A large crane is at work on the milk shed at Ashmount Farm near Chertsey with consent to milk 1700 cows on 426ha and another 202ha of neighbouring land bought last December is being added to the main unit.
Ashmount — part of a surge in Canterbury dairy conversions — is being transformed from an arable and dairy support farm by a company including the Van der Poel family and Will and Kim Grayling.
Three herds will go through the one shed to produce 500kg of milksolids per cow on pasture, grass silage and palm kernel extract.
The 80-bale cowshed has automatic teat spray and cup removers with three new three-bedroom houses and a four-bedroom house being built.
The 426ha is being converted at a cost of about $17,000/ha plus cows.
Mr O’Connor told farmers attending a South Island Dairy Event (Side) field day there were advantages to converting a farm such as designing a layout of 12 to 13 paddocks for each herd and putting in efficient irrigation over most of the property.
He said the first budget had been set to get a return and they wanted to hit the ground running without spending unnecessary money.
"We are pretty comfortable with most things. Fencing is up reasonably well and the stock water is all in."
Mr Grayling said the Van der Poels had shown a "massive level" of trust and that was a big part of the equity partnership.
He said the size of the property ensured there was enough of a return for all of them.
The 426ha farm with one shed was more attractive to them than a 200ha existing farm as it was more efficient.
"When we started the process the best dairy farms were worth about $60,000/ha so that was the target. Let the land price go up and take that as comfort, but that’s totally out of our control and we still have to stay focused on that $60,000 number. This land cost us just under $43m but for me the key of the conversion is you’ve got scale."
So far the herd is 740 heifers in calf, 220 carry-over cows, 300 cows from Waikato and 150 Jersey cows from Taranaki on top of budget and local animals.
Mr O’Connor said a balanced herd at 4.1 cows to the hectare would include a friesian line with good Jerseys from the North Island and he was looking forward to milking them.
He said the main thing they might have done in hindsight was buy more cows early.
"There is nothing major you would do different. You want your cow shed in the right place and we actually took our time and it’s in its second location so sometimes procrastinating is a good thing."
Graduating at Lincoln University in 2020, Mr O’Connor had a season as second-in-charge (2IC) before becoming a contract milker for Michelle and Leighton Pye’s 900-cow Barnscroft Farm and then a manager for a Methven farm.
After taking a year off working in Australia and the United Kingdom he returned to manage 1000 cows for the Graylings midway into last year.
The runner up NZ Young Farmer of the Year and NZ Dairy Trainee of the Year has stepped back from that role to focus on the conversion.
Ashmount shareholders have given Mr O’Connor and his fiancee, Lydia, a loan, to become an equity manager for this coming season.
The arrangement is once debt is eventually reduced a dividend will be paid and the O’Connors can re-invest in more farm shares.
Wheat and barley were sown on 110ha the year before new pastures of ryegrass, white clover and plantain — now having their first grazing — were established.
Centre pivots with some fixed grid irrigators in the corners replaced existing lateral irrigation.
Mr Grayling said it would be nice to own a support block, but 1700 cows would be wintered within walking distance at a neighbouring cropping farm.
The key to the conversion timeline was getting grass in the ground as time for this could not be bought back, he said.
New lanes are in place and the farm has two bores as well as access to Barhill Chertsey Irrigation scheme water.
Under Mr O’Connor will be a 2IC, three herd managers, two farm assistants and casuals still to be employed.
