Dairy joint venture a good moove

JOINT venture and corporate investment is shifting the Tasmanian dairy farm landscape from smaller to larger cow herds.

DairyTas executive officer Jonathan Price said there was a shift in the makeup of the dairy farm sector.

“There are a number of farms that have increased milk production because of a shift to larger scale farms,” Mr Price said.

“It is possible corporate farms and joint venture investment is part of this change.”

There is no data on how many farms are corporate owned in Tasmania. At June 30 the milk production of Tasmania’s 420 dairy farms was 913 million litres, an increase of 9.5 per cent from the last year.

Mr Price said, according to a Dairy Australia’s survey, three years ago Tasmania had 15 per cent of its dairy farms milking less than 150 cows, now that’s dropped to 9 per cent. In the same three-year period there has been a jump in the number of dairy farms milking more than 700 cows.

“Today 21 per cent of Tasmania’s dairy farms are milking more than 700 cows, three years ago only 15 per cent of farms milked that many cows.” For a Smithton dairy farming couple its been win-win being in a joint venture for the past 13 months allowing them to expand and consolidate farm operation.

Ashley and Cherrylyn Ker farm at Pelican Point near Smithton and a joint venture with Laguna Bay Pastoral Company has been a positive move.

The couple had four operating dairies and a development/run-off block. As a result of the joint venture the Kers sold one dairy to Laguna Bay, sold half the development/run off block into a co-owned “development trust” with Laguna Bay anda bought a 20 per cent share in 40 South Dairies, which will milk 6400 cows on eight dairies this year, while developing two conversions.

The Laguna fund’s dairy holding in Tasmania spans more than 4000ha.

“The sale of a farm paid off debt, took off financial pressure allowing us to reinvest money into 40 South Dairies,” Mr Ker said.

“It’s the way of the future, really good business module. We are still growing.

“The joint venture is well supported, it was a good business and lifestyle decision. The business is performing well.”