Establishing the dairy enterprise
Opportunities for investment
There are a number of opportunities for investment that are offered by the exciting continuing growth of the South Australian dairy industry.
These include:
- Purchase of existing dairying operations by new entrants to the region
- The expansion of existing dairy farms by existing owners
- The conversion of non-dairying farming properties (for example sheep or beef cattle grazing) into dairy enterprises
- The development of contract dairy feed production operations
- The development of contract heifer rearing and management facilities
In addition, opportunities exist for young dairy farming families to enter into sharefarming arrangements with existing dairy enterprise owners. A range of sharefarming agreement models exist, capable of being structured according to the appropriate sharing of risk and return by the parties, and the relative levels of equity that entrants to an agreement may bring.
The business requirements
Consulting and advisory input
The growth regions of the South Australian dairy industry are well-serviced by a number of dairy specialists in the fields of:
- Dairy business management
- Nutrition
- Dairy conversion project management
- Herd health and general management
- Environmental management systems
Agribusiness
The growth regions of the South Australian industry are also well serviced by leading agribusiness firms and product suppliers, offering the full range of product and service support.
Finance
A number of specialist financiers have an active investment portfolio in the growth regions of the South Australian industry, including traditional and agribusiness bankers.
There are also a number of syndicate investors in the industry who are actively interested in increasing their investment in large-scale enterprises in the production sector of the industry.
Environmental management
The dairy industry at a national level has developed an integrated program known as “Dairying for Tomorrow” which creates a platform for programs across industry to take responsibility for managing the integrity of the dairy industry’s natural resource management.
The industry in South Australia has developed - in conjunction with relevant local and state government agencies - a number of regional programs and initiatives that create a positive platform for sustainability of production through best practice.
The industry and State Government support industry growth balanced with a responsible approach towards natural resource management and sustainability.
Disease risk management
The dairy industry in the state has also developed a proactive livestock disease risk management strategy in consultation with government agencies, dairy companies and dairy farmer organisations in other regions. This strategy aims to ensure a managed approach to disease risk that is not a significant commercial impediment to cattle trading for future development of the industry’s productive capacity.
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Last Updated: October 31, 2007, 12:14 pm
URL: http://www.dairyindustrysa.com.au/opportunities_for_investment/establishing_the_dairy_enterprise