Patience pays off for Walsh family

Libby and Justin Walsh, with daughter Ella, have grown a successful dairy business.

For many next-gen farmers, there’s no greater lesson in patience than intergenerational transfer.

Berry’s Justin Walsh admits that during his youth he was “chomping at the bit” to implement change across his family’s third generation dairy, yet now reflects that the years spent working under his parents gave him the insight, time, and knowledge to develop a clear vision for the future.

Building a future-fit dairy business

Having identified the enormous potential of the long-held family business, Justin and wife Libby have wasted no time realising their vision since taking over the operation in 2018.

A period of rapid expansion has seen their herd increase from 170 cows to 400, underpinned by day-to-day efficiency improvements and an investment in infrastructure.

Justin acknowledges that the real gamechanger was the timely opportunity to be part of Dairy NSW’s Focus Farms Program, which coincided with their transition into the farm’s ownership.

“Being selected to be a part of this program was an incredible boost, it gave us the confidence, data, and industry validation to really push hard,” Justin reflects.

“For two  years, a group of dairy experts met on-farm every two months, challenging us to be as profitable and efficient as we could be, with results regularly reported back to industry.”

Justin is grateful to be part of an industry so generous with its knowledge.

This included a local farmers mentor group, and Libby suggests that the impact of the group’s knowledge so early in their business ownership helped shape their direction.

“You don’t know what you don’t know, and having this network sharing what was available, what worked for them, what didn’t, was so valuable.”

The couple identified that efficiently and profitably sustaining increased cow numbers on existing property, “Waljasper”, rather than through expansion, was a key priorities, and one that’s been achieved successfully thanks to an overhaul of the operation’s pasture management.

“The NSW Focus Farms Program helped us prioritise our focus, whether it was regarding fertiliser application, grazing rotations, laneway and paddock structures – even the type of cows we ran – the program provided valuable business clarity.”

A shift in breeding objectives – leaning towards cow health and fertility, as opposed to purely milk production –  has also strengthened their herd.

“We’re farming in a region that is becoming increasingly expensive, so rather than expand, our initial aim was to maximise what we already have.”

In 2021 the couple did seize an opportunity to purchase additional land in the Cowra region, affording further efficiencies leveraging their home block’s natural capital advantage.

“We keep our young stock at Cowra, which has allowed us to focus on grazing and milk production here at home – this has enabled us to maximise production, and ultimately profitability.”

Working smarter rather than harder

The introduction of technology into the business has also significantly streamlined operations, with herd management software Easy Dairy, and cow collars providing a wealth of data, and automating previously laborious jobs such as drafting.

Pastures are now monitored by satellites, managed by apps on phones, and the family’s work/life balance is such that the family, which also includes 14-year-old daughter, Ella, recently enjoyed a month-long holiday – an unheard of luxury for many in the dairy industry. 

Justin and Libby are enjoying building a strong dairy business.

One of the greatest contributors to the family’s newfound lifestyle perks can be attributed to a change in calving patterns.

“Previously we calved all year long,” Justin explains, “Now we take a more considered approach and split calving – a decision that ultimately forced us to overhaul our traditional farm system, and many of our processes, but it’s been well worth it.”

Today the business experiences time of extremely busy periods, offset by quieter times which allow the family, and staff, to enjoy a break.

Beyond the lifestyle advantages, split calving also drives improved productivity, with calving and pasture growth curves managed in unison to keep the cost of production as low as possible.

“We no longer have to supplement the milking herd as much, so the savings have been instant and we now ensure our milk supply pattern matches grass production.”

Business efficiency beyond the farm gate

Another major contributor to the Walsh family’s boosted efficiency – and one often underestimated – has been in the office.

“Some of our greatest gains have probably been made behind the scenes,” Justin reflects. “We changed to Xero for our accounting, and we now manage our finances, cashflows and budgets formally through management software.”

Shifting to an accountant with a dairy specialisation has afforded the Walsh family business specific insights, and since taking over the operation they have also engaged a new financial planner, solicitor, and switched to Rabobank as their lender.

“Our strategy when taking the business on was to surround ourselves with professionals who can best support our vision, and who were aligned with our goals,” Justin smiles.

“I have a far greater appreciation for the importance of having alignment across a business – from the immediate staff on the ground to the long-term financial plan developed with a team of experts in their field.”

“We want to work with people who are invested in us and want the best for us, we don’t want to just be a number – which is how we felt with some of our past service providers.”

Today, Libby explains, their priority is building relationships that are mutually beneficial, which is exemplified by their partnership with their Rabobank rural manager, Christian Lazarou, out of the Goulburn branch.

Rabobank’s Christian Lazarou, on farm with the Walsh family.

“We have a terrific working relationship with Christian, he understands our business, and we always feel comfortable picking up the phone and asking him anything, he is always very good at providing us with an answer,” Libby says. 

“Rabobank understands that we prioritise having a positive relationship with people who impact our business, and it’s a value the bank shares, and we’re very much encouraged to pursue our goals.”

Small gestures can make a lasting impression, with Justin recalling their previous manager, Alex Hunt – now in the Orange branch – joining them on a property inspection of the Cowra block prior to purchase.

“It was a pleasant surprise, and something we didn’t expect – for Rabobank to take the time to do that meant a lot to us, and it’s the above and beyond service that we really appreciate,” Libby smiles.

Reflecting on the significant turnaround in their operation Justin often catches himself realising he’s operating at a level he never thought possible back in 2018.

Libby and Justin reflect on the enormous progression their business has enjoyed.

“I could never have predicted we’re be in this position in such a relatively short space of time – we wanted to modernise the farm and had goals we hoped to achieve, and we’ve certainly exceeded our own expectations.”

“Libby and I had to be patient, we worked with my parents and share-farmed with them until it was our time, and while I was eager to implement change, perhaps if we’d taken over sooner we wouldn’t have had such a strong understanding of, and vision for, the business.”

Rabobank by their side during growth phase

Embracing the opportunity to gain knowledge and insights through Rabobank, Justin believes the bank’s RaboResearch events are always well-worth attending, smiling that “when our manager makes a suggestion, we always find the time to attend.”

He’s also an avid listener of the RaboResearch podcast channel.

“RaboResearch podcasts are a great way to keep up with what’s going on, and provides us with additional industry knowledge, which is always helpful during decision-making, and valuable to our business.”    

In 2023 Justin was chosen to take part in Rabobank’s Global Masterclass, a ten-day knowledge sharing and personal development tour held in New Zealand, and including clients from across the world.

Attendees heard directly from some of the world’s largest agribusinesses, such as Fonterra, about their strategies and supply chains in dedicated panel sessions, and spent a morning with Rabobank global strategist Michael Every discussing global trade and consumer trends, as well as his ever-engaging insights into current geo politics.

The tour included on-farm tours exploring progressive New Zealand producers with a focus on sustainability and increasing efficiencies, as well as a personal development component exploring recovering from setbacks and building resilience.

It was, Justin says, an amazing experience that proved insightful, inspirational and motivating.

“The time spent exploring farms was incredible, yet the time spent as a cohort – on the bus or simply over a meal – discussing our businesses was just as important,” he smiles. 

“Meeting other like-minded farmers from across the world opened my mind to potential, and it was a reminder never to close myself off to opportunity – we heard and saw incredible, innovative ideas and it really made me question whether there were things we were missing out on in our own business.”

“Can we make gains by diversifying? Are we getting stuck in the day-to-day grind of the business? These were the questions I asked myself, and I would never have had the time nor inclination to sit down and really start to think outside the box if not for Rabobank’s Global Masterclass.”

With Rabobank’s Virginia Croker and Christian Lazarou – Justin and Libby are grateful for the support of not only the Goulburn team, but the opportunities provided across Rabobank’s global network.

Beyond the farm gate, the masterclass also proved catalyst for Justin’s increased contribution to industry, and the establishment of a farm consultancy business.

“Taking time away from the farm to visit New Zealand demonstrated that I could step away, and it gave me the kick I needed to establish my own business supporting other dairy farmers, as well as taking on a Dairy NSW Board position.

“Helping young people get a foot up in the industry, whether through leasing or ownership, is a passion of mine,” Justin smiles. “I got so much out of industry-run programs, and I’m really pleased to now be in the position to be giving back.”

While proud of their achievements over such a short time frame, Justin and Libby haven’t lost sight of the bigger picture.

“Things certainly feel like they’re getting easier, but it’s been hard work with plenty of blood, sweat and tears – and it’s not lost on us that we wouldn’t be where we are without the work of the previous generations.”

“To carry on this legacy for my family means a lot to me, and it’s certainly a relief to be in the position we are to continue taking the business forward into the future.”