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TAS Country : July 2010
24 Tasmanian Country Friday, July 30, 2010 Tassie a top low-cost spot for dairyCHEAP GRASS: The lower cost of producing pasture helps Tasmanian dairies achieve better figures. MARK FERGUSSON TIAR Dairy Centre ANNUAL surveys of dairy farm income, costs and re- turns for all Australian states over the 10 years to 2009 show that the average return on assets (ROA%) for Tasmanian dairy farms was higher than for other Australian states. ROA% is a useful indi- cator to compare dairy farm profitability between re- gions. The average annual ROA% for Tasmanian dairy farms for the 10 years to 2009 was 3.2%, the aver- age for all Australian states was 2%. The relatively high re- turn on assets achieved by Tasmanian dairy farms ex- plains, at least in part, why Tasmanian milk pro- duction increased by 17% over the decade to 2009 while Australian milk pro- duction declined by 8%. The ROA% including capital appreciation aver- aged 8.4% pa for Tasmanian dairy farms over the 10 years compared to 6.3% for all Australian states (see table). The high average ROA% achieved by Tasmanian dairy farmers is the result of having a low cost of pro- duction, asset prices for land, livestock and plant that are below the average for Australia and milk prices that are comparable with the prices paid in other states. In 2008-9 the cost of pro- duction on Tasmanian dairy farms was the second lowest among Australian states at 38 cents per litre compared to the average for Australia of 43 c/L. Western Australia has had the lowest cost of milk production for the last few years but the survey figures show this advantage is off- set by high asset values and low milk prices hence Tas- manian dairy farms tend to have a higher ROA% than WA. The low cost of milk production in Tasmania is the result of Tasmanian dairy farmers using more low cost pasture. High rainfall and the availability of water for irrigation means Tasman- ian dairy farms have high pasture yields and low cost pasture production. The advantages of high investment returns, high pas- ture growth, low production cost and reasonable asset prices assisted the Tasman- ian entrants in the national 2010 Dairy Business of the Year awards. Grant and Melanie Rogers of Ouse won the award for the best low input farm (14% ROA) and Wayne amd An- gela Huisman of Togari won both the share farmers award (15% ROA) and the award for the highest dryland pasture utilisation (12.6 tDM/ha). Calves think rice is nice COPRICE Premium Calf Pellets have been a wonderful success for the VDL Co at Smithton. Now in their second season of using this highly palatable prod- uct, VDL could not be happier with the re- sults that they have achieved. The high quality protein (20 per cent) and 11.75 MJ/ME kg pellets have been achieving weights above previous years despite being younger. The palatability has been a key feature with the VDL calves taking to them immediately. The CopRice Pre- mium Calf Pellet in- cludes Bovatec and a specially formulated vitamin and mineral premix for increased feed conversion ef- ficiencies. Continued page 25 CopRice Premium Calf Pellets Premium Rice Hull Calf Bedding • Highly palatable • Improved Feed Conversion • High Quality Protein (20%) • Includes Bovatec • Well Buffered • The preferred choice of calf bedding • Insect resistant • Improved insulation, avoid dampness • Inedible • All natural and biodegradable • Economical and clean alternative • Available in 125 KG bales Freecall 1800 029 901 • www.coprice.com.au CopRice is a division of Ricegrowers Limited, trading as SunRice. CR0202CRH. Pre-order calf tags and be prepared for pickup THERE IS nothing worse than running out of tags, on bobby calf pickup day. If you miss, it's another week or more of extra milk, extra labor and full calf pens. Bison Enterprises can help out by ensuring a speedy turnaround on tags, from order to deliv- ery. They will use airbag freight and high priority production schedules. The most effective course is to order ahead. Ordering ahead saves running out at critical ti- mes and saves on transport by using road freight in- stead of airbags. Tags are exceptional in quality and durability. Bison Enterprises is the distributor for Stock- brands Co sheep and calf tag, a Western Australian company known for ser- vice and quality. Key benefits are: large post will not bend when piercing; toughest plastic avail- able; single movement ap- plicators designed so post is held in position when piecing through ear; and fast delivery. Return on Assets % 00/09 ROA% ROA% Inc Cap Appn Tas 3.2% 8.4% NSW 1.2% 5% Vic 2.5% 6.8% Qld 0.5% 4.4% SA 2.5% 6.1% WA 1.8% 7.1% Aus 2.0% 6.3% Advertising feature Calf rearing Tasmania Wanted to Buy Holstein Friesian heifers Purchasing from 12 weeks old on forward contracts. Top dollars paid Ph. Bernard Atkins 0417 593 158 Ph. Frank Steers 0418 141 081 Export Wanted Holstein Friesian heifers From 180 -- 320kg. Top dollars offered Phone all agents listed below GST MAY APPLY. PHONE A VICSTOCK AGENT FIRST Bernard Atkins .............................. 0417 593 158 Frank Steers .................................. 0418 141 081 Adam Crawford ........................... 0400 550 412 Peter Collins ................................. 0427 547 145 Kurtis Grey.................................... 0428 562 718 Greg Duke ................................... 0407 882 595 (North West / State Manager) (South) (North) (North West) (North West / Export Co-ordinator) (North East) 2028917-100730 All types of quality grains available -- wheat, barley, triticale, lupins, oats Coprice Bulk Pellets now available TFES agent -- no paper work required Buying Local Grain NOW GRAIN AND STOCKFEED SALES AND SERVICE TSS SPECIALISES IN: • ALL WHOLE AND ROLLED CEREAL GRAINS, PROTEIN FEEDS & PELLETS • CALF FEEDS & DAIRY COW ADDITIVES (nutritional advice also available) For information and further enquiries please call Trevor Macleod Mob 0427 913001 PH 63911188 Fax 63913188 Email: email@example.com 2004881-100730
August 5th 2010