WEST VIC REGION
Business driven attitude Underpins farm success THE BUSINESS-DRIVEN attitude that drove
Peter and Fiona Musson when they started dairying 21 years ago still drives their decisions today. Farming for the Mussons is not just about milking cows and growing grass; it’s first and foremost a business that has to be commercially successful. Their attitude and aptitude led to winning the Farm Business Manager Award at this year’s Great South West Dairy Awards and has also helped them to progress from selling their furniture to finance their relocation from England to Australia 21 years ago to building a sizable net worth. “It’s very much a business, not just a farm,” Mr Musson said. “When we started we had to pay a commercial rate to lease the original 270cow farm so we’ve always had a business-driven attitude. You don’t want the headaches of running a non-profitable business.” The Mussons milk nearly 800 cows on a 320 ha milking area at Macarthur plus support blocks that more than double the size of the farm. The Dairy Farm Monitor program has shown the success of their business many times. The 2014–15 report shows it achieved a return on asset of more than seven per cent, about two per cent above the regional average. The gross farm income per kilogram of milk solids was in the top 25 per cent and the milk solids per hectare was above the regional average. Their break-even price was just below the region’s average of $4.88/ kg Ms and they ranked above average in whole farm earnings. When they started leasing the original farm from Fiona’s parents they milked just 270 cows. “We’ve managed to expand the business and our net worth.” Making sure everything is timed to perfection, knowing where they’re heading and getting the right advice has held the Mussons in good stead. They used an on-farm consultant for the first few years, undertook courses to compare English and Australian farming systems and enjoyed the benefits of discussion groups. They made judicious purchases of nearby
Peter Musson says he always aims to expand his farm business and its net worth.
land and feel that was probably an advantage of being in a slightly drier area in south-west Victoria. Fiona’s father Ian Webb has a background in analysis and that emphasis has continued to permeate the business. “We always know where we’re at as a business and always aim to make profitable decisions,” Mr Musson said. “You need to know what
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the potential is in five or 10 years’ time if things go badly or if they go good. “As we’ve expanded we’ve always looked for more efficient equipment, were early adopters of backing bars on a then-new rotary, telehandlers and automatic gate timers, and use contractors extensively.” When the price crashed last year they had the financial model to immediately assess the
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full-year impact. When they believed the situation seemed to be going from bad to worse, the long-term Murray Goulburn suppliers changed to Warrnambool Cheese and Butter last January, consulted their bank about the potential for more financing should it be needed and cut some cow numbers, but otherwise it was business as usual. Continued page 3 >
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