Dairy farmers have been told to stop playing the grain market and concentrate on feeding their cows to produce milk, which also means changing the way they negotiate grain contracts.
Australian Crop Forecasters managing director, Ron Storey, said his research showed dairy farmers are big gamblers because 80pc bought grain in spot markets, exposing their businesses to the market.
Mr Storey said dairy farmers need to remember they are in the business of producing milk from cows which consume energy.
“Buying energy for cows is what the game is about, not trying to pick the market,” he said.
There also needs to be a shift from buying feed commodities to buying nutrients, he says.
So milling grades like ASW/GP/Feed become graded in terms of energy for cows (megajoules)/crude protein (CP)/neutral detergent fibre (NDF).
The quality descriptions for grain need to change to what cows want for more milk, not what millers/maltsters want for processing.
“A dairy cow’s rumen does not have the same processing requirements as a flour end product or beer,” he said.