Company Overview

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Profile of Operations

The New Zealand dairy operations of Dairy Holdings are conducted through four autonomous wholly owned subsidiary groups, Dairy Farm Holdings Ltd, Clumber Farms Ltd, Livestock Holdings Ltd and West Coast (Dairy) Ltd.  For the 2011/12 season, these groups will operate 58 dairy units on 14,243 effective hectares, milking 43,992 cows to produce approximately 15.18 million kilograms of milk solids.

Of these dairy farms, 17 have been operated from 1 June 2011 under 50/50 Sharemilking agreements, whereby Dairy Holdings supplies the land, buildings and infrastructure, and the Sharemilker provides the livestock, plant and machinery necessary to operate the farm; 16 under Lower Order Sharemilking agreements, where the Sharemilker provides the plant and machinery necessary to operate the farm and may provide some of the livestock; 12 under Contract Milking Agreement where the Milker provides the plant and machinery; and 13 as managed farms where the farm owner provides all the farm, livestock and plant and machinery resources.

Under the 50/50 Sharemilking agreement, Sharemilkers are paid 50% of the value of milk solids produced and receive all livestock sale proceeds as the owner of the stock.  The Sharemilker is responsible for 50% of all feed and grazing costs, all labour and dairy shed operating costs, and all repair and maintenance, insurance and ownership costs in respect of the Sharemilkers plant and machinery.

Under the Lower Order agreements, Sharemilkers are paid a fixed percentage of the value of milk solids produced and provide the labour to operate the farm and pay a fixed percentage of the milking cow feed costs.  Revenue from calves over the replacement numbers, accrue to the Sharemilker, but, as owner of the livestock, Dairy Holdings Ltd retains proceeds from cull cows sold.  All animal health and breeding expenses are paid by the farm owner.

On managed farms, all income accrues and all costs are borne by the farm owner.

Two Farm Operations Managers and Four Farm Supervisors oversee the day-to-day dairy farm operations and are generally responsible for about 10 farms each.  Five of the Farm Supervisors also operate their own dairy units or farm under Sharemilking agreements with the Group.

The dry-stock operations are responsible for the management and return of approximately 7,500 in-calf heifer replacements to the dairy units each year.  In addition to the dairy heifer operations, the grazing blocks also provide dairy cow winter grazing and carry dairy service bulls and carryover cows as seasonal conditions allow.

Overview Group Production Summary 

This summary shows the budgeted area and production statistics for the different farm operational structures for the 2009/2010 season.  

                                                                                                                                                                              * This total Excludes West Coast 

The above production has been achieved with minimal supplementary feed.  The West Coast farms are largely self contained for their wintering requirements.