In this episode, Jon Paul Driver and Tim Ford caught up with with Denis Johnson from JT Johnson’s. Founded in 1923, JT Johnson’s is a family-run business now in its fifth generation and has been a key player in the Australian stockfeed industry for nearly a century. Based in Kapunda, South Australia, they focus on exporting hay, producing equine pellets, and selling wine. They recently celebrated their 100-year anniversary.
Episode Highlights:
- There are concerns about potential oversupply in both Australia and the US. Natural events like droughts and floods regulate this supply to some extent. However, there is a limit to how much the market, especially in Asia, can absorb.
- There is a severe supermarket duopoly in Australia which is currently a major topic at the federal government level. This market dominance is not only impacting consumers who are already paying high prices, but even more so for suppliers and growers, who are facing severe disadvantages.
- There’s a need to ensure that growers can sustain their businesses, and at the same time, it’s crucial to make products affordable so customers can also maintain sustainable operations.
- Opportunities in China’s dairy industry are emerging as the market reopens after political issues and companies remain understandably cautious. If managed well, however, China could become a significant market again.
- Despite China’s reopening, it’s wise to also consider other regions. The Middle East, for instance, presents a substantial opportunity for the export market due to its potential for growth.
- Emerging markets, particularly in Southeast Asia, are demanding higher-quality products and proteins. The region cannot produce feed sources as efficiently as Australia, presenting opportunities for sustainable and profitable exports.
