Wealth creation: Building equity in the dairy industry.

Simon Van Der Heyden

Executive Summary

The New Zealand dairy industry has a broad range of career opportunities for people who are focused and disciplined to work their way through the stages of success. This report examines the pathways and steps to wealth creation within the dairy industry. 

Research shows that career progression is not as clear cut in today’s environment as it has been over the last 20 years. The world is changing quickly and, we have to be aware of what has changed, the challenges that we face today and those that we will face in the future. Positioning yourself to take advantage of opportunities starts from the beginning of your career with, goal setting, good habits and building networks with positive people around you. These key steps will ensure that you are on the right pathway to success.

The traditional pathway for dairy progression has being through the 50:50 share milking model, but in recent years there has being a decrease in the number of farm owners employing sharemilkers. Sharemilking has played a significant role in the dairy industry providing a pathway of progression for people with the desire and hunger to succeed. Based on the decreasing number of farmers selecting the sharemilking model it is inevitable that this traditional pathway could be under threat, making progression through the industry more challenging.

New innovative structures such as equity partnerships or joint ventures now provide people with the opportunity to progress into farm ownership if this is their desired end goal.

In conclusion, this report suggests that to create greater wealth in the dairy industry farmers need to be clear on what their goals are, remain focused and be prepared to face the hurdles that may be encountered along the way. Understand the power of compounding equity, en sure you have a budget, learn how to save and invest your money wisely. It is vital to continue learning and educating yourself so you can adapt and develop the skills required to keep progressing, even when changes are out of your control.

Simon Van Der Heyden

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