28 | nzdairy DAIRY PEOPLE » Dairy Farms NZ Herd owning sharemilkers key for DFNZ Richard Loader Embracing the Kiwi tradition of herd owning sharemilkers to operate its farms, Dairy Farms NZ (DFNZ) owns a cluster of two dairy farms side by side in Lowcliffe, Mid Canterbury, followed by a cluster of five dairy farms in Otapiri, Central Southland, about ten minutes drive from Winton. CEO Craig McBeth says the engagement of herd owning sharemilkers was a deliberate decision by DFNZ board and management and integral to the business’s successful operation. “They have to be very good farmers to have got themselves into a position where they can be considered as a viable candidate to sharemilk for DFNZ. They have to bring a package of financial and physical on-farm performance and demonstrate they have got there by successfully managing a farm system, be good at employing staff and retaining them. By going to the market and looking for somebody who has the where-with-all to bring a herd of cows to the table tells us they have already achieved a fair degree of business success.” Another benefit of the model is greater certainty that the implementation of the farm’s annual plan will happen effectively with experienced herd owning sharemilkers on board. With several hundred of thousands of dollars of the sharemilkers money invested in their own business, the alignment between the value propositions with the way the sharemilker and DFNZ make their money is very close. “It’s our job to provide a farm that will grow grass for the sharemilker and the best way they can make money is for the cows to eat all the grass that grows on that farm. It’s by high production and utilisation of grass that we make our money. “But if you need to bring in a load of feed to fill a gap in your feed supply then we share that cost with the farmer 50/50 and we get half the value of the milk that comes from that. The sharemilker is not going to want to spend money on a truckload of grain unless they think it’s the right thing to do.” In a dairy farming world where opportunities for 50/50 herd owning sharemilkers is diminishing, Craig is a very strong advocate for the model and encourages other farmers to consider it. • to page 30 “If you go like for like, a cow is worth maybe $1500 and a hectare of land in Canterbury is worth say $50,000. In Canterbury you can put three and a half cows on a hectare of land. The sharemilker’s investment in cows and young stock is say $6000 versus $50,000 for the land.“The sharemilker has to buy a tractor and mobile machinery. They employ labour and pay most animal related costs while we pay the farm repairs and maintenance, insurance and rates. So the costs are a bit more for the sharemilker. “They have to be very good farmers to have got themselves into a position where they can be considered as a viable candidate to sharemilk for DFNZ. They have to bring a package of financial and physical on-farm performance and demonstrate they have got there by successfully managing a farm system, be good at employing staff and retaining them.” CEO Craig McBeth with Ross Conder (sharemilker on Matai farm) and Toby Halliday (NZ Conservation Services Ltd) in front of one of three QEII bush blocks on the Matai Farm. Sheep • Deer • Dairy • General Fencing 027 435 4299 roger187above@gmail.com Proudly supportingDairy Farms NZ R&RFencing
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