ON THE same day two dairy processors made announcements about their farm milk price, Gippsland dairy farmers gathered to hear how some of their industry colleagues had weathered the previous financial year.
Last Wednesday, Murray Goulburn (MG) announced it would maintain its opening price of $6 a kilogram of milk solids and Fonterra announced softer farmgate prices as the Australian dollar lost value.
And the 15th annual South Gippsland Dairy Expo opened to clement weather as dairy farmers and their families enjoyed a day out at Korumburra.
Many of those attending were suppliers of either MG or Fonterra and took advantage of the 84 exhibitors to find out about the latest innovations in equipment and fresh information on animal health, fodder and soil available to the dairy industry.
A highlight of the two-day expo was the panel of Gippsland dairy farmers who talked about the impact of the previous financial year on their businesses.
Facilitated by on-farm consultant Matt Harms, this year's panel was asked "Was 2012-13 a celebration or hangover?"
Mr Harms set the scene, recalling the peak milk prices paid in the 2013-14 year following a very tough dairy season in 2012-13.
On the panel were Neville and Sherrie Beveridge, who milk 230 cows at Mt Eccles; Leo and Karen Argento, with 350 milkers at Wooreen; Tim and Grit Cashin, Leongatha South, who have 280 cows; and Russell Mann, Rabobank Leongatha.
The weather featured in the preamble as Mr Harms, Mr Mann and, in particular, Mr Cashin focused on the wet weather of 2013 and its effect.
"The very wet season led to a lack of grass because the cows were pugging it in," Mr Cashin said, detailing how he has renovated 41 hectares "more than usual".
He developed two risk management strategies: one was to buy grain in considerably larger lots and crush it himself to feed the cows, and the other was to alter his farm's landscape to improve drainage and therefore the cows' access to pasture and reduce ground disturbance during future wet seasons.
His work has paid off, with milk production up an extra 1000 litres, passing last year's peak.
"Most of our milk is produced in spring so a very wet spring like we had reduces grazing and therefore milk production," Mr Cashin said.
Mrs Cashin detailed how the farm debt from 2012-13 was paid by Christmas 2013 "so we were able to invest in the farm this year".
They also compared milk companies and ultimately changed who they supplied milk to.
Mrs Beveridge discussed prioritising payments and how the 2012-13 financial year's income had made it difficult to pay invoices on time.
They had to purchase a replacement tractor as well.
"Feed and fertiliser is one bill that is ongoing and can not be ignored," Mrs Beveridge said, outlining her strategies for negotiating with suppliers to ensure the business could continue operating during 2012-13.
She was particularly scathing about the lack of understanding demonstrated by representatives from her dairy processor.
"Improvement in this season means a lot of people have been able to catch up with creditors and pay for hangover jobs," Mr Mann said.
"People started catching up towards the end of 2013, during November to January (2014), depending on their fodder production.
"If they weren't able to cut silage and hay, they had to buy in feed, and that kept them struggling."
In contrast, Mr Argento described the season as "an absolute cracker".
"We run a very lean, low-cost, high-production farm so in a bad year that helps us get through," he said.
"A good year doesn't come around very often so I need to have everything lined up to take advantage of the season."
- Full story in the Stock & Land October 2 edition
