LORRAINE Robertson loathed the idea of sending milk to Fonterra below the cost of production last season.
So after the price was cut in May, Lorraine and husband Brian moved quickly to direct milk to better returning income streams and diversify their business.
She said it was about “limiting the losses”.
They reared all their autumn and spring calves, “turning milk worth 39.39 cents a litre into 80 cents a litre or more”, feeding it to bull calves that were sold into the profitable beef market.
The next step was to cut the milking herd from 300 to about 150 and lease 22ha of their property to a potato producer.
Lorraine said their situation would have been “dire” without the drastic action.
“It doesn’t even bear thinking about, it makes me feel ill,” she said.
Downsizing and diversifying has enabled the couple to continue in the dairy industry. They have heifers coming in this season and their herd will swell to 220 cows. There will be costs associated with turning the potato land back into productive dairy pastures, but the couple say it will also provide an opportunity to make changes to help the layout of the farm.
Lorraine is grateful she can continue in the industry.
“I’m quite enthusiastic about dairy, I don’t have a problem with dairy, I have a problem with processors and their integrity,” she said.
“I’ve never had an issue with dairy — none of this was created by my cows, our ability or management. It was corporate greed which put us in this position.”
http://www.weeklytimesnow.com.au/agribusiness/dairy/couple-supplying-fonterra-grow-more-potatoes-to-cut-losses/news-story/60a65fa19b944f8e977c9df0f4d0ce3b
