Sharemilking will survive M bovis crisis
Farming is dominating the news lately because of the very serious potential threat that Mycoplasma bovis poses to our dairy and beef stock in NZ.
With the latest figures at the time of writing of some 40 farms suspected of having this disease, it is very frightening not only for our farmers but our whole nation as well.
Every New Zealander should be concerned as if this disease bites deeper into New Zealand’s largest export earner it will affect our ability to feed a very hungry world.
In my opinion, this disease has possibly been around and spreading for at least two or three years now but only identified over the last few months.
I say that as this would have started with one animal and now spread to 40 or more herds, mainly in the South Island, with devastating effects on the lives of stock and their human owners.
As an avid watcher of Q and A, on June 3 I watched the interview with MPI Minister Damien O’Connor, who was talking specifically about M bovis and his Government and the industry’s response to this crisis.
I do agree, looking at the importance of dairying and the meat industry, in the long-term interests of our whole nation that we have to attempt to get on top of M bovis and eradicate it if possible.
It won’t be easy but as a country we must put every effort into complete eradication. Other countries have learned to live with it but I believe that is not an option for NZ.
At this stage we really don’t know if it is only the tip of the iceberg or that the containment process is really working.
There has been media comment that this disease may spell the end to sharemilking but I don’t agree.
Sharemilking has been around for many decades with what was called 29 per cent, 39 per cent and 50/50 per cent agreements – with some as high as 60/40 per cent.
In more recent years it became more evident that the two parties wanted to negotiate their own terms in a sharemilking agreement so a ‘‘Lower Order SM Agreement ‘‘ was born which is now called ‘‘Variable Order’’, with the main driver being Federated Farmers.
This is where the two parties negotiate and agree in their contract what those percentages will be and, once signed, it becomes a legal document.
But it is in the higher 50/50 per cent called ‘‘Herd Owners’’ that the SM owns the stock and some chattels.
This is what some commentators are saying could disappear as more containment or movement of stock from farm to farm is restricted.
At present we have some 533 sharemilkers contracted on our 1657 Taranaki dairy farms so it is very significant numbers.
What I predict may happen is, because the movement of livestock around NZ is most likely to be curtailed or restricted, we may see a reduction of 50/50 per cent with a greater preference to Variable Order or even a newly designed sharemilking contract which acknowledges the changes happening in the industry.
We will see more farm owners preferring to own their herds longer and contract a Variable Order SM, and their contract could include the option of buying the owners’ herd or even the farm as well at a later date.
Food for thought.
It should be acknowledged that NZ farmers, since the early co-operative days some 130 years ago, have found solutions to problems.
So I am not predicting the demise of sharemilking.
One horror story I have just heard comes out of the Southland area where a 50/50 per cent sharemilker was signed up to move from his existing farm to a new one but in the meantime this farm had been put into quarantine so he could not move his herd on.
Meanwhile, a new sharemilker was ready to move his herd onto the farm he was supposed to be leaving but had nowhere to take his stock.
At this stage I have not heard the outcome but let us put ourselves in this SM’s shoes as it would have been devastating with nowhere to take precious stock.
He may have had no option but sell his whole herd and young stock.
There is no doubt that this subject will be in the news for some time yet.
It is very frightening not only for our farmers but our whole nation as well.