“Farmers would go to the business that offered a cut in their own profit margins for more affordable goods and services, businesses would be sure that they would be paid and so would be more resilient and our towns would continue to be the hub of our communities.
“Of even more importance, this could contribute to a stabilising of an industry of undisputed importance to New Zealand's economy.”
They milk 270 cows on 80ha at Pongakawa, supplying Open Country Dairies.
The latest dairy auctions galvanised them into action.
“We all knew the giddy heights of the 2012-13 price of $8.60/kg milksolids (MS) would not last but it was a great opportunity to retire some debt, do much needed repairs and maintenance and be comfortable.
“No one in our area did crazy or extravagant things but we do know that our local towns prospered.
“In fact, we noticed a significant increase in many onfarm costs during that time as businesses believed there was a greater capacity for farmers to absorb increased costs. It was a win-win situation.
“Today, there are dark clouds, depression and a sense of dread for how the rest of this season and the next will play out.
“But we have been prepared to make the hard decisions, selling a boat we had watched being built and downsizing our car.
“There’s no criticism of any dairy company because it’s obvious that all are, in a sense, powerless to halt the downward direction of returns while they struggle to ensure all efficiencies are harnessed.
“There will be tragedies, some fatal, through suicide and other deaths due to trauma and stress but many others will go under the radar, behind closed doors.
“There will be mental and emotional suffering, relationship breakdowns, children under pressure needing money for school requirements and feeling guilty about it.
“It’s also a fact that farming supply businesses and our towns will be under severe financial pressure with many businesses likely to not survive.
“For many dairy farmers it’s a simple mathematical fact – five into three won't go.
“It costs conservatively $5-$5.50 to produce 1kg MS before any living and personal expenses are included.
“We are receiving $3/kg MS at the moment with final payment from $3.85-$4. For sharemilkers, especially those who are lower-order, the picture is even more grim.
“We believe there is a way through this if businesses and support professionals such as insurance firms, power companies and stock firms are prepared to take on board a bit of our pain.
“It’s pleasing that some are already doing this and they deserve our patronage.
“Wouldn't it be better to charge $50/hour for servicing farm vehicles rather than $85 plus GST? Wouldn't it be better to be able to buy needed equipment, at a special price and forgo the 50-70% (or more) profit margin currently sought by retailers?
“There were local businesses who during the kiwifruit downturn due to Psa provided products and services at a more affordable price and they and their clients have both benefitted from that.
“Dairy farming is cyclical. It will improve and farmers will be comfortable and able to return to increased costs when they can afford them.
“We would welcome discussion on this idea. We would love to hear from businesses who would be interested in making a commitment to lower charges, which would be beneficial to us all.
“Please make contact with us if you think if this idea has merit and would like to support such an initiative and be prepared to go on a national or regional register.
“Let's see if we can find a win, win, win outcome from the present circumstances.”
• Contact Andrea and Kevin Marsh via email: pencarrowfarm@xtra.co.nz or call 07 533 3877 or 027 497 3552
