Hi all, I could use some advice

2 posts

Member for

8 years 9 months
Last seen: 03/08/2018 - 21:05
Joined: 01/26/2016 - 09:18

Hi all, I could use some advice

Hello everyone.
we're new on this forum and glad to be here. First, I would like to introduce us a little bit, it also helps you to understand the plans in our mind. We're a couple, I was born and raised in Switzerland, Jacky in Australia, curently living in Canada. Both have background in farming. So, we want to move to Oz and our plan is, to start a small dairy after we sell our business here and after I'm legally aloud to work, as I'm not Aussie nor having PR.
Moving there and going through immigration process will give us plenty of time to find the right property. Well, now I don't even know where to start with all my questions..... there are so many! 


- Does it make sense to buy a property, some land only or is it better to lease?
- How come, "they" say, that a dairy normally starts to make a profit after 5-7 years?
- what are the registration cost for a small dairy?

- when I browse the internet for properties, I can see some "MEGS" numbers for water, what does that exactly mean and do I need a license to irrigate?
- Insurance cost?
- how often you get paid for the milk you sold? (weekly, monthly)
- other costs I may dont think about and I should know?

- what would you do different, if you could start all over again?


I consider the farm as a business, therefore I need a business plan, but to plan, I need numbers I dont have, where can I get them? For example, how much does a lease of an acre good grazing land cost me? 
We have about $300'000 to start with.. is it possible or shouldnt we dont even bother with it?

Our idea is to have about 50 cows to start with, no bull, only AI. How many acres do I need to have enough DM to feed them all? I know, it's about the location and rainfall and the soil... thats where I start to strugle.. In Switzerland we have so good soil, we feed 20 cows on 5 Ha year round.. with snow in winter, but in OZ things getting harder for me.. how many cows in lactation can I run per HA ? I think, if we have to buy hay to feed the livestock, then we're out of profit pretty quick... 

I wish, we can get some advice of people here, some ideas or maybe even connections on here. Even just someone to talk with and asking questions of someone who knows how things exactly work in Australia.

I think, that will do for now, may there will be more questions coming after a while anyway...

 

Last seen: 12/26/2018 - 09:21
Joined: 05/31/2011 - 09:44

Hi Marty and Jack,

Welcome to the forum. You have asked a large number of questions which I will try and tackle briefly below.

Does it make sense to buy a property, some land only or is it better to lease? Depends on the amount of money you have to purchase a farm, leasing is a good way to get started.

- How come, "they" say, that a dairy normally starts to make a profit after 5-7 years? Probably due to the large upfront capital costs, such as dairy shed, cows, lane ways, irrigation, pastures, fertiliser etc
- what are the registration cost for a small dairy? I'm not sure that there are any, you will need to aline yourself with a dairy factory/supplier which may mean buying shares which allows you to pproduce and supply a certain amount of milk.

- when I browse the internet for properties, I can see some "MEGS" numbers for water, what does that exactly mean and do I need a license to irrigate?
- Insurance cost? This is referring to one megalitre of water which is equivalent to one million litres
- how often you get paid for the milk you sold? (weekly, monthly) Monthly

I suggest that when you are ready to make the move and purchase a farm that you speak with an agricultural consultant who can assist you with all of the details that you are asking. I have a number of experienced consultants who do work for Farmstyle simply complete the form submission form the website.

Regards,

Charlie

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