Australian dairy farmers have long been compared to our Kiwi big sisters.
You might imagine the comparisons would highlight the resilience of Aussie farmers who cope with much tougher climates (three weeks with scant rainfall is considered a drought in NZ) and less bountiful soils. But, sadly, no, it’s generally been along the lines of a disappointed parent.
“If only Australian dairy farmers were more like the Kiwis”.
But, as the cost of producing a litre of milk in the naturally blessed New Zealand has risen close to that of Australia, big sister has lost some of her charm. The new golden child is Big Brother: the corporate farmer.
The corporate farm is very attractive to everyone who describes themselves as “in agribusiness”. It borrows big, spends big, supplies big and is built on the promise of rivers of white gold that can be tapped by anyone with a spare dollar (whether or not they have an aversion to muddy boots). Freed from the constraints of traditional farming, they push the system hard for maximum shareholder return.
And, if it crashes, well, what the heck? It was worth a crack. The carcass is licked clean, everyone dusts themselves off and goes back to what they were doing before, digging up iron ore or whatever it takes to fund a spin on the roulette wheel.
Should we be concerned? Honestly, I’m not sure. If large dairy farms are held by patient investors, they can tick all the right boxes, since cow care, environmental responsibility and the welfare of workers all make business sense in the long term.
I just hope those lured by all the hype remember that dairy farming is a complex, volatile business and the returns may be neither instant or constant for, if it’s all about turning a quick buck, things can turn ugly very quickly indeed.