Report flags dairy farm potential
Dairy farms in Albany, Denmark and Plantagenet have the potential for "significant" expansion, according to a recent feasibility study commissioned by the Great Southern Development Commission.
GSDC contracted agricultural consultant Alan Peggs Rural to investigate prospective milk production expansion, with GSDC chief executive Bruce Manning presenting the findings at a Dairy Innovation Day at the Hortin dairy farm in Torbay, on April 30.
The report suggests the Great Southern region's mild climate, modest land prices and proximity to feed sources mean it has better potential to accommodate increased milk production than traditional dairy farming areas near Harvey and Capel.
According to the report, in 2010-11 there were 16 dairy farms in Albany, Denmark and Plantagenet, with 4400 milking cows.
Although the number of dairies remains the same five years later, only 12 of the farms milk more than 100 cows and the other four are small, boutique producers.
GSDC senior development officer Duane Schouten said modelling comparing costs and returns on investment for various sized dairies in the Great Southern against those in the South West was favourable.
"It is not a large area but we are seeing there is potential for returns to be higher, particularly with slightly higher milk prices, despite higher transport costs," he said.
"From my understanding, up to the late 90s the industry was regulated and there were about 28 dairy farms along the south coast and when the milk price was deregulated in about 1997, many merged or closed."
Mr Schouten said a second study comparing the different areas and types of dairy farms was being conducted to help inform potential investors.
"It is the early stages but we are speaking with a couple of farmers who are involved with Western Dairy about some visitors coming to look at the region in the future," he said.
