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“Bega Cheese, helping our dairy farmers secure a sustainable future”
           World Congress on Conservation Agriculture
                 Brisbane 26-29th September 2011
Our Mission
Bega Cheese – working together to deliver dairy
products to the world.

Our Vision
Bega Cheese’s vision is to be an Australia dairy industry
icon, valuing our heritage, people, customers and
community. Embracing challenge. Driving change.
Building for the future.
Bega Cheese Group
Bega Cheese - Group

•         Bega brand, Melbourne Brand,
    Chefs Choice Brand, contract pack
•   No 1 Australian cheese brand
•   Marketing and selling in over 50
    countries
•   In the top 5 dairy companies in
    Australia
•   In the top 2 Australian owned
Branded           Bega &/or             Bulk
                                                                                                          FS/Retail          Contract           Cheddar




                                                                             Petersburg




                                           United Kingdom

                                             Europe
United States of
   America
                                                         Cyprus                                                                         Japan
                                                                                                China
                                                                                                            South Korea
                                                                        Kuwait
                                                           Saudi
                                                                             Bahrain    India                               Taiwan
                                                                      UAE                               Bangladesh
                   Jamaica                       Libya                           Oman
                                                            Jordon                                         Myanmar        Philippines
      Guatemala                                             Lebanon                                  Thailand
                                Barbados                                    Yemen       Sri Lanka
                                Trinidad                                                                Malaysia     Sarawak, Sabah
                                Tobago                                                                               Brunei
                                                                                          Maldives          Singapore            Papua New
                                                                                 Seychelles                        Indonesia       Guinea
                     Peru
                                                                            Mauritius
                                                                                                                          Australia
                        Chile


                                                                                                                                                New Zealand
Bega Cheese Consolidated Total Assets
Total Assets
   $'000
 450,000

 400,000

 350,000

 300,000

 250,000

 200,000

 150,000

 100,000

  50,000

         -
               1989


                      1991


                             1993


                                    1995


                                             1997


                                                    1999


                                                           2001


                                                                  2003


                                                                         2005


                                                                                2007


                                                                                       2009
                                           Year ended 30 June
Established: 1899
Bega Cheese Group
Our Milk Supply
• Needs to grow

• Needs to grow
  sustainably
Where we started
• Access to resources such as water and to
  minimise legislative restrictions.
• Farmers needed to improve environmental
  performance.
• Bega Cheese moved from support to leadership
  to help secure our milk supply.
• Focused on the Bega Valley.
BEMS Developed
• The Bega Cheese Environmental Management System- BEMS
• The system identifies priority NRM issues and corrective
  actions for improvement.
• The system can be adapted.
• Focused on outcomes and management change rather than
  systems.
• BEMS is a voluntary program.
• Has been successful in on ground improvements.
Role of Incentive Programs
• Identify drivers
• Support where drivers are weak or non
  existent
• Establish priorities
• Engage early adopters
• Sending market signals
BEMS Priority Areas for Improvement
•   The priority NRM issues identified in the original BEMS Pilot were;



                                                Native Veg
    Effluent      Irrigation     Nutrient
                                                    &           Soil MGT   GHG’s
     MGT             MGT          MGT           Waterways




                    Water &
                                   Chemicals        Wastes         Pests
                    Energy
BEMS Achievements to date
•   $2.5 Million in Government incentive and program funds

•   90% engagement Bega Valley

•   $6 Million cash & in kind contributed by farmers to on-ground works projects
BEMS Achievements
                     to date
•   Effluent system upgrades
•   Stream crossing
•   Laneway upgrades
•   Erosion sites remediated
•   Soil tests & nutrient mapping
BEMS Achievements to date
•   Fencing river frontage and wetlands
•   Revegetation and protecting remnant vegetation
•   Dairy shed energy audits
•   Energy efficiency upgrades
BEMS success
    John & Margarot Jessop – Cobargo NSW
    No. BEMS projects – 5

    Program outcomes
    • Black Ck protected
    • Effective reuse of effluent
    • Riparian vegetation protected
    • Sediment prevented
    • Narira Ck stream crossing upgrade.
    • Maximises feed utilisation
       and the maintenance of ground
       cover.
    • Dairy energy audit
BEMS moving forward
• A successful model for on ground NRM improvement
  – move from just NRM to broader Sustainability.
• Look beyond farm gate to customer requirements.
• Need to implement BEMS across all our supplier
  regions and ultimately across all our suppliers.
• Set a benchmark to monitor progress and
  improvement.
BEMS Sustainability Assessment
                                                  Soils                              Pests and Weeds
Management practices assessed against             Soil Monitoring
                                                  Erosion
                                                                                     Pest Weeds
                                                                                     Pest Animals
industry BMP’s for 14 sustainability              Soil Structure
                                                  Salinity Sodicity             Na


areas                                             Acidity                       Na




                                                  Fertilisers                        Chemicals
                                                  Nutrient Budget                    Training and safety
                                                  Nutrient Application               Application & use
                                                  Avoiding Nutrient Losses           Storage & management


 Example of a sustainability report for           Effluent Management
                                                  General Effluent Management
                                                                                     Farm Wastes
                                                                                     General rubbish
                                                  Effluent Pond Systems              Waste milk
             1 Bega farm                          Application system                 Dead stock
                                                  Feedpads                      Na

                                                  Stock traffic areas


On farm management practices can be               Irrigation
                                                  Management
                                                                                     People Management
                                                                                     Economic viability

assessed at the individual farm level as          Application                        Working Conditions


well as at the sub-catchment and                  Co2 Emissions                      OHS & EC MGT

regional level.                                   Monitoring Emissions
                                                  Reducing methane emissions
                                                                                     OH & S
                                                                                     People EC Mgt
               Key                                Reducing nitrate emissions         Herd EC Mgt
                                                  Reducing carbon emissions          Emergency recovery
               At Industry Standard or above      Adaptation strategies

               Within 25% of Industry Standard
               Below industry standard practice   Native veg & waterways             Animal Health
                                                  Whole farm planning                General Stock Management
                                                  Riparian frontages                 Dairy Herd Health
                                                  Remnant vegetation
                                                  Revegetation
                                                  Threatened species


                                                  Energy & Water                     Animal Welfare
                                                  Energy use                         Calf Management
                                                  Energy capture                     Bobby Calves
                                                  Water                              Dairy Herd Welfare
What do we hope to achieve
• The BEMS Sustainability Assessment will:
   • Continue to focus on outcomes
   • Establish benchmarks
   • Define gaps for extension programs and future
     incentive programs
   • Develop partnerships.
In summary
                  Productivity

NRM improvement                  Customer
                                 expectations

Access to           BEMS
resources                         Broader
                                  sustainability
                                  issues
              Market driven?
Bega Cheese, helping our dairy farmers secure a sustainable future

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Bega Cheese, helping our dairy farmers secure a sustainable future

  • 1. “Bega Cheese, helping our dairy farmers secure a sustainable future” World Congress on Conservation Agriculture Brisbane 26-29th September 2011
  • 2. Our Mission Bega Cheese – working together to deliver dairy products to the world. Our Vision Bega Cheese’s vision is to be an Australia dairy industry icon, valuing our heritage, people, customers and community. Embracing challenge. Driving change. Building for the future.
  • 4.
  • 5. Bega Cheese - Group • Bega brand, Melbourne Brand, Chefs Choice Brand, contract pack • No 1 Australian cheese brand • Marketing and selling in over 50 countries • In the top 5 dairy companies in Australia • In the top 2 Australian owned
  • 6. Branded Bega &/or Bulk FS/Retail Contract Cheddar Petersburg United Kingdom Europe United States of America Cyprus Japan China South Korea Kuwait Saudi Bahrain India Taiwan UAE Bangladesh Jamaica Libya Oman Jordon Myanmar Philippines Guatemala Lebanon Thailand Barbados Yemen Sri Lanka Trinidad Malaysia Sarawak, Sabah Tobago Brunei Maldives Singapore Papua New Seychelles Indonesia Guinea Peru Mauritius Australia Chile New Zealand
  • 7. Bega Cheese Consolidated Total Assets Total Assets $'000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Year ended 30 June
  • 10. Our Milk Supply • Needs to grow • Needs to grow sustainably
  • 11. Where we started • Access to resources such as water and to minimise legislative restrictions. • Farmers needed to improve environmental performance. • Bega Cheese moved from support to leadership to help secure our milk supply. • Focused on the Bega Valley.
  • 12. BEMS Developed • The Bega Cheese Environmental Management System- BEMS • The system identifies priority NRM issues and corrective actions for improvement. • The system can be adapted. • Focused on outcomes and management change rather than systems. • BEMS is a voluntary program. • Has been successful in on ground improvements.
  • 13. Role of Incentive Programs • Identify drivers • Support where drivers are weak or non existent • Establish priorities • Engage early adopters • Sending market signals
  • 14. BEMS Priority Areas for Improvement • The priority NRM issues identified in the original BEMS Pilot were; Native Veg Effluent Irrigation Nutrient & Soil MGT GHG’s MGT MGT MGT Waterways Water & Chemicals Wastes Pests Energy
  • 15. BEMS Achievements to date • $2.5 Million in Government incentive and program funds • 90% engagement Bega Valley • $6 Million cash & in kind contributed by farmers to on-ground works projects
  • 16. BEMS Achievements to date • Effluent system upgrades • Stream crossing • Laneway upgrades • Erosion sites remediated • Soil tests & nutrient mapping
  • 17. BEMS Achievements to date • Fencing river frontage and wetlands • Revegetation and protecting remnant vegetation • Dairy shed energy audits • Energy efficiency upgrades
  • 18. BEMS success John & Margarot Jessop – Cobargo NSW No. BEMS projects – 5 Program outcomes • Black Ck protected • Effective reuse of effluent • Riparian vegetation protected • Sediment prevented • Narira Ck stream crossing upgrade. • Maximises feed utilisation and the maintenance of ground cover. • Dairy energy audit
  • 19. BEMS moving forward • A successful model for on ground NRM improvement – move from just NRM to broader Sustainability. • Look beyond farm gate to customer requirements. • Need to implement BEMS across all our supplier regions and ultimately across all our suppliers. • Set a benchmark to monitor progress and improvement.
  • 20. BEMS Sustainability Assessment Soils Pests and Weeds Management practices assessed against Soil Monitoring Erosion Pest Weeds Pest Animals industry BMP’s for 14 sustainability Soil Structure Salinity Sodicity Na areas Acidity Na Fertilisers Chemicals Nutrient Budget Training and safety Nutrient Application Application & use Avoiding Nutrient Losses Storage & management Example of a sustainability report for Effluent Management General Effluent Management Farm Wastes General rubbish Effluent Pond Systems Waste milk 1 Bega farm Application system Dead stock Feedpads Na Stock traffic areas On farm management practices can be Irrigation Management People Management Economic viability assessed at the individual farm level as Application Working Conditions well as at the sub-catchment and Co2 Emissions OHS & EC MGT regional level. Monitoring Emissions Reducing methane emissions OH & S People EC Mgt Key Reducing nitrate emissions Herd EC Mgt Reducing carbon emissions Emergency recovery At Industry Standard or above Adaptation strategies Within 25% of Industry Standard Below industry standard practice Native veg & waterways Animal Health Whole farm planning General Stock Management Riparian frontages Dairy Herd Health Remnant vegetation Revegetation Threatened species Energy & Water Animal Welfare Energy use Calf Management Energy capture Bobby Calves Water Dairy Herd Welfare
  • 21. What do we hope to achieve • The BEMS Sustainability Assessment will: • Continue to focus on outcomes • Establish benchmarks • Define gaps for extension programs and future incentive programs • Develop partnerships.
  • 22. In summary Productivity NRM improvement Customer expectations Access to BEMS resources Broader sustainability issues Market driven?