After almost a year promoting the hub, about 200 of the possible 1000 dairy farmers and local businesses in Southland and South Otago had offered donations, Southern Dairy Hub spokesman Matthew Richards said.
If the $2m was not found by the end of April, industry partners DairyNZ and AgResearch would make a decision on whether to continue.
“However, the trust is confident there is sufficient local dairy farmer and business support for the Southern Dairy Hub to proceed,” Richards said.
“We believe the hub proposal is a rare and potentially a one-off opportunity for southern dairy farmers to join industry partners in developing something unique for the southern region.”
All donations will be refunded if the decision is made to pull the plug. A 300 to 380 hectare farm is being sought for the hub in Central Southland which will have 800 to 900 cows split into four herds for comparative research trials.
Education and training facilities as well as commercial and research offices will be built on the property which will be ready for the 2016-17 milking season.
Budgeted cost is $26.5m with $10m contributed by DairyNZ and AgResearch, $2.5m from the Southland Demonstration Farm and a further $2m from local farmers.
“The farm has not been purchased yet, but we are actively looking for a suitable property. Any offers will be subject to the SDDT being able to raise sufficient capital,” Richards said.
“The underlying business of the hub will be a commercial dairy farm so its business model has to be viable and the proportion of debt is a factor in this. All research will be funded separately, including offsetting losses on the farm if profitability is compromised.”
He said market research by SDDT showed farmers wanted to see new ideas and theories tested and trialed in the southern conditions on a commercial scale.
“They want to see research on such things as comparing nitrogen leaching levels across different forages and supplementary feeds, comparing and testing new theories and innovation especially on wintering options, lameness, effluent management and housing and applying current programmes such as the Forage Value Index in local conditions.”
A research advisory committee made up of southern farmers and the principle partner representatives would decide what research would be done. The committee would assess research proposals to ensure objectivity, relevance and applicability for southern farmers.
“Projects like the Southern Dairy Hub invariably work best where there is strong leadership and support from local farmers.”
Dairy farmers have been asked to give $2000, $5000 or $10,000 (classified as bronze, silver or gold donations) and their contributions will be listed on a plaque wall at the hub. Donations are tax-deductible and can be made by lump sum donation, automatic payments spread over a period of time, or the donation of cull cows.
For more information and to make a pledge go to www.southerndairyhub.co.nz.
