Case Studies
SOUTH EAST – LARGE HERD
SNAPSHOT
Name: Port MacDonnell Dairying
Location: Lower South East
Number of Cows: 900
Main feed systems: Irrigated pasture from overhead spray (centre pivot) with grain and hay/silage supplements.
Port MacDonnell Dairying is located in the Lower South East of SA, close to the coast at Eight Mile Creek. We spoke with the Manager, Jared, about the operations and the benefits of farming in this part of the State...
The Farm & Feed Systems
Port MacDonnell Dairying milk about 900 Holstein Friesians on a 50 head rotary and have been operating this farm since late 2003. The farm comprises of 465 hectares, with an additional lease block (less than 2km away) for heifers. On the main farm 230 hectares are irrigated by overhead spay (pivot), with a new pivot recently being built. The lease block also has overhead spray irrigation.
Port MacDonnell Dairying is focused on growing high quality and quantity feed and cows graze all year round on the pastures. The pasture base is predominantly Perennial Ryegrass and White Clover. Port MacDonnell Dairying feeds 3.5 tonnes per head of pasture for the milking herd with supplements of 2.5 tonnes per head of grain and 1 tonne per head of conserved fodder. Silage is home grown and hay is generally bought in.
Port MacDonnell Dairying milkers average 9000L per year, with cows milked twice per day. Calving is split: 60% in spring and 40% in autumn.
The Benefits of Dairy Farming in the Lower South East of SA
Port MacDonnell Dairying is one of the largest herds in the region and is part of the current trend of increased investment in dairying in the Lower South East of SA. It is recognised that, as a region, the South East of SA provides some great benefits to those looking to invest in the industry in SA – especially large herds. Jared explained some of the reasons why Port MacDonnell Dairying chose to invest in the area.
Access to high quality and quantity water was one of the major drawcards. With the focus on pasture, access to water for irrigation and the high rainfall climate make this area ideal for year-round pasture based systems.
The area is also very well serviced for dairying. From the general dairy supply store to consultants and processors, the Lower South East provides everything at easy access for dairy farmers. With five major milk buyers in the State having a presence in this region, Jared noted the benefits of being able to choose who to sell your milk to, rather than having only one or two options.
Jared said that one of the major benefits of farming in this region was that there were other large herd farms close by to network with, providing a ready source of information and motivation. Port MacDonnell Dairying is a member of a Production Focus Group (similar to a Dairy Discussion Group) where six of the high production farms gather to compare production targets and figures, as well as deal with relevant issues. Pasture monitoring and testing is a very regular occurrence, rather than something that’s only done when the local agronomist drops in.
Access to grain and fodder is also a benefit, with the Upper South East being a grain/hay producing area.
Why I like dairy farming…….
Jared’s dedicated to his chosen profession and is highly motivated to do things well and make a difference to the business. He’s recently become an equity partner in the business and sees dairy farming as an opportunity to quickly make business gains. He said it is as an ideal industry for young people as there are many opportunities for business and equity growth, whether in cows, shares or an operating percentage. Jared recognises to achieve this you do need to be dedicated, motivated and enthusiastic about what you do, and all indications show that this is paying off for him.
Plans for the Future
With profit and productivity as a focus, Port MacDonnell Dairying is looking to expand to over 1000 cows in the future.
They are focused at this time on fine tuning the huge developments that have been made over the past couple of years, with eliminating pasture species and soil fertility limitations a key goal. Jared recognises by increasing quality pasture production to over 20t/yr, this will provide more quality feed for the herd and therefore herd numbers can increase.
FLEURIEU PENINSULA – VALUE ADDED PRODUCTS
SNAPSHOT
Name: Alexandrina Cheese
Location: Fleurieu Peninsula
Number of Cows: 120
Main feed systems: Dryland pasture with grain, mineral and silage supplements.
The McCaul family have been dairy farming at Mt Jagged on the Fleurieu Peninsula since 1973. Following dairy deregulation the McCauls decided that they either needed to increase herd size, re-locate or value-add. The family chose to enter into the value adding market, manufacturing cheese with their premium Jersey milk. They began manufacturing premium quality cheeses in their purpose built factory in 2001.
Using the expertise and knowledge of Dan's father, Kevin McCaul, a fancy cheese specialist, Alexandrina Cheese Company make traditional style cloth-bound rinded cheddar, a Dutch style edam and gouda and a range of boutique dairy products.
We spoke with Kystyna McCaul to find out more about the Alexandrina Cheese operation...
The Farm & Feed Systems
Alexandrina Cheese is situated on the Fleurieu Peninsula at Mt Jagged, near Mt Compass. It’s a short drive from Adelaide, close to markets and the passing tourist trade. Operating as a close knit family business, there are three generations of the family involved.
The McCauls milk about 120 Jersey cows, with no intentions of increasing herd size. In fact they have reduced herd size over the last few years, with the aim to only produce enough milk for the cheese operation.
The farm is pasture based, with the majority of the 111 hectares managed as dryland pasture. They have a small area of irrigation (8 hectares) and supplement with grain and silage. Silage is home grown and grain is bought in. Grain is being sourced at the moment from the SA Mallee region. Hay is only purchased in years when feed is short and is sourced locally when possible. Some minerals are fed, with the requirements being set in conjunction with the local feed merchant.
The dairy is a 9-aside swing-across herringbone and cows are milked twice per day.
The McCauls focus producing their pasture naturally and, whilst the farm isn’t organic, they try to minimise chemical inputs.
The Benefits of Dairy Farming on the Fleurieu Peninsula
The McCauls love dairy farming on the Fleurieu Peninsula and cite assured rainfall, a temperate climate and an easy living environment for the cows AND people as benefits. They are able to maintain a good clover based pasture with few inputs and are in close proximity to markets.
While many dairy farmers on the Fleurieu produce milk for the larger factories, Alexandrina Cheese's niche products mean that proximity to retail markets is a major benefit of the area. The closeness to Adelaide and the renowned Adelaide to Victor Harbor tourist route mean that a large slice of the SA tourist market drives past the farm and retail outlet all year round. Alexandrina Cheese operate their own distribution chain to local and Adelaide markets.
The trend of consumers wanting to know about their food and its origins places Alexandrina Cheese in a good position, with a retail outlet on the farm. They sell their products at the Willunga Farmers’ Markets, allowing them to get to know their customers and can provide sound information on not only their product, but also the region and modern dairy farming systems.
Why we like being in the dairy industry…….
Krystyna admits that value adding milk is not an easy road and - with Alexandrina Cheese farming, manufacturing, disturbing, retailing and wholesaling their own products - the workload has certainly increased and sometimes she dreams of "just being a dairy farmer"! However they capitalised on an opportunity at the time of deregulation and that was an ideal time to move into the niche marketing business.
The McCauls believe that being able to produce a high quality fresh product on natural pastures is a good business to have. Having the opportunity to be involved in the chain from paddock to plate, with close contact with the end consumer, is one of the reasons they enjoy their niche area of the dairy industry.
With the ability to produce and market wholesome and nutritious dairy products, which are created naturally in one of the oldest and most renowned dairying regions of SA, Alexandrina Cheese is certainly a showcase for the dairy industry in SA.
Plans for the Future
Alexandrina Cheese is halfway through their 10 year plan, with most areas exceeding expectations. They are currently refining and consolidating all the development of the past 5 years and keeping to their vision of a South Australian based family business producing a high quality dairy product for SA markets. There are currently no plans to expand nationally but they may consider interstate markets in the next few years.
RIVER MURRAY – FAMILY FARM
SNAPSHOT
Names: Michelle and Steve Afford
Location: River Murray
Number of Cows: 200
Main feed systems: Flood and fixed sprinkler irrigation for the milking herd, with heifers and dry cows on dryland (65 ha irrigation; 820 ha dryland)
Michelle and Steve farm on the river flats near Murray Bridge in SA. They farm with Steve’s parents and Steve’s brother runs a dryland property at Brinkley.
The Farm & Feed Systems
The Affords milk about 190 Holstien Fresians in a Herringbone dairy, with cows milked twice a day. They use irrigated and dryland pasture systems with about 49 hectares on flood irrigation on the Murray River Flats and 16 hectares of fixed sprinklers on higher ground. The milking herd utilises the majority of this irrigated feed.
Heifers and dry cows are grazed on dryland pasture. The majority of the dryland area (about 820 hectares) is used for hay, cropping and heifers. Hay and grain is used as supplementary feed and, where possible, it’s all home grown.
The Benefits of Dairy Farming on the River Flats
The Lower Murray has recently been through lengthy and sometimes controversial reform, but for those that remain the benefits of dairy farming in this area are significant.
The availability of water was highlighted as one of the biggest benefits of dairying on the river flats. Although Michelle noted that currently (Winter 2005) the season is not great, with the whole of SA receiving extremely low autumn rainfall, generally rainfall is reliable and the climate is relatively mild and well suited to dairying. This means that feed supply is generally constant and the farm can rely on home grown feed rather than buying it in.
The Affords' farm is not far from the Dairy Farmers Jervois factory and it’s recognised that this is a benefit, with milk easily transported to the factory. Although there has recently been a decline in dairy farm numbers in the area, the dairying community is still strong and Michelle commented that this means that there are good farm suppliers in the area, a good support base for farmers and like-minded neighbours.
The Affords' river flats are privately owned. Therefore they have been constantly maintaining the swamps (encompassing the irrigation layout/infrastructure) over the years. This means that they have less rehabilitation work to do than some of the government-owned swamps. They recognise the environmental benefits of the rehabilitation work and think that it will make some aspects of managing their flats easier.
On the river flats there isn’t a lot of room for expanding the farm unless the neighbours sell. However, on the high ground there are generally good opportunities to expand.
Why we like dairy farming…….
The Affords believe that, as an agricultural industry, dairy farming isn’t as prone to large price fluctuations as some of the other rural industries, such as sheep, beef and cropping. The Affords believe that the regular income throughout the year benefits their business and gives them the ability to plan ahead.
The seasonal stress of finding feed and looking for rain is reduced by their access to a good quality and quantity of irrigated pastures, ensuring the milking herd has a constant source of high-quality feed.
Michelle recognises that, like most jobs, you have to love dairying to be a dairy farmer. She says the hours are long but the benefits outweigh the negatives. She recognises the benefits of having a family farm, appreciating that they didn’t have to start from scratch.
Plans for the Future
Whilst dairy farming is 'in the Affords' blood', they realise the importance of maintaining a business focus, making decisions based on strong business principles.
Inefficiencies in the dairy were recognised to be impacting on the business, so they are currently building a new dairy. They have no current plans to expand the existing viable herd, but the new dairy will increase efficiency in terms of time spent in the dairy.
Last Updated: October 31, 2007, 12:14 pm
URL: http://www.dairyindustrysa.com.au/dairying_regions_in_sa/case_studies