Federated Farmers BOP sharemilkers spokesman Jon Russell says most Bay of Plenty sharemilkers are choosing not to move jobs this season.
The amalgamation trend in the dairy industry, making bigger farms by combining smaller ones, is reducing the numbers of sharemilkers nationally.
'There were only 11 jobs advertised in the North Island to about Christmas time, normally it's much higher than that,” says Federated Farmers BOP sharemilkers spokesman Jon Russell.
'We were actually looking for a position, it was pretty tough going.”
While he agrees with Federated Farmers sharemilkers chairman Jeff Bolstad's prediction of a tight year or two for sharemilkers, Jon has different reasons.
Jeff says farms have been amalgamating and reducing sharemilking positions since the government got out of rural banking in the 1980s.
'That means there's been a lesser pool of jobs for sharemilkers to fit in to,” says Jeff.
Less options
'As the farms get bigger the sharemilking options get less.”
Jeff, a Morrinsville sharemilker, says that situation has been worse in Waikato and Northland but it was probably masked by the large number of conversions in the South Island during recent years.
Jon says Bay of Plenty sharemilkers are sitting tight because they want to build their equity back up.
'The cows are not too badly priced, ranging around $1850 for a top cow,” says Jon.
He's one of the few sharemilkers in the Bay of Plenty who will be shifting to take up a new contract on June 1. He's packing up the herd and taking them 160km south towards Taupo.
'There's a lot of good jobs in the Bay and you don't see the same amount of shifting,” says Jon.
'It's a pretty good place to live and people tend to hold onto their jobs around here.”
Long term change
Vice president of the Federated Farmers sharemilkers section Ciaran Tully says the trend might be signalling a longer term change in dairying culture.
The Thames based dairy farmer says a recent local Dairy Industry Association meeting was very strong on farm managers whereas they used to be 50-50 managers and sharemilkers. There is also a current trend towards lower order sharemilkers, who don't own their own herds.
'A good sharemilker will always out perform a bad manager,” says Ciaran, 'but there's not that much difference in it.
'Farmers should do their sums and work out what the benefits are of having a good sharemilker working for the benefit of both parties.”
In his 15 years in the country Ciaran has worked in the dairy industry for wages, as sharemilker and now as a joint venture equity partner. He bought a farm with some other people.
'From a sharemilker point of view there are always ways of getting ahead, you just have to think smarter,” says Ciaran. As well as joint ventures for farm purchase, he's also heard of joint ventures for herd ownership.

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