FFNZ Launches New Sharemilking Agreement

Federated Farmers has launched a new sharemilking agreement to reflect changes in legislation and the dairy industry since the new millennium.



The 2007 “New Zealand Herd Owning Sharemilking Agreement” was developed and is endorsed by both the Sharemilkers’ Section, and the Sharemilker Employers’ Section, of Federated Farmers.



“The new Federated Farmers’ agreement will be keenly sought in the 2008/9 season, which begins next June. It has an edge over other agreements because it is the only standard contract available that has been written with input from both sharemilkers and farm owners,” said Malcolm Piggott, chair of the sharemilkers’ section.



A sharemilking agreement is a written contract between a farm owner (or sharemilker employer) and a herd-owning sharemilker. It is commonly known as a “50-50” sharemilking agreement to reflect an even split in farm income.



Sharemilker Employers’ Section chair Scottie McLeod said the 2007 agreement updates clauses to take account of new rules around the environment and health and safety. It is also written in the context of the new Fonterra share structure, specialty milk supply such as colostrum, winter milking or organic milk, and includes reference to nutrient budgets.


“This agreement makes clauses clearer and more robust so they are appropriate to different situations, such as generic clauses on milk supply. The agreement is still relevant for farmers supplying to processors other than Fonterra. It supersedes the current Federated Farmers’ agreement, which dates back to 2000,” Mr McLeod said.



“Federated Farmers has also produced a guide fact sheet to aid understanding and help people individualise their agreements to best fit their situations,” Mr Piggott said.



Formed after consultation with the Arbitrators and Mediators Institute of New Zealand, the New Zealand Institute of Primary Industry Management, Fonterra, and legal advisors, the pre-printed agreements are available to Federation members at a discounted rate of $40, and $120 to non-members.



Farmers can order the agreement by ringing 0800 327 646, or members can order on-line at www.fedfarm.org.nz