Highlights:
* Mr Bingley said he could remain profitable even if the prices dropped to $4.00kg/ms.
* He plans to supply processor Murray Goulburn with milk
Gippsland beef producer Rohan Bingley transitions to dairy amid milk crisis
By Laura Poole
May 31 (ABC) -- Victorian farmer Rohan Bingley has wanted to be a dairy farmer for decades.
Yet despite the ongoing milk price crisis, it's a dream that is set to become a reality for the beef producer from Goon Nure in east Gippsland.
"For me, I had no emotion involved in it. I was looking at it from the business side of things," he said.
"I'm treating it like any other commodity, it's a long term investment not a short term investment."
Mr Bingley farms in traditional sheep country, however there are two established dairy farmers nearby.
He has spent the last two years planning for his conversion and in the coming months Mr Bingley will install a second-hand dairy on his property.
Mr Bingley said he preferred spending money on infrastructure to develop his property in east Gippsland, rather than buying a more conventional dairy farm in more proven areas, like west and south Gippsland, where the land is more expensive.
Come January next year, his dairy will receive twice-daily visits from 150 dairy cows.
"You'll see black and white cattle wondering around on the paddocks, some muddy laneways...and by this time of day we'll be finished feeding the calves," he says as he visualises the farm's transitions.
An electrician by trade, Mr Bingley has been involved in building five other milking sheds for clients.
In addition to his Blonde d'Aquitaine stud and Angus beef enterprise, he supplies dairy farmers with fodder and runs dairy heifers on agistment.
He plans to supply processor Murray Goulburn with milk, and has been to recent suppliers meetings where farmers have vented their frustration about retrospective price cuts.
Mr Bingley said despite the shroud of negative media coverage, he was still upbeat about the transition of his business.
Making money out of milk
Murray Goulburn triggered Australia's so-called milk price crisis when it announced it would retrospectively cut the price it had paid farmers for milk.
The co-operative, which partially floated on the Australian Stock Exchange last year, cut prices from $5.60 per kilogram of milk solids to around $5kg/ms.
Analysts expect the price will fall further when the milk processor announces its opening price for the 2016-17 milk season.
Mr Bingley said he could remain profitable even if the prices dropped to $4.00kg/ms.
"I've done the figures based on even New Zealand's prices, and it's still a profitable enterprise," he said.
"I sat down and did our costings as an enterprise and it all fitted. And then I asked myself, 'can I milk cows? Is my personality going to suit the industry?' I said, 'yep I can do that'.
"I work off farm and then come home and work, so the hours aren't going to be much different to what I do anyway. Then we started working out a system that is going to work for us."
Mr Bingley said he wanted to create a future for his family on the farm, and that was one of the driving reasons to convert to dairy.
He has three children, aged between 10 and five.
"Beef is good at the moment but on this property there is no room for the family to expand and come into the business, and that's the problem I had when Dad was here," he said.
"And I look at it the another way, if none of my family want to come into the business I can put a share farmer on."
The logistics Mr Bingley is working to is a summer calving pattern, beginning on February 1 and drying off about December 15.
"There are two dairy farms locally, one dryland and one irrigation, we'll be a hybrid of both. We'll use our water to finish spring and start autumn so we're not trying to chase water over those summer months," he said.
"Also with a younger family, they'll knock off school and I'll have a break from dairying."
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