Sharemilking
What is sharemilking?
Sharemilking is a contractual arrangement which shares the costs and benefits of operating a dairy farm. About 40 percent of New Zealand dairy farms operate sharemilking contracts.
There are two common forms of sharemilking:
- Variable order sharemilking (sometimes called lower order sharemilking) is where the landowner also owns the herd. Parties in this instance are covered by the Sharemilking Agreements Order 2001, which specifies the terms and conditions negotiated by the parties.
- Herd owning sharemilking (often called 50/50 sharemilking) is where the sharemilker provides the herd. The parties are free to negotiate any terms they wish.
Coming to an agreement
While sharemilkers do not legally have to have written sharemilking agreements, Federated Farmers strongly advises all farmowners and sharemilkers to have written agreements. It also recommends that both parties get independent advice before signing a sharemilking agreement.
Federated Farmers has a range of contracts and agreements that cover both variable order and 50/50 sharemilking.
Who can help?
Federated Farmers offers members fact sheets with advice on some of the common issues that arise with sharemilking.
The Federation also has a policy advisor who specialises in sharemilking issues. Melissa Jessen can be contacted on 0800 327 646 or email, mjessen@fedfarm.org.nz.
For advice on sharemilking agreements and disputes contact the legal team on 0800 327 646.
The National Panel of Conciliators is available to help resolve sharemilking disputes. See the list of specialists below.
