Expert: Succession planning for dairy farmers takes care of business

Like any business, proper planning prevents poor performance. Hear from one expert explaining the winning formula for dairy farmers.

Planning for a seamless transition to the next generation of dairy farmers needs to be front-of-mind for all primary producers, Dennis Hoiberg says.

The leading business consultant was one of the keynote speakers at the Australian Dairy Conference (ADC) this week, which wraps up in Hobart on Friday.

Mr Hoiberg said succession planning was one of the key challenges for any family-run business but particularly in agriculture.

He told The Weekly Times that many conversations were left too late, when families were in the middle of a crisis or in the grieving process.

“The question for all farmers is: Are you a family running a farming business? Or are you a business that happens to be run by a farming family?” Mr Hoiberg said.

“Because they made sound similar but they’re two separate things. A family running a farm usually means whatever dad or mum says goes.

“But if it’s a business being run by a family, then that means there’s all the structures in place that a business run by non-family members has: proper remuneration, timetables, clear designation of workloads and roles.

“Having those conversations primarily as a business, planning ahead, rather than treating it as an unspoken family matter is key.”

Lessons Learnt consultant Dennis Hoiberg. Picture: Mike Knott

Meanwhile, American dairy supply chain consultant Mike McCully told The Weekly Times how consumption pattern changes in the United States were being reflected in Australia.

“One of the biggest stories of the past 20 years for American dairy is the decline of milk for drinking and the rise of milk for eating – cheese primarily, but also the rise of yoghurt,” Mr McCully said.

“That’s due in part to the rise of nut-based beverages – almond, oat, soy and so on – but also changing consumer habits.

“Fewer Americans are sitting down at breakfast to consume milk with cereal. So that has had an impact. But there’s also great news with cheese, consumption is rising significantly in America. Butter sales have also risen in the past 10, 20 years.”

On Thursday, Beth Scott from La Trobe University was awarded the winner of the Young Dairy Scientist Award at the ADC’s gala dinner.

Ms Scott presented an assignment titled ‘Inbreeding remains a challenge for dairy populations’.

The project examined the genetic contribution towards stillbirths in the Jersey breed.

Award co-ordinator Richard Rawnsley said Ms Scott was awarded a $3000 travel bursary to further her studies.