After 53 years, the Baccega family, grandfather Louis and Jan, son Laurie and his wife Brenda, have decided to quit milking cows. This decision was not taken lightly, but the Baccegas also run a stud Angus herd, and the discontinuation of milking will see them improve this part of the family business.
While the disfunction of the dairy industry may have aided some decisions for others, and possibly the Baccega family, circumstances and good farming practices aided a very good sale of their 120 herd last Friday at Warragul Saleyards.
Louis said they started with 42 cows on a farm at Tyers, and this grew to a herd of 130 head, now farmed at Morwell.
For the past 30 years there has not been a bull on the property with AI being the only method of conception.
I and many others have said how dairy farmers looking to exit the industry have been blessed with high prices for chopper cows. However, up until now, this has not been the case for herd dispersals.
Continued high prices for cull cows, a solid start to spring, and a big reduction in grain prices has also assisted in this sale’s good result.
The crowd was not large, but there was several buyers operating. What aided a good outcome was more confidence in the revival of dairying. There was a base in the market with a few farmers looking to purchase at a lower price level that was quite reasonable.
This confidence saw a top price of $3000 paid, and a total sale clearance averaging $1929. Not too long ago, it was a struggle to get over $1900 for a top cow.
Buyers came from outside of Warragul, where agent Alex Scott & Staff sold to a Shepparton farmer and also to south Gippsland accounts. Many locals were surprised at the strong outcome.
None of the day’s results took away from the fact that the Baccegas’ strong commitment to the breeding of their herd. AI gives producers the chance to select for particular traits in bulls.
However, this does not let Murray Goulburn nor Fonterra off the hook. Somewhere down the track there may be a day in court when the companies are taken to task, not only for the big price drop, but also the way it was implemented.
I found it mildly ironic that only the a couple of days before this sale, Fonterra announced a huge 65 per cent increase in gross profit. It was a real smack in the face to their suppliers, not only here in Australia, but more to our cousins across the ditch in New Zealand.
I am heading to New Zealand soon, for a holiday, and will try to ascertain how the natives feel about Fonterra’s huge profit after they inflicted such adversity.
So, where to from here for dairy farmers? I believe this saga has turned the corner, especially considering the strength of this recent sale. They are looking at a strong silage and hay season, lower grain prices, and hopefully some higher milk prices.
On a side note, it was very evident by watching the crowd, that not all where keen to step up. A lot of regulars attended the sale, and could only observe the sale, as prices were above their expectations.
What stood out to me was the enthusiasm of the Alex Scott & Staff selling team, led by young auctioneer Michael Robertson. Michael showed good skills, and showed signs of a great auctioneer for stud and dairy sales into the future.
