A question often asked is "Are there still opportunities for farm ownership for people with limited capital like there was years ago?' The Du Plessis's obviously believe so, and are well on their way to saving capital for future opportunities. More and more immigrant NZ'ers see exciting opportunities in agriculture and are cashing in.
The dairy industry provides lots of chances for career improvement, whether it's through the management advancements or sharemilking systems, and has become profitable enough to well reward those who perform.The opportunities in the sheep, beef, and deer sectors are not as structured as in dairy, but they are avaliable. Responsible management positions for those of ability are today well rewarded, and well structured shared equity positions do allow advancement to farm ownership.
Historically capital growth was the way to build equity, as poor business returns restricted saving by that measure. However will we see a change in the future with capital gains taxes expounded by many, that today are compensated by a much better return on investment from the business of farming? Most farmers would trade this capital growth for consistent sustainable prices that allow better profits, but historically farming world wide has produced low returns and needed capital growth added, to keep people in this job financially.
Should farm ownership be the ultimate goal, or is career advancement enough to satisfy the future agricultural entrepreneurs?
Hannes and Lyzanne Du Plessis travelled to NZ from South Africa eight years ago with their child, a suitcase and only $20 in a bank account reports The Southland Times. Six weeks ago, they moved to Southland with their three children to contract milk on a dairy syndicate managed by MyFarm at Edendale. "We had no idea our lives would go in this direction," Mrs Du Plessis said. "We want our story to inspire others. You do not need a lot of money or experience, because the opportunities to live your dream are all here within the NZ dairy industry."
Mr Du Plessis's cousin, Sharemilker of the Year 2010-11 winners Stefan and Annalize Du Plessis, initially encouraged him to immigrate to NZ and become a dairy farmer. In 2008, Hannes and Lyzanne Du Plessis were placed third in the Waikato Sharemilker of the Year awards. However, last year Stefan and Annalize Du Plessis urged their cousin to investigate opportunities in Southland.
"They sent us pictures of cows milking and grazing on luscious grass, while our cows in Waikato were struggling with a drought," said Hannes Du Plessis.At Edendale Pastoral Ltd, the couple will milk about 680 cows on the 240-hectare milking platform and rear their calves in a converted sheep shed on the 80ha adjacent runoff block.
During the past eight years, the couple have made rapid progress within the dairy industry, expanding their work force and helping their family in the process. They helped Mrs Du Plessis' two sisters with immigration to New Zealand and provide employment for two staff who have also made the move from South Africa to Waikato and now to Southland. "The number of cows we are milking is less important than growing our business, so we have the opportunity to extend our dream by employing other people who faced a poor future like we did," she said.
Mr Du Plessis, who left South Africa as a horticulturist, said they would like to settle and own a dairy farm. They were excited about their future with Edendale Pastoral Ltd. "We recognise the amazing opportunity there is in the New Zealand Dairy industry to live our dream," he said.
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