eastAUSmilk FNQ Trip

Last week the spotlight shone on the FNQ dairy industry, showcasing its strengths and drawing attention to aspects which do not allow it to expand and flourish. The whole board of eastAUSmilk, their CEO, Eric Danzi and Government Relations Manager, Mike Smith, their staff and the President and CEO  of Australian Dairy Farmers, Ben Bennett and  Stephen Sheridan had the privilege to meet, visit and discuss the future direction of industry with the local dairy farmers. The team visited 10 local dairy farms to gain an insight into dairying in the tropics and the challenges it brings. Dinners were held giving the farmers a chance to meet and chat  with the board, staff and ADF delegates. EastAUSmilk staff were able to assist with applications for the disaster recovery grant from the effects of Cyclone Jasper,  resilience plans for the Drought Preparedness Grant and the opportunity of the On Farm Connectivity Grant. FNQ local dairy farmers support and enthusiasm was outstanding. Our visitors were also able to visit some of our renowned tourist spots and marveled at the picturesque Atherton Tablelands countryside and hospitality.

Geographically, Far North Queensland dairy farmers are isolated. With a yearly average above 1.2 metres rainfall with high humidity and one major processor, our isolation means that on all our inputs there is a freight component (about 25% above SEQ prices). This automatically has an impact on the cost of production/ profitability, herd fertility, lameness, incidence  of clinical mastitis, increased SCC which all put increased pressure on production, herd management and milk pay bonuses. It cannot be emphasized enough that dairying in the tropics is like dairying in no other area.

Milk production and farm numbers have continued to decrease over the last 3 -5 years. Factory intake has decreased year on year of around 4 million litres annually and our farm numbers are down to 35. Supply to our local markets is short for significant periods of time throughout the year. This shortfall has been made up by shipping milk from Victoria and when it allows South East Qld. Putting in place a new milk system to allow FNQ farmers to produce this shortfall profitably has fallen on deaf ears. Remembering our area once produced 135 million litres annually with the longest milk run in the world, we have the capacity and knowledge to make up the difference if it were profitable.

Like everywhere else in Australia, competition for land use is high. This translates to large increases in land values. Competition in FNQ has come from beef production, other horticulture/tree crops, FIFO mine workers investing and retirees looking for lifestyle. When dairy farms leave the industry rarely do they come back as dairy farms and the opportunity for young farmers to purchase or lease farms is very limited.

Whatever the solution is to FNQ’s decreases in production and farm numbers it has to be recognized that dairying in the tropics has challenges, freight has a huge impact on profitability and if farms are profitable, farmer perceptions of our industry will have a significant impact.

Paul Newland, eastAUSmilk Board Member

eastAUSmilk Board and Staff visit FNQ

On the 5th of February, the eastAUSmilk board and staff travelled to Far North Queensland to visit our members in Malanda, Milla Milla and Atherton as part of the semi-annual face-to-face board meeting. We spent the week visiting a number of farms and engaging with members, including several dinners with excellent turnouts.

Due to the recent impacts of cyclone Jasper, eastAUSmilk staff were also able to assist with applications for the disaster recovery grant, which can be used to help rebuild damaged roads, laneways and fences, as well as clean up and replace machinery. We were also able to assist with more resilience plans for Drought Preparedness Grant applications.

In total, the majority of the board visited 8 farms, discussing the diversity and challenges of dairy farming on the Tablelands, which differ significantly from other areas. All of the farms have a unique way to combat their challenges, and it has been most interesting to see the methods behind each. While it is a high rainfall area, the soil does not readily hold moisture, and this also brings its own challenges such as maintaining accessible laneways and additional care being required by the cows themselves.

While we unfortunately couldn’t visit everyone, it was fantastic to catch up with most of our members over the four dinners we had during the week. These were spread between regions to be convenient for each region. With an average of 40 in attendance at the first three dinners, representing the majority of eastAUSmilk members, there was some great discussions on a wide range of topics.

We appreciate the hospitality of all our FNQ members for making the week such a great success and hope to be able to return soon.

By Letisha Johnson, eastAUSmilk Project Officer