Case Studies of Successful
Progression and Equity Growth in
the New Zealand Dairy Industry
Samuel Clements-Stewart
B.Agr.Sci (Hons)
Background
• Commentators suggest that the traditional
pathway for success in the dairy industry is
diminishing
– Less herd owning sharemilking jobs
– Higher land prices
– Change in relativity between cow prices and land
prices
– Competition for young farmers from investors and
corporations for land
Dairy land prices and farm sales (DairyNZ, 2012)
Trend in the number of herds and average size for the last
30 seasons (DairyNZ & LIC, 2012)
The traditional pathway through the New Zealand dairy
industry (Reekers, Shadbolt, Dooley & Bewsell, 2007)
Contemporary variations to the traditional pathway through
the New Zealand dairy industry (Reekers, Shadbolt, Dooley
& Bewsell, 2007)
Progression path options (Allan & Waugh, 2012)
Purpose of the study
• Determine the success factors involved in
progression by new entrants
• Investigate methods used for equity growth
Research questions
• Is the traditional pathway still achievable?
• What are the biggest challenges facing people
entering the industry?
• What alternative and novel methods are being
used to grow equity?
• What different skill sets are required
compared to traditional pathways?
• What factors have led to successful
progression?
Methods
• Qualitative case study interviews with young
farmers (10) and established farmers (3)
• Survey of DairyNZ Progression Group
Is the traditional
pathway still available?
• More likely in the North Island
• Available, but not as straight forward as in the
past
• More likely to take longer due to increased
scale and bigger steps
• More likely in family situations
What are the
biggest challenges?
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Access to capital
Increasing herd and farm size
Progression steps are larger
The price of land
Establishing networks
Finding opportunities
What novel methods
have been used?
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•
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Equity partnerships (particularly new variations)
Off-farm investments
Investing in allied industries
Investing in land owning company
Sharefarming rather than sharemilking
Equity sharemilking
Land owning sharemilkers
New pathway:
Land Owning sharemilker
What different skill sets
are required compared to
traditional pathways?
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•
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Business skills
Computing and technology skills
People management skills
Education was seen as being important
Skills gained in outside industries
Success factors
Methods of
equity growth
Thank you to OneFarm for
funding this research
• Samuel Clements-Stewart
B.Agr.Sci (Hons)