52 | nzdairy DAIRY PEOPLE » Dairy Farms NZ Herd owning sharemilkers a key decision Totara Farm. Dairy Farms NZ (DFNZ) was founded in 2014 as a pure dairy farming investment vehicle to allow investors the opportunity to access a combination of cash-on-cash returns and the potential capital growth afforded by the sector. Embracing the Kiwi tradition of herd owning sharemilkers to operate its farms, 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 the DFNZ board and management and integral to the business’s successful operation. “We adopted the herd owning sharemilker model because firstly it enabled us to invest our capital into more hectares, rather than cows. Secondly, the on-farm implementation is such a critical part of any dairy farming business. By having herd owning sharemilkers on your farm and farming it for you, you are accessing a pool of farmers who have already demonstrated that they have the wherewithal to put a business together. To be able to purchase up to 850/900 cows, plus replacement young stock, along with plant and machinery, and the working capital required to pay wages and wintering costs through the winter before their milk cheque starts coming in is a significant investment. So to be a herd owning sharemilker, you actually need a fair degree of business success, and you only get good business success as a dairy farmer by being a good dairy farmer. By adopting the herd owning sharemilker model we believe we get a much higher level of certainty around successful implementation of how the Richard Loader farms are farmed, than other models.” Dairy Farms NZ is one of the very few multifarm owning businesses that has a pure focus on the herd owning sharemilker model. Craig observes that there is an enormous amount of development opportunity in dairy farming for motivated and career minded farmers, be that formal training through Lincoln or Massey University, on the job training through Primary ITO, right through to networking and learning from others within the industry.What DFNZ brings to the table is the wealth of knowledge, experience and expertise that the DFNZ management and governance team makes readily available to the sharemilkers as and when required. “In addition to the farm system we can provide advice around banking, keeping a supportive watch around the health and safety culture, and environmental compliance. It’s a hard job being a farmer, keeping on top of regulations and what that means for the people actually farming the farm. We bring that level of engagement to a raft of issues. That’s an important part of my job, FOR ALL YOUR ELECTRICAL NEEDS Dairy Farms NZ YOUR TRUSTED ELECTRICAL EXPERTS PROUD TO SUPPORT Ph 03 308 8049 - RESIDENTIAL - INDUSTRIAL - - COMMERCIAL - AGRICULTURAL - to understand what compliance and legislation looks like on farm and how the farm owner and sharemilkers have to respond to that. We also have a governance sub-committee who meet with the sharemilkers every quarter and discuss what is happening on farm and whether it is being farmed as per our expectation.”Looking to the future, Craig says while growth is always an aspiration, the current focus is on being good farmers, being smart and efficient with the operation of the farms and running a good business in conjunction with the sharemilkers. 21 Springford Street
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