‘‘Every agricultural industry in Australia faces volatility and each one has similar issues around what prices are going to do,’’ Mr Carroll told Country News.
‘‘What that means is that you have to have inherently low cost structure, so your cost of producing milk solids has to be really low and competitive.
‘‘The challenge is that all of your inputs keep going up.
‘‘That means you have got to adjust your underlying productivity and keep making improvements.
‘‘That’s where research and development plays a key role, finding better ways to grow grass and converting it to milk. That’s basically what you are doing.
‘‘When prices do pick up you need to know how to crank up production quickly to capture improved prices.
‘‘You need a cost variable that you can wind up and down.’’
Mr Carroll recently resigned from the Gardiner Dairy Foundation Board, where he was a member for six years, and believes Gardiner’s financial systems are in better shape than when he joined, from account management through to audit processes.
The foundation, established by funds generated by the dairy industry’s de-regulation, now holds investment capital of more than $100million.
Mr Carroll said the organisation had developed more efficiencies by reducing staff numbers and focusing on smaller number of core projects to fund.
‘‘And putting financial rigour around what projects will make a contribution to the industry.’’
The investment core is generating around five to six per cent grossed-up yield, so that is money available to generate each year.
Mr Carroll was chair of the foundation’s Finance, Investment and Audit Committee.
He has more than 25 years’ experience in the food and agribusiness sectors and currently serves as chair of the Australian Rural Leadership Foundation; is a director for Tassal, Select Harvests, Sunny Queen, Paraway Pastoral Company and Rural Funds Management; and is a committee member of the Marcus Oldham Foundation.
He has previously held board positions with Warrnambool Cheese and Butter, Queensland Sugar, Rural Finance, the Australian Farm Institute and Meat and Livestock Australia.
Mr Carroll believes Gardiner should continue to invest in areas that Dairy Australia and governments do not spend in, as well as research and development in feed base and pasture production and genetics.
‘‘We have done some innovative projects with the processing sector, including one project where engineering students were placed in processing factories.
‘‘If we improve production efficiencies they can afford to pay more for milk.’’
Gardiner has invested consistently in development of industry leadership and sometimes sponsors people through the Australian Rural Leadership Development Program and the Nuffield program.
Mr Carroll is a fourth generation farmer and his family has been involved in farming for more than 140 years.
He will continue combining his various corporate and not-for-profit board positions with time on his beef property in western Victoria.
Source: SheppartonNews
Link: http://www.sheppnews.com.au/rural/2017/01/04/68138/productivity-will-drive-dairy