| 37 Flexibility fuels success at Drumpeel Farms Sue Russell RURAL PEOPLE » Drumpeel Farms Sheep, beef and cropping business Drumpeel Farms extends over two blocks in Central Hawke’s Bay, one at Drumpeel, the other at Horonui. It’s a second generation ag business, owned and operated by Hugh and Sharon Ritchie. “Dad and his brothers bought Drumpeel with Dad eventually purchasing it outright, while my Mum’s family owned the Horonui Block,” Hugh says. Asked how the operation has been the past year or so, Hugh says its been ticking along nicely. His main responsibilities are on the arable/cropping side of the business and says prices across the vegetables, seeds and grains grown is somewhat subdued. “Really its back to pre-Covid break even values.” For the past 20 years, the sheep operation has focussed on trading, buying in lambs in Autumn and selling four months later. “We can get caught with a falling export market which means the stock we purchase can devalue due to buying and selling on different markets and so margins can vary. Most of the beef finishing occurs on the 1400ha Horonui Block, some 25km away from 640ha Drumpeel. “We operate a bull beef finishing programme, mainly buying in between two-thirds and threequarters of the animals in October and November. If we’re feeling confident about the market we aim for 1500 bulls on, all killed before Christmas.” Hugh says he’s very lucky with the great staff he has on board, with most having been with him for upward of seven years. “I wouldn’t be able to do the things off-farm without a great team. If you give people ownership, responsibility and autonomy, and they have the right attitude, then they really thrive. That’s what I’ve found over the years.” He says the current economics around cereal prices is that at $500 per tonne its pretty much break even. The situation is even worse if you are reliant on contractors so good yields are critical. “The same applies to vege crops, 20-50% down on contracted areas depending on the crop. With commodity crops its getting harder to get a good return so to my mind we really need to think about what are new options on the horizon.” He’s impressed with the innovative thinking around the Australian ‘One More Serve’ marketing programme and is keen to see something similar apply on this side of the ditch. Above all, Hugh says, working in the arable space calls for an incredible level of flexibility. “We have 15-16 crops and fit it all into our growing seasons and we have to employ smart thinking and growing technologies to become quicker and more efficient at how we grow. It’s a challenge and an opportunity.” Drumpeel Farms supplies South Pacific Seeds Ltd, a seed multiplication company, that has been producing quality hybrid vegetable seed for nearly 30 years. “They are very good operators and provide growers with plenty of support from their experienced team of agronomists.” He’s been asked to be an independent Chair on the Citrus NZ Board. “It’s a relatively small product group. I’m involved with the processed vegetable sector, dealing with big multi-nationals, so hopefully I’ll be able to add some experience and perspective into the conversation around the Board table as to how to get the best possible return on citrus products when working with big companies .” Access long-term to sustainable amounts of good quality water has long engaged Hugh’s attention. Along with others, he’s been actively pushing for approval of construction of the Ruataniwha Dam, a project moth-balled several years ago. When this happened, the group purchased the IP and existing consents from Council, in the hope that one day the project would receive the go-ahead. With Government three years ago listing the project as one of 149 to be considered for fast-tracking, a glimmer of hope remains that the dam will be completed. “It’s just so important to secure the long-term viability of cropping and arable activity in this region. I think one of the big issues is about the majority getting the strategic sensibilities to realise how vital this project is for the region.” Current economics around cereal prices is that at $500 per tonne its pretty much break even. The situation is even worse if you are reliant on contractors so good yields are critical. 03 302 8115 email: nzoffice@spsnz.co.nz Proudly supporting Drumpeel Farms SOUTH PACIFIC SEEDS (NZ) LTD Specialists in Hybrid Vegetable Seed Production Proud to support Drumpeel Farms For all your Hay - Silage - Cultivation Phone Mike 021 733 918 mike@mikekettle.co.nz | www.mikekettlecontracting.co.nz Green beans ready for harvesting.
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