14 | Easing pressure on the bottom line Marcus has already figured out that profit is more of a factor of operational costs than market prices. Kelly Deeks Rising costs of production for our price-taking dairy farmers sees them striving to get more out of every dollar they spend and at Claxby Farm in Eyrewell, North Canterbury, the SpencerBower family are working on improving pasture species, fertiliser utilisation, and staff efficiencies to ease the pressure on their bottom line. Brothers Sam and Marcus Spencer-Bower are running three dairy units, dairy support farms, and a total of about 3000 cross-bred cows on about 1400ha. The original part of the farm has been in the family since 1852, and Sam and Marcus are the fifth generation on the land. Claxby Farm ran sheep and beef until 2012, when the economic future of sheep farming on flat irrigated land did not look bright. The Spencer-Bowers took the plunge and converted to dairy to ensure the long-term viability of their operation, installing high-quality irrigation and other modern infrastructure to help them carefully manage their water and fertiliser use into the future. The dairy industry provided a steep learning curve for these staunch sheep and beef farmers, but building on a 160-year family farming history, the Spencer-Bowers have been able to maintain their high standards for their business and the environment. As part of their succession plan, Marcus took over the management of one dairy farm in 2022, having worked the run off block for several years. “I didn’t really have any experience of milking cows, I’m a bit more at home in the wool shed than the cow shed,” Marcus says. “I jumped in the deep end and quickly learnt to swim. We had an experienced farm manager at the time and with his help I was able to start gaining more of an understanding of the dairy farm and the industry.” Marcus was also able to lean heavily on his fiance Cally for her knowledge from her previous dairy experience. Today it’s a real team effort between Marcus and Cally to make sure operations tick along smoothly. Now into his third season, Marcus has already figured out that profit is more of a factor of operational costs than market prices. “Labour costs on services are a big one, with some charging upwards of $100 an hour If you want anything repaired on farm, you’re not going to get a lot of change out of $1000.” Unlike other production-based businesses, dairy farmers are price-takers and have zero ability to pass their rising costs on to the dairy companies. “Farmers pay retail and sell for wholesale.” Marcus is working with his full Filipino team to clamp down on unnecessary spending, and repairs and maintenance are an area where he can get good input from the team. “I jumped in the deep end and quickly learnt to swim.” DAIRY PEOPLE » Claxby Farm • Self Propelled Sprayers • Truck Mounted Boom Sprayers • Handgun Unit • Mini Spreader • Proof of Placement Mapping HIDE SPRAYING LTD REGISTERED CHEMICAL APPLICATORS IN ALL CLASSES Ph/Fax: (03) 313 5278 • Mob: Andrew 0274 372 006 Ph: (03) 313 7723 • Mob: Graham 0274 333 786 Email: hidespray@xtra.co.nz • 211 Mt Thomas Road, RD1, Rangiora 7471 Hide Spraying is proud to support Claxby Farm B.A. MURRAY LTD 177 Mt Thomas Road, RD 1, Rangiora 7471 Phone: 03-313-5060 Mobile: 027-434-3119 Email: office@bamurray.co.nz Website: www.bamurrayagriculture.co.nz ……..New Zealand Rural Contractor Of The Year 2002……. B.A. MURRAY LTD 177 Mt Thomas Road, RD 1, Rangiora 7471 Phone: 0274343119 | Email: office@bamurray.co.nz Web: www.bamurrayagriculture.co.nz ...New Zealand Rural Contractor Of The Year 2002… • SILAGE • DIRECT DRILLING • CULTIVATION • HEADING • BALING “Service doesn’t cost, it pays” “Looking and listening to how equipment and machinery is running helps you to pick up on repairs before they become major breakdowns. I’m grateful to have been brought up on a farm under my father’s tutelage which helped to instill some intuition and initiative which I am helping to pass on to my staff.”
RkJQdWJsaXNoZXIy NDc2Mzg=