Share milking partnerships take wannabe producers a step closer to owning and running their own herd. We find out more about how it works and the benefits for both sides.
TEXT SUSANNAH PATE
A New Zealand-inspired share milking partnership is offering enterprising young producers an opportunity for career progression while building a stake in the business.
Farming Partners, a profit-sharing farming partnership, has been building its network of herds and young producers across Ireland, Scotland and New Zealand during the past 13 years.
It offers dual prospects for young people, without a family farm to return to or the resources to buy their own, to become part of a progressive farming business; and for producers looking for dairying expertise to manage and maximise herd performance. The unique business model is based on share milking in New Zealand, where the herd manager can build equity in the herd.
Building skills and ownership was what attracted 33-year-old David Commons, who manages Lundie Dairy, based at Angus in Scotland, to apply to join Farming Partners. From a non-farming background but with a degree in agricultural science, David has been with Farming Partners for 12 years, working his way up from trainee herdsman to farm manager for a 650-cow herd.
Kiwi experience
“My uncle had a few dairy cows where I grew up in County Mayo and I’d always enjoyed working with them,” he says. “As part of my course, at University College Dublin, I spent six months in New Zealand on a large dairy unit, which was the first time I’d been exposed to anything on that scale.”
When he graduated he considered going back to New Zealand; “But I needed to build up my skills and save some capital, which is when I saw an advertisement for Farming Partners.
“I was familiar with the New Zealand-style concept and I liked the focus on training and skills with a view to fast tracking to herd-manager level and being able to buy equity in the herd.”
Farming Partners was created by a group of professional producers who came together to run a number of dairy and heifer rearing units in Scotland and Ireland. The company now has nine grass-based dairy units, including one in New Zealand.
The company finds producers or farm owners who want to outsource the running of a dairy unit but still keep an interest in it. And, on the other side, they recruit and train up a team of young producers to run the units to a high standard.
The partnerships all vary, but the basic model is that there is a 50% profit share between the producers or landowner and the farming partner, the former providing the land and infrastructure, the latter the livestock, working capital and the management.
The stock is bought initially by one or both parties, the herd manager encouraged and supported by Farming Partners – including, for example, with their experience of applying for bank loans – buys into the herd with a view to eventually owning it all. The proportion of ownership is reflected in the profit-share.
Next generation: calves on David's dairy unit
High standard
“It works well for producers and landowners who, for whatever reason, want to bring in outside labour, capital and expertise,” explains one of the company founders Brendan Muldowney. “This could be due to there being no natural succession, their wish to focus on non-farming interests, or that they’re simply looking to make the farm more profitable.”
He adds that since the initiative began all its dairy units have been in profit every year. “They are operated to a high standard, so they are highly profitable in good milk-price years and remain profitable when milk price is low.”
In his first role, David moved to Scotland to work at Cumrue Farm in Dumfries & Galloway as a trainee manager, and then moved to nearby Shawsholm Farm as a farm manager/sharefarmer before moving to the 280-hectare unit at Lundie.
Lundie was bought by the Howard family, based in Nottinghamshire, in 2014 to spread risk. Mainly arable and vegetable farmers, they set up a dairy at Lundie on a share-farming partnership, inspired by the New Zealand model. The previous generation of Howards had dairy cattle and Joe Howard, who now runs the farming business, liked the New Zealand approach of working with the seasons with spring block farming and running with very little machinery.
“After four years, the farm at Lundie was not achieving what we wanted it to deliver and we put it up for sale,” explains Joe. “The initiative offers a partnership instead, which meant we could still have a vested interest in the herd, and the work we’d already put in had not been wasted.
“The agreement provided the knowledge base and expertise that we needed. David and the team at Lundie have used all their technical farming skills and rolled up their sleeves to turn the business around. And David has a solution-based approach to making everything work. We now have a high-performing, profitable 650-cow dairy.”
David owned 30 cows by the time he left Cumrue, and now has 260, and hopes to reach 650 head in the next few years. He says that it’s vital to take risks and put in hard work. “The risk-and-reward element is what makes it appealing. It makes you think differently, and you know that management decisions will also impact your own bottom line.
Wider network
“It’s also really good to part of something bigger than just the herd and dairy business. There’s also a wealth of financial and business expertise to glean from the partners. Being part of a wider network of producers in the same situation for sharing ideas and problems, to make your systems better and more profitable, is invaluable,” says David.
In 2023, the initiative invested in a dairy unit in New Zealand, further widening its network and opportunities. “Investing in people is central to the model,” explains Brendan, whose wife Maureen runs the people development side of the initiative. Together, with the other partners, they also attend careers fairs and open days to encourage young people leaving university to consider this career path.
“We want to find and recruit people who have the hunger and passion to succeed in this industry,” adds Brendan. “Training, support and career progression is important to us, and we believe in reinvesting profits to grow and improve our people and the dairy units we run.
“Several of our herd managers and partners who joined us as students now run units in their own right, growing their own businesses, with the support of the initiative, in partnership with landowners.”
To find out more visit: www.farmingpartners.co.uk.
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