Before 1999, the dairy farm was in the hands of Hsu's father. He established it more than 30 years ago as a contract farmer to AGV Products Corp., a food-processing company. The farm could only sell its milk to the company at market prices, Hsu said April 17. During the winter, the average milk production of Hsu's ranch increased by 15 percent or more. The problem was that every operator produced a surplus in the winter, causing prices to decrease. At that time, these farms did not make other dairy products, like ice cream or butter. When farmers could not sell milk at a profit, they struggled.
Business worsened since 2000, as milk prices kept falling due to oversupply. Meanwhile, the price of cattle feed kept increasing, which proved disastrous for a small operator like Hsu.
"Then I thought, 'Why not open up the farm and sell fresh milk directly to consumers?'" he recalled. Hsu started by erecting a wooden sign that said, "Fresh Milk from Bank Mountain" by the road that led to his farm. News traveled fast in Changhua City. Soon, local people poured into his farm for more than the fresh milk. The scenery, clean air and tranquil atmosphere were also attractions.
In the last two years, Hsu set out chairs and tables in an open area. A miniature wooden cabin sold milk products, such as ice cream bars, yogurt and creme brulee. Diversification solved Hsu' problem with surplus milk. To attract younger children who were not so familiar with life on a farm, Hsu deliberately put some of his calves out front, where visitors could feed them. The tactic worked, and the farm was no longer famous only for its milk.
Business was usually brisk. "On any Saturday or national holiday, you can hardly find a place to park," said Chang Ren-chong April 17, a regular customer and a lecturer at Dayeh University, about a 15-minute drive from the farm. "It has become a great place for the whole family, because kids can feed the cows while the adults enjoy the view and fresh milk."
The farm's small size does not offer enough land for grazing, so the farm ships in fresh grass to feed its cattle. "Even though the price of imported grass recently rose to US$0.24 per kilogram," said Hsu, "I still manage to earn about US$4,500 each month."
Write to Alexander Chou at alexchou@mail.gio.gov.tw