In the rolling landscapes of South Waikato, a shift in agricultural strategy is proving that diversification can be as profitable as This proves sustainable. By integrating a specialized sheep dairy operation, local farmer Ryan McPherson is helping to scale the output of Spring Sheep, a venture focused on the high-value niche of sheep milk production.
The transition was born from a desire to modernize the family business. For McPherson, the move toward a South Waikato sheep dairy boosts sustainability and operational resilience by moving away from traditional monocultures and embracing a more circular approach to land management. According to McPherson, the financial logic was clear: the numbers stacked up, offering a path to grow a distinct business and career within the existing family farm structure.
The operation centers on the Zealandia sheep, a breed specifically selected for its milking capabilities. This partnership with Spring Sheep is a vertically integrated model where the company provides the genetics and handles the processing of the milk, while the farmer manages the daily husbandry and infrastructure. This arrangement allows farmers to focus on animal welfare and land health while the corporate partner manages the complex supply chain of a relatively rare dairy product.
From Decommissioned Sheds to High-Tech Dairy
The physical transformation of the farm began in late 2020. Following a suitability assessment by Thomas MacDonald, who served as Spring Sheep’s supply manager and later became chief executive, the farm signed a contract to implement the business model. Work commenced in December 2020, culminating in the arrival of the first 650 Zealandia sheep on August 1, 2021.
Rather than building from scratch, McPherson repurposed existing assets. An ancient 16 ASHB (Across-the-Shed Bailing) decommissioned shed was gutted and converted into a 42 ASHB facility tailored for sheep, featuring a rapid exit system to streamline the milking process. Because sheep and lambs require more secure containment than cattle, the infrastructure was upgraded with additional wires and battens. A central straight race was installed, with paddocks branching off either side to ensure efficient movement toward the shed.
To support the lambing season, two polytunnel rearing sheds were constructed. This infrastructure allows for a precise transition: lambs spend four days with their mothers before moving to the rearing sheds for five weeks, where they are trained to use adlib feeders.
Scaling Production and Genetic Gains
The growth of the flock has been steady and aggressive. While McPherson initially managed the milking alone during a staffing shortage—noting that each session took roughly an hour—the operation has since expanded its workforce to include three full-time staff and several part-timers during peak lambing periods.
| Season | Number of Sheep Milked |
|---|---|
| 2022 | 800 |
| 2023 | 900 |
| 2024 | 1,000 |
| 2025 | 1,200 |
The productivity of the flock is measured in kilograms of milk solids (kg/Ms). In the most recent season, the farm averaged 62 kg/Ms per ewe, a figure McPherson describes as being toward the higher conclude of production. This performance is expected to hold through the 2025/26 season. However, the long-term goal is more ambitious: by refining genetics in collaboration with Spring Sheep, McPherson aims to reach an average of 75 kg/Ms per ewe and expand the milking flock to 1,500 sheep.
The management of the flock as well involves a strict genetic protocol. Because Spring Sheep protects its genetics, all male lambs are band castrated and given away for free. These animals often end up on “mow” lifestyle blocks or as pets, while female lambs serve as replacements or are reared for meat.
A Circular Approach to Land and Energy
The sustainability of the operation is not just about the animals, but how they interact with the ecosystem. McPherson employs a rotational grazing system where “grazer cows” follow behind the sheep. This method resets the paddocks and helps reduce the worm burden for both species, minimizing the need for chemical interventions.
The diet of the Zealandia sheep is primarily grass-based, though they are known for being “picky” and preferring the best leaf tips. To supplement this, the farm utilizes 16 hectares of chicory during the summer and seven hectares of maize during winter and early lambing. In-shed feeding of canola meal pellets provides essential proteins and minerals.
From an environmental standpoint, McPherson notes that sheep are inherently more sustainable than cattle in this context; they cause less “pugging” (soil compaction) in the paddocks and produce lower urine volumes, which reduces nutrient leaching into the soil. What we have is complemented by a commitment to renewable energy. The milking shed is equipped with solar panels that power the milk chilling systems and general operations in the afternoon. Any excess energy is fed back into the national grid for payment.
Further reducing the farm’s carbon footprint, the operation has integrated an electric farm bike to replace fuel-dependent vehicles. These measures represent an ongoing project to align the business with modern environmental standards while maintaining high output.
As the 2025/26 season approaches, the focus remains on genetic optimization and the goal of reaching 1,500 milking sheep. The success of this South Waikato model may serve as a blueprint for other New Zealand farmers looking to diversify their income streams while reducing their environmental impact.
We invite readers to share their thoughts on the future of diversified dairy in the comments below.
