This paper provides detailed understanding about the Tasmania’s place and its value-added products i.e., dry milk which is exporting to different countries. Tasmania is the island which is a part of Australia south coast and it covers into 68,401 Km.
In addition to this, the study determines the Tasmania’s product such as dry milk that exports to different countries and based on that identify what benefits will export product provide to a particular country (Smith et al., 2011). Moreover, different models building such as projection model, scenario planning will be used to estimating the benefits of exports to the particular country.
This part covers the Tasmania valued added product that is exporting to five different countries that are as follows:-
Tasmania exports fresh milk directly to China through weekly flights. It is found that Tasmania exports approx 10 million liters of “VAN MILK” from the Hobart airport to Ningbo in China. Dairy milk is sent to the VDL farms and later it sold to the Moon Lake in April.
The milk dairy exporting helps the China’s market to produce the fresh, perishable products. Due to the exports, the Moon Lake becomes a leader in dry milk production and with this, they also produce several dairy products (Guilliatt, 2013).
The exporting of milk production also gives various opportunities to the Chinese people such as employment opportunity and market expansion chances. Thus, it can be stated that milk exporting provides an advantage to the Chinese market.
To understand more deeply, there is need to use the projection model for identifying the advantage that is gained by China after importing milk from Tasmania.
For this, projection model will be used as this model helps in estimating the present trends based on the forecast and past records. Thus, projection model is considered as an element which consists of physical three dimensions into which a computer image is projected in order to develop the realistic looking objective.
Likewise, with the help of projection model, it is estimated that how much china gets benefit from the Tasmania milk exports.
From this graph, it is finding that consumption level of milk will increase after the year 2000 and it remains increase. It is because China imports the milk from the Tasmania Island that raises the demand of milk.
Due to the exporting of milk from Tasmania island, the demand of milk product also increases which result in enhancing the sales value of fluid milk from 2005-2009 (Annema et al., 2011).
(Sources: Rhiannon, 2016)
This table clearly reflects that sales of fluid milk increase and this is because of directly importing of milk from the Tasmania which helps in providing quality milk products to consumers.
Other than that, cheese, yogurt, milk powder also has high demand in the Chinese market due to companies’ offers a high-quality product with affordable price. Such advantages give an opportunity for expansion in the global market and also assist in making the economy strong (Tozer & Marsh, 2012).
Therefore, the trends of milk consumption indicates that the china gets huge benefits from the importing of milk from Tasmania and it might also benefit the country in future projects.
Tasmania is an Australian state which grows many value-added products. These products have a high demand in other countries as well. Some of the products in which Tasmania has expertise are the Dry Milk etc. India is a country which imports Dry milk from Tasmania.
It is finding that India is largest milk producing country but at the same time it faces various problems related to poor quality of cattle genetics because of having poor fertility levels. India is also lacking in frozen semen by close to approx. 60 million doses each year.
Moreover, there is also a lack of skilled manpower available for making proper development to the commercial dairy farms (Birthal, 2010). As there is no professionals’ farm manager is available that’s why there are several issues creates such as early damage of crops, poor fodders etc.
In regards to overcome these issues and improve quality of the milk, India imports the dry milk from the Tasmania country whose is rich in dry milk quality. Through the importing of milk to the India, there are various opportunities that are open for the India.
Likewise, India through merging with the Tasmania dairy industry can bring improvements in their dairy farming management skills. This would be done through learning management skills, adopt their technology.
Thus, such importing of milk process will contribute towards the bringing improvement in milk quality. Because of importing dry milk, there is also find various changes in the consumption level of India people.
However, India milk consumption is increase after the importing of dry milk from Tasmania to approx 176 grams per day in 2014-2015. It is more than the world average of 294 grams per day during 2013. Previously, due to low quality of dairy practices, there is less consumption of milk is estimated in the urban cities of India.
India had previously observed a slow-down in its production of dry milk. The major reason for this decline was a shortage of labour in the India dairy sector because of a lack of push among about the dariry fairming practies among the population.
This led to developing a situation which invited to import milk from other country and made India dependent on imports. The Citizens of India now able to achieve the nutrition, energy from milk which was lack previously due to production of lower quality. So that’s supporting high for the economic growth of the country (Amano & Higo, 2015).
At the same time, by importing dry milk products from another country, the urban consumers of India would enjoy the opportunities of better quality of milk products that satisfy their needs. Indian producer would able to develop the other ingredients from the milk efficiently such as Paneer, ghee, butter and cheese.
Based on that they could also have an opportunity to explore the international market and this is because India is considered as leader is producing large quantity of milk. It also enhances their demand in international market and at the same time, India is also providing large quantity of milk with efficient quality.
According to Bishop & Chung (2015), the projection method is the well suited to this study. Based on that previous facts and data about the consumption level of dry milk, it becomes easy to estimate the variations that are come. Through the projection research method, the demand of dry milk can be analyzed for the product by reviewing the past sales that will help to gather information to conclude what can happen in the near future.
Canada has a sale of around 1.3 billion litres of dry milk. It is also common as the population of a country increases so the consumption of any particular thing will also increase at the same time. As the population of Canada increases so commercial sales of milk increases.
The capacity of producing milk decreases with time so it forced Canada to import dry milk from Tasmania. Tasmania exports fresh milk to Canada from flight. Milk is one essential product that is need to be used for making many different products such as cheese, chocolates, ice-cream, cream, curd, etc. So it is essential to get enough quantity of milk in order to produce the above mentioned sub-products.
Trading among different countries also help to foster and enhance the relationship between both countries. That is the reason why the later countries also start trading in dry milk also. Canada is one country which is to be considered to be a high valued trading partner for Tasmania as it gets various advantages or benefits from this partnership.
The major benefits that Canada gains from importing dry milk from Tasmania are like, whenever any product is been exported to any country it have an impact on the economy.
The economy of Canada increases and shows a growth and this will further result in developing the country and also enhances its national image. When any new product is imported it also provides some job opportunities to people. This will also help the people in Canada to explore new and better job opportunities that will help to increase the level of employment in Canada.
At the same time, when something is been imported, it will provide the public of that country to avail and utilize something different and new as well. The public in Canada will get the new taste of dry milk which will be something different from that produced in their country.
A different variation of dry milk will be available with people. The costs are also been reduced as whenever anything is been imported from other country so the cost get reduced because importing it from other country will be more cheaper than to produce it own country.
This will also help to satisfy the increasing demands of the consumers. The customers will also gets the benefit of getting better and prominent quality of dry milk been imported by their country. This importing of dry milk by Canada also gives the opportunities for the country to expand their market.
According to Hovmand, et al., (2012) model building is been the most prominent model that considers the scientific approach to make a decision in context of the better design and quality, etc. Based on this model, it was identified that Canada achieves high quality of dry milk by importing it from Tasmania.
Saudi Arabia is a country which is one of the largest dairy markets in the GCC region with an overall market share or size in billions. The dairy industry in Saudi Arabia started with little scattered farms and over time converted into a big dairy industry. In Saudi Arabia, the consumption of milk and other related products comes on second after other products.
Milk is one such product which is very important and vital part of people’s daily diet in a country like Saudi Arabia and it holds a position in the daily consumption category.
Every country needs milk as it is a necessary element that is required daily by a large population. This had put a pressure on the country to produce large quantity of milk to satisfy the needs and want of the customers.
This led to invite a situation in which Saudi Arabia was forced to import dry milk from Tasmania. Importing any product from any country gives several advantages to the other country.
The benefits Saudi Arabia can enjoy by importing dry milk from Tasmania are as follows: There is a huge impact on the economy of any country whenever it imports anything from other country. As a result, the economy of Saudi Arabia has also showed an increase as well as growth by importing dry milk from Tasmania.
This has also resulted in providing the public of Saudi Arabia with better and good quality of dry milk which adds consistency to their flavour. People get to have an opportunity to taste a new quality of dry milk that is been imported from Tasmania.
Importing dry milk was also important not just to satisfy the needs of a large number of populations but also because milk is a major product which is used to produce several by products such as cheese, ice-cream, etc. So it became necessary for Saudi Arabia to import dry milk from Tasmania.
Tasmania exported fresh, high-quality and premium quality of dry milk to the people in Saudi Arabia. It is also true that whenever any country imports anything from outside it saves its cost, time and energy and also gives something better to its customers (Mazur, et al., 2013).
By importing the dry milk from outside helps to reduce its cost as importing it the dry milk from outside is cheaper than producing it in the country. Scenario planning is one of the methods that are used for forecasting.
It is a method for representing the possible future of a company which is currently facing issues or hurdles by gaining a range of possibility that will encourage people or the decision makers to identify the changes or variations they would ignore otherwise. This scenario planning will help Saudi Arabia to forecast its sales for dry milk as well as its future investments for dry milk (Plagányi, et al., 2017).
Tasmania is considered as a big player in the Australia dairy industry as approx 883 million litres of milk is producing in the 434 local dairy farms over the 2015-17. It is find that over the past time, the dairies in Tasmania has shown high growth in their exporting of milk to different countries.
In regards to this, Vietnam is also one of the country that also importing the dry milk from the Tasmania (Dalal & Pathak, 2010). Vietnam is contributing approx 17% in agricultural sector as compare to other counties.
In spite of this, they also go to the importing of dry milk because of their issues which constantly occurring such as inefficient infrastructure of dairy farming due to less technology adaptation, less installation of equipment & machinery and less knowledge of good farming practices. Less capital availability with poor supply chain management is also a factor of poor farming infrastructure.
Moreover, Vietnam switches decision of importing the dry milk from the Tasmania as they perceives Australian product to be higher quality and easily available at affordable price.
That is why Vietnam imports milk and it also provides benefits the country in a way to expand the economy and give rise to employment opportunity. Thus, these are the advantages that are gain by the Vietnam from the imports.
The scenario planning model is well suited to this study as it helps to identified that dry milk imports in the vietnam prove to be effective in terms to explore the local or global market.
This model also defines that it will assist the country called Vietnam in terms to deliver the high quality milk with affordable price. This will contribute towards the economic growth. From this study, it is depicted that dry milk contribute high for the Vietnam in relation to make local people satisfy.
From the above discussion, it is summarised that Tasmania is the leading exporter of dairy dry milk. It mainly exports to five countries like India, Canada, Vietnam, China and Saudi Arabia. Different countries achieve high advantage from the exporting of Tasmania value-added products i.e. Dry Milk.
Likewise, China and Vietnam gains the benefit of fulfilling the maximum needs of the local people. Others counties such as Canada, India, and Saudi Arab gain the benefit from import in the form of achieving the superior quality milk.
Thus, from the building projections, scenario planning, model building, it is found that countries get several opportunities with exporting from Tasmania such as high employment opportunity, improve the standard of living and economic welfare. Based on this, it is concluded that Tasmania value-added products prove to be an advantage for different countries.
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