THE STORY of Bulla Burra collaborative farming is one Mallee farmer John Gladigau has often told.
While he always highlights the benefits of collaborative farming, he does not necessarily recommend it as a way forward.
But he said it had worked well for himself and fellow Mallee farmer Robin Schaefer.
"This year is our sixth harvest as Bulla Burra," he said.
"It's allowed us to access technology we would have only dreamt of on our own.
"Average machinery cost is $50 a hectare less, compared to when we farmed on our own."
Mr Gladigau was a guest speaker at the GRDC Farm Business Update, held at the Adelaide Convention Centre on Thursday last week.
He said an independent board chairman was crucial to an effective collaborative farming venture .
"You need a board with an independent chairman focused on strategy to ensure the venture is as professional as it can possibly be," he said.
"The board helps ensure the focus is on profitability and productivity."
Mr Gladigau said there were several core principles that needed to be followed for a successful collaborative business.
"For a collaborative farming venture to work you need to differentiate between real estate and agribusiness," he said.
"Most dryland farmers in Australia struggle to realise that they are actually running two enterprises, a real estate business and operations business, and both need to return a profit for long-term sustainability."
Mr Gladigau said it was also important that machinery was utilised effectively.
"Our machinery is not the biggest or the widest, but it is the machinery with which we gain the most efficiency," he said.
Collaborative farming ventures also relied on creating cells and replicating them. In other words, matching machinery, labour and infrastructure required to most efficiently farm a given area of land.
* Full report in Stock Journal, November 20, 2014 issue.