Federated Farmers New Zealand Contract Milking Agreement: A Comprehensive Guide

If you are planning to venture into the dairy farming industry in New Zealand, you need to understand the vital role of contract milking agreements. Contract milking involves hiring a contract milker who manages a farm`s cows, land, and facilities in exchange for a percentage of the gross revenue or payment per kilogram of milk solids produced. Federated Farmers New Zealand has developed a contract milking agreement that ensures both parties` rights and obligations are well defined. In this article, we will discuss the essential aspects of the contract milking agreement.

1. Parties Involved

The contract milking agreement involves three parties: the farm owner, the contract milker, and the sharemilkers. The farm owner is the legal owner of the land, cows, and facilities. The contract milker is the person appointed to manage the cows, land, and facilities owned by the farm owner. The sharemilkers are the people employed by the contract milker to assist in the management of the farm.

2. Duration of the Agreement

The contract milking agreement is usually for one season, which runs from June 1 to May 31. However, the parties can agree to extend the contract for another season or renew it for a further term.

3. Obligations of the Contract Milker

The contract milker has several obligations, including:

• Maintaining the cows in good health and welfare

• Ensuring milk production is of high quality and quantity

• Carrying out all farming operations with care and skill

• Maintaining all facilities and equipment in good condition

• Undertaking all legal and regulatory requirements

• Reporting regularly to the farm owner

4. Obligations of the Farm Owner

The farm owner has several obligations, including:

• Providing the necessary facilities and equipment for the contract milker to carry out their obligations

• Providing adequate feed, water, and medication to the cows

• Ensuring effective communication with the contract milker

• Organizing testing and inspection of the cows and milk produced

• Ensuring compliance with all laws, rules, and regulations

• Providing appropriate accommodation and other facilities for the contract milker

5. Payment Terms

The contract milker receives payment based on the percentage of the gross income or payment per kilogram of milk solids produced. The parties must agree on the payment terms and the dates of payment. The contract milker is responsible for paying sharemilkers employed under them.

6. Termination of the Agreement

The contract milking agreement can be terminated if either party breaches the terms of the agreement. The parties can also mutually terminate the agreement by providing appropriate notice, as specified in the agreement.

In conclusion, the Federated Farmers New Zealand Contract Milking Agreement is a vital document that outlines the rights and obligations of both parties involved in a contract milking relationship. The agreement covers various aspects, including the duration of the agreement, obligations of the contract milker and farm owner, payment terms, and termination of the agreement. By understanding these aspects, you will be able to make informed decisions when entering into a contract milking agreement.