How would you summarise your 38 years as a rural business advisor?

It has been a career that has ridden the waves of many changes over that period, from aggregation of dairy companies to the formation of Fonterra, to the demise of the small family farm as it gave way to larger-scale operations to stay viable and meet increasing compliance pressures. We’ve also ridden the wave of milk growth that flooded the South Island (and other traditionally non-dairy areas of the country) in the late 1990s and early 2000s, followed by the GFC in 2008. I’ve seen the industry go from one that was regarded as the backbone of the New Zealand economy to an industry now threatened by idealistic and impractical responses to climate change, Covid and the ongoing consequences of various fiscal policies.

Throughout it all, I’ve supported farmers through the ever-changing attitudes of banks to rural lending. There is always something to deal with and it hasn’t always been about crunching numbers. Often it is about counselling and guiding people to make the best decision to suit them and their situation.

Why are you retiring?

I feel it’s time to stand aside for the next generation of advisors. Many of my clients are my age, and I am now starting to advise their children as they take up their place in the industry, so it makes sense to let them work alongside people with similar interests and outlooks on life.

What are the biggest changes you’ve seen across the Taranaki farming scene?

I think the biggest one is the aggregation of small family farms into bigger dairy units to remain viable. It is pretty hard to support a family on a 40 hectare dairy farm these days. Also, capital gain is much less of a backstop these days. Farms need to be operationally profitable to manage debt.

Higher equity ratios are also important in managing milk price volatility. And technology is changing the landscape and infrastructure of dairy farms. Who would have thought that you could sit at home having a coffee, and at the same time change your virtual fences to shift your cows to a new paddock or get them to come to the dairy shed for milking? This sort of thing is game-changing.

What are some of the major challenges that farmers have faced and how has Baker Tilly Staples Rodway Taranaki helped them overcome those challenges?

As well as the changes referred to earlier, I think the fact that farms can no longer rely on capital gain to achieve wealth creation has been one of the biggest changes over my career. Our firm spends a lot of time these days assisting farmers with budgeting and variance reporting to ensure they have real-time information that assists them with timely and logical decision-making. We also assist with things such as bank financing, using hedging tools for interest rates and milk prices, and generally just being a sounding board for them.

Quite a few of our clients operate advisory boards that we help with, and we find this format invaluable when it comes to sharing ideas and solutions before coming to a decision the client is happy with. The old saying “two heads are better than one” still rings true.

How would you rate the current downtown, with low commodity prices, high interest rates and soaring input costs, alongside historical downturns?

I would rate it as one of the worst I’ve seen, mainly because it has lasted the longest. The GFC was bad, but we came out of that pretty quickly. The drop in milk price in 2015 and 2016 was devastating but we managed to get through that with sensible support from the banks, and interest rates were relatively low. The current downturn is a triple whammy with volatile milk/product prices, massive on-farm inflation and exorbitant interest rates. Many farmers were getting up to milk every morning knowing they were losing money over the past two to three years.

Do you think the worst is over or will 2025 continue to be challenging for the agricultural sector?

I think it is always challenging in the ag sector. Not only are farmers at the whim of the weather, but they are the ultimate price taker (they get paid last!). Volatility is part and parcel of being a farmer, so systems need to be resilient enough to withstand these vulnerabilities. And when times are good, farmers need to be sensible with those bonuses and ensure debt is maintained at sensible levels and R & M is optimised.

What were some of you career highlights?

Personally, winning the New Zealand Sharemilker of the Year competition with my husband in 1994 was a highlight. Being awarded a Nuffield Scholarship in 1998 was also a massive highlight. But the biggest highlight has been meeting so many amazing people, who have become very special friends through being clients and/or colleagues through the years. Farming is one of the few industries I know where people are so willing to share knowledge and experience to help others. It has been amazing!

What do you foresee for the future of the dairy industry over the next 40 years?

I think it depends upon the direction of travel with respect to climate change. Farming has always been the backbone of the New Zealand economy, seeing us through really tough times and creating a place in the world that recognises the value of high-quality food, fibre and health production. However, I fear that the industry’s ability to continue to deliver in that space is being compromised by poorly thought-through strategic responses to climate change that will result in many of our farming enterprises being unable to continue. We only need to look at the stance that banks are taking regarding funding fuel stations to realise that the flow-on effect could be catastrophic for farmers, either directly or indirectly.

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