Bigger the better for dairy, according to Jeremy Bayard

THE downturn in the Australian dairy industry needs to result in further farm consolidation, according to a prominent corporate farmer.

Bigger, better: The dairy industry needs further consolidation in farms, according to corporate farmer Jeremy Bayard. Picture: Zoe Phillips

THE downturn in the Australian dairy industry needs to result in further farm consolidation, according to a prominent corporate farmer.

Ace Farming Company managing director Jeremy Bayard told the Agri Investor Australia conference in Melbourne last week the local dairy industry had grown organically over 150 years, but needed to become more efficient.

“We still have an industry largely based on family farms, which is largely doing the same thing today as 100 years ago,” he said.

“And it has to change in order for the industry to become more efficient.

“The average family farm in Australia of today simply can’t sustain family life today as it did 30 years ago.

“Kids are not going back on to the farms today for good reason: it is unattractive to milk 200 cows, take an average wage and not make much money.”

Mr Bayard said the global oversupply and low prices would cause a dairy shake-out.

Consolidation was occurring in the world’s major dairying regions, including in the US and New Zealand, he said.

“Family farms will morph into much larger structures,” Mr Bayard said.