As summer rolls around, it’s not just a time for keeping an eye on pasture growth and enjoying a well-earned breather. Federated Farmers dairy chair Karl Dean advises farmers to start planning for the next dairy season.
“For contract milkers, sharemilkers and farm owners, now is the time to think carefully about what you want from the season ahead and who you want to work with,” he says.
Taking on a contract or a sharemilking role is more than just a business decision – it’s a partnership.
“Both parties need to be clear about their values and goals, and make sure they’re heading in the same direction. That’s what sets up a relationship to succeed, especially when pressure comes on, whether it’s from milk prices, staff shortages, or extreme weather like floods or droughts,” he says.
“It’s crucial not to simply get along well at the kitchen table – good relationships matter, but paperwork matters too. If things go pear-shaped, it’s the contract that you’ll be leaning on, so it must be watertight.”
Federated Farmers’ contract templates are designed to protect both parties.
Key clauses are highlighted with the Federated Farmers logo as a reminder that those sections must be completed properly.
These cover the areas that most often lead to disputes if left vague, such as responsibilities around feed, production expectations, or who carries the cost if a natural disaster hits.
“It’s easy to skip over details when everyone’s excited about starting, but the tough conversations now will save a lot of pain later. That’s why we always say: if it matters, write it down,” says Federated Farmers dairy chair Karl Dean.
For farm owners, summer is also a good time to step back and think about their long-term goals.
“Is the next step for your business to bring in a contract milker or sharemilker? Do you see opportunities for progression within your team? Planning ahead not only helps your own business but also gives talented young people the chance to grow within the industry,” Karl says.
When contract milking and sharemilking work well, it builds strong businesses, keeps people in the industry, and creates opportunities for the next generation.
“So, this summer, as you look ahead to next season, take the time to set your values and goals, have the honest conversations, and make sure the paperwork is done properly. That way, when June rolls around, you’ll be ready to hit the ground running,” Karl says.
Making Contract Milking Work
Federated Farmers, DairyNZ, and FMG are teaming up to run Making Contract Milking Work workshops around the country in November and December.
These sessions are designed for both farm owners and contract milkers/variable order sharemilkers, with practical advice on setting clear expectations in the contract, using the right budgeting and risk-management tools, making sure insurance and legal safeguards are in place, and how to set up a successful business partnership.
Go to dairyevents.co.nz for dates and locations near you.
Talk to your farm advisory team for support or call Federated Farmers on 0800 327 646.
Article supplied by Federated Farmers.