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	<title>Dairy Investment WA</title>
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	<pubDate>Thu, 02 Oct 2008 21:56:31 +0000</pubDate>
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		<title>No regrets in ‘smart move’ to WA Courtesy of FARMWEST NEWS</title>
		<link>http://dairyinvestwa.com/updates/no-regrets-in-%e2%80%98smart-move%e2%80%99-to-wa-courtesy-of-farmwest-news/</link>
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		<pubDate>Wed, 10 Sep 2008 03:29:43 +0000</pubDate>
		<dc:creator>Andrew</dc:creator>
		
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://dairyinvestwa.com/?p=264</guid>
		<description><![CDATA[Jackie Shawcross and her husband Rohan made the smartest move of their lives when they started dairying in Western Australia; within 12 months their net income had more than tripled.
“We got an incredible surprise the other day,” Jacqui recalls. “I phoned the bookkeeperfor an income estimate to organise finance for somefarm equipment. She sentme back [...]]]></description>
			<content:encoded><![CDATA[<p>Jackie Shawcross and her husband Rohan made the smartest move of their lives when they started dairying in Western Australia; within 12 months their net income had more than tripled.</p>
<p>“We got an incredible surprise the other day,” Jacqui recalls. “I phoned the bookkeeperfor an income estimate to organise finance for somefarm equipment. She sentme back a block of figures and it just blew me away.</p>
<p>“My husband and I both sat there speechless. We had no idea things would be thisgood when we left Victoriato go to Western Australia.” </p>
<p>The decision to move to Scott River in the Margaret River region followed 17 years sharefarming and<br />
managing dairy farms in northern Victoria. “We were both managing separate farms,” Jackie said.</p>
<p>“They were both completely different enterprises; I managed a herd of 280 stud Jerseys while Rohan<br />
was milking 600 Holstein-Friesians on a big-scale farm. “We decided that if we were going to milk cows we might as well do it together.</p>
<p>We looked around Victoria but the drought made it very scary. Everything was so reliant on irrigation - we wondered if should we risk it, or should we stay with what we’re doing.”</p>
<p>They saw a sharefarming position advertised in a processor newsletter, but it was way across the other<br />
side of the country. “We wondered ‘do we want to move this far way?’ But we flew over and had a look,” said Jackie. </p>
<p>First impressions were very favourable, she continued. “The climate was a big plus. We came over in December and yet it was very mild, neither real cold or hot and there was regular rainfall.</p>
<p>Everything was reasonably green and yet it wasn’t irrigated. We thought that was impressive and we started to really consider the prospect of coming over to buy cows and build assets.”</p>
<p>They worked through the budgets for a low-input farm. “We thought ‘it almost sounds too good to be true’. But no, it’s been that good. In fact, it’s been better than we thought,” she said.</p>
<p>“We will own our cows outright within two years of starting and our own tractor in three years.” They sold their new house in Victoria, paying off the remaining mortgage debt and bought 380 cows, mostly Holstein-Friesians with the occasional Jersey and Jersey crossbred. “A good commercial herd,” said Jackie.</p>
<p>They bought the cows from the man whose property they are sharefarming - Ross Woodhouse. He had owned the farm, one of three he owns, for 15 years. The Shawcrosses came to a dryland farm of around 405ha, complete with good laneways, an excellent fertiliser history and an adequate milking set-up - a 15-year-old, 28-unit swingover with auto feeding.</p>
<p>The cows, however, were a challenge. They came off another Woodhouse farm and were used to a rotary dairy. They were also the autumn calvers of a year-round herd, so calving “was a bit strung out”, said Jackie.</p>
<p>“There hasn’t been too much slog, although the calving was difficult. We weren’t set up. We were making calf pens as the cows were dropping the calves. We walked straight into it and we didn’t have the feeders when we needed them. “It was an equipment shortage and hopefully this year we’ll be a little bit more organised. And we’ve tried to keep the joining to an eight-week period.”</p>
<p>Making sure they get organised is their consultant, Glenys Hough, who crunches all the figures and helps secure finance through the banks. “Glenys did most of the dealings with the bank for us and it was so easy, the fellow was really keen to promote the dairy industry,” said Jackie.</p>
<p>“It’s just been astonishing. “It was a big jump but we haven’t felt that at all.” The couple, both 38, also<br />
faced the task of moving their three children - Henry (14), Gary (12) and Courtney (7) across the  country. “The kids breezed through it all, they were great,” Jackie said. “When we decided to go sharefarming we sat down and talked to them. </p>
<p>We explained that it would mean moving out of our new house, they asked ‘where are we going to go?’ “We got out a map of Australia and they sat there with their eyes getting wider and wider when we pointed to the other side of a map. But they just said ‘fine, fine. If that’s where you want to go we’ll go to school tomorrow and tell them we’re leaving’.” </p>
<p>And so Jackie and Rohan packed the three kids, the cat and dog into two cars and the family drove across the country to a new life. “The kids had only been at school for two days and they came home and said ‘we love it here’. They made friends straight away,” said a relieved Jackie. “It hasn’t been hard work.” </p>
<p>The parents too, found the transition easy, helped by the strength of the country. Jackie said: “It’s amazing country, you have to see it to believe it. It rained soon after we arrived and there was a foot of water laying on the paddocks and yet the grass was still growing. It’s very sandy so it doesn’t pug.” It is also very productive.<br />
This season they cut 3000 tonnes of pasture pit silage as well as 140 big round bales of silage off 117ha. Supplementary feeding ranged from 8kg/cow/ day to 2kg, just to keep the rumen healthy. </p>
<p>Nor do the Shawcrosses have to stress about buying in grain. “We don’t have to forward buy,” said Jackie. “We know that in Western Australia there’s a lot of fodder available so we just deal with a stock feed agent. There’s a lot of fodder around. We can always purchase some.” </p>
<p>Ross gets an agronomist to soil test annually and, apart from a regular annual urea application and a bit of lime, there hasn’t been a heavy fertiliser regime. Nor has there been any need for pasture renovation. </p>
<p>The Shawcrosses discuss major decisions with Ross and Glenys but the day-to-day herd management decisions are theirs. “When to dry off or when to join, it’s our decision,” said Jackie. </p>
<p>They could lift the stocking rate, although the dairy capacity could limit the amount of cows the farm carries. The couple works together and each milking takes three hours to the completion of washdown. </p>
<p>Ross is considering installing a rotary and that will require staff, together with on-farm accommodation for the new workers. “Down the track we’d love to purchase this place but it depends on the figures,” Jackie said. “And then we think ‘we’re doing so well here why change anything?’ </p>
<p>Once we own the cows perhaps we’ll invest in property off-farm. We love it here. It’s a great farm, in a great community and perhaps stay here and work for Ross. You know, there’s not a down </p>
<p>END</p>
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		<title>Dairy Invest, Is more milk good for farmers?  By  Steve Hossen, courtesy  FARMWEST News</title>
		<link>http://dairyinvestwa.com/updates/dairy-invest-is-more-milk-good-for-farmers-by-steve-hossen-courtesy-farmwest-news/</link>
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		<pubDate>Mon, 01 Sep 2008 07:20:02 +0000</pubDate>
		<dc:creator>Andrew</dc:creator>
		
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://dairyinvestwa.com/?p=259</guid>
		<description><![CDATA[Agricultural consultant Steve Hossen recently gave a presentation on what he thought about Dairy Invest and the industry plan to grow milk supply. By popular demand it is reprinted in here.
Dairy Invest - is more milk in WA good for farmers?
That’s a question I get asked.
Some farmers say to me:
“Dairy Invest = more milk = [...]]]></description>
			<content:encoded><![CDATA[<p>Agricultural consultant Steve Hossen recently gave a presentation on what he thought about Dairy Invest and the industry plan to grow milk supply. By popular demand it is reprinted in here.<br />
Dairy Invest - is more milk in WA good for farmers?<br />
That’s a question I get asked.<br />
Some farmers say to me:<br />
“Dairy Invest = more milk = no shortage = no price premium = no profit = Dairy Invest is no good.”<br />
“A milk shortage is good - it means I’ll get paid more.”<br />
“More milk in WA means the price will be watered down, I’ll get paid less.”<br />
“There aren’t enough cows in the State to produce more anyway.”<br />
“I hear about corporate farms, they’re no good, corporates don’t have a long term view.”<br />
“I don’t want to milk more cows &#8230; there’s nothing in it for me.”<br />
Is it true?<br />
Let’s have a look -<br />
“Less Milk = More Money”<br />
1. Some think we can shrink our way to prosperity - the Queensland industry’s already done it, demand is greater than supply and despite a high price there is little growth AND farmers are watching those trucks roll across the border to fill up demand - it’s the thin edge of the wedge.<br />
2. Farms lose the ability to grow - many farmers grow their business (sons and daughters to come home etc). If the market doesn’t grow too, there’s no room. The “growers” get bigger, the small guys get pushed out.<br />
3. Less milk = milk factories losing throughput, they drop least profitable processing lines, lose scale efficiency and don’t reinvest.<br />
4. Good money for now but no future for farmers. Service providers or factories have no opportunity to run profitable businesses.<br />
‘Red Sky’ has shown us that WA has a competitive cost of production compared to Victoria and NZ with the advantage of a flat supply pattern; this gives us a huge advantage in capturing<br />
Dairy Invest<br />
Is more milk in WA good for farmers?<br />
Steve Hossennew sustainable high price markets. The supply basis for WA growth is solid &#8230; unlike other states.<br />
“A milk shortage is good - it means I’ll get paid more”<br />
1. Pre-deregulation manufacturing milk was always a low price. Traditionally product was processed in Brunswick, Boyanup or Capel. Old, low throughput plants returned a low farmgate price. Remember cheese milk or over contract milk -13-17 cents per litre. Post-deregulation all milk was affected - without regulation those low price litres flooded the market place with nowhere to go = diluting the price.<br />
So what’s different now?<br />
1. An extra 85 million litres only gets us to what WA produced seven years ago - no more.<br />
2. 85ML of extra milk determined by industry is calculated. Processors have worked out exactly what they need to justify and sustain their business investment in WA.<br />
3. There is significant new product development and the realisation that SE Asia really is part of our growing domestic market. We can get high return product there quickly.<br />
4. Industry recognises it needs to self manage growth. This will be vital.<br />
* Delivery Right Units (DRU) within the Challenge Co-Op - takes in only as much milk as they have markets for.<br />
* NFL manage milk supply via contracts.<br />
* HF and Fonterra need a management program - have started with contracts.<br />
Upgraded manufacturing facilities = higher value products.<br />
The ability to meet niche markets = better farmgate returns.<br />
“There aren’t enough cows in the State to produce more anyway”<br />
1. 100 cows have 40-45 heifers per year. Assuming 25-30 cows per 100 are culled each year and 10% of heifers are empty. State herd could double in seven years!<br />
2. WA could breed enough heifers if:<br />
* Beef bull is not used in the herd - dairy bulls only.<br />
* Sexed semen used on heifers, will give extra numbers for milking or selling.<br />
* The export market for heifers will still be there - as long as they compete on price. A great opportunity for farmers to increase income.<br />
“Corporate farms - why consider them?”<br />
1. 85ML = 12,000 cows = $100m capital - that’s a lot of $$$ to find. With global food shortages and financial stockmarket risk - investors are now seriously considering soft commodities as a safe long term investment .<br />
2. Corporates bring skills and pointy attitude that can benefit the whole industry -<br />
* They seek long term supply/price contracts.<br />
* Tight focus on what is core business and what can be outsourced.<br />
* Strict performance hurdles, problems corrected quickly.<br />
* New ways of doing things, funding, job descriptions, people management.<br />
The facts: The backbone of the industry is still the family farm and extra milk can flow from many sources -<br />
* From existing herds (feeding, fertiliser).<br />
* Extra cows from existing farms (Plus15).<br />
* Re-starting closed dairies.<br />
* Making use of beef land, leasing, agisting.<br />
* Beef conversions.<br />
* Feedlot conversions.<br />
“I don’t want to milk more cows &#8230; there’s nothing in it for me”<br />
1. There is a wide range of opportunities<br />
* Leasing or sharefarming, great proposals when the infrastructure is good - spreads the $$$, the risk AND the workload, gets young people into farming.<br />
* Give up milking but stay in dairy - heifer rearing, agistment, fertiliser application, calf rearing. There is room for specialists. Let’s capture the skills of those “non milkers”.<br />
* Different management models are available. They are based on working together in formal partnerships to build wealth and assets.<br />
So is more milk in WA good for farmers?<br />
1. Shrinking our way to prosperity is not real - it is short term and will drive out many farmers.<br />
2. The opportunities are real on many levels (industry level to individual farm business).<br />
3. Our skills are excellent for future growth (efficiency and competitiveness).<br />
4. Specialisation can go to a new level (beef is not the best alternative, use those ex-dairy assets to create real money).<br />
As an industry we can be smart about growth and only tackle what can make us prosper. That’s what Dairy Invest is about, processors and farmers working together to build a future.<br />
Are Government and industry and farmers excited about the future - you bet!</p>
<p>Courtesy of  Farm West News</p>
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		<title>Dairy Invest, who is chipping in?  Courtesy of  FARMWEST News</title>
		<link>http://dairyinvestwa.com/updates/dairy-invest-who-is-chipping-in-courtesy-of-farm-west-services/</link>
		<comments>http://dairyinvestwa.com/updates/dairy-invest-who-is-chipping-in-courtesy-of-farm-west-services/#comments</comments>
		<pubDate>Mon, 01 Sep 2008 07:02:12 +0000</pubDate>
		<dc:creator>Andrew</dc:creator>
		
		<category><![CDATA[Uncategorized]]></category>

		<category><![CDATA[Farmwest Services]]></category>

		<guid isPermaLink="false">http://dairyinvestwa.com/?p=258</guid>
		<description><![CDATA[As Western Dairy Chair Jacqui Biddulph recently explained, the Department of Agriculture and Food and industry has really got behind Dairy Invest.
“I have been overwhelmed at the support Dairy Invest has received, particularly from DAFWA, not just the dairy team, but also the Trade and Development Unit. Dairy farmers should feel excited that their industry [...]]]></description>
			<content:encoded><![CDATA[<p>As Western Dairy Chair Jacqui Biddulph recently explained, the Department of Agriculture and Food and industry has really got behind Dairy Invest.<br />
“I have been overwhelmed at the support Dairy Invest has received, particularly from DAFWA, not just the dairy team, but also the Trade and Development Unit. Dairy farmers should feel excited that their industry is viewed so positively by government,” she said.<br />
From a small amount of seed funds sourced from Dairy Australia, Western Dairy has been able to leverage $120,000 in resources and value from DAFWA and the four major dairy processors to put towards a huge range of actions, resources and supporting materials. With additional in-kind project management from Western Dairy, the total industry investment for Stage 1 of Dairy Invest is over $153,000.<br />
The Dairy Invest business case was developed by consultant Glenys Hough and has already been used widely. Jacqui Biddulph says: “We have been able to present the facts about investment in dairy and this has generated a significant amount of interest from other farmers involved in agriculture.”<br />
The Dairy Invest website also has been receiving a large number of hits, with the DVD video played 760 times on You Tube.<br />
Now with further support from DWA, processors, DAFWA and a number of other investors keen to get involved, Stage 2 of Dairy Invest is working on a range of support materials for farmers including explaining sharefarming and leasing options, outsourcing or specialising in dairy support services (agistment and specialist calf rearing etc), managing risk in a growing business.<br />
Jacqui Biddulph says the success of Dairy Invest so far is down to the high level of cross industry support it continues to receive from all sectors, looking to re-establish dairy as a force in agriculture in WA.</p>
<p>Article supplied by  Farm West Services</p>
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