Tuesday, September 21, 2021
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How are this year’s dairy trends impacting the hospitality industry?

Dairy is an incredibly important industry throughout Australia and is key to a massive amount of quality food production throughout the country. Not only is it significant to the creation of some of Australia’s most loved products, but it is key to producing high-quality ingredients for our most beloved hospitality industry.

After a challenging year for Australian dairy processors, they faced disruption to the supply chain, panic buying, border restrictions, adhering to covid-safe manufacturing practices and closure of their regular distribution channels.

Naturally, it was a whirlwind of a year for everyone involved, and the resilience shown by the sector was impressive. Last year also saw the implementation of two key initiatives that were put in place to restore confidence and profitability to dairy processors.

First was the launch of the Australian Dairy Plan. This industry-wide strategic plan maps out initiatives to create a more confident and united Australian dairy industry over the next five years.

Secondly, the Dairy Code of Conduct, an industry code governed by the ACCC (Australian Competition and Consumer Commission), that aims to improve transparency and trading agreements between dairy farmers and processors.

So, since then, the industry has had a positive outlook, and now we look to the future to see what trends are shaping the Australian dairy industry so far in 2021.

1.        Trade Exports and Foreign Markets

Australian dairy exports generate a tremendous amount of revenue; we are the fourth largest global exporter of dairy. A trend we are seeing is Australia’s focus on producing the best dairy exports possible to expand their exports into the European market. The industry’s stance as a respected exporter to Europe would benefit the viewpoint of our products; the products used throughout our hospitality sector and that create the incredible food Australian restaurants have to offer—giving our restaurants and venues and their food an improved reputation worldwide.

2.        Dairy Education

Education around the health and nutritional value is essential to its popularity, especially for the general public and hospitality venues who want to purchase dairy products. If prominent dairy dishes aren’t popular, venues won’t purchase dairy products, and in turn, dairy processors would suffer.

Current trends surround the Australian Dairy Products Federation (ADPF) and ensure that dairy products are reviewed fairly as part of the vital role they play in a balanced diet. The perception of dairy and how the nutritional benefits are seen plays a huge part in sales to the local hospitality industry.

3.        Transparency In Supply Chains

We all want to know where our food comes from, including the restaurants that purchase food. They all want to see where the product has come from and where it’s been. So to keep much-loved dairy products circulating through our supermarkets and restaurants, the whole dairy supply chain needs to band together. This includes being transparent about pricing, so farmers will enter the season better equipped with information to help them make better business decisions. A trend many are happily falling in line with.

These trends all impact hospitality in their unique way, whether that is increasing the popularity and status of Australian dairy or ensuring the industry is fair for all aspects of the supply chain. Hospitality is always keeping an eye on trends that impact them, so they can quickly act if certain dairy products spike in popularity, and they can jump right on it.

Optimism is the key in many of these trends, with the end of 2021 and the beginning of 2022 looking to be a strong season in both dairy and hospitality.

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