By Bruce Wills
Everyone knows farming involves long hours and as farms tend to be far from the cities.
This means the prospects of commuting are limited and is why many farm jobs provide accommodation on-farm.
To attract good quality workers you generally need three things.
Of course, you need to be a good employer who invests in staff by way of training and development.
You also need to pay your staff well for contributing to your farm’s success and, for three-quarters of farm employees, provide a place they can call home.
Our 2012 Rabobank-Federated Farmers Farm Remuneration report, which is free to members, generally showed farmers are getting with the programme to professionalise human resource practices.
A few years ago we were shocked by how few members had written employment contracts so went hard promoting them.
Today, we have got that up to three-quarters, but it needs to go much higher. Thankfully, Federated Farmers employment contracts are now the industry standard.
The general state of farm accommodation has caught the eye of our Taranaki sharemilkers chairperson, Michael Prankerd. I happen to agree because farm houses are not only a farm asset, they form part of the employment package we offer to staff. Providing good housing, along with being a good employer, helps to attract and retain the staff we need.
There is another dimension, being the changing face of farming.
Increasingly, people are making a career out of farming instead of slowly building equity to buy their own property. While ‘roughing it’ may have been the norm in the past, it no longer is today. People want to be proud of where they live and we need to consider this is not only a place for employees to grab some shut-eye, it is a home for their family too.
It is the family who will spend most of the time in these homes and arguably, have the biggest say on whether a prospective employee joins your farm, or a valued employee suddenly moves on.
So, what’s the answer?
Farm housing has to be included in weekly and seasonal jobs.
Ensuring houses are well maintained inside and out, with such basics as water blasters, lawn mowers and even giving staff time to keep their properties neat and tidy, ensures they will be well looked after. Paint, paper and carpets do not last forever, nor do kitchens and bathrooms. In other words, as houses are an asset they need their own asset plan. Farmers should not underestimate the willingness of staff and their families to contribute sweat-equity, backed up by professionals where needed.
The upshot is leaving a job can be easy, but leaving a home you and your family genuinely like, is more difficult.
Most farm houses built before 2000 are eligible for a government grant to help them become insulated. Living in a fridge not only leads to increased time off from illness, but probably contributes to staff turnover.
Another common problem we can face is water quality and even water pressure. Attending to these issues can help make ‘coming home’ a pleasure.
Do not forget farm houses need some basic safety aids too; smoke alarms are often mandatory in rental properties and even extinguishers are cheap and effective. In recent weeks, I know of two farm houses seriously damaged by fire, but damage to one was lessened thanks to fire alarms.
Also, have regard for the children of your staff or sharemilkers.
The Federated Farmers Sharemilkers Agreement was amended last year with new provisions for stock proof fences around farm housing. We also incorporated provisions to create a safe place for children at the milking shed while their parents worked. For other farmers, provisions like these seem sensible to attract and retain younger families to your farm.
Another thing to look into is internet access if possible.
Isolation can be a big factor, so having the ability to access Skype or even just Facebook and Trade Me helps to lessen it. The internet is also of growing importance to education and professional development. The Federation is on the Government’s back and the providers’ to up their game in this respect.
Most of what is needed will not cost the earth if planned and will go a long way to keeping top-performing staff.
Having well rested and motivated staff that will stay with you for the long haul, is to me, good for business.
-------------------------------------------------------------
Bruce Wills is the President of Federated Farmers. You can contact him here »
40 Comments
Bruce, you are running out of things to talk about alredy?Its only been a couple of weeks and all that wet weather at TePohue too.
dare I make some suggestions
The role of imported low paid/skilled labour in the Dairy industry and the pay/conditions of those employed.
The Role of the Meat baord or Beef and Lamb or whatever its called today, a positive or negative force in farming.
Farm debt and the herculean task of repayment.
Costs and the implications for the future competitiveness of farmingNZ inc.
Corporate farms and their impact on family farms.
Landcorp. What the hell is it doing?
What NZ will look like if the Government force feeds growth in the sector at %7 compounding?
ref. http://www.interest.co.nz/rural-news/60486/allan-barber-reviews-riddet-…
What will we do if Fonterra collapses.
What will we do if Dairy farming turns out unprofitable for the next 20 years for all high cost producers?
What would NZ look like with our export destinations in Depression?
Andrewj - Bruce is just running a side show. I have not bothered paying a FF membership for quite a few years as they are mainly an incompetent bunch who have made very little difference to farming.
For some reason Bruces article reminds me of the one FF addressed a few years back in regards to Rural Delivery mail. The whole agriculture industry was in dissaray and all they could come up with was Rurul delivery costs.
An alternative to FF is needed as it is not doing the job it is meant to do.
The trouble is farmers are busy and end up not leading the industry effectively. They leave others to do what they should really be doing themselves. Farmers get caught up in the nuts and bolts of daily on farm management and the important decisions get made by someone who hasn't a clue.
Given we have Landcorp, ACC's huge investment in Corporate farming, etc, I think the goal posts for corporate farming have been firmly placed.
Nobody in NZ Uni's, treasury, RBNZ etc has ever done a paper on the effects of Corporate Farming vs family farming and the economic impacts. When the S*&t hits the fan someone will finally have enough sense to look at this issue. I really don't think a paper is necessary but for some hideous reason unless a paper is done on the topic with a heap of qualifications after the name of the writers of the paper then notice will be taken.
Just think of the recent paper that was completed on the cost benefits and effects of immigration and you will know what I mean.
Farmers have to take control of their industry or they will be controlled at every level. This is similar to builders who have no organisation that represents them and so they are getting controlled at every level.
I often think of the Outram farmers having a few whiskeys in the shed who hatched the original plan to form what is now called CRT. Farm supplies were controlled by a couple of big boys in the industry and the newly formed organisation gave purchasing power back to the farmers. Maybe its the canny Scotch influence of the forebears in Otago but these fellas should have been Knighted for their services to Agriculture.
Interesting comment re Feds subs Aj. I don't know of any farmers who aren't Fed members. Perhaps it is all the dairy boys and girls who are holding Feds up financially. In fact I know of farmers who haven't been Fed members for 20years, who have signed up in the last year or two. Why? Quite simply the new environmental/compliant era we are living in.
Have to say I feel I get very good value from my sub of <$500 (excl gst). Locally here where I live, Feds submissions against the local Councils intention to lower urban rates at the expense of rural rates, was majorly responsible for a Council backdown. Down in Southland they have beena valuable asset (via their policy analysts) in the Waituna Lagoon. Individual farmers just don't have the time to do the research to get the information required to rebutt council arguments etc that Feds analysts do. For me the work the analysts do on my behalf, as a farmer, warrants the cost of the sub. That all other non sub paying farmers get to ride on my coat tails is just the price we pay for a voluntary organisation. Then there are the Feds employment agreements, sharemilking contracts (after all they are the ones who negotiate with Govt over the Sharemilking act on behalf of the industry), and I also find using their OSH agreements so much easier than trying to write my own and probably stuffing them up. ;-) Sure we can have some 'interesting' characters at Executive level - I've been at provincial executive level (got the t-shirt :-)), but that's the price you pay for an organisation of volunteers. They do have a time limit on position tenure and the organisation is bigger than one or two individuals.
I don't agree with everything they say or do, but do believe that as a dairy farmer I would be worse off if they weren't there. :-)
I wonder if sheep shagger still reads this site. If so, it would be interesting to hear what his take is on sheep/beef farming and water reforms.
There was meeting in Gore today (I wasn't able to attend) re the Environment Southland 'Land and Water 2020' plan. Feds were really encouraging sheep and beef farmers to attend 'to get up to speed'. I'm guessing that sheep and beef are in the sights of the regional Councils now, and unlike us dairy folks, they don't really have a single industry body to fight for/lobby for them (excluding Feds of course ;-) )
I hear from my Canadian prairie farmer that they are harvesting some crops already - a whole month earlier than usual.
Casual Observer - it is actually good to hear that you find FF a good organisation on Local/regional policy issues. Maybe the Southland region is more pro-active.
My argument is that if FF is making a difference at National Level then the local issues wouldn't be there. FF should be writing and presenting legislation and amendments to the Government. They could start off with New Zealand Bill of Rights and get "property" added to the list of Rights, after all farmers are in the business of property yet it is not a protected right.
They could start off with New Zealand Bill of Rights and get "property" added to the list of Rights, after all farmers are in the business of property yet it is not a protected right.
@notaneconomist, I am interested to know what you consider property rights to be?
Is it the right to pledge property in exchange for cash or credit as opposed to the limited right of possession?
I think he just wants the government to do something about the property rights issue. You know all the well known cases of gangs of thugs going around and confiscating peoples property. Its funny because if your definition of government is a gang of thugs who go around confiscating peoples property, what makes you think writing it down on paper will be a disincentive. I hope thats not the definition of government, but I have seen some stranger ones still.
Also I think the definition or property rights might get a bit wooly around currency, because just to point out that the currency is actually all property of a government institution, so they probably have the property right to ask for it back (just to see you are not defacing it you know) about once a year, at their discretion.
Nic the NZer - If your not sure of the gender of someone posting on this site then maybe you could consider writing in a Gender neutral style. I might have balls or I could be a ballsy person. Maybe you just like making assumptions! In regards to the rest of your comments I propose the words of Steven Wright ( a famous erudite) - A conclusion is the place where you got tired of thinking.
On the currency issue, one would need to consider whether the currency is actually owned by the people with the Government along with the RBNZ holding administrative positions on behalf of the people.
As Abraham Lincoln stated: Democracy is Government of the people, by the people, for the people.
Stephen Hulme - NZ lies at the bottom of the OECD in regards to property rights along with Australia.
In regards to your question: "Is it the right to pledge property in exchange for cash or credit as opposed to the limited right of possession".
"PROPERTY RIGHTS" is what I am referring too. Please refer to pages 11 and 12 of the attached report which would have seen 2 new sections in NZBORA.
Thanks I read the pages you referred to: Unfortunately a firm definition of what constitutes property was not well defined, if at all, and this extract from page 13 of the pdf confirms as much.
The 2005 private member's bill was ultimately defeated. The Justice and Electoral Select Committee (which considered the bill) recommended it not be passed, on the grounds that:30 the definition of certain terms (‘property’, ‘deprived’, ‘use and enjoyment’) needed further work in order to be interpreted properly;
May I refer you to this German Thesis which in my view makes a good attempt to define property and it's rights - I apologise in advance as the doc is long .
Luckily for the NZ Dairy Industry the Philippines has an abundant surplus of hard working young folk who're willing to accept crap accommodation , appallingly long hours , and minimal wages ....
..... and they're so desperate , the Filippinos , that they'll put up with alot of bullying from arrogant Kiwi farm managers & owners too .......
Yay for the NZ Dairy industry , the respectable , clean & green , backbone of the NZ economy ..
Yep Gummy there are some crap employers out there, but there are good ones too. These days to employ a foreigner on a work visa they have to be employed as a 'farm manager' and at a minimum salary of $45,000.
I suggest there there are some less than ethical immigration 'advisors' out there who are bringing some of these folks in. I spoke to a young friend who employs a foreign worker. His visa was due for renewal, so he paid the 'agent' $1000 to renew it. The application was progressing when next the employer knew was that the employee had to leave the country. Turned out that the 'agent' had failed to forward vital info to the employers to complete. My cynical side says that the agent demanded more money for the employee, who wasn't willing/able to pay. This same agent then recommended another person from the same island who was only here on a holiday visa! This young couple had had complete trust in the agent until I pointed out to them that employing a person on a holiday (not working holiday) visa was illegal.
One employer told me that they have to be careful who they employ among Filippinos as the Filippinos bring their social heirachy values with them when they come. One time he employed a farm hand with 2 years NZ experience as a 2-I-C and a qualified vet, new from the Phillipines, as the farm hand. This caused all sorts of problems as the vet considered himself 'above' the farmhand. So a certain amount of cultural understanding is required by kiwi employers and I believe that this is lacking in some circumstances.
There is no reason for them to put up with bullying. But then that problem isn't confined just to Fillippinos.
He's just talked about farm debt, which on the rise as is business and house debt. Gotta pay the interest somehow. Still what we are seeing is a symptom not the cause of the problem, when do those in la la land get to talk about the cause? I also disagree that the debt taken on to convert to dairy is 'good debt' its the very worst debt. High costs are shoving farmers against the wall in large numbers. Lets deal with the costs, the worst- local and national government. Just look at the latest roaduser taxes. National government and local are soo out of touch.
You go for production work work work- hit the wall and its all about, 'what we dont need to do' Cut cut cut, lets survive, but thats not so good for all the farmers over 55 with a sore back, bad hip and stuffed knee, thats when the wife starts giving you ideas of a house on the lake and an easier time put yor feet up, hang up your knife.
So who's going to buy the farms, corporates? What do we want the future rural NZ to look like?
Financialisation has come at a huge cost and yet there are councils in NZ still pushing ahead with irrigation schemes. These will push small farmers off their farms allow quasi corporates in, and we will see large scale dairy farming, like has happened in Otago where the BNZ funded one farmer to buy 30 farms and convert them to 15 center pivot, irrigated ,large scale dairy operations, no doubt with imported low paid phillipino workers. Who backed the irrigation scheme - the BNZ.
We gotta get rid of this debt, let us all default at once, Colin Riden thinks its a third of farmers, Im tending to agree, how many farmers does it take, to have to sell to collapse farm values? Who wants to farm a high risk high cost operation? This is going to look like the 30's dust bowl in the States if we are not careful.
Gotta let those banks burn, just let me get my deposits out first, for one mans debt is my deposit.
Debt surge a warning for farmers http://www.stuff.co.nz/business/farming/7415416/Debt-surge-a-warning-fo…
here is the debt
"houses built before 2000 are eligible for a government grant".....money the govt steals as tax....the grant was all about buying votes....great scam.
More votes in it than would come from removing gst from all insulation product!
Brucey is perfecting his BS spewing routine....a must when it comes to a govt 'farm productivity working party' appointment. If he keeps it up he will get a knighthood.
Hey stop worrying mist42nz...Bernard has the answer....in the herald...."New Zealand's leaders should do the same"....Bernard thinks govt should make a grab for the savings of the old coots and invest it in stuff....stuff the govt would decide was the right place to invest...so up pops a rural rebuild programme...with a working party of course....gotta fill the pockets of the party rumpers....Brucey would get to be the chair...for a fat fee....and all the farmers could borrow cheap loot from the govt to do the rebuilding demanded by the shiney bums in wgtn....to meet the new red tape BS of course....workers cottages not up to par...annual warrant fees for council...extra jobs for inspectors..what's not to like...an easy sell for the spin doctors too.
mist42nz
Wow I guess thats the problem with a high cost system. On the sheep farm i had a bit of a spend up on my two cottages every couple of years. The problem was one house needed a new roof, the sheperds wife wanted a new kitchen, had to cut a bit of fert out to keep everyone happy. Its hard with cottages because you dont get rental, if you got $200 a week it would be easy to put it back. However the cottage is built into the wages you pay. Around me a lot of the dairy farm housing is the best because the conversions are new, so the cottages are to.
There is some shocking farm housing around here as well. One local was telling me he's moved jobs because the cottage roof leaked for two years and his wife could take no more, owner said he had no money but managed a new jet boat and overseas holiday, takes all types.
Only thing holding them back is their lack of imagination. A mate had a farm with sea views when the council found out they increased his valuation and his rates went fro 12k to 16k, now he tells me he's paying 24k.
Now Wally you must be able to see the sea from your place, and your camper must run on diesel, expect a visit anytime.
Nah but I can hear the surf alright. Taking the camper off the road AJ...sodding govt can go without the reg loot...dogs alert to council vehicles....always get plenty of warning...best to leave the place in a mess....a wreck of a 4wd the only thing in the drive..and keep the worst of the stock in the home paddock...old clobber hanging up by back door ready for a quick change when the dogs go berserk.
Pays to remember to hide good stuff inside a wall of hay bales and under old man macrocarpa...the swine use flyby pictures to spot any wealth these days...
All for no payback. I disagree with you there mist. You will get a better choice of farm employee and a happier employee. The old saying of 'happy wife, happy life' is true in a lot of cases ;-) I accept we employ a different level of staff to you, but I believe the philosophy is the same. A lot of the young motivated ones today simply won't accept a job if the housing is substandard. We always try to do something every one or two years to the houses (2) on the farm and budget accordingly. We have found it is better to put a maintenance/replacement policy in place than wait until it all falls apart.
we are just going to keep slipping down the chart
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2…
Yep, all is not well in this "fantastic LOW MARGIN GAME" of farming in NZ. The situation the industry is sitting in a the moment is frightening to say the least. Why?
1. High $NZ
2. Constant Inflation of Farm Working Expenses well in excess of our inflation rate
3. Extremely poor quality staff compared to yesteryear (due to low wages, poor housing, limited future prospects, long hours, isolation, poorly setup farms, poor schooling etc etc)
4. NZ Dairy Farming has moved to a high input system (maize/PKE/crops/runoffs/meal), which places the industry in a high risk situation when milk prices fall and high input costs stay the same or rise as is happening right now.
5. NZ Dairy Farm Performance is poor to say the least. Average submission rates in the Waikato are below 80% for the first cycle v's 96% target. This hasnt changed in the last 20 years!!.
6. NZ Agr Training Systems are sub standard to say the least, why because the brighter kids have all run away from the Rural Sector because they cant see a future in it! We have simply matched the education to the quality of the pupil and not the otherway around.
7. Farmers are getting fleeched by constantly increasing compliance costs and extremely high rates demands.
8. Extremely high debt levels (youd be shocked to see the debt levels Fonterras board of directors are carrying - does that make them the right people to have as directors of a cooperative?) and as AndrewJ has pointed out raising debt levels in the Agr Sector during a Massive World Recession (when everyone else is deleveraging) simply doesnt make prudent economic sense AND IS SURELY A SIGN THAT ALL IS NOT WELL.
Wow when you read what Ive just written it makes me think its time to go fishing..........
And thats why we are all grumpy.
Its the compunding of the costs, %10 a year incease in costs is a 7 year doubling, %7 is a 10 year doubling. My rates up %6 this year, but with user fees more like %8. The councils are killing us and the way out has been to give em a little more rope a little more debt. Then you get to the end of the road and theres no way out except default but that includes governments at Local and National levels.
I dont believe we would have had the pollution problems with dairy, if banks had been prudent borrowers, most of us fish in the rivers live in the community and like the environment. Create a monster with a 200 mil debt like Crafar is when the problems begin, the focus is on returns interest repayments and ego.
How much better we would all be if we could wind the clock back to 1995 and kick the bank into touch, never even heard of Bollard, Van der whatshis name or Cullen, had to put up a %60 deposit to buy a farm,rates were a minor cost and diesel was .35 cents a liter. Costs were %35 of gross sales and you could get a new Hilux for 25k. Fonterra had no debt and was a proper cooperative, in fact lets go further back to the dairy board for them.
Now we have to wind it back to 1995 but oh the pain on the way. The broken families the heart ache the pain the waste of life. Someone should pay.
Ive a friend in real estate trying to sell me a farm and I keep telling it has to get cheaper every year because costs are going up faster than income, the penny hasn't dropped yet he believes it a minor problem a management issue. I think Im on the winning team somehow. Its not a management issue its structural or systemic failure.
AndrewJ
Couldnt agree more - as a professional in the Agr sector Ive certainly spent alot of time sorting out the failures in the industry. Most of it as a result of very poor bank lending practices and uneducated farmers entering highly skilled high input farming practices.
Who knows were its all going to end up?????
Hell Ive opened the flood gates!!!!!!
Couldnt agree more with all replies - there is no real community left in the rural sector appart from some parts of the sheep & beef game.
And how can you expect to have one when the avearge milkings taking 5-8 hours a day with workers worked to the bone handling an average of 200 plus cows per man v's 30 years ago when it was close on 50 cows per man - which means the obviouse - workers had a broad range of work that keep them interested in their job - cupping up cows for 6-8 hours a day isnt to much fun.
Is the current dairy system sustainable? I suggest not, specially when you see the number of overseas labour on farms around NZ.
25 - 30 years ago I could advertise for Managers and find several with either Agr Degrees or a Dip Agr - now days the best we can find will be lucky to have AGITO Level 4 (which is the equivalent skill base of milking 180 cows - strange when the average herd size in NZ is closer to 400 cows).
Talk to the Universities - they simply do not have enough students completing Agr Degrees - this is where NZ's long term problems really lie - it is a real industry and country problem that needs urgent addressing.
Corporate Dairy Farming isnt the answer and it is bullshit that our own Government (Landcorp) are competing against us. Landcorp farms should be sold or opened up to the young farmers as this was how most existing farm owners got their start in life via a ballet farm or discounted lease with the crown.
The sharemilking industry isnt what it was, capital requirments are very high and huge variability in production, payout and costs make it very difficult for sharemilkers to both get in and stay in.
How do I know? because Ive seen it and because Im in the game.
ITs bullshit that Landcorp are sharemilking on the ex Crafar Farms - the only reason this is happening is to protect the 4 banks that were foolish enough to lend huge amounts of money on marginal dairy land and very marginal management.
The BANKS need to feel the pain and have blood drawn as a consequence of their foolish and greedy lending practises from the mid 1990's on. This has not happened..... yet!
They were the ones that created the super powered farm market - bankers with little experience and a bonus system based on how big they could grow their loan book with no regard for the quality of that loan book.
Take a close look at the rural banking game - there are very few old 1980/90 bankers left - they all got out between 2001-2007 when they relised the system was out of control.
What will happen now with the huge change in fortunes for the dairy boys? We wait. If the job blow then the first to roll will be the marginal areas. Location and quality will always win in the end.
Enough said Im off to check my 1000 cows operating under a traditional all grass system and then going fishing...........
And it isn't just the Ag industry that has gone that way over time. Check out this hotellier's comments on retirement from that industry;
http://www.scene.co.nz/hotel-boss-laments-radical-shift-in-role/300941a1.page
"Now 95 per cent of your time you’re trying to sell a room, and particularly in the new age, GMs are responsible to owners or chains or corporations and they spend more time reporting upwards..
and
Thank God for the South Americans – the Brazilians and Argentinians have brought some stability, particularly in housekeeping.”
Corporatisation sinks every industry under the weight of paying the "entitled" as Stephen puts it.. As was foreshadowed by Marx so many years ago.
Agree with a lot of what you say Grumpy but I think you have rose coloured glasses on with regards to milking times. When I was a kid growing up in the 60's and 70's, approx 6hours a day was what was spent in the shed on average (160 cows). They put automatic cup removers in and that only took one person out of the shed. Labour was always us kids who worked for free, so it wasn't a cost saving measure! ;-) It took 2hours to feed around 40 calves in the spring, so I don't see that as been a lot different to today in relation to time spent in the shed. Sure there are sheds which seem to take a heck of a lot of time to milk, but if you take the average farm, as opposed to the large and/or inefficient farms I don't believe milking times are that much different.
It's a bit elitist to say: 25 - 30 years ago I could advertise for Managers and find several with either Agr Degrees or a Dip Agr - now days the best we can find will be lucky to have AGITO Level 4 (which is the equivalent skill base of milking 180 cows - strange when the average herd size in NZ is closer to 400 cows). It's not the qualification that counts, it's the ability, experience and motivation that counts surely. Depends on where you are farming I guess, but I know several young chaps with Level 4 that by the time they had 4years (including study time) under their belt were managing herds considerably larger than 180cows. As always there are exceptions to every rule. :-) Whenever we have a position available on our farm (which is rare) we have the phones ringing before we even advertise. Perhaps in part it is because we are a <500cow farm - we get quite a few applicants saying they are wanting to downsize from a large herd. If so, perhaps there is a lesson in there.
I think we are going to see more and more farmers going (forced for whatever reason) back to the traditional grass system, you simply can't beat it long term. :-) I'm hearing quite a few PK addicts say that they are going cold turkey on it this year - too expensive. As an industry I think inputs, irrigation, etc are going to be discussion points and then change points in the future. We simply can't go on as we have been and to heck with the govt 7% increase production goals!
CO
MY rules are 10-12 rows max per shed = (8min/row X 10 = 80 min milking + cleanup)
Issues weve seen with someone milking for longer than this is a loss of focus and the negatives of this.
Sorry I wasnt trying to be an elitist but merely making a sound point. And yes I agree "some" of the Agr ITO Level 4 people are ok. Given that we tend to get 100 applicants when we advertise for workers, the disappointing news is for top positions we may be luckly to get 2-3 Agrito Level 4 applicant, of these we would be extremely luckly to find a sound, experienced, non drug user, capable, trustable person. By the way this is for prime farms in prime locations with excellent schooling and off farm activities and excellent houses.
Most large herd works have been worked to the bone and lack any real all round balanced experience. The LIC mating and herd performance statistic clearly show that the reproductive performance of our dairy industry hasnt changed in 30 years. Production per cow has only increased because of bought in feed such as PKE.
The only people making money out of high input systems are the leaches service the industry, yes the ones that supply big tractors and associated gear, cow shed suppliers building bigger sheds loaded with all the crap that has a very limited life, feed suppliers, contractors, vets, nutritionalists, NZ government, local government etc etc.
The people doing all the work are going nowhere (unless they are lucky and got a brain), eveb the lucky ones that find a management position tend to blow themselves to pieces from the huge pressure and end up on happy pills.....................
Teach our people to farm properly and we will easily get a 7% productivity lift - it is a joke that farmers think they are productive by feeding PKE - sort their reproductive programme, grazing management out, stop the excessive capital spend (or debt increase) on feed pads/bigger sheds/additional cows/bigger tractors and they will get a true production increase that will be reflected in a far better bottom line than you will see in the high input systems.
In fact my advice is to not even bother lifting cow numbers until farmers can achieve a 96% submission rate/65% conception rate/65% of herd calved in first 21 days.
Our young blood need a system to progress through such as what we had 20 years ago with the sharemilking system. Equity partnerships are fraught with peril and are like most relationships - they end in tears.
Thats my 2 cents worth
I wasn't very clear on my 'milking' time, apologies. I count from the time you leave home/shed to get the cows till the time you walk back in the door at home. Agree with all what you said - especially the sharemilking system/equity partnerships.
We employ 50/50 sharemilkers and 'Touch wood' we haven't had any issues with drugs but I do understand it is pretty rife in the industry.
All the best for a good season.
And in Oz.. A must read from the AFR over the weekend.....
Japanese drinks giant Kirin hopes to restore profit growth in its Australian dairy and drinks business by slashing the price it pays farmers for “excess” or off-contract milk and investing in product development and marketing.
However, Lion continues to lose share in dairy after the introduction last year of $1 litre house brand milk, which triggered a shift from Lion's Pura and Dairy Farmers brands to Coles and Woolworths' private label milk contract to Paramalat two years agoand has recently seen some dairy foods, such as Yoplait varieties deletd from shelves.
Lion plans to cut the price of off-contract or Tier 2 milk to as low as 12cents per litre in parts of Queensland and NSW, less than half what it paid farmers a year ago. It also plans to reduce the farmgate price for Tier 1 or contract milk in a bid to restore the profit margin it makes on fresh milk, which fell to zero last year
Out going chief exceutive Rob Murray said Lion was concerned about the long-term implications of retailers' "agressive" milk pricing, which has stripped millions of dollars from the milk value chain.....
Bruce is certainly getting it about
http://www.stuff.co.nz/business/farming/7415416/Debt-surge-a-warning-fo…
Aside form the look into my eyes, look into my eyes photo....
The figures are particularly concerning because a new Farm Price Index developed by the Reserve Bank and the Real Estate Institute of NZ shows that farm prices have declined by 24.8 per cent from their peak in October 2008, while agricultural debt increased by 12.7 per cent over the same period
"We now have higher rural debt levels than when the worldwide credit crunch hit in 2008, which is pretty concerning because we should have all got the message that we are carrying too much debt," he said.
Much of the debt was taken on during the dairy boom of the mid-2000s, which Wills likened to events leading up to the 1987 sharemarket crash.
"I think it stems from the rapid growth we had in dairying in the mid-2000s. There was a dairy boom then and some very easy credit and some guys went bananas and bought up extra units and chased economies of scale and bought at some pretty high land values. And they [land values] are back by 25 per cent now, so their equity position will be squeezed."
Seems like a change in sing song from
http://www.interest.co.nz/rural-news/60341/fed-farmers-bruce-wills-poin…
We are happy with the new tune...
If this is the case, as detailed in the article, we need to actively lobby our MPs to out the people and businesses they own who Mr Key says are actively capable of avoiding tax with the connivance of professional advisers. The individuals and their advisers need to be publicly shamed. I suggest this is the arena where societal warfare will be fought. Honest taxpayers will make it their duty to target life time recipients of welfare. This will get interesting as the next level of concentrated attack will be directed at entitled civil servants dishing out these edicts.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.