Tasmania leads the nation with record milk production and is on track for 10 per cent growth for this season with most coming from existing farms with more cows and better seasonal conditions.
For the first four months of this season production is 14.6 per cent up on last year compared to the national average of 3.8 per cent, according to the latest Into Dairy update.
The state’s dairy farmers are on track to increase milk production to almost 900 million litres by end of the 2014-15 season.
DairyTas chief Mark Smith said there had been some new dairy conversions this year with more planned. Under the IntoDairy program, 12 dairy conversion plans have been funded for new operations throughout the state including the Derwent Valley and Central Highlands.
“With seasonal conditions drying out quickly, the expectation is that production growth will ease over the coming months. Some summer rains will be welcome for our dairy farmers,” Mr Smith said.
Milk price, he said, is under pressure but is holding around $6 a kilogram of milk solids.
“Milk processors are still predicting that they will hold to the average price despite the ongoing pressures on international commodity prices.”
Third-generation dairy farmer Travis Dick, 40, milks 550 Holstein cows on his farm at Flowerdale on the North-West producing 4.1 million litres a year supplying milk processor Tasmanian Dairy Products’ plant in Smithton. He also runs 250 Angus beef cattle.
“It’s a good industry, but no longer is it a family farm instead it’s a multi-million dollar business and you need to approach it as such,” Mr Dick said.
“You have to have drive to succeed, it’s tough riding out the highs and lows of commodity prices, just one cent per litre variance can have significant impact on dollars out of the business.”
Mr Dick said further expansion would come outside through partnerships.
“It’s tough to get into the industry and I would like to see more support for younger farmers to start up so we can have a sustainable future.”
To help, DairyTas is offering new financial and business management programs for dairy farmers.
DairyTas chairwoman and dairy farmer Cheryl McCartie said the programs involve a series of practical workshops to support dairy farmers gain more knowledge and understanding around managing financials and their overall dairy business.
“The courses are important to help farmers take advantage of the business opportunities dairy offers and to equip them for their future in the industry,” Ms McCartie said.
“With more dairy farms opening up we expect to see demand for skilled managers to increase so we must support the career pathways for existing farmers.”
More information on these programs contact DairyTas on 6432 2233 or email [email protected].
Source: news.com.au