd recording, coupled with genetic improvement, to go hand
in hand with better feeding to considerably lift production and lower costs. Local
cheesemakers were invited to discuss their requirements for milk quality and supply, and to
consider issues of industry growth, costs and prices.

The field days provided an opportunity for local producers to see what is happening in their
vicinity and to discuss what can be achieved, with each other and with the pasture consultant
present on each occasion. An understanding was gained of the basic principles of soil
fertility, pasture species, rotational grazing management, and related issues such as parasite
control. The advantages of pasture as the lowest cost feed, contrary to some opinion, were
explained and clearly demonstrated. Some simple misconceptions that could have a huge
impact on management and profitability, eg, the reputed adverse effect of superphosphate on
curd formation, were able to be clarified.

The major benefit from the field days was enabling farmers to learn simply by seeing and
evaluating management practices different to their own. The impact of actually seeing
something work is immense, and thinking through the implications is even better. Discussion
of issues, sharing experiences and observations face to face also make these days invaluable
for communicating the right messages and for industry development.

New Zealand Visit

The industry group of 15 people, including a project task force of five, spent one week in the
North Island of New Zealand, where the dairy goat industry is concentrated. Visits were
made to eight farms, two cheese factories, headquarters of the Dairy Goat Co-operative, and
the Livestock Improvement Corporation. (see Appendix 3).

A summary of the tour, with inferences for Australia, was prepared:

NZ Industry Background
Interest in dairy goats for production of milk powder boomed in the late 70’s around
Auckland and was encouraged by the NZ government as an alternative rural industry. A
dairy goat research station was established in Northland. Soon, eight co-operatives were
producing powder, cheese, icecream and butter, fuelled by the rapidly increasing production.
Markets could not match the supply however and a ‘bust’ occurred in the early 80’s. The
number of suppliers dropped from 140 down to 30 in 1984 and the eight co-operatives formed
into one in 1983. Milk price fell from 60-70 cents/litre to 20 cents. A gradual recovery then
occurred in the late 80’s - early 90’s.

5
Current Structure
There are now four main processors: Puhoi, Kapiti and Saratoga Cheese companies plus the
Dairy Goat Co-operative (DGC) producing powder; and about 80 main suppliers, including
about 60 to the DGC. Dairy goat herd sizes were usually between 200 - 300 does.

Puhoi Cheese is a company with six contracted supplier and encourages processor/supplier
liaison regarding production and markets. 60% of the production is exported and this is
considered the future potential. Most product is Fetta due to market demand and the quick
turnover. 450,000 litres of goats milk is processed annually for which suppliers receive the
equivalent of about 80 cents/litre.

The DGC concentrates on powder production and runs a relatively tight supply policy.
Prospective suppliers/shareholders ‘buy’ supply rights for $15,000 and these are non-
refundable but tradeable. DGC contracts to collect, process and market milk and product. 5
million litres are processed annually and suppliers are paid the equivalent of about $1 per
litre. The bulk of production is exported and is susceptible to world trade competition.
The industry is predominantly export oriented, mainly for milk powder, and Australia is a
prime export target because of proximity and convenience.

There was no evidence of dairy goat industry liaison in production and marketing.

Pasture Production and Management

There appeared to be generally poor use of pasture despite close to ideal conditions for
pasture growth and management, which contrasted greatly with neighbouring dairy cow
farms. Stocking rates were relatively moderate (3 to 5 does per hectare) and consequently
most pastures seen were lightly grazed resulting in much pasture ‘waste’. Farming
background, eg, pig, hill sheep and hobby farming, influenced this aspect of farm
management.

Reasonable attention was given to soil testing and fertiliser use was adequate but in some
cases rather unusual, eg, fish manure.

Silage or haylage making was fairly common but Listeria infections from weathered silage
are a concern and most silage is treated to guard against this.

Taller growing pasture species (Red clover, Italian ryegrass) are favoured by some to keep
pasture feed above the general habitat of worm larvae. Lower growing plants like clovers
were avoided where possible.

Grazing Systems and Feeding

Despite good subdivision on most farms, effective rotational and/or strip grazing, designed to
maximise use of pasture feed, was not evident except in one case.

Grazing management appeared to be based on regular changes (up to 12 hourly) of fresh

pasture paddocks, considered to be worm free, and allowing ‘browsing’.

Abundant supplementary feeding with a range of feeds ( grain and lucerne pellets, silage,
haylage, hay, meal, brewers grains, maize) was the rule, resulting in substitution for pasture
feed on most farms. Relatively high milk returns facilitate this practice although the nett gain

6
may be negligible.

There was great importance attached to feeding mineral supplements, notably salt, which
were said to be connected with fertility, stress alleviation and general health requirements.

Mating Management
Seasonal production, over a 9-10 month period, is the rule, even with cheese suppliers, so
mating management is geared to tight joining and kidding patterns. Teaser bucks, and drugs
occasionally, are used to bring does into oestrus. Kidding generally occurs in late winter and
lactations run from then to about May.

Hand mating is the usual practice for about two months then bucks are run with the doe herd
to pick up stragglers. Artificial insemination is used only for special breeding needs and
reported by the Livestock Improvement Corporation(LIC) to achieve unsatisfactory
conception rates in the region of 50%. Kidding rates usually average two per doe.

Kid raising facilities and practices were impressive, with cows milk or powder commonly
used, and this aspect of management is a priority activity. Kids are weaned onto pasture at 8-
16 weeks, sometimes by weight, and mated at 6-8 months at 25-35kg.

Herd Improvement
There is good use of herd testing with about 66% (56 herds) involved in the LIC system,
mostly using the self sample option. At present very basic reports are provided (yields and
tests only) however the DGC is working with Massey University to develop a herd recording
system with Production Indexes and similar herd rankings.

Somatic cell counts in the first 3-4 months of lactation are considered by the LIC to be a good
indication of mastitis problems but not afterwards due to massive release of epithelial cells.
Parameters for cows are considered a good guide for goats.

Most herds visited had selection policies based on production (Total Solids), plus other
criteria such as feet, udders, UV sensitivity in Saanens and somatic cell count. There was
some evidence of buck selection via progeny on these criteria but no organised progeny
testing on an industry basis. The relatively high milk producing Saanen breed is the most
common.

Little cross breeding is practised now but this has been influenced by export market
requirement of pure lines.

Goat Health
Worm control is a constant concern but appears to be managed with minimal (once a year)
drenching, clean up grazing with cows, light stocking rates, frequent change to fresh pasture,
and reliance on hand feeding. Faecal egg count monitoring is practised in one case and
drenching done if the count exceeds 1000/gm. The worm control program at this property is
based on subdivision, rotation, use of tall plants, monitoring, cattle and cropping.

Parasites were quoted as the reason for a trend to shedding however there was evidence of
some high worm burdens under these conditions, perhaps due to inadequate control
procedures.

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Cider vinegar and garlic drenches are used on two properties but noticeably with little
apparent effect in one case. The usual proprietary drenches are most commonly used with
choice affected by drench resistance status and the withholding period required.

Salt licks are commonly provided for various given reasons such as to allay stress, counter
dehydration in summer, cure sodium deficiency.

Several herds are Johnes disease and CAE free with policies aimed at retaining this status.
There was relatively high attention to trace element supplementation (Selenium, Cobalt,
Copper) and other minerals (Magnesium, Calcium, Sodium) with claims that these additives
improve fertility, decrease worm burdens, etc.

Foot baths, containing zinc or copper sulphate, are commonly used to minimise foot
problems. Foot trimming appears to be practised on as ‘as needed’ basis.

Milk Quality
Milk quality requirements at both Puhoi Cheese and DGC appeared quite strict. Puhoi has ten
quality parameters and three grades of milk according to these, with payment penalties for
low standards. Sensory evaluation of milk receivals was also conducted by this company.
DGC has payment penalties for bacteriological count. The presence of drug residues was
carefully monitored and slight traces can result in rejection of milk. Puhoi was not concerned
about somatic cell count because of their manufacturing process (compared with the curds
and whey system).

Milk collection was generally once every 3 days by DGC but can be weekly at Puhoi if the
milk held at 2 degrees.

Costs and Returns

Payments were based on yield of Total Solids at both Puhoi and DGC. Average returns were
about $6/kg at Puhoi (about 80 cents/litre) and $8/kg at DGC (about $1/litre). A 20%
payment variation existed at Puhoi, to encourage winter production, but there was a set price
at DGC. There were three payment grades at Puhoi with a 10% and 25% penalty on the
Finest Grade price for 1st and 2nd grades.

Financial pressures did not appear to be as great as in the dairy cow situation, due to the
relatively higher returns for milk, and this has encouraged more liberal, capital intensive and
expensive feeding regimes. Despite the levels of feeding, production appeared to be quite
modest, in the region of 600-800 litres per lactation. Gross margin per goat was reckoned by
one farmer to be the same for intensively housed goats and goats on pasture.

Export goats were a lucrative sideline for several farmers. Prices received varied from $250 -
$500 for kids at 2-3 months of age.

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Inferences for Australia
• The dairy goat industry should be ‘grown’ slowly to ensure that production matches
markets with a sufficient lead time.
• Future means of diverting surplus production from cheese to powder should be considered.
• The Puhoi model of company/supplier liaison is a good basis to follow.
• Milk quality criteria should be established sooner rather than later to guide suppliers.
Penalty payments can be exercised at the discretion of the processor.
• Future prospects for export trade of goats when kid output exceeds industry requirements
should be examined.
• Little guidance was obtained on pasture feeding and grazing management. Australia
appears to be at least as advanced in this area. Australian payment structures will tend to
curtail excessive hand feeding.
• The use of herd testing and selection was a good model to follow
• No obvious lessons were learned from mating management practices, goat health control
or shed design, however there were some interesting innovations in feeding, yard and race
systems.
• Kid raising and weaning practices were also of interest to Australian farmers.

Future Research
The current project has revealed that there is a dearth of current information and parameters
on the actual effects on dairy goat productivity of various approaches to feeding, via pasture,
supplements and concentrates, to goat health, through worm control measures, housing and
vaccination schedules, and to mating, by use of drugs and other influences on cycling
patterns.
There is some literature available on these subjects but it is generally either out of date, aimed
at fibre or meat production, or inadequate in providing guidance to current day dairy goat
farmers.

There is an urgent need to provide on-farm demonstration and measurement of the effects of
generally accepted, preferred methods of feeding, health and mating management on goat
herd productivity over a full lactation. This will give confidence to dairy goat farmers to
adopt recommended practices, through practical demonstration of their effects, and benefit the
dairy goat industry by establishing guidelines for economical and consistent supply of high
quality milk for cheese production.

It is recommended that a project be implemented investigating the effect of farm management

practices on dairy goat productivity with the objective of determining best practice on-farm in
feeding, health and mating management to achieve consistent quantity and quality of supply
of goat milk at minimum cost for cheese making. Principal investigators should be those
involved in the current project. Assistance will be sought from other researchers and
consultants as required.

It is proposed that the project be conducted over a two year period, on three farms, one each
in North East Victoria, Gippsland and Tasmania. Production, health and herd events will be
monitored regularly on these farms by milk yield, milk composition analysis, factory supply,
bodyweight records, condition scoring, worm egg counts, veterinary treatments and mating
results.

Farm management practices to be followed will be determined by consultation between the

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principal investigators, farm owners, and other advisers as needed, with the aim of
implementing the most economical practices, consistent with the objective, at all times. The
opportunity for examination of the effects of some variation in practices, eg, worm control,
mating management, and influence of milk composition on cheese quality, will be taken when
possible. A field day will be held on each farm, each year, to demonstrate results achieved
and discuss the management practices in operation.

In association with this project, and following on from the current project, the phases of that
project concerned with development of an Information System and Industry Surveys will be
continued.

Industry Development

Interviews
During the course of the project, industry issues were canvassed with a wide range of
producers in Victoria, Tasmania, South Australia, New South Wales and Western Australia.
In addition interviews were held with most of the major goat cheese manufacturers,
distributors and marketers in Victoria and Tasmania (see Appendix 3).

Matters discussed included market potential and segments, milk quantity and quality
requirements, marketing methods, market research, import competition, export prospects,
options for an industry body, and an industry levy for research and promotion.

There was general agreement that the rapid growth in Australian goat cheese consumption
during the 90’s, mainly through food service outlets (restaurants) and supermarkets, and due
to the ‘healthy’ and ‘trendy’ image of goat cheese, still had good potential but needed more
marketing information and promotion. Australian cheese has gained considerable market
share and there is little sign of this situation not continuing subject to maintenance of product
supply and standards, and increasingly, attention to price competitiveness. Consistency of
milk supply and quality were important to satisfy a fairly even demand for fresh cheese
throughout the year and to match the quality of imports.

With the concentration on domestic market supply, relatively little attention has been paid to
exports as yet, however some manufacturers had established export market outlets in Asian
countries and this region was considered to have good potential.

It was acknowledged that accurate market statistics and forecasts were lacking at the moment,
even with imported goat cheese quantities and sources, and were urgently required for
production planning and promotional efforts. Promotion through the Australian Specialty
Cheesemakers’ Association, and possibly the Australian Dairy Corporation, was suggested
although some financial input from the dairy goat industry was considered necessary to
receive Corporation assistance. The concept of an industry levy for use in promotion,
research and other activities was generally acceptable.

There was also acknowledgement that a ‘goat cheese industry body’ was a desirable goal to
represent the commercial interests of the dairy goat sector of the wider goat industry and to
distinguish goat cheese from other cheeses in marketing and promotion.

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Industry Meeting
These issues were also discussed in forum at a ‘Goat Cheese Industry’ meeting, which
included producers, manufacturers, distributors and marketers (see Appendix 3), held in
May,1998, to review the project and consider aspects of future industry development. The
prime objective of the meeting was to consider options for industry consolidation and co-
ordination.

The background and development of the commercial dairy goat industry, only in recent years,
from the ‘hobby’ stage to the current networks of larger farms supplying cheese factories was
outlined. The need for information on economical dairy goat farming, modelled on the
efficient dairy cow industry, was emphasised, hence the initiation of production
demonstration field days and the current project.

Market prospects for Australian goat cheese were discussed against the phenomenal growth
during the decade of fresh cheese types and apparently successful competition with exports.
A recent levelling off in demand was reported although reasons for this were unclear. It was
observed that price competition with imports was an increasingly important factor and
underlined the need for lower costs at all stages of the production, manufacturing and
marketing chain despite the general popularity of Australian goat cheese.

Optimism was reported from several large retailers about the potential for increased sales but
it was observed that judgements were subjective and the dearth of reliable market data was
lamented. This lack of accurate statistics applied to domestic production and imports also.
Production and manufacturing planning was taking place in a climate of relative uncertainty
although the importance of basing the industry on an even supply of fresh milk was again
emphasised. Alternative uses for milk surplus to cheese manufacture, eg, powder and
yoghurt, were briefly discussed.

The meeting agreed that the most urgent industry requirement was for accurate measurement
of production and sales of goat cheese by a market survey, to be instigated as soon as
possible. Initial funding for this could be allowed for in the future research proposal.
Promotion of Australian goat cheese was also seen as an important objective to maintain
market growth.

Industry co-ordination was discussed and the role and relationships between current goat and
cheese industry bodies considered. It was acknowledged that there was no appropriate
organisation to represent the interests of the ‘goat cheese industry’, explore the introduction
of an industry levy, promote goat cheese, conduct surveys and similar beneficial activities.
Of several alternatives considered, it was agreed by the meeting that a new, commercially
focussed association should be formed, representing the various industry sectors, including
dairy goat farmers supplying licensed cheese factories, cheese manufacturers and distributors.
A name suggested for this body was “Australian Goat Cheese Association”.

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Implications & Recommendations
The project has made substantial advances in furthering the knowledge of dairy goat farmers,
establishing industry measurement systems and creating the foundation for a goat cheese
industry organisation. There is great potential for increased production of cheese, from a
higher number of more productive farms with increased herd sizes, based on a low cost,
pasture feeding system.

It is now critical for the industry to work together to match supply with demand and to secure
and improve market opportunities to cope with anticipated production increases. A strategy
must be developed, with input from all sectors, to maintain consistency in quantity and
quality of milk supply and cheese production, to match output with the requirements of
various market segments, and to be price competitive with imported cheese.

The following actions are recommended:

1. Information System
Issues of “Dairy Goat Notes”, with the latest information on subjects of major importance to
dairy goat farming, should be continued and a means of perpetuating the publication and
updating of this system by the industry be determined.

2. Industry Surveys
Two types of industry survey should be implemented and continued on a regular, annual basis
to provide all sectors of the industry with vital statistics on production and marketing trends.
The Dairy Goat Farm Survey, initiated in this project, should be continued in similar form
with adjustments made as required from time to time.
A Market Survey should be commenced as soon as possible to gather accurate statistics on
cheese production, sales, imports and exports, by value, type and market segment.

3. Focus Farms
A research and development project as proposed under ‘Future Research’, based on
monitoring management practices and effects on three ‘Focus Farms’, should be supported to
discover optimum approaches to low cost production with consistent supply and quality of
goat milk to cheese factories.

4. Industry Organisation
An industry association should be formed to provide a forum for all sectors of the commercial
goat cheese industry, to represent the industry in government and business circles, to establish
funding for promotion, research and development, and to act in the general interests of the
industry.

5. International Liaison
Consideration should be given to establishing more formal links with other countries with
important goat cheese industries, particularly France. A study tour, for examination and
discussion of farm and herd management, herd improvement, cheese production and
marketing techniques, should be given high priority within the next two years.

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