42 | nzdairy DAIRY PEOPLE » Smithill Dairies Growing farming business for future sustainability Richard Loader When Margaret and Peter Smith moved their farming operation from Taranaki to Southland in 2008 it was a calculated decision that would shape their family’s future. Now their children are following the same playbook by growing through collaboration to ensure the next generation has a sustainable farming business. The Smith family’s journey began with grandparents Bob and Pat Ayles who established the original farming group in Taranaki. Their daughter Margaret and son-in-law Peter took over the operation before making the move south to purchase a larger-scale dairy farm recognising that size would be crucial for long-term viability. Today that vision has evolved into Smithill Ltd encompassing multiple properties and employing 20 people across its diverse portfolio. The business transformation accelerated dramatically following family succession discussions in January 2024. “Our parents had a dairy farm and a drystock block and wanted to retire. My brother Chris and I had our own farming businesses. So we decided to amalgamate and knew we had to grow in order to buy our parents out and to have a sustainable business,” explains Michael Smith. The family sourced a sharemilking contract and purchased an additional property, Moanui, to create a business model capable of supporting multiple families. Michael oversees the original family farm, now called Thornhill, 600-cows on 187 hectares at Omutu Road, plus a nearby lease farm running 150 cows and a cut-and-carry block in Otautau. Chris has taken on operations management of the sharemilking contract at farm 46 South, running 670 cows on 220 hectares, alongside the newly acquired Moanui property with 630 cows on 202 hectares. The transition represents a significant change for Chris, who completed a Diploma of Farm Management at Lincoln University and previously managed the family’s drystock operation. “I’d run dairy farms in Canterbury but it’s been a steep learning curve farming in Southland but of course there’s a lot of family help. It’s also been an opportunity to really extend my farm management skills in the larger family business we now have.” There is also a 280ha wintering farm called Kaimata Shahn and Michael are also raising two young sons, William,7, and Jack. Downs in Otahu Flat 30 minutes away where the family winters 95% of the cows and grazes young stock. Sister Bethanne and partner Jonathon, who have been overseas on an OE, have just returned and will be joint managers of Kaimata Downs. Central to the operation’s success is Michael’s wife Shahn who manages administration and accounts for Smithill alongside working as head of the x-ray department at Southland Hospital. She and Michael are also raising two young sons, William,7, and Jack, 16 months. “Our core values with the business are predominantly return on investment, having a sustainable business to be able to support all of our families and making a positive impact on the environment as well as supporting the people within our business,” explains Shahn. “We can’t do what we do without our team. Having the right people around us is vital and making sure they are looked after.” “We are definitely targeting profitability not just super high or cheap production. We are targeting the highest return,” says Michael. The rapid growth has brought new challenges, particularly in managing a multicultural workforce across multiple properties. “Now that we have grown significantly it’s about making sure we have the right policies and procedures across all farms,” says Shahn. “As employers we have a responsibility to make sure everyone has a safe and happy working environment.” However, the transition hasn’t been without difficulties. “The first 12 months were the hardest in trying to work out how it would all work,” admits Michael. “But it’s amazing how far our business has come in just 12 months.” The success stems from understanding individual strengths within the family unit. “We are a strong family team and have worked really hard over the past 12 months to work out each other’s strengths and weaknesses,” says Chris. “It’s been about ensuring the business maximises each member’s capabilities for continued growth.” PH ALEX 021 277 5308 HOME 03 225 5377 www.alexreidcontracting.co.nz Aerating • Direct Drilling • Precision Planter • Mulching • Strip Till Planting Paddock Cultivation from Ploughing to Sowing Dry Hire available Sheep Conveyor (Drenching, Vaccination etc) • 3 way draft Dairy Lane Maintenance • Tip Trailers • Vibrating Roller • Effluent Services Large Skid Steer for calf shed cleaning, loading Muck Spreaders etc ( 4 Muck Spreaders) • 16,000 litre Slurry Tanker • Pond Stirrer • Umbilical Slurry System More than just accounting. Proud to work alongside rural businesses in the South 03 211 0801 160 Spey Street, Invercargill 9810
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