Wednesday, 14 November 2018 07:55

Going hand-in-hand to sustain good business

Written by  Nigel Malthus
The Pye Group’s Michelle Pye (right) with farm manager James Emmett. The Pye Group’s Michelle Pye (right) with farm manager James Emmett.

Economic and social sustainability must go hand-in-hand with environmental sustainability, says the only farmer member of the recently named Fonterra sustainability advisory panel.

“Whenever you see ‘sustainability’ you always think environmental firstly, and probably for good reason,” says South Canterbury’s Michelle Pye. “But you know they’re interlinked; you can’t have one without the others.

“Sustainability is about having our business here long-term, for generations to come. And you need financial sustainability, environmental sustainability and social sustainability because you need your licence to operate.”

Pye has been a member of the Fonterra shareholders council for two years. She is joined on the sustainability panel by five experts mostly from business and environmental management and with little prior connection to Fonterra.

“It’s an impressive group and I don’t profess to be an expert on sustainability at all but it’s important to have a farmer voice at that table and that’s my role there,” says Pye.

“You could loosely describe them as friendly critics. They’re there to challenge what you’re doing. In any industry you’ll get the biggest challenges from outside your industry. So it’s going to be interesting.”

Pye and her husband Leighton own and run the Pye Group at Winchester, across the road from the house where Leighton grew up. The group runs contracting and cartage businesses, and grows potatoes, carrots, cereals and seeds on 2000ha, mostly in the Rakaia area. It expanded into dairying in 2002 and now owns nine dairy farms, mostly south of the Rangitata River, managed by contract milkers.

“I am excited to be part of [the panel] because with Pye Group we want to have a sustainable business that’s respected in the community. But you’ve got to earn that respect and I’d like to see Fonterra do the same thing... and respected in New Zealand; what’s good for Fonterra will be good for New Zealand,” says Pye.

“I am a strong believer in the co-op model being what the industry needs. Without a strong co-op at the corner of the dairy industry in New Zealand I think we’d have serious concerns about profitability and sustainability.”

Pye says that having grown on the milk boom the Pye Group is now improving what they’ve got through sustainability, planting, and technology. 

Their farms have few waterways, but they have done riparian and other planting where appropriate. A corner of one farm has been set aside as a habitat for native lizards. 

Technology such as soil moisture probes and flow meters have become general practise in Canterbury, she says.

“A lot of our sustainability is in the use of water and fertilisers, so in that regard we measure and measure and measure.”

The group has bought its own fertiliser spreaders with proof-of-placement technology. 

They have variable rate irrigation on two farms.

“We’d love to have it on every farm but it’s about $50,000 an irrigator,” she says. “That’s why I keep saying you’ve got to have environmental sustainability with economic sustainability.”

Their contracting business is a district collection point for a silage wrap recycling scheme.

The group has introduced “Pye group values” to ensure farm managers are clear about expectations and get “a huge amount” of support to meet them.

“It’s absolutely not acceptable to be non-compliant on any consent; that’s just a big no, and they know that,” says Pye.

They run a program called CSVue which manages all consents, sends alerts when actions are required, and logs effluent and irrigation ponds to help detect any problems. 

The group already has close to 40 core staff (excluding farm staff employed by the contractors) but is about to appoint someone just to manage environmental compliance. All group farms either have a farm environment plan or are in the process of formulating a plan.

More like this

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

Editorial: A new era for two co-ops

OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.

Should co-op sell its consumer brands?

OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.

Featured

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

New McHale terra drive axle option

Well-known for its Fusion baler wrapper combination, Irish manufacturer McHale has launched an interesting option at the recent Irish Ploughing…

Amazone unveils flagship spreader

With the price of fertiliser still significantly higher than 2024, there is an increased onus on ensuring its spread accurately at…

» Latest Print Issues Online

Milking It

Tough times

OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.

MSA triumph

OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter