72 | nzdairy Heading up the dairy farming ladder Richard Loader DAIRY PEOPLE » Reece & Natasha Cox Four seasons into their contract milking job in Tauranga, Reece and Natasha Cox were already preparing themselves for their next progression up the dairy farming ladder, when they were contacted by a previous employer who said there was a 50/50 sharemilking job coming up, would they be interested? Two years later, on the 1st of June the couple will take up their new role on a 700-cow farm owned by Waipapa 9, a Maori trust farm in Whakamaru, 20 minutes Norwest of Taupo, realising a well thought out business plan to achieve their goal, and proving it can be done. Natasha and Reece commenced their dairy farming careers thirteen years ago, as a young couple with zero equity. Eight years ago, the couple decided to invest their savings into a rental property in Taupo. “The increase in property prices has grown our equity faster than we could save money and that has given us quite a bit of financial backing,” says Reece. “In the first two years contract milking in Tauranga we just wanted to get cash under our belt and replace some machinery. Two years into the job we decided that sharemilking with 500 plus cows was the only way we could get enough equity and growth behind us to buy a farm down the track. We leased a farm as a run-off to rear some of our own heifers and build a herd over three or four years. After four years we have 220 in-milk animals and bought another 500 by leveraging our house. The equity growth from our house and having the livestock has given us the opportunity to take the sharemilking job when it came available.” Natasha and Reece commenced their dairy farming careers thirteen years ago, as a young couple with zero equity. Dad and kids : Reece, Cobie and Addison. Before accepting the new role, Reece and Natasha did due diligence to ensure the move was worth the risk and the time. “Some of the risk was taken away because I already knew the Trust. But we did a lot of numbers, and a lot of hours of budgeting, seeing what the growth and return would be, and could we afford to repay the debt within the eight years allowed by the bank. When we initially did the numbers two years ago it was a $6.00 payout and 6% interest, and now we are looking at 9% interest and $8.00 payout. WE ARE MORE THAN JUST MILKING SPECIALISTS with 24/7 Service Feel free to call in, visit our shop and discuss any requirements you have in regards to your dairy shed. DeLaval Service and Support milking solutions Ph 07 348 3628 19 White Street, Rotorua www.abcmilkingsolutions.co.nz y y y y y y y Milking Machines Dairy Consumables Machine Tests Davey Supplier Trenching DeLaval InService (Preventative Maintenance) McConnel Backing Gates y y y y y Water Pumps & Fittings E uent Systems Bore Lifts Irrigation Services Reid & Harrison Proud to support Reece and Tash in their farming journey Do you need help with yours? Give us a call for a free consultation on how we could help you in your farming journey. 07 376 1700 44 Te Heuheu Street Taupo 0508 KAIMAI (524624) Proud to be supporting Reece and Natasha Cox So, I guess now it’s learning about how to squeeze the margins, and stay profitable. Even though the first year is interest only, we still want to repay the debt as soon as we can, or at least not need an overdraft in the second year.” Looking at the positives, Reece acknowledges the new role comes at a tougher time with high production costs, but says if they can make it work for the first couple of years things can only improve. What is Reece looking forward to most in his new role? There is the expansion and growth of the farming business, and there will be more levers to pull. But more than anything, it will the new challenge. “You tend to get a little bit comfortable and I feel Natasha and I are still in the growth stage of our careers and so I don’t want to get comfortable just yet. It’s a great role with a five plus five-year contract, so it gives us a really good crack to get equity behind us, get the cows paid off and cash flow ourselves a bit to set ourselves up for the next opportunity.” Maize Silage Bulk Grass Hay Silage Bales Barley Straw Proud preferred contractors of Reece & Natasha Cox
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