Livestock Market Update: Go-Stock adding value on farm
Bideford, Wairarapa farmer Dion Kilmister uses Go-Stock to accelerate business growth
Go-Stock is a PGG Wrightson initiative that has put 1.2 million lambs and 200,000 cattle on farms throughout New Zealand over the past five years.
PGG Wrightson buys the stock and retains ownership, meaning no initial cash outlay for farmers. Farmers then graze and grow the stock before deciding, in conjunction with us, when and where PGG Wrightson will sell them. PGG Wrightson pays any resulting positive trading margin to the farmer, less our fees and selling costs.
Go Stock operates for sheep, cattle, and was recently extended to deer.
Dion Kilmister of Bideford, Wairarapa, has used Go-Stock to accelerate growth and add value to his business:
“On our home farm we run around 10,000 stock units, breeding and finishing beef, though have branched out to more farms around the lower North Island, and have 27,000 stock units overall.
“You need to have more than one tool in your toolbox: you can’t fix a fence just with a fence strainer. Go-Stock really adds value to our business, and has come into play with quite a proportion of our stock. It really works in those times when cash flow is pinched.
“Cattle is a big outlay. Buying 200 or 300 cattle at a time is a lot of money to come up with, sometimes at inconvenient times of the year. Go-Stock works really well. We work on a buyer price margin, then trade back out to the PGG Wrightson scheme. We have used the programme for lambs as well. At our peak on the home farm we have had 700 cattle and around 3000 lambs on Go-Stock.
“We bought a dairy farm two years ago and used all our equity to buy the land. We were able to take on 600 Go-Stock cattle to stock that farm, and have just done another deal on a neighbouring farm that we will use Go-Stock for as well.
“It’s been a real positive for our business: a big part of our growth. I highly recommend it.”