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Diversification

Diversification. Professor Toby Mottram Toby.mottram@rac.ac.uk. Case Study: Madgeon Lane Farm Buckland St Mary 1988-1998. Once upon a time…. 1983 Milk quotas introduced 1985 Researched Feasibility of commercial goat farming Only 5 commercial farms found

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Diversification

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  1. Diversification Professor Toby Mottram Toby.mottram@rac.ac.uk

  2. Case Study: Madgeon Lane FarmBuckland St Mary1988-1998

  3. Once upon a time… • 1983 Milk quotas introduced • 1985 Researched Feasibility of commercial goat farming • Only 5 commercial farms found • 1984-1987 Bought and sold a holiday cottage £30k profit • 1988 bought ruined pig unit in Buckland St Mary

  4. Research..….France…….Italy…

  5. Markets • Milk • On-farm processing ? • How to • feed goats • house them • Milk them • Disease Issues • Where to find them Research

  6. Milk was sold from smallholder goats • Often poor quality and with variable price • No goat’s milk in supermarkets • Only 3 cheeses sold in supermarkets • Only one from UK • Supermarkets said they wanted more product Market Research

  7. Become an expert…

  8. Then we found it…

  9. What did we get for £28kHousing for 40 goatsA slurry storea wellroad accessa building suitable for conversion to a dairyplanning permission for a caravana lot of scrap metal

  10. Befriend the planning officer Identify the councillors on the planning committee Tell them what you want to achieve (rural growth) Learn how to do the forms yourself Plant trees Make friends and allies Planning is a political process – don’t be too proud to be nice to people you loathe 5 different planning applications in 8 years caravan renewals farm buildings house in principle house in detail Planning is the biggest issue for a start up

  11. 1988 • 20 goatlings • 1989 • Kid down • Milk production starts First Livestock Arrivepre-impregnated

  12. A scare story killed the market • Our milk buyer went bust • Creamery stopped taking on new suppliers • Hundreds of goats were put down Disaster 1!

  13. Rented out goats • Kept kidding in • Bought good genetics • Kept the day jobs • Cut costs • Built up capability Recovery

  14. New Ideas no feeding during milking

  15. Completely Housed

  16. 1992 • Milk Contract from Lubborn Cheese • 20 goats milking • 1993 • 40 goats milking • 1995 • 80 goats milking • New housing built Development

  17. Goats began to sicken and die during second lactation • Vets said it was worms, or scour • I researched in the library at Bristol Vet School • Diagnosis = Johnes Disease • Culling and vaccination put in place Disaster 2

  18. 1996 • 80 goats in milk • Milk sold = 90 k litres • Milk price 42p/l • All feed bought in • Gross Margin £173 per goat • Planning Permission for a house Development resumes

  19. Success at lasthouse built in 1997

  20. Done! our own farm earning £20 k net in 1999 growing..

  21. New markets • Risky • High value • Husbandry Issues • Feeding unknown • Experts unreliable • New diseases – due to new ways of managing Technical Challenges of our diversification

  22. Summary Find a niche market Do your research Costings Market testing Assess the risks Raise some money Go for it Be ready to stop – identify breakpoints

  23. But this was not the end….

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