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Secret Dairy Farmers' Business
If you thought giving away your business secrets was bad farm management, think again. A group of dairy farmers in Tasmania's north west did just that, and reaped great benefits in the process.
The Total Dairy Farm Business Management Group (TDFBMG) was set up as a dairy farm benchmarking group, with the primary aim of improving the profitability for each of the ten dairying businesses involved. The Agriculture - Advancing Australia (AAA) FarmBis program supplements 65% of the group’s costs, such as employing farm consultant Penny Williams as facilitator.
Group chairperson Grant Archer was also instrumental in the process of putting together this group of farmers who would be happy to open up their businesses to scrutiny. The group – including spouses – meets quarterly for a full day at one of the dairy farming properties. There they digest the farm’s financial and physical data and listen to the host farmer talk about his or her particular problems. Together they discuss all possible options for improving the business.
“At the end of the day it is about how much grass is being consumed per hectare. A farm can be productive but not profitable”, says Penny, “however, having 20 brains working at a problem when it is costing the farmers only $30 to $40 for the day is good; whereas if they'd got in a farm consultant it would probably cost them nearer $1,000."
Following these discussions there is a tour of the host farm, an evening meal and a talk by an invited speaker.
The success of the group, says Penny, lies in the fact that the members feel comfortable about divulging business information.
"The group members act as consultants to each other. Members now have the ability to ring each other and ask each other questions and discuss problems over the phone. Because of the trust this can happen."
As a result, farmers within the group have changed their farming practices because of what they have learnt from the other members, such as improving fodder crop yields, pasture and fertiliser management and financial thinking.
Group members Chris and Suzanne Cowley, a couple in their 30s from Circular Head, running a share farming dairy business, concur on this point. "You can learn from like-minded farmers, improve knowledge, check input costs against other farmers, and compare practices," Chris said.
"We've picked up things from others which would have taken us a lot longer to find out for ourselves."
Their aim is to buy their own property and they see this FarmBis supported training initiative as helping them to get there faster.
In the autumn of 2004 the group began the two-year process of re-visiting each property and seeing what changes have been made since the first visit and the first input of ideas. Hopes are high that some big improvements will be seen among these dairy farmers' businesses in the hills of the state's north west.
FarmBis Contacts
The program provides financial assistance to primary producers and rural land managers to undertake business and natural resource management education and training activities. Note: Eligible activities may differ between participating States and the Northern Territory.
Email: Farmbis
Website - www.farmbis.gov.au
Phone - Freecall 1800 686 175