Conference draws on shared experiences

This was the central message at the annual DairySA Conference at Hahndorf on Wednesday last week, which was headlined by the theme 'Lessons from across the fence.'

Dairy Australia's Farm Business Management Capabilities program manager Neil Lane said farmers selected for the live panels were working in similar environments to those of many SA dairyfarmers.

"They're managing their stocking rates and calving rates to when the grass is growing," he said.

Many of the dairyfarmers he dealt with were constantly reviewing their feed situation.

"If they see they will be running out of fodder, they step into the market," Mr Lane. "With hay you generally find they buy it off the baler - it's cheaper that way."

The top farmers were also very aware of their overall business.

"They're conscious of the milk price but not driven by it,'' he said. "The important number is the margin, not the milk price."

Selecting three farmers, two from Vic and one from WA, Mr Lane said these farmers had similar environments to SA, were not irrigated and did not have high rainfall.

Vic dairyfarmers Ken Jones, Kergunyah, and Phil Boschma, Heywood, said the key to their systems was to focus on what could be managed, rather than external pressures.

"We're not worrying about the milk price so much as looking at what we can control," Mr Boschma said.

These included pasture management and animal health.

Mr Jones said farmers should think hard before finalising buying decisions. "Don't overcapitalise on machinery - this can sometimes involve using contractors," he said.

"There are some things you can't do without and some things seem like a good idea at the time and can be a big cost to the business."

Any investment needed to be weighed against the outcome.

"If you have to overpurchase to achieve a certain productivity gain then the returns can be impacted," he said.

"The cost of production can be higher than the benefit."

Mr Boschma said there was always pressure to perform, particularly when looking at debt levels, but there was a fine balance between underperforming and performing to meet costs.

"We have to perform or the banks will be knocking on our door," he said.

The conference also included a session on transitioning the farm between generations, with examples from four Vic families.

Session convenor Onfarm Consulting's John Mulvany said it was important for the next generation to get "runs on the board" to gain the confidence from those who held the assets.

DairySA chief executive Verity Ingham said the conference program was intended to share information that farmers had asked for, particularly on succession and profitability.

"We often hear farmers like to learn from other farmers," she said.

"There are something specific to regions but in some things, regions don't matter, like succession and profitability."

Ms Ingham said the conference numbers were up on last year.

"It's really good to see such a number of farmers," she said.

Ms Ingham said the conference was a chance to pick up some technical know-how and network, while the White Gold dinner that night was a chance to celebrate what was great in the industry.