Contract milkers’ survey reveals financial, mental health issues within industry

Almost half the contract milkers questioned for a recent survey reported abusive behaviour from farm owners or advisers. Photo / 123RF

By Gianina Schwanecke of RNZ

Almost three-quarters of New Zealand’s contract milkers have experienced significant financial or mental health challenges, a new survey shows.

Contract milkers are paid a dollar rate per kilo of milk solids and sit under contract law.

By comparison, sharemilkers are paid a percentage of the milk payout and their employment rights are protected by the Sharemilkers Act.

Undertaken by The Sharefarming Consultants and representing about 13% of the industry, the Contract Milking Experience Survey found 73% had experienced significant financial or mental health challenges, while 43% had experienced abusive behaviour from their farm owner or farm adviser.

Only 17.7% of respondents had sought compensation for their experience, and just 25.7% of those used mediation.

The survey also found 17.5% had been given instructions by the farm owner or adviser that breached animal welfare requirements.

It also found 14.3% had been given instructions that breached environmental management standards or consents, and 20.5% had been given instructions that breached health and safety standards.

The Sharefarming Consultants co-founder Louise Gibson said while the results were “disappointing”, they were “not surprising”.

“Contract milking increased in popularity to protect our sharemilkers from the risk of fluctuating milk price, but it opened the door to an unregulated loophole in contract law,” she said.

Gibson said contract milkers had difficulty litigating any issues, not just from a financial perspective, but also the added mental pressure.

“People that have been on the receiving end of abusive behaviour were almost 20% more likely to have exited the industry, which is a really leaky bucket when we talk about how hard it is to attract people to the industry in the first place.”

She called for changes to the Sharemilker Act, so contractor milkers were afforded the same rights and protections as employees or sharemilkers.

The industry is supportive of change.

Federated Farmers dairy chairman Richard McIntyre said the findings were “quite confronting”.

“We’ve put a huge amount of effort over the last 10 years to try to improve outcomes.”

He hoped to understand the impact of these efforts, as well as better understand if these were one-off experiences during difficult seasons or more systemic.

“Contract milkers and sharemilkers in general play a huge role within the dairy sector,” he said.

“This survey has raised some issues that we’re going to have to have a good look into and continue to put in a lot of effort to resolve.”

McIntyre said Federated Farmers was open to legislative changes, although the industry had differing views on whether this was the most effective path.

A DairyNZ spokesperson said the survey reflected some known issues within the sector.

“It’s important we continue to work together with partners to ensure contract milking can be successful for all involved,” they said.

“While contract milking is business ownership, which carries risks – especially financial risks, any inappropriate or abusive behaviour is never acceptable.”

Contract milkers needing support were encouraged to contact DairyNZ, Federated Farmers or Rural Support Trust.

- RNZ