Cash flow is king
Cash flow budgeting is going to be critical for dairy farmers in the coming season.
James Allen of AgFirst says 50/50 sharemilkers are especially at risk because their herd is their only asset, so they need to be cautious when buying new stock.
If by chance they get M. bovis in their herd the implications are enormous.
A 50/50 sharemilker moving to an area known to have a case of M. bovis must be very aware of the risks he is taking, Allen says.
“We are now asking all our dairy clients to start thinking about the issues and looking at the risk areas and what it might mean if their herd were to get M. bovis.
“Essentially it’s transferred by animal-to-animal contact so farmers need to think about where this might happen; for example, could it come when buying in-calf heifers or bulls?”
Allen says farmers need to know where stock is coming from and get some security about the status of these animals in respect of M. bovis.
There can be no guarantee, he warns.
“For example, if you buy young calves from a sale you have no control over the biosecurity of such animals.”
Allen says the 50/50 sharemilker is by far the dairy industry’s most vulnerable to M.bovis in financial terms. A manager, a contract milker or a lower-order sharemilker may take a one-year financial hit by losing income. But a 50/50 sharemilker has all their assets on the line.
Meanwhile, Richard McIntyre, who represents sharemilkers in Federated Farmers, says from what he has heard most sharemilkers are not moving unless they have to.
His members face huge turmoil if they get M.bovis in their herd, he says. They need to be aware of the risks of any move.
He recommends sharemilkers read a leaflet published by Feds, DairyNZ and the NZ Veterinary Association on precautions against M. bovis.
“These include buying annals from as few farms as possible, supplying a farm owner with any M. bovis tests you have and asking whether a herd has been mixed with any other animals, including wintering stock during the past twelve months,” he says.
Sharemilkers should also ask the farm they are going to if it’s been the subject of MPI tracing for M. bovis.
