Mount Compass dairy partners reveal secrets to $3m robotic success
Two Mount Compass farming families have transformed a simple retirement plan into one of South Australia's most innovative dairy operations.
A handshake agreement between neighbours has grown into one of South Australia’s most successful dairy partnerships.
Perrin and Kelly Hicks and Warren and Jane Jacobs formed Hicks-Jacobs Dairies in 2014 with a simple mission – Warren would help Perrin get started in the industry, and Perrin would help Warren retire.
Eleven years later, their unique partnership structure milks 800 cows across two Mount Compass properties – Whispering Pines and Misty Downs – and now includes Warren and Jane’s son Asher and daughter-in-law Jenny as partners.
SIMPLE BUT STRONG
The partnership structure is simple but carefully planned. A formal legal agreement exists but remains largely unused.
“We stuck it in the bottom drawer and hoped we never had to pull it out,” Perrin said.
The profit split was initially 50:50 between the two families, but now accommodates Asher and Jenny at 25:25:50.
Before starting, Warren and Perrin valued all personally owned assets – cows and machinery. Each partner receives annual interest payments based on these valuations.
The business leases all land at fair market rates, whether partner-owned or external, ensuring equitable returns.
All farm income flows into a joint account, with expenses paid centrally and profits split according to partnership shares.
Partners also draw a minimum wage from the business.
Their milk buyer, La Casa Dell Formaggio, has been crucial to the partnership’s stability.
The Adelaide-based cheese company has bought milk from the farms for 11 years with a guarantee to never pay below cost of production.
During a recent milk price drop, other farms received $4 per kilogram of milk solids, Hicks-Jacobs received $6 per kilo milk solids.
“La Casa pride themselves on being among the highest payers for milk in South Australia,” Perrin said.
DATA DRIVEN DECISIONS
Warren was already benchmarking at Whispering Pines when the partnership formed.
Perrin added Misty Downs to Dairy Australia’s monitoring program in 2014.
The annual process analyses detailed financial and physical data against industry standards and previous years’ performances.
“Everyone knows their bank balance, what matters is understanding how you got there,” Perrin said.
The benchmarking process sparks crucial conversations between partners and their consultant, agronomist Greg Mitchell, who understands the business as well as the owners.
Recent analysis revealed significant savings from breeding decisions.
The farms now spend half their previous semen costs after switching from extensive sexed semen use to targeted genomic breeding.
It has saved more than $25,000 a year.
“Sometimes you get so busy worrying about where you’re getting hay from, you forget to look at your numbers,” Perrin said.
The data has influenced major investment decisions.
The process also tracks key performance indicators including growing 50 per cent of fodder on-farm, producing one kilogram of milk solids per kilogram of liveweight, and achieving water-use efficiency of one tonne of dry matter per megalitre of rainfall or irrigation.
Partners attend annual DairyBase workshops where results are presented, providing broader industry context for their performance metrics.
PASTURE PUSH
The 1000ha operation normally receives 860mm of annual rainfall, but 2024 delivered just 500mm, testing their resilience.
On agronomic advice, Hicks-Jacobs Dairies implemented aggressive pasture management, fertilising early and allowing cape weed to grow when nothing else would.
The strategy paid off with pasture growth rates reaching up to 50kg of dry matter per day from late winter into spring.
Lucerne and phalaris form the foundation dryland pasture mix, extending growing seasons and providing drought resilience.
These deep-rooted perennials improve soil stability while requiring fewer inputs than annual species.
In average seasons, the farms produce six tonnes of dry matter per hectare across all paddocks.
“To get the best or lowest cost of production, we believe we’ve got to feed the most amount of home grown grass,” Perrin said.
The cow herds are mainly Holstein Friesians with some crossbreds and Brown Swiss.
Six years of genomic testing has transformed herd quality and economics.
All heifers are genomically tested, with only high-genomic cattle mated to Holstein genetics. Lower-ranking cows receive Angus semen, reducing heifer numbers and freeing up more grass.
“Our heifers are so much better now than they used to be,” Perrin said.
Calving happens three times a year – March, July and November – using synchronised programs and timed artificial insemination.
This spreads milk production, reduces calf shed pressure and produces consistent heifer groups.
The farms raise 200 replacement heifers each year to maintain their herds.
Cow numbers at Misty Downs have increased from 160 to 330 in the last decade, while at Whispering Pines they have risen from 400 to 480 with robotic milking.
Production currently averages 7500 litres and 550kg milk solids per cow at Misty Downs, with Whispering Pines achieving higher figures through the robots.
ROBOTIC REVOLUTION
The $3 million robotic investment at Whispering Pines in March 2024 solved multiple challenges.
The existing 20-unit herringbone dairy and yard needed upgrading and extending to accommodate more cows – an estimated cost of more than $1m.
Eight Lely robots offered an alternative path to increased capacity while addressing labour and lifestyle concerns.
“We couldn’t see the financial benefit until we got a quote to expand the existing dairy,” Perrin said.
Construction adjacent to the existing dairy allowed continued milking during the six-month build.
Cows walked through inactive robots before commissioning, easing transition.
The start-up exceeded expectations.
“We were finished by 10am pushing the first half of the herd through for the first milking,” Perrin said.
“I poured a lot of blood, sweat and tears into the design so to see it working was the most incredible thing.”
Within days, cows adapted to the automatic system.
“It is incredible to watch the cows jog to the robots – no shoving or pushing,” Perrin said.
“I’m still amazed at how the cows milk themselves.
“It is mind blowing having done it for 30 years the old way.”
Production gains have also exceeded expectations.
The robot herd now averages more than 30 litres a day compared to 26 litres at the conventional dairy – a 15 per cent increase on similar diets.
Cows consume 2kg more dry matter a day, accessing new paddocks three times daily if desired.
Some receive three milkings while others prefer once daily.
Bulk milk cell counts dropped from 100,000 to 50,000, with robots detecting subclinical mastitis unnoticed in traditional five-week herd testing.
The robots individually feed an average 8.5kg of grain a day based on production and lactation stage.
“We guessed the return on investment would be about 10 years but we’ll know more about that by next year’s benchmarking,” Perrin said.
Warren added that while making a return was crucial, the decision to implement robots was heavily motivated by their sustainability mindset.
“It’s about having good jobs, animal welfare, good farming practices, and the future generation still wanting to milk cows,” he said.
LEADING THE WAY
Sustainability measures cover every aspect of the operation from energy and water to genetics and land management.
Their climate mitigation infrastructure includes solar systems powering both dairies, with Whispering Pines able to operate off-grid and export surplus energy – storing and using it at peak price times.
Heat recovery systems reuse cooling energy for water heating, while variable speed drives optimise pump efficiency.
Water is recycled up to four times through heat exchange, cleaning and irrigation systems. Irrigation targets specific areas using solar-offset power, while bore-fed troughs reduce dam dependence.
Precision agriculture employs GPS-guided equipment for targeted fertilising and spraying, reducing input costs and environmental impact.
Tree planting remains a long standing passion, with 1000 trees added each year for stock shelter and carbon sequestration. These plantings reduce heat stress and contribute to long-term landscape health.
Genomic breeding delivers environmental benefits alongside economic gains.
Six years of selection has produced more efficient cows generating higher milk solids per tonne of carbon dioxide equivalent.
One cow achieved 1.99kg CO2e reduction below international averages according to ECO2 indexes.
“Economic sustainability must come first, but the focus is now on measuring outcomes like growing more grass per hectare,” Perrin said.
Perennial pastures including lucerne and phalaris and irrigated perennial ryegrass and clover, offer superior drought resilience compared to annuals, requiring fewer inputs while extending growing seasons.
These species contribute to soil health and carbon storage while supporting higher stocking rates during difficult seasons.
FUTURE FOUNDATIONS
The partnership’s flexibility accommodates changing needs and opportunities.
The next generation is already engaged.
Perrin and Kelly’s sons Jack, 24, and Nathan, 22, work in the business alongside Asher and Jenny.
Warren’s gradual retirement remains a work in progress.
“He wanted to retire at 60 or 65,” Perrin laughed.
“He never retired. He hasn’t yet.”
Warren remains central to major decisions while stepping back from daily operations.
They now employ four full time staff and three casuals across the business.
Perrin said future plans included potential robotics at Misty Downs but financial and logistical considerations were still being evaluated.
Despite potential changes, their successful formula remains unchanged - data-driven decisions, sustainable practices, mutual respect and genuine collaboration between families who understand that profitability and lifestyle must coexist.
“We all understand that while making money is important, you’ve got to be able to enjoy it,” Perrin said.
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