The entry of most New Zealand dairy farmers into dairy giant Fonterra Co-operative will bring big changes to their milk management.
From next month, most farmers will be asked to buy the on-farm refrigerated milkvats now owned by the dairy companies.
Previously most farmers had been able to rely on the dairy
company owning and taking responsibility for maintaining the refrigeration plants.
The farm owner will also be responsible for replacing equipment and maintenance, as well as being liable for the cost of milk if there is a breakdown and milk is spoiled before collection.
The changes will be costly for farmers if something goes wrong - about $5000 for the contents of an average farm vat and the replacement of an average refrigeration unit - equivalent to $70 million at a conservative estimate of one vat for each of the nation's 14,000 farmers.
New Zealand's only national specialist on-farm refrigeration company, Dairy Technology Services (DTS), has been contracted by Fonterra as the preferred supplier for the transition period.
DTS general manager John Joblin said all dairy farmers would have twice-yearly maintenance checks on their refrigeration units.
"The maintenance contract includes the cost of parts and labour, the exchange of the unit if necessary, and a 24-hour callout service."
Mr Joblin said that previously South Island farmers had to pay for the upgrade of units, while the dairy companies had paid for maintenance for farmers in the North Island.
"What we will be doing is talking to farmers and telling them on any given day their biggest risk is that the milk in their vat gets hot, and the dairy company won't come and pick it up," hesaid.
The new contracts with DTS would enable a farmer who had a temperature problem with milk to ring the company directly.
Mr Joblin said the farmer would not be billed for the repair unless he had done "something stupid, like let a rat climb in his farm vat".
"If he has given us a reasonable chance to save his milk, he will be paid for it."
The cost of the service would vary, depending on the size of the unit, but Mr Joblin said it would average about $2 a day.
On-line monitoring boxes are being tested on some units, and Mr Joblin said he hoped most farmers would have them installed in the next two years.
- NZPA
