Forget about another share trading review
Former Fonterra director Nicola Shadbolt says the recent collapse of a few dairy cooperatives should be blamed on their strategy, not their co-op structure.
Australian farmer Brian McLaren has been a loyal Murray Goulburn supplier for 48 years but the latest price blow could be the final straw.
“Murray Goulburn has ruined me physically, financially and mentally,” says the Woolsthorpe farmer.
“I’ve had a gutsful. You can only get belted over the head so often; you can’t keep coming back.”
McLaren had hoped for an opening price about A$5.50 but more realistically expected A$5.30 with step-ups to boost it towards A$6 later in the year.
However, the season opening of A$4.70/kgMS with a forecast closing price of A$5.20 - $5.40/kg MS has him “gobsmacked”.
Now McLaren is weighing up options for transferring to another company, although he admits his choices are limited.
“I’m looking elsewhere now but my options aren’t great. We will look at Saputo or the Midfield Group or give it away.
“At $4.70 and when you factor in the 10 cents promised for loyalty it’s $4.60 I can’t make a living; nobody can.”
“I’ve been a Murray Goulburn man for well over 40 years. I’ve been supplying them since the Grassmere factory closed and they initially came to the district.”
McLaren has spoken to his accountant and says he will make a “calculated decision” on his future. “We haven’t done the sums. We don’t want to jump out of the frying pan into the fire. It has to be a commercial decision.”
McLaren, who milks 700 cows, says starting at the low price would cost him A$480,000.
“We produced 480,000kgMS last year and if we’re a dollar under our competitors that means I just lost $480,000.”
He remains frustrated about the cooperative’s problems.
“I understand they’re hamstrung in regard to what they can do, but I want to know why.
“If Saputo are trying to source millions of litres to run a cheese factory -- Murray Goulburn has one at Cobram; why can’t we sell the same product and chase an extra 10 million litres.”
McLaren (65) is now considering his future. “I’m working my arse off for nothing. I don’t mind working hard but I want to be paid for it.”
Another 16 commercial beef farmers have been selected to take part in the Informing New Zealand Beef (INZB) programme designed to help drive the uptake of genetics in the industry.
Trade Minister Todd McClay says Kiwi exporters will be $100 million better off today as the NZ-EU Free Trade Agreement (FTA) comes into force.
Making things simpler, not harder, for deer farmers in farm planning and coping with regulations is Deer Industry New Zealand (DINZ) industry capability manager John Ladley’s current focus.
Rural Women New Zealand (RWNZ) is launching an online business directory called The Country Women’s Collective to promote and support entrepreneurial rural women.
New Zealand actor Sam Neill has joined the Campaign for Wool NZ as an ambassador, lending his name and profile to educate and advocate for New Zealand strong wool.
Living labs that bring together expertise at locations around New Zealand are among potential solutions identified by researchers to help the country move towards a more climate resilient future.