Dairy challenge in focus
The dairy industry tackled the big issues facing the market including staff retention, small profit margins and producer prices at WA’s major dairy conference in Busselton yesterday.
A capacity crowd of dairy farmers, processors and members of the business community attended the Western Dairy Business Breakfast at Abbey Beach Resort.
Western Dairy chairman Vic Rodwell said the day-long conference was an opportunity for the WA dairy industry to “set the record straight”.
Dairy Australia commercial and research analysis manager Norm Repacholi told the crowd a recent survey indicated only 60 per cent of WA dairy farmers felt positive about the future of the industry, compared to 75 per cent nationally.
This was despite strong economic factors and robust employment in WA supporting consumption in the market, he said.
Dairy industry development specialist Rob La Grange said the WA dairy industry benefitted from high demand, experienced farmers and proximity to Asian neighbours.
But small profit margins, an ageing population of farmers and high wages were the challenges facing the WA dairy industry.
Busselton dairy farmer Ed Cox spoke to the audience about his experiences of taking over the family business Waterhatch Dairies.
Mr Cox said the WA dairy industry had a bright future and he had expanded his business during the last decade because he saw opportunities in the sector.
He said the dairy industry had potential to grow exports thanks to cheap grain, good grass, affordable land and plentiful water.
When asked how the industry could attract and retain younger dairy farmers, Mr Cox said there was “no silver bullet”.
He said set-up costs were prohibitive and banks were reluctant to lend money to those starting out. Milk prices must improve to yield bigger profits to lure young men and women away from high paying fly-in, fly-out jobs, he said.
Busselton dairy farmer Oscar Negus attended the conference and said there was scope for the industry to focus on improving efficiencies to boost profits.
“In our industry we haven’t seen the huge rewards as they do in cropping, ” he said. “We’ve been steady for a number of years but not lucrative.”
As the Times went to print yesterday the WA Dairy Conference was underway, featuring a roster of high level speakers including new Harvey Fresh general manager Paul Lorimer.
A question and answer session with representatives from major processors Brownes, Lion and Harvey Fresh was expected to stir some lively debate.
