Spring Creek sharemilker stays committed to dairy industry despite low returns

A Marlborough dairy farmer fears for the future of an industry in a downturn and its ability to encourage newcomers.
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James Pratt, of Spring Creek, came from a sheep farming background in the Awatere Valley and was encouraged to try dairy farming, «because you will make more of a buck than sheep,» he said.
After 12 years working his way up the chain Pratt, and his wife Angie, are facing a payout of $4.15 a kilogram of milksolids, and wondering what the future holds as their income steadily drops.
«The real downside is that the payout is completely out of our control, it’s frustrating, but you just have to remain positive,» he said.
«If the low payouts become the norm, it will be become more difficult to encourage people to join an industry with low financial reward.»
The Pratts are 25 per cent sharemilkers on a 100 hectare farm bordering the Wairau Diversion.
They milk 300 friesians cows, all owned by the farm owner, on a «3-in-2» (three milkings in two days) milking regime, and have 80 heifer replacements and 70 calves.
This season they are targeting 125,000 kilograms of milksolids, at an average 1.5kg per cow per day.
On average it cost a Marlborough dairy farmer $1400 per cow, according to DairyNZ figures.
The couple’s costs include paying a sole staff member a salary, running farm machinery, such as the quad bike and utility, and electricity costs for the dairy shed.
Staff wages are the biggest cost but there is no intention to layoff staff.
«I couldn’t work the farm on my own without staff, and if I did try there would be serious health issues, and the farm would deteriorate» he said.
Supplementary feed, and veterinary costs were the responsibility of the farm owner.
With a $4.15/kg payout the couple will receive 25 per cent, or 80 cents a kilogram.
It will be paid monthly at an advance payment rate of $3.15/kg, followed by a delayed capacity adjustment payment of 25 per cent of 51 cents.
During milking the couple do not have a day off between July and December, and give their farm worker a three-day weekend every fortnight.
Because of the sharemilking arrangement they are paid 25 per cent of the total production and are not paid when the cows dry off for three months during winter.
«We are running the farm at a cost to us and we just have to come up with ways to reduce our costs,» he said.
«We don’t have a weekly wage like many people, we have an overdraft.»
Their goal is to move into a 50:50 sharemilking arrangement, including owning the cows, but it looked unlikely in the short term.
The alternative option would be to negotiate with the farm owner for a contract milking role with a fixed $1.50/kg payment regardless if the payout goes up or down, he said.
«If we did that it would be equal to receiving around $6/kg.»
The couple came to the farm from a company management position in Culverden when the payout was $8.50/kg, he said.
After moving five times in the past six years to work their way up the industry scale, they saved enough equity to buy into 25/75 sharemilking at Spring Creek.
«Twenty five per cent sharemilking looked good when the payout was $6/kg,» he said.
The farm owner was understanding of the couple’s situation, he said.
«There’s really no way out except to renegotiate a contract rate where we can break even and pay our debts.
«We can’t walk off the land, or decide not to turn up for work one day, because cows have to be milked, or they will get sick.»
Pratt said he was not interested in the politics of the dairy industry.
«I’m just a farmer trying to make a quality product we can sell.»
In spite of being surrounded by vineyards, they have little interest in becoming grape growers.
«It would bore me to walk up and down rows of vines every day,» Pratt said.
«I like animals and love the land, and that helps me go to work with a positive outlook everyday.»
The two children, aged five and six, are their main priority.
«They are unaware of what is happening but they have a great lifestyle being able to have the whole farm to run around, there’s a river to swim on the doorstep, and they can take their calves to the shows.
«Our friends from the city come out and are really envious of what we have.»
The couple were committed to the dairy industry, he said.
«I don’t see myself doing anything else, we are the country’s leading export earner, but at the moment we seem to be moving sideways and not forward.»
Dairy NZ estimate up to $2.85million will be lost from the Marlborough economy with the forecast milk payout dropping from $4.60 to $4.15.
It is estimated $14.4 million will drop out of the Top of the South regional economy.
 
Source: Stuff
 

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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