Sharemilking, a form of

sharefarming Sharefarming is an umbrella term for various systems of farming in which sharefarmers make use of agricultural assets they do not own in return for a percentage share of the profits, whether this be in currency or in kind. Sharecropping as historic ...

, operates in the

dairy industry A dairy is a place where milk is stored and where butter, cheese, and other dairy products are made, or a place where those products are sold. It may be a room, a building, or a larger establishment. In the United States, the word may also des ...

. The application of this model of

agriculture Agriculture encompasses crop and livestock production, aquaculture, and forestry for food and non-food products. Agriculture was a key factor in the rise of sedentary human civilization, whereby farming of domesticated species created ...

occurs particularly commonly in

New Zealand New Zealand () is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and List of islands of New Zealand, over 600 smaller islands. It is the List of isla ...

. The most common arrangement is ''herd-owning sharemilking'' or ''50:50 sharemilking''. Sharemilkers own their own herd and equipment, and are responsible for employing workers and the day-to-day operations of the farm. In return, herd-owning sharemilkers receive a percentage of the milk income, normally 50%. In ''variable order sharemilking,'' sharemilkers do not own their own herd, and receive a lower percentage of the milk income. C''ontract milking'' is similar to variable order sharemilking, except the sharemilkers are paid a fixed price per kilogram of milk solids. Sharemilking contracts typically run from 1 June to 31 May; when sharemilkers take up new contracts, the herd is often shifted on what is known as "Gypsy Day". The model is not exploitative, and over time, sharemilkers often slowly buy out the landholder, or alternatively use the system as a method to save for their own property. This practice helps dairy farmers anywhere who do not wish the burdens of owning their own land, as it allows them to focus their investment in

livestock Livestock are the Domestication, domesticated animals that are raised in an Agriculture, agricultural setting to provide labour and produce diversified products for consumption such as meat, Egg as food, eggs, milk, fur, leather, and wool. The t ...

and equipment. Sharemilking also profits former dairy farmers who have given up their herds, by providing them with an income from rental of fields, pastures and barns.

References

{{Agri-stub Dairy farming Dairy farming in New Zealand

See also

References