Converting to dairying

The New Zealand Kellogg Rural Leaders Programme develops emerging agribusiness leaders to help shape the future of New Zealand agribusiness and rural affairs. Lincoln University has been involved with this leaders programme since 1979 when it was launched with a grant from the Kellogg Foundation, USA.This report outlines the information collected from a survey of 24 people in the Tui Milk Products Supply Area who have been involved in the recent conversions of drystock units to dairy-farms and the expansion of existing dairy farms. The main reasons identified for converting a drystock unit to dairying\ud is to obtain higher and more stable returns. Also a perception of dairying as\ud the star performer in New Zealand Agriculture with a well organised and\ud structured manufacturing and marketing system. Farms and people involved in the recent influx of dairy conversions vary\ud greatly.\ud Those surveyed included - owner operators with and without experience\ud - owners with sharemilkers\ud - Dairy farmers expanding\ud - Drystock units to dairying\ud - Existing dairy-farmers expanding\ud The most important and first step in a successful conversion is detailed\ud planning. Have a definite timetable, Financial Budget, Feed Budget and\ud development plan to work to. Most of the problems identified in this\ud report could be avoided through careful planning. Most of those surveyed were most appreciative of the service provided\ud through the Dairy Company and while finding the Company run seminars\ud useful, felt that they would improve as more practical experience and\ud info was gained through large numbers of people converting. Banker support has been excellent for those converting. Their understanding\ud of the new conversions has been important as in almost all cases there have been\ud budget over-runs, mostly in the construction costs of sheds, races and in some\ud cases animal health related areas. The innovative ideas included in this report should be beneficial to any\ud dairy farmer and in most cases are easy to implement