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Geo-graph-y > PEA STATS + QUOTES > Flashcards

PEA STATS + QUOTES Flashcards

1
Q

ACTIVITY
Define vertical integration
ORGANISATIONAL(CONTROL)

A

When a company that operates within one section acquires another company within the same supply chain

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2
Q

ACTIVITY
Define horizontal integration
ORGANISATIONAL (CONTROL)

A

When a company looks to develop a monopolistic advantage through taking over another company in the same level of the supply chain

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3
Q

ENTERPRISE
ECOL DIMENSIONS
Environmental restraints (2)

A

LPC conducts regular small scale and annual larger scale soil tests at 3 different points and 2 different depths of their dairy

During La Niña in 2022, 48.5 ha of its farm was affected by a dam overflowing, resulting in intense erosion in some areas

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4
Q

ENTERPRISE
ECOL DIMENSIONS
Climate (5)

A

Ideal temperature for milk production is around 21°C for Holstein Freisian cows, with the average temperature in Bringelly reaching 22°C

Dry area of the Cumberland Plain where temperatures sometimes reach 30°C

LPC has implemented the fans and misting systems when temperatures exceed 21°C and 24°C respectively

Australia is a drought prone nation, especially in NSW where temperatures were the warmest and rainfall was the lowest on record between 2017 to 2019 (NSW Department of Environment)

LPC relies on its 6km piped water line connecting it to the Nepean River and 2 remaining dams

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5
Q

ENTERPRISE
ECOL DIMENSIONS
Human impacts

A

Brewer’s yeast and citrus pulp contribute to their cows’ palatable, nutritionally balanced and cost-effective diet which reduces their emissions by up to 30% (NSW Dept of Environment)

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6
Q

ACTIVITY
Biophys Clim (2)

A

The ideal climate for commercial dairies/cows are temperate climates with mild temperatures between 4 -24 degrees Celsius

Outside optimal temperatures, milk production could drop by 30% (Dairy Global)

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7
Q

ACTIVITY
Biophys Site (2)

A

Most dairies were within 100km of major urban areas due to the perishable nature of fresh milk and its expensive, bulky transportation

Sydney basin now only has 1 major dairy

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8
Q

ACTIVITY
Ecol Sust - atmospheric pollution
methane + nitrous oxide emissions

A

Climate change will remain the key challenge for the dairy industry, with livestock being the dominant source of methane and nitrous oxide emissions, accounting for 56% and 73%, respectively, of Australia’s greenhouse gas emissions (Dept of Primary Industries)

Dairying emits 2.4kg of CO₂ per kL of milk (Dairy Australia)

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9
Q

AUS DAIRY COMMITMENT
Ecol Sust

A

The Australian dairy industry has made a commitment to reduce greenhouse gas emissions intensity by 30% across the whole industry by 2030 (from 2015 baseline)

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10
Q

Ecol Sust
Feed additives (2)

A

Emission reduction through the implementation of feed additives like seaweed and brewers yeast has seen a 30% reduction in methane production (Dairy Global)

Dairy Australia’s 2020 National Dairy Farmer Survey showed that nearly all dairy farmers engaged in some level of supplementary feeding where the 2019/20 the national average was around 1.7 tonnes of feed per cow per year, up slightly from the previous year

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11
Q

Ecol Sust
FUEL EFFICIENT TRANSPORTATION (2)

A

Emission reduction through fuel-efficient transportation allowed for the dairy industry to further ‘real change and reduction in environmental impact’ (Tim Bennett, Chairman of Dairy Co)

Fonterra fuel efficient trucks annually reduced 1.7 million L of fuel and 60% nitrous oxides emissions during milk collection (NZ Herald, 2022)

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12
Q

Sociocultural TRAD (2)

A

A limited number of Australian dairy co-ops remaining, including Norco with 199 farms and Dairy Farmers with 350 members (Dairy NSW)

Decrease in farm numbers from 22,000 in 1980 to 5213 in 2020 (Dairy Australia)

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13
Q

Sociocultural LABOUR PARTICIP RATES (2)
- Ageing workforce
- AMS

A

This trend (of an ageing dairy workforce) is indicated in data from the NSW Enquiry into Dairy Sustainability 2021; the majority age proportions of farmers between 1981-2011 increased by 20 years, from 35-39 to 55-59

Despite this (reliance on backpackers) being beneficial for larger dairies like Sydney’s LPC, they are also increasingly investing in automatic milking systems (AMS) where 1 robotic full time employee can milk 173 cows compared to the 99 cows milked by a full time human employee

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14
Q

Tech Factors
TRANSPORT
SILOS

A

Silos which can store up to 100,000 gallons of milk

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15
Q

Tech Factors
Biotechnology - AI

A

99% guarantee of female offspring (sex select)

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16
Q

Tech Factors
Biotechnology - Ear tagging (4)
- sickness
- affordability
- future usage
- type

A

Implemented in the 2500 herd Coomboona Dairies’ Bovine Health Solution, farmers are alerted about cow health to quickly respond where ‘cows are found less than one day of getting sick’ (Robert Bonanno)

As ‘electronic tracking chips are becoming more affordable’ (Laura Drury, Three Key Trends of Dairying), larger and smaller dairies are adopting this technology, reducing the number of workers needed to constantly monitor cows

Projected 20% increase in usage by 2030 (Dairy Global, 2022)

‘Long term product’

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17
Q

Tech Factors (to use if the question were only on technological)
Quick expl
Biotech - Flashm8 Heat Detection (2)

A

Used to detect when cows are ready to give birth

The technology began when farmers in New Zealand noticed falling productivity, due to the difficulty in attracting labour (Jeff Clark, 2001)

“It’s a lot easier for staff to see a light flashing than look at tail paint…they’re certainly picking up the silent heats” - John Tanner, farmer in Canterbury

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18
Q

Organisational Factors
Ownership (3)

A

98% of farms in Australia are still family owned or run by small family partnerships (Parliament of Australia)

3/4 Equity based ownerships have turned into agribusinesses such as Lactalis purchasing 250 dairies in over 50 countries, this points to a future trend where larger national and international companies increasingly dominate the dairy industry

National Foods acquired major cooperatives including Yoplait in 1995 and King Island Dairy in 2001, until ownership was transferred to Japan’s Kirin Holdings, an international business, finally being acquired by Bega Cheese in January 2021

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19
Q

ORG FACTORS
Decision making + control (4)
- market share
- farmers
- export
- future

A

(Duopoly of Coles and Woolworths) has 70% of the market share in Australia (NSW Farmers); they are able to lower the price of milk, such as in January 2011 when major supermarkets heavily discounted milk prices to $1/L (Farm Online)

Dairy farmers have “no effective negotiating power” (Submission on ACCC Dairy Issues Paper)

While global dairy export prices have increased over the last 6 months, these profits have not translated to Australian farmers who are significantly underpaid compared to other dairying countries with regulated dairy industries

While pressure on prices from major supermarkets is expected to continue in the future, a 2021 NSW parliamentary inquiry recommended more transparent contracts for milk prices between farmers and supermarkets in a Milk Supply Agreement (could result in more equitable, fair process of decision making)

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20
Q

POL FACTORS
Quotas/tariffs (2)

A

Deregulation of Australia’s dairy industry on 1 July 2000 → Australian commercial dairies have become susceptible to global dairy commodity prices

India skimmed milk 60% tariff rate (Dairy Australia)

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21
Q

POL FACTORS
Compacts/agreements
- Free Trade (Bilateral + Multilateral Agreements)
3

A

China alone accounted for 33% of Australia’s dairy production exports (Dairy Australia)

Free trade agreements such as the multilateral Trans Pacific Partnership (TPP), a 2016 agreement with countries situated around the Pacific Ocean (incl. New Zealand, Japan, Canada, South America + Australia)

Indonesian-Australian agreements as part of AANZFTA where Australian yoghurt has a 0% tariff compared to the Main Tariff Rate of 10% (DFAT)

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22
Q

POL FACTORS
Compacts/agreements
- Geographic Indication Labelling
Definition + stat

A

GIs, heavily promoted by the EU, protects products they believe possess qualities or reputation associated with particular regions, which would result in international food producers not being able to name their products under these terms, e.g. feta, haloumi and parmesan

The potential direct impact on Australian dairy manufacturers from lost sales and increasing marketing costs could range from $70-90 million/year in the early stages of the trade deal (Aus Dairy Industry Council, 2021)

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23
Q

ECOL FACTORS
Resource use
Effluent ponds (2)

A

Research from the Department of Primary Industries has shown the return on investment from a typical effluent reuse system is generally 4 to 5 years

The return on investment period for reusing settled solids or sludge from effluent ponds is only 3 to 6 months = good investment repaid by increased production

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24
Q

ECOL FACTORS
Resource use
CFI + biogas to power farms

A

While dilution of infrastructure costs mean that economies of scale do apply, adopting a low-end establishment cost of $85/cow results in a payback period exceeding 15 years (Matthew Haan, Penn State University)

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25
Q

ECOL FACTORS
Resource use
Riparian ecosystems (4)

A

⅔ of rivers and ¾ of lakes in New Zealand are unfit for swimming due to the impacts of 6.5 million dairy cattle (Greenpeace, 2016)

In response, 97% of waterways on dairy farms have been fenced off and farms have taken steps to maintain a safe distance from wetlands, according to DairyNZ CEO Tim Mackle

Dairy Australia states that the use of trees along a shelterbelt can reduce a cow’s heat load in summer by 50%, making it more cost-effective than using electricity driven sprinklers and fans

Since 2001, there has been a 50% increase in the protection of waterways on Australian dairy farms and over the last 10 years, more than half of all dairy farms have implemented a revegetation program (Dairy Australia), showing its increasing popularity in the 21st century

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26
Q

ECON FACTORS
Growth in demand for dairy products

A

The growth in demand for dairy products has increased at around 2.2% annually (Rabobank, 2021)

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27
Q

ECON FACTORS
Comp Adv - Aus/NZ (2)

A

In an average year, 60-65% of cattle feed requirements in south-eastern Australia comes from grazing, resulting in cost-efficient, high quality milk production (Farm Online)

As a result of Australia’s above average profits in the last 3 years, 64% of dairy farmers express their confidence in the industry (Dairy Australia) = more likely to invest (in technology) for the growth of their business which leads to growth of the industry

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28
Q

ECON FACTORS
Comp Adv - EU

A

There is competitive advantage in EU dairies which house 23 million cows (Politico, 2019) due to high subsidies granted by governments

29
Q

ECON FACTORS
Comp Disadv - USA

A

USA experiencing a 13% dairy product price inflation (ABS Global)

30
Q

ECON FACTORS
Consum Dem - Health Conscious

A

Plant-based drinks market forecasted to reach a value of US$19.7 billion by 2023 (Statistica, 2022)

31
Q

ECON FACTORS
Consum Dem - Asia (essay para)

A

Asia’s forecast of 65% middle class by 2030, cultural integration for more westernised diets and food scares such as the 2008 melamine baby formula incident

China accounts for 33% of Australia’s dairy exports (Dairy Australia)

32
Q

ECON FACTORS
China Demand + 2 Chinese Companies

A

In China, demand for dairy products has surged 4x (CGTN 2018) in the past 60 years

New Hope Dairy invested into a joint venture with LPC and Moxey Family 2015 $100mil deal - purpose of this was to enter the value chain into the Chinese market

Mengniu Dairy Company - proposed $600 mil deal to invest in dairy manufacturing in Australia e.g. Dairy Farmers, Pura - they currently buy 825mil litres from around 280 Australian dairy farmers

33
Q

ECON FACTORS
Mobility of capital/labour
Starting statistic

A

Dairy farms are mostly family owned and employ 38,000 people directly in Australia (Dairy Australia)

34
Q

ECON FACTORS
Mobility of capital/labour
Traditional farms can’t compete bc agribusinesses but what do the latter keep doing anyway?

A

To achieve economies of scale, agribusinesses are facilitating farm mergers/acquisitions, its impact evident through the decline of dairy farms from 22,000 in 1980 to 5213 in 2020 (Dairy Australia)

35
Q

Mobility of capital definition

A

Mobility of capital refers to the ability to attract new investment which is vital to increase efficiency, productive capital and drive new employment

36
Q

Mobility of labour (def + 2 statistics)

A

Definition of mobility of labour: attracting employment at a sustainable rate

As herds need to be milked at least 2x/day, “lack of labour is an increasing problem” (Fiona Perrich, co-owner of Leppington Pastoral Company)

Australia’s historically low unemployment rates (3.5%)

37
Q

Ideal locations/latitudes for dairying

A

The ideal location for dairies are 45-60°N and 30-45°S, in areas of temperate climates with mild temperatures between 4-24°C

38
Q

How much have herd sizes increased by?
+ why

A

Increased by 350% in order to reduce milk production costs to a national average of 40c/L (Dairy Australia)
- this would be in spatial patterns of comm. dairy essay

39
Q

LPC herd size change

A

The founding of the enterprise in the 50s included an area of 242ha and 200 cows > present situation of 560ha and 3000 cows

40
Q

Universal economic activity (commercial dairying) introduction

A

Commercial dairying is considered a global primary agricultural activity, a capital and labour intensive farming that involves the rearing of dairy cattle for the production of milk to be sold as or processed into cream, butter, cheese or dried milk products. It is a constantly growing industry as global milk production increased by 64% in the last three decades (FAO, 2021) and employs 240 million worldwide due to increasing global dairy demand.

41
Q

For economic activity impacts essay - what are the 3 impacts and their smaller subsections?

A

Environmental - including pollution and resource use

Social - including cultural integration and labour exploitation

Economic - including job creation and transfer pricing

42
Q

ENVIRON. IMPACTS - POLLUTION (4)
Remember there’s 2 types to talk about

A

In the U.S. more than 50% of milk is now produced by 3% of the country’s dairies, those with more than 1000 cows (US Dept of Agriculture)

The release of dairy farm emissions are prevalent through the production, manufacturing and transportation processes where dairying emits 2.4kg of CO₂ per kL of milk (Dairy News Australia)

Farm consolidation exacerbates (pollution of waterways), as a 2000-cow dairy generates more than 240,000 pounds of manure daily (EPA, 2021)

This increases the turbidity and decreases the biodiversity of riparian ecosystems, resulting in ⅔ of rivers and ¾ of lakes in New Zealand being unfit for swimming due to the impacts of 6.5 million dairy cattle (Greenpeace, 2016)

43
Q

ENVIRON. IMPACTS - RESOURCE USE (2)

A

It takes approximately 1000L of water to produce 1L of milk (Water Footprint Network)

Water Act 2007

Note: could talk about effluent but essay is alr pretty long

44
Q

SOC. IMPACTS - CULTURAL INTEGRATION (2)

A

Asia’s forecast of 65% middle income earners by 2030 (The Guardian, 2019) and 2008 melamine baby formula incident

China accounts for 33% of Australia’s dairy exports (Dairy Australia)

45
Q

SOC. IMPACTS - LABOUR EXPLOITATION (2)
- job security
- ESKi

A

As cows need to be milked 2x/day, employees are guaranteed job security especially as milk production has increased from 6bL in 1985 to 9.7bL in 2015 (SMH) where in 2009, approximately 70% of dairy farms employed non-family members (Dept of Agriculture)

Australian dairy industry aims to inhibit labour exploitation through the Employment Starter Kit initiative (ESKi) providing up-to-date information on pay rates and legal obligations where >2000 are in circulation (People In Dairy, 2022)

46
Q

ECON. IMPACTS - JOB CREATION (3)

A

Farm numbers decreased from 22,000 in 1980 to 5213 in 2020 (Dairy Australia)

Majority age proportions of farmers from 1981 to 2011 increased by 20 years from a median age range of 35-39 to 55-59 (NSW Enquiry into Dairy Sustainability 2021)

Regional multiplier effect outlining 1 dairy job creates 2.5 other jobs

47
Q

ECON. IMPACTS - TRANSFER PRICING

A

Australia 30% tax rate (BYPASSED BY LARGE AGRIBUSINESSES)

48
Q

Universal enterprise introduction

A

Leppington Pastoral Company (LPC) is a family owned economic enterprise operating within the commercial dairying industry. LPC produces 7% of Sydney’s drinking milk, primarily due to its capital and labour intensive nature on its 560 ha plot 50 km SW of Sydney’s CBD in Bringelly.

49
Q

LPC opening stat (for nature of the economic enterprise)

A

Leppington Pastoral Company (LPC) is a family owned economic enterprise established in 1951 by the Perrich family

50
Q

LPC (for nature of the economic enterprise)
# employees
# cows

A

LPC consists of 100 on-site full-time and temporary/seasonal employees and 3000 Friesian-Holstein cows, with a large milk production capacity of the A2 niche

51
Q

What goes on in LPC (for nature of the economic enterprise)

A

LPC’s cows are milked 3 times/day in a technologically innovatively designed herringbone milking parlour (Westfalia Surge Magnum from Germany) that operates 24 hours/day, while the majority of their 560 ha farm used to grow feed

52
Q

Everything to do with LPC selling milk (for nature of the economic enterprise)

A

Milk is sold at an average of 60c/L to the A2 milk company and boutique cheese makers (due to being a ‘premium health product’)

53
Q

Milk production LPC (for nature of the economic enterprise) - 2

A

LPC produces 7% of Sydney’s drinking milk, i.e. 30 million L/year

Each cow produces 41L of milk/day, 2x the national average

54
Q

HERD COMFORT LPC (for nature of the economic enterprise) - 2

A

Their herd is provided with 3 large undercover sheds

Fans start when the temperature is above 21˚C and misting at above 24˚C to control temperature and manage cow susceptibility to heat stress, therefore maximising output

55
Q

Location of LPC (enterprise)

A

LPC is located 50km from the Sydney CBD in Bringelly on a 560 ha plot, on the rural urban fringe

56
Q

ENTERPRISE - LOCATIONAL FACTORS
What are the 3 factors?

A

Biophysical Factors (Climate)

Biophysical Factors (Topography & Soil)

Sociocultural Factors (Site, Urban Market Proximity & Mobility of Labour)

57
Q

Locational Biophys Factors - Climate (4)

A

Optimal temp for milk production 4-22 degrees
Bringelly 10-22 degrees with 502mm annual rainfall

Western Sydney typically experiences temperatures 10°C higher than eastern suburbs - thus LPC fans

Aus drought prone - especially in NSW where temperatures were the warmest and rainfall was the lowest on record between 2017 to 2019 (NSW Department of Environment)

LPC relies on its 6km piped water line connecting it to the Nepean River and 2 remaining dams, one holding 1680 megalitres of water, for irrigation purposes

58
Q

Locational Sociocultural Factors (Site, Urban Market Proximity & Mobility of Labour) - 4

A

Backpackers make up part of LPC’s 50 full-time and temporary/seasonal employees

With an 8 hour shift, higher labour availability contributes to the 24 hour operations of the enterprise where its herd of 2000 Holstein Freisian cows are milked 3x/day

Majority milk goes to A2 = prompts maximum production = producing over 30 million litres/year

LPC’s 2 refrigerated tankers of 30 000L and 37 000L (ability to bulk sell and achieve economies of scale)

59
Q

Analyse the changing spatial and ecological dimensions of ONE economic activity

What are the main points?

A

Spatial Dimensions - Biophysical Factors

Spatial Dimensions - Economic Factors

Ecological Dimensions - Ecological Factors

Ecological Dimensions - Biophysical Factors

60
Q

Analyse the changing spatial and ecological dimensions of ONE economic activity.
Spatial Dimensions - Biophysical Factors (4)
Para 1

A

Occurs in temperate latitudes between 45-60°N and 30-45°S, where major dairy production regions include Western Europe, North America, Asia and the south east coast of countries in Oceania

Rainfall over 950 mm

Ideal temperature being between 4-24°C as milk production could drop by 30% out of this temperature range (Dairy Global)

Transhumance often in Mediterranean and Alps

61
Q

Define transhumance

A

Transhumance involves the migration of livestock between mountain pastures in warm seasons and lower altitudes the rest of the year

62
Q

Analyse the changing spatial and ecological dimensions of ONE economic activity.
Spatial Dimensions - Economic Factors

A

Growing consumer demands for dairy products at 2.2% annually (Rabobank, 2021)

63
Q

Analyse the changing spatial and ecological dimensions of ONE economic activity.
Ecological Dimensions - Biophysical Factors

A

California has a summer average of 29°C (NASA Earth Observatory) which not only dries out pasture grasses but also stresses cows, limiting milk production

64
Q

BC Dairies (for transport in technological factors)

A

Farmers in BC dairies in Canada use complex refrigeration methods where milk is chilled to 4°C in Mueller tanks which can store up to 100,000 gallons prior to pick up by transport trucks. Regular monitoring of milk temperature is conducted through a Time Temperature Recorder and enables these dairies to be located in rural areas.

65
Q

Kyvalley dairy (for international transport in technological factors)

A

An Australian family-owned dairy, their utilisation of flexitanks since 2009, a self-supporting, insulated reinforced tank placed in shipping containers have facilitated their export and longevity of the 18000L of fresh milk per tank to international customers, as a leading exporter of fresh pasteurised milk to South-East Asia. In conjunction with their distribution of fresh milk to China through airfreight technology in 1L bottles since 2012, this has allowed Kyvalley Dairy to increase their accessibility of international customers

66
Q

Useful names to know

A

Peter Munro (professor at Riddet Institute)
Professor Yani Garcia (USYD)
Dr Michael Pyman (senior lecturer at Melb Uni)

67
Q

A2 and LPC proximity to one another

A

19.6 km away
20 minute drive

68
Q

EU milk production

A

EU 23 million cows - produced 160.1 million tonnes of raw milk in 2020 (Politico, 2019)

69
Q

Comp adv def

A

Competitive advantage refers to the advantages of dairying in some regions enabling them to produce more, reduce costs and set lower prices, thus making them more competitive in the global market

Geo-graph-y (10 decks)

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