Pooling projects to boost profits

Pooling projects to boost profits

The Government announced 14 farmer groups would soon be ‘Farming Together’ with the support of grants of up to $1.3 million to establish new collaborative arrangements to cut costs and boost returns.

Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce, said the second round of the Farming Together grants invested in innovative projects across a wide range of agricultural industries including the floriculture, truffle and dairy industries.

“This Government funding will help the dairy industry to develop a business plan to demonstrate how collaboration can help medium sized dairy farms to reduce milk production costs and strengthen their position in the market through a milk pool,” Minister Joyce said.

“This project has huge potential to entice younger people in Victoria looking to become dairy farmers to take the plunge.

“Other projects are supporting the development of a co-operative of eastern Australian truffle growers to improve the marketing of the famous delicacy nationally and abroad and a collaboration to reduce freight costs for the nursery and garden industry.

“Collaborative business approaches support better and fairer farmgate returns, allowing farmers to pool their resources, find efficiencies and gain greater control of the supply chain and more bargaining power.”

The Government’s $13.8 million Farm Co-operatives and Collaboration Pilot Program also provides information, resources and expert advice and assistance to help farm businesses make up their own minds about what’s best for them.

“We want farmers right across the country to have access to information and expertise needed to properly consider whether a collaborative arrangement is right for them,” Minister Joyce said.

“98 farmer groups have already used the information on the “farm co-op builder” website to support the creation of new co-operatives since the website’s launch in June 2017.”

This is yet another initiative delivered through the government’s $4 billion Agricultural Competitiveness White Paper.

Source: Australian Government