Van Dairy Limited, a dairy farm based in Tasmania, recently faced a significant setback as it lost a 25 million litres supply contract with Fonterra. This loss ultimately led to VDL confirming the culling of around 10% of its herd due to what they termed as “unresolvable commercial factors.”
Matt Watt, the director of farm source at Fonterra, shared that milk collections at VDL had already ceased, with the processor actively seeking additional supplies from other farms in Tasmania to make up for the shortfall. Despite the disappointing turn of events, the owner of VDL, Xianfeng Lu, acknowledged the need to manage the herd numbers in light of Fonterra’s decision to end the exclusive supply agreement.
The culling process will see at least 700 cows sent for slaughter at the Greenham abattoir in Smithton, representing approximately 10% of VDL’s 7,000 cow herd. This action comes as the calving season commences and the herd transitions into the winter production phase. While Lu expressed his commitment to supporting the VDL farms and its employees, details about the cull were not fully disclosed.
This development at Van Dairy farms is not the first time the company has made headlines. In 2018, they faced issues with overflowing effluent systems and a mass resignation of board members, adding to the challenges they have had to overcome in recent years.
### Tasmania’s Dairy Industry
Tasmania plays a significant role in Australia’s dairy industry, with approximately 351 dairy farm businesses contributing to 11% of the national milk production in 2022/23. With an average dairy herd size of 477 and around 170,000 cows in the state, Tasmania’s dairy sector is a vital part of the country’s agricultural landscape.
The recent events at Van Dairy Limited highlight the complexities and challenges faced by dairy farmers not only in Tasmania but across Australia. From supply chain disruptions to market fluctuations, the dairy industry is no stranger to uncertainty, requiring farmers to adapt and make tough decisions to ensure the sustainability of their operations.
In times of crisis, such as the one VDL is currently navigating, it is essential for farmers to have a support system in place, whether through industry networks, government assistance programs, or partnerships with other stakeholders. Collaboration and communication are key in overcoming challenges and finding solutions that benefit not only individual farms but the industry as a whole.
As we reflect on the implications of VDL’s decision to cull part of its herd, it raises broader questions about the resilience of the dairy sector and the need for sustainable practices to ensure long-term viability. How can dairy farmers in Tasmania and beyond future-proof their operations against unforeseen circumstances? What lessons can be learned from experiences like VDL’s to strengthen the industry as a whole?
In conclusion, the story of Van Dairy Limited serves as a reminder of the resilience, adaptability, and challenges that define the dairy industry in Australia. By learning from the experiences of farms like VDL and fostering a culture of innovation and collaboration, the dairy sector can continue to thrive in the face of adversity. As we support VDL in their efforts to navigate this difficult period, let us also take this opportunity to reflect on the broader implications for the industry and work together towards a more sustainable and prosperous future for Australian dairy farming.
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