Hi All
Interesting discussion so far, in that as far as I am concerned everyone who
has replyed so far have very valid points. But the fact is there is a rapid
exodus from the dairy industry, and while it may have abated somewhat
compared to recent years it has not stopped. I have no doubt that if we were
to see any sort of drop in milk prices for the coming season then the flood
gates will once again open.
So why is it happening. Rather than analysing the price of milk compared to
the price of production etc, I prefer to try and keep it a little more
simple than that.
I believe it all comes down to averages. In any business whether its dairy
farming or someone running a business in town, you have the average business
operator. On one side of the average you have your poor operators who will
probably always struggle to succeed and on the other side you have the elite
operators who will probably always succeed. But it is the average that make
up the largest percentage and they are the ones who keep an industry healthy
and viable. The problem we are now facing is that the average dairy farmer
is really struggling to make ends meet.
The reason for this I believe is that the bar is being moved to high too
fast and the average dairy farmer is being left behind. If you try to push
the all the average farmers into the elite catergory then you will be doomed
to failure. Not everyone is capable for whatever reason of becoming an elite
athlete just as not everyone is capable of become an elite farmer. Over time
with better education and knowledge the average will get better, but so will
the elite, therefore the average farmer will never catch the elite.
What we have happening now is that instead of the bar being moved up in
small increments which the average farmer may be able to adjust to, we find
that the bar is being cranked up at a rapid rate and less and less farmers
are able to make the adjustment.
There are many reasons for this happening, the global economy being one of
them. But the milk factories, dairy education system and dairy research
facilities have been for as long as I can remember been pushing the "produce
more" barrow at a rate which is difficult for the average farmer to keep up
with. What we need is slower approach, yes produce more, but lets do it at a
slower rate and in an economically viable way in which the average farmer
can cope with.
This approach with have now, of keep up, out or get out, is not helping
anyone and is just putting enormous pressure on an industry which needs less
pressure, not more.
Keep those emails rolling, vicdairy-l has been to quite for to long.
Regards,
Trevor Mills
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