What Would Synlait Be Worth to Fonterra or a2 Milk?
Speculation of a possible joint move by Fonterra and a2 Milk to buy Synlait raises a much bigger strategic question, says agribusiness expert Dr Nic Lees.
THE BUSINESS plans and personal requirements of small-herd dairy farmers are to be put under the spotlight as part of a survey being organised by Lincoln University Lecturer in Agricultural Management and Agribusiness, Dr Victoria Westbrooke, and Research Fellow, Dr Peter Nuthall.
Irrespective of the fluctuating price for milk solids, dairy farmers with smaller herds face unique challenges and considerations in progressing their business or improving their lifestyle. For instance, it is thought that most farmers with smaller herds are probably working the farm largely by themselves.
The research, which has been commissioned by the Small Milk and Supply Herds group (SMASH), will entail phone interviews of about 10 minutes each to around 350 farmers. Only those farmers with 350 cows or fewer will be asked to participate in the interview. Farmers will be randomly selected from the SMASH client list and the Electoral Roll. In many cases the telephonists won't know the size of a farmer's herd prior to making contact.
The information collected will include views on development and change with regard to such things as purchasing land, investing in labour-saving technology, investing in off-farm ventures, or even diversifying into farm-based tourism. There will also be an opportunity for interviewees to express any ideas or thoughts that sit outside the set questions.
SMASH are keen to collate this information to more effectively develop and deliver the resources these small-herd operators need. Similarly, they hope to gain a clearer picture of succession intentions in order to ensure relevant support material and mechanisms are established.
The telephonists hope to begin phone interviews in the next few weeks. The material collected will be kept strictly confidential, and, although it is the intention of the researchers to publish general research findings, no information in which any individual farm can be recognised will ever be provided – farm details will only ever be available to the researchers involved.
SMASH and DairyNZ are funding the survey via One Farm, a joint research group of Lincoln and Massey University Farm Management experts.
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