Investors

• New Zealand has 11,700 dairy herds and 4.5 million dairy cows and heifers in milk (2010/11) with an average herd size of 386 cows. Stocking rates average 2.77 cows per ha.
• Friesian and Jersey/Friesian cross breeds are the prevalent dairy cow breeds in New Zealand making up 80% of the breed population.
• New Zealand produces about 2% of total world production at around 17.3 billion litres per annum however, unlike most other countries approximately 95% of its dairy produce is exported rather than consumed domestically.
• New Zealand is the world’s largest butter exporter (44% of all traded butter).
• New Zealand is also a major exporter of skim and whole milk powders (27% and 38%, respectively, of world trade).
• Dairy is one of New Zealand’s largest industries, contributing approximately 25% of total merchandise export earnings ($NZ10 billion in 2008-09).
• Development of functional foods is a growing trend in New Zealand’s dairy industry, and includes products such as low-fat, high calcium and protein milk, and biomedical and biohealth products, such as colostrum-based health supplements.
• Britain and the European Union are New Zealand’s most valuable market for butter. The primary markets for casein and cheese are the United States, Japan, and the European Union, with New Zealand being the world’s largest exporter of casein and caseinate products. New Zealand’s most important milk powder markets are in Central and South America, and Southeast Asia. New Zealand also has the two largest milk powder plants in the world, these being in Hamilton and Taranaki.
• The temperate climate is perfect for Dairy Farming and 95% of milk production is from grass. Cattle are wintered outdoors. Crops used for dairying are brassicas and maize silage.
• The main Dairying Areas are Canterbury, Southland, Taranaki and Waikato, but most areas have at least some Dairy Farming. Eighty-five % of dairy farms are located in the North Island, with one third of all New Zealand dairy farms located in the Waikato/South Auckland region. Taranaki is the second most heavily populated region at 17%. South Island dairy farms account for 15% of the national total.
• The Dairy cattle population in New Zealand for the end of 2006 was estimated at around 5.2 million, with the total number of cows & heifers in calf or in milk being estimated to have risen to 4.25 million.
• The average production is 334 kilograms of milk solids per cow per year and 923 kilograms of milk solids per ha. (Solids are fat and protein).
• Dairies are predominantly Herringbone averaging between 14 to 40 cups per side. Rotary sheds are the norm for herds over 500 cows with on average 50 to 60 cups.
• The average calving season starts around the 20th July (mid-Winter) over an 8-10 week period with the bulk of cows calving in the first 4 weeks. Artificial Breeding – 85 % of the national Dairy herd is mated from 10 weeks after start of calving for a period of 6 weeks.

Beyond the financial aspects there are often emotional and family considerations to work through.

• Should we sell the farm?

• Are we able to sell a stake in the property rather than all of it?

• It’s hard to get ahead at the moment. How can we reduce our debt to improve our cashflow?

• If we keep a part ownership of the farm business how do we ensure performance for the future?

• One of our children would like to run the farm but our other children don’t.

• How do we provide a legacy and ensure that all of our children are treated fairly?

• What will we do with our time and money?

When it comes to selling their farms, owners have a lot to think through. We work alongside farm owners to help develop a way forward that provides for your family’s needs now and into the future.

We partner with leading independent professional experts including your own financial advisor who can offer you the right advice and we are able to tailor solutions for you in response to that advice that includes full or partial exit, single or multiple family member ownership structures, debt reduction and forward management plans.

We view succession planning and ownership transition as an exciting time, an opportunity for farm owners and their families to map out a new direction and provide a legacy for the future.