Dairy unity
OPINION: A last-minute compromise ensured that the election of the new Federated Farmers national dairy chair wasn't a repeat of the Super 15 rugby final - Canterbury versus Waikato.
Federated Farmers and Rabobank’s 2015 employee remuneration report shows farm employee salaries are increasing, despite tough industry conditions.
Salaries across the industry groups generally were equal at entry level, though some dairy-farming employees, such as dairy farm managers, had higher salaries compared with their sheep and beef counterparts.
Federated Farmers dairy industry group chair, Andrew Hoggard, says it has been a fairly unfavourable year for farming all round, especially in the dairy industry, with returns down 40%.
“That said the survey shows farm staff wages are increasing. Generally, employers are happy with their staff, with 77% saying they are very satisfied or extremely satisfied with their employees. That proves staff is valued and challenges the mainstream perception that farm workers are not rewarded,” says Hoggard.
The report also says there has been a decrease in working hours.
“This might be due to new survey questions this year, which mean we are now getting a truer indicator of actual hours worked.”
“People tend to concentrate on hours farm employees work in the busiest time of year and overlook the fact that hours fluctuate markedly from season to season. There are quiet times of the year as well.”
Hoggard says the report once again highlighted that package extras, such as food, vehicle use and electricity, are over and above the salary.
“More than 80% of employees are using farming houses. These benefits can reach several thousands of dollars.”
Hoggard welcomes the results showing farmers were now better at keeping employee data, with three quarters formally recording working hours.
“There is still a lot of work to do but this year’s results show we are heading in the right direction and it reminds all farmers that they are obliged to keep time records.”
“We would also encourage all payroll system providers to look into ways their products can assist farmers to record all this in a much more user friendly manner,” he says.
Questions are being raised about just how good the state of the dairy industry is - especially given that the average farmgate payout for the coming season is set to exceed $10/kgMS.
A leading financial and banking advisor says he doubts if most dairy farmers fully understand the dynamics of banking.
Dairy farmers are shoring up their balance sheets, with almost $1.7 billion of debt repaid in the six months to March 2025.
Virtual fencing company Halter is going global but for founder Craig Piggott, New Zealand farmers will always remain their main partners.
A former Fonterra executive is the new chair of the Dairy Companies Association of New Zealand (DCANZ).
New Federated Farmers national dairy chair Karl Dean is looking forward to tackling the issues facing the sector.
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