AGRIBUSINESS

March 2007

Dairying Today

27

Feed business
gains ground
STEPHEN Swap has
good reason to be
pleased at the growth
in the number of New
Zealand dairy farmers
following a more
sophisticated farming
system that is no longer
solely pasture-based.
Swap, the main
driver of the grainrelated business of
J.Swap a familyowned transport and
contracting business
in Matamata has
overseen some heavy
investment in his
familys commitment to
the stockfeed business,
with particular
emphasis on palm
kernel.
To get a return on the
money sunk into huge
storage facilities around
the country the
Matamata store alone
covers nearly 2ha and
extra trucks to service
growing demand for
palm from the dairy
industry they run
just over 100 truck and
trailer units Swap
needed dairy farmers to
understand the benefits
of buying in meal.
More farmers are
getting to grips with
monitoring the marginal difference between
input costs and production output, says Swap.
Farm managers too
have to provide farm
owners a good return
on assets, so they need
to drive production
and productivity up.
Without buying more
land, the only way to do
that in a significant way
is to lift inputs.
Swap says pasture is
always going to remain

a significant proportion
of the New Zealand
dairy cows diet but that
it will never again be
the only component.
The J.Swap business
is deeply rooted in
the rural community
and the Swap family
has farming interests
around the Waikato
and Bay of Plenty.
Expanding into the
dairy feeds market
was a natural
progression for them,
but it required the right
importer to make their
palm kernel business
work.
Swap teamed up with
Hunter Grains Richard
Price, who Swap puts
a huge amount of trust
in. The importer is
responsible for ensuring
the best available
product is bought from
trusted sources and
landed at a price that
is competitive at the
farmgate.
Our reputation is
in the importers hands
to a large extent, says
Swap. [Price] has to
ensure we only source
the best, and that
we get it from MAFapproved ports. He also
carries a huge amount
of financial risk for us
by buying on forward
contracts.
The relationship has
been a success and the
J.Swap name is now
synonymous with palm
kernel. Their marketing
of palm has been a key
part of the increased
volumes going down
dairy cows throats
the dairy industry
used 35,000 tonnes of
palm kernel in 2003

and it now uses about

250,000 tonnes and
they are now looking to
broaden their product
portfolio.
The next step is
to install blending
equipment which
will allow us to make
seasonal blends, which
farmers are demanding
more and more. The
dairy feed industry is
coming of age.

Relationships critical: Stephen Swap (centre) with two of the key partners in the J. Swap palm kernel
business, Richard Price, Hunter Grain (left), and John Lea, CEO of RD1.

FMG awards
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STUDENTS Nathan Nelson, Pukekohe, and Erin

Sinclair, South Canterbury, are this years recipients of the FMG Agricultural Scholarships.
Nelson, who will be studying for a BAp.Sc in
agriculture at Massey University, demonstrated a
passion for agriculture in his application and interest in environmental issues surrounding farming.
Sinclairs submission showed she has a keen interest in dairy farming research around on-farm
management, including pasture growth and management, genetics and environmental management.
She also demonstrates an astute understanding of the ongoing challenges facing the industry,
citing a skilled labour shortage and environmental
sustainability as the two of the major issues.
The scholarship programme was launched in
2005 to celebrate FMGs centenary.
We are committed to the rural sector and we
see education as critical in the continuing development of the industry, says FMG chief executive
Gordon Smith.
Entrants had to submit a 1000 word-essay entitled Why I have chosen agriculture as a career
along with a profile introducing themselves, their
personal interests and their achievements.