Herd Improvement Co-operative Australia and National Herd Development have announced an initiative that will see them share administration, accounting and financial reporting services.
They say the move will help them better serve the Victorian, South Australian and southern NSW dairy industry by reducing duplications of common industry processes.
“The industry has changed over recent years with farmers exiting the sector, the rise of corporate farms as well as the challenge of securing staff,” HICO chair Andrew Verboon said.
“The similarities in the two co-operatives far outweigh the differences and we are confident this move will strengthen the role of both organisations moving forward.”
The partnership came into effect on March 9.
Both parties will explore whether a full merger of the two co-operatives is desirable in the future.
“The dairy industry needs a strong Herd Improvement Co-operative,” NHD chair Paul Weller said.
“This partnership will allow us to secure the role of the co-operative in the industry and allow us to meet the changing demands of the dairy farmer more sustainably.”
NHD general manager Phil Wren will become the general manager of both co-operatives, providing leadership to the managers of branches across Victoria and South Australia.