In Australia, the average income of dairy farmers is projected to have increased by approximately 37% to $165,000 in 2020. Moreover, the dairy industry accounted for approximately 4.4 billion of the gross value of agricultural production in Australia. It is a competitive industry, but a highly rewarding one if you succeed. Let’s go through the basics of how to start a dairy farming business. But first, what exactly is a dairy farming business?
What is a dairy farming business?
Dairy farming is a type of agricultural business that involves production of milk from dairy animals in Australia. It can also involve farming, management, production and marketing of the production of milk. This can be for variety of purposes such as for creating milk, cheese, yogurt and all types of dairy products suitable for human consumption.
Where to start:
Step 1) Create a business plan
Now we can dive into the fundamental step of starting a dairy farming business. First things first, you should create a detailed business plan. This is to establish your business structure, location, target market, name and costs associated with starting a business. Here are some prompting questions to help you get started:
- What is the name of your business?
- Where will your dairy farm be located?
- Who is your target market and how will you reach them?
- What are the startup and ongoing costs? How will you cover these costs?
- How can you maintain the health of the cows? Should you work with a veterinarian?
- What is your business goal?
- How much will your charge customers for each product?
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Get startedStep 2) Register an ABN
In Australia, there are 3 main types of business structures.
- Sole trader/proprietorship
- Partnership
- Company
You should read about the advantages and disadvantages of each type of business here. There are differing tax and legal obligations depending on the type of business. Choose your structure accordingly and you may need to apply for an Australian Business Number (ABN) which identifies your business. If you choose a company structure, you must ensure that your company registration encompasses all the legal steps and legal compliances needed.
Step 3) Understand the dairy faming system
Dairy farms are wholly dependent on your cows’ ability to live a healthy life to produce milk and then have calves to continue the cycle. This will require you to work closely with a veterinarian and understand how to maintain calf care and herd health. In addition, you should also be studying the essential nutritions to feed your cows. Remember, maintaining the health of the cows are of utmost important for a dairy farming business.
How to grow:
Step 4) Advertise your dairy farming business
Now that you have an understanding of your dairy farming business structure, plan and system, it is time to put your business name out there. Think about unique campaigns you can run to promote your business! This can be in the form of an in-person event or you may want to utilise the power of social media to spread your business name to a wider audience. Attend field days and open houses on dairy farms and make connections with the fellow dairy farmers. Who knows? You may gain valuable insight into the do’s and don’ts of dairy farming through a simple conversation.
Step 5) Adapt to feedback
Figure out what works and what doesn’t. As a business owner, you should be open-minded and always ready to adapt. There will be changes in trends and hardships along the way of your business journey! Your role is to examine and develop your business accordingly, for the management of your cows and healthy dairy production.
Good luck!
