Dear Everyone,
Please, can I join in?
I have been involved in the dairy industry for over fifty years and the
message has always been the same, especially since about 1967.
"Farmers must become more efficient .... rationalise ... specialise ......
get bigger OR GET OUT!"
Where does it all end?
How many cows must a farmer milk next year to stay in front? In ten years?
The farmers today are some of the best that ever were on the land when it
comes to efficiency.
The knowledge bank, built on with successive generations, has never been
greater but still you MUST become more efficient ... why?
It is not just dairying but every facet of primary industry is under
pressure perhaps I should add secondary industry, too.
Why?
What is the basic cause of our problems?
Is there a workable solution to this drive for more efficiency which at
present is destroying the sanity of good and honest folk?
The BIG question: Is primary industry working through a plan of destruction
or our leaders and their advisors incapable of dealing with the real
problems faced by farmers?
You can't have it both ways!
This is where the real discussion should be but I doubt it will be allowed
to continue.
Best regards, Lou
----- Original Message -----
From: "Frank Tyndall" <ftyndall@ozemail.com.au>
To: <vicdairy-l@unimelb.edu.au>
Sent: Monday, January 30, 2006 1:43 PM
Subject: Re: Dairying
> Dear all,
>
> I too get frustrated when I know some farmers are struggling, and the
> industry could do with more milk. Mostly, not always, I believe there is
> one major reason.
>
> There is a lot more milk to be produced, and a lot of money to be made in
> dairying if the fundamental, the feeding, is efficient and profitable. I
> know farmers (both sharefarmers and owners) who are lifting milk
> production greatly and making very good money.
>
> To get the feeding profitable, two efficiencies (BOTH, at the same time)
> must be achieved. Hectare efficiency and cow efficiency. The land and
> the herd are major resources, cost a lot to buy, and cost a lot to run.
> They both must be physically efficient. This means that the hectare must
> produce a lot of grass and the cow must produce a lot of milk. The
> hectare inputs (fert, water, grazing) have to be right and the cow must be
> fed well, all the time. Get both efficiencies wrong and you will think
> dairying is a mug's game. Get only one right, you will be probably be ok
> in the good years only. Get both right and you're laughing.
>
> The weather, the rain, capital investment, labour, all I agree have a big
> effect, but converting feed (grown or purchased) into milk is the basis.
>
>
> Just because I manage this list doesn't mean I shouldn't have a say
> occasionally. If you have a slight feeling about something, have a blast,
> send an email, no-one will mind, it's fun!
>
> Regards
> Frank
>
> Frank Tyndall
> Dairy Consultant
> VicDairy-L manager
> Box 1011
> Sale Vic 3850
> ftyndall@ozemail.com.au
> 0409 940 782
----- Original Message -----
From: "Trevor Mills" <trevm@tpg.com.au>
To: "VicDairy-L (GippsDairy-L)" <vicdairy-l@unimelb.edu.au>
Sent: Sunday, January 29, 2006 9:19 PM
Subject: Re:Dairying
> Hi everyone,
>
> Couldn't let this opportunity pass without having my say about the future
> of the dairy industry.
>
> While the issue of the weather and a lack of rain is a factor in our
> profitability it is by no means the only factor and lets face it we have
> no control over the weather so therefore must deal with it in the best way
> we can.
>
> But back to the dairy industry. Both David & Vikki have both been some
> what pessimistic about the future of the industry. I have to say that I
> agree with them. In the past 3 years, in my area alone I have seen at
> least a dozen young people exit the dairy industry. When I say young, I
> mean in their late 30's early 40's. Many of these farmers I have had
> relief milked for in the past so I had some inside knowledge as to the
> type of farms they were on and more importantly how good at farming they
> where. In most cases they were excellent farmers, having completed farm
> apprenticeships and done various farm management courses. They were the
> type of people the dairy industry desperately needs and in the age bracket
> where they should have been at the peak of there farming careers.
>
> Most didn't want to leave the industry and several times I saw the wives
> in tears as their dairy cattle were sold at the local dairy sale. When
> asked why they left the industry the response is always the same. "WE"VE
> HAD ENOUGH. We were working our butts off 7 days a week and were getting
> no where financially".
>
> All these young farmers had one thing in common, they were either share
> farming, leasing or trying to purchase there own dairy farm. The only
> young dairy farmers I know (if you can call 40+ young) that are surviving
> are those who took over the family farm with very favourable terms and
> conditions.
>
> To get an understanding of the state of the dairy industry, one only needs
> to take a drive around a dairy farming region. Last year my wife and I
> took a drive through the "prime" irrigation areas around Shepparton. We
> were both disappointed with what we saw. Most of the farm houses were old
> and run down and the milking sheds were no better and there was old junk
> and machinery everywhere. All sure signs of an industry in desperate need
> of a major injection of capital.
>
> In the past the dairy industry has continued to increase milk production
> even though the price we receive for our milk has not kept pace with other
> costs. This has been achieved through better per cow production, better
> understanding of pasture and improvements in technology. Will this
> continue? I don't think so. Not because we have reached the limits of what
> is possible on our farms. I believe most farmers could almost double their
> current production, but to do so they would need two things. A BIG
> injection of capital, in the way of vastly improved milk prices and also a
> massive increase in skilled labour.
>
> Right now most farmers are trying to milk as many cows as possible and
> doing so as a family unit, because they can't afford to employ people to
> help, and they're tired, very tired. Those who do take the next step and
> milk even more cows and then employ someone to help, usually struggle to
> justify the cost of employing that labour. It amazes me how often you hear
> the stories of these large dairy herds making a financial loss year after
> year. That's not to say that all large dairy herds make a loss, but my
> accountant shakes his head in disbelief each year when many of his clients
> who milk 400+ cows continually loose money each year.
>
> We've had a reprieve in the exodus for this season with slightly better
> milk prices, but it's only a reprieve. If the milk factories announce a
> drop in price for the coming season and/or we have a bad weather
> conditions then watch the exodus continue. The milk companies must be
> wondering where their milk is going to come from in future, if not, then
> they should be.
>
> Dairy Australia is telling us not to talk down the industry and to
> encourage the young to enter the industry, but how can we possibly do that
> on past history. One of the well known dairy companies has recently been
> promoting how dairy farmers can become millionaires in assets, but not
> cash. I guess that could be accurate if you are prepared to work 7 days a
> week for 40 years and have all your spare cash go into paying off they
> farm. Not much of an incentive to become a dairy farmer if you ask me.
>
> Anyway enough of a whinge from me. Vikki said "WHY STAY", I say WHY START.
>
> Excellent rain here at Drouin South. 30mm so far and more falling right
> now.
>
> Trevor Mills
>
This archive was generated by hypermail 2b29 : Tue Mar 07 2006 - 02:38:03 EST