2019, Volume 22, Paper 6

ISSN: 2209-6612

Going Corporate Dairy Farming

Wolfgang Wagner – Faculty of Veterinary and Agricultural Sciences, University of Melbourne, Parkville.

Bill Malcolm – Faculty of Veterinary and Agricultural Sciences, University of Melbourne, Parkville.

Abstract

In this paper, whereabouts in Australia might a corporate firm invest fruitfully in dairying, and which key things they would need to “get right” to succeed, are explored. The dairy industries in South-west Victoria and in Tasmania enjoy a stable production environment. South-west Victoria offers opportunities for repeatable performance and competitive returns to capital by using a dairy farm system based on pastures, moderate stocking rates and with feed demand closely matched to the patterns of annual pasture growth. Corporate investors could aim at pasture-based dairy farm businesses milking 400 to 600 milking cows, that, with good management and staff and managing risk well, over a run of years could earn returns to capital in the top quartile of farms in the region. Top management with family farming fundamentals allied to good corporate governance is essential. To succeed, corporates need to get the internal incentives right, achieve above-average performance in the key areas, and manage all the risks very well, in the context of the whole farm system.

Key words: Dairy farming, corporate farming, South-west Victoria, Northern Tasmania, risk

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