Why sheep farmers are converting to dairy

Part of the logic behind Robert and Mary-Anne Kane's decision to convert part of their farm to dairying was driven by simmering frustration with the meat industry reports The Otago Daily Times. The main reason for their decision to convert 208ha of their 256ha home farm, West-holm, near Tapanui, from sheep and stud beef cattle to dairying was to help a fourth generation of the family into the business. The simmering tension was driven by frustration at the performance of meat companies and their inability to work together or improve the viability of farms. They have similar frustration with the wool industry. The Kanes will retain about 80 of their stud Hereford and 50 stud Angus cows and about 3000 ewes, which will be run on two adjacent farms. Come spring, 540 dairy cows will calve, with the dairy unit run by son Luke under the tutelage of an experienced dairy farm worker. Mr Kane said Westholm lent itself to dairying because it was square in shape and, while reluctant to reveal the cost, he said the family was taking a big-picture view. Mrs Kane said Luke enjoyed working with cattle and the cashflow and asset appreciation from dairying was the easiest way for him to get a start and for the Kanes to plan for their retirement. Mrs Kane said her frustration with the meat industry was graphically illustrated before Christmas, when she bought lamb for Christmas dinner. They had recently sold prime lambs to Alliance Group for $78, but one side of lamb bought through the meat company's Mataura butcher's shop cost them $70. A year earlier, they had sold lambs before Christmas for $90, but a side of lamb had only cost them $40. Mr Kane said he was still passionate about the lamb and wool industries and the quality of the products, but disillusioned with the structure of the two industries.