Keeping it in the family farmers' priority

Part of the logic behind Robert and Mary-Anne Kane's decision to convert part of their farm to dairying was driven by simmering frustration with the meat industry.

The main reason for their decision to convert 208ha of their 256ha home farm, West-holm, near Tapanui, from sheep and stud beef cattle to dairying was to help a fourth generation of the family into the business.

"We see it as being a whole lot easier with dairying to change the generations," Mr Kane said.

The simmering tension was driven by frustration at the performance of meat companies and their inability to work together or improve the viability of farms.

They have similar frustration with the wool industry.

The Kanes will retain about 80 of their stud Hereford and 50 stud Angus cows and about 3000 ewes, which will be run on two adjacent farms.

Come spring, 540 dairy cows will calve, with the dairy unit run by son Luke under the tutelage of an experienced dairy farm worker.

Mr Kane said Westholm lent itself to dairying because it was square in shape and, while reluctant to reveal the cost, he said the family was taking a big-picture view.

Mrs Kane said Luke enjoyed working with cattle and the cashflow and asset appreciation from dairying was the easiest way for him to get a start and for the Kanes to plan for their retirement.

They decided only in late November to proceed with the conversion, but spent many hours researching the shed design before deciding to kit out a 54-bail rotary shed with the latest technology.

This will include a protrack automated drafting system, automatic cup removers, cup drop-down, weighing facilities, mastitis detection and double-teat wash.

Mr Kane said they looked at a number of sheds and were impressed with Alister Megaw's new shed on his Tapanui farm, saying it was built to last and to be easy and enjoyable to work in.

Contracts were signed before Christmas, earthworks have already started and building will begin on February 1, with milking scheduled to start in early August.

Mr Kane said it was not an easy decision to convert, but made easier with the support of his father, Murray, who told him it was more important to him to have a grandson and fourth generation run the farm.

"He doesn't care what sort of farming as long as it's farming," Mr Kane said.

It was also made easier by the fact the 46-year-old Hereford stud would be retained.

Westholm was bought by Robert Kane's grandfather in 1929 and the first stud Hereford cows were bought by Murray Kane in 1963.

In the early days, Mr Kane's brother milked 60 cows on the farm.

Today, they run 150 stud cows, supplying bulls to the dairy industry and commercial and stud beef farmers via two on-farm sales each year.

The conversion means the stud herd will be reduced to between 75 and 80 cows, with a partial dispersal sale to be held on March 20.

Mr Kane said the cows would be offered in pairs, with the successful bidder able to pick which one they wanted to buy and the Kanes retaining the other.

That way, he said, all their cows would be offered for sale and buyers given the chance to buy the best.

Mrs Kane said her frustration with the meat industry was graphically illustrated before Christmas, when she bought lamb for Christmas dinner.

They had recently sold prime lambs to Alliance Group for $78, but one side of lamb bought through the meat company's Mataura butcher's shop cost them $70.

A year earlier, they had sold lambs before Christmas for $90, but a side of lamb had only cost them $40.

Mr Kane said he was still passionate about the lamb and wool industries and the quality of the products, but disillusioned with the structure of the two industries.

"I still believe lamb is a very good product and wool is a very good product. I feel last year's high [lamb] prices will hurt us in the long run because we have achieved nothing with the rationalisation of the meat industry. Nothing has changed."