Dairy Farming Profession in New Zealand

Extract from GO DAIRY website:

Dairying is one of New Zealand's largest industries and one of the fastest growing. It is a significant employer and contributor to the wealth that underpins New Zealand's standard of living.

Some Diary Farm facts:

The agricultural industry employs an estimated 11.4% of the New Zealand workforce. This includes around 66,000 people employed on sheep, beef and dairy farms.

Over the past 15 years growth has been significant in the dairy sector, which is considered to be more profitable than other land-use options.

There are about 17,000 dairy farmers including farm owners and sharemilkers.

There are over 11,800 dairy herds with a total of nearly 4 million cows.

Since the year 2000 the amount of land used for dairy farming has increased from 1,330,000 ha to 1,410,000 ha.

In 1990 the average herd size was 160 cows, today it is 322 cows.

The vast majority of herds are in the North Island (81.0%) with an average North Island herd size of 280 cows.

Generally the largest farms and herds are in the South Island where there has been most growth in dairy farming over the past ten years. Canterbury has the largest average herd size of 648 cows.

Total milk production has increased from nearly 13 billion litres in 2000 to over 14.7 billion litres in 2006.

95% of all milk produced is processed for export.

New Zealand's largest dairy company, Fonterra, earns about 20% of the country's total export income.

Our dairy season runs from the 1st of June through to the 31st of May.

Opportunities available

There are two types of opportunities available in the dairy industry, either a career as an employee or a farm business owner.

Farm Assistant
Estimated TPV: $25,000-38,000
This entry level role is about following directions and learning the basic skills. Unless you come from a farming background this is the start line for a career in the dairy industry. It allows an employee to be exposed to most tasks conducted on a dairy farm. Do not confuse this with a milk harvester role which is limited to milking duties.

Herd Manager
Estimated TPV: $30,000-$50,000
Typically after one to two years experience you should be ready for this role. This role requires employees to demonstrate a strong understanding of the basic skills (e.g. milking, feeding and health of stock) and display a willingness to accept responsibility for the cows as well as the other tasks under their control.

Farm Manager or Senior Herd Manager
Estimated TPV: $40,000-$90,000
A high level of competence in basic skills is required to be a successful farm manager. This includes having a clear understanding of the seasonal timing of the tasks and duties. This role has responsibility for the farm's physical operations. It may also include supervisory responsibility for staff that is generally taken on as one employee for every 200 cows.

Operations Manager
Estimated TPV: $60,000-$100,000+
This role requires the ability to develop and implement the farm's annual plan which will include both the financial and physical performance. This role has full responsibility for staff, including recruitment.

Business Owners
The dairy industry offers plenty of opportunities for people to become business owners in their own right. The earnings available to the business owner will depend on the amount of money they have invested in the business and are dependant on milk solid payout and production levels.

Contract Milker
This is a self-employed role where the contractor is paid based on the quantity of milk produced (e.g. 80 cents per kilogram of milk solids). They are responsible for some expenditure under their control (e.g. staffing) and supply some plant (e.g. motorbikes). Their responsibilities generally sit between the farm manager and operations manager levels. It is critical that anyone contemplating a move into a contracting position seeks advice from a qualified professional.

Variable Order Share Milker
This is a self-employed role where the contractor receives a percentage of the milk income (e.g. 29%). They are responsible for some expenditure under their control (e.g. staffing) and supply some plant (e.g. motorbikes). Their responsibilities generally sit between the farm manager and operations manager levels.

50/50 Share Milker
This is a self-employed role where the contractor receives a percentage of the milk income (e.g. 50%) and generally all the stock income. They are responsible for clearly defined areas of expenditure (e.g. all costs relating to stock) and they own and supply the cows and plant (e.g. machinery and tools).

Equity Manager and Farm Owner
These roles both have a financial investment in the business and therefore input into all aspects of the business operation.

* TPV Stands for Total Package Value and reflects the sum of cash and non-cash benefits. For many farm employees accommodation is provided as a non-cash benefit. Others may include meat, milk, or firewood. However TPV is subject to the employer.

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