The LKL Newsletter for Herd Managers

Demand for quality herd managers to fill contracts has grown to an unprecedented level, and more and more farm owners are looking to the UK's leading dairy contract company, LKL Services Ltd.

Contracts offer real job security and above average levels of pay, but many herdspeople do not fully appreciate the benefits of this way of working, explains LKL managing director George Gordon.

"As the opportunities for quality employment in dairying diminish due to the number of businesses we have seen leave the industry in recent years, contract herdcare offers real opportunities for top herdspeople," he explains

• Herdsperson training scheme update

• What LKL can do for me

• Questions and answers

• Experiences of LKL herdcare staff

"There is a growing realisation that forces such as tighter margins, the rate of technical development and changes in employment/tenure legislation mean conventional employment is no longer as cost-effective as it was and many employers are turning towards contracts".

"For herd managers, the contract gives greater job satisfaction, excellent remuneration and the knowledge that as long as you work to high standards you will always find quality positions".

In contract herdcare you are responsible for looking after a dairy herd without being directly employed by the owner.

Contracts are available across all parts of the country and range from assistant herdsperson posts to sole charge on a one man unit or head herdsperson on a multi-man unit. 

The system often gives progressive herd managers far more responsibility than they would get with conventional employment." Self employment gives you greater flexibility as you are your own boss and as long as you fulfil the requirements of the contract, you can mange your own time as you like," George Gordon explains.

"Being self employed has financial advantages as well and most contracts involve significant incentives for high performance, which can boost your income considerably".

The incentives are based on physical performance levels such as calving index, MOPF and bactoscans - all of which can be directly influenced by the herdsperson.

Herdspeople appreciate contracts being re-negotiated by LKL on their behalf each year. This avoids any potential embarrassment or conflict between herdsperson and farmer.

"At all times, we represent the herdsperson's best interests and handle any problems that may arise during the contract. Most contracts turn out to be long term relationships. We have contractors who have been on the same farm for over 30 years !"

A. Yes, and this also means that you are effectively your own boss!  Taking the plunge and going self-employed is often seen as an obstacle, but it has a number of benefits that should not be overlooked.  In general terms, you'll have higher levels of responsibility than you would in conventional direct employment.  You also have more of an active role in the day-to-day herd management decisions and the freedom to organise your duties in the way you want to.  You'll still have to fulfil the farm policy, but you'll get a lot more satisfaction if more of the decisions are yours.

Q. Do self-employed people have to do a lot more of their own administration?

A. It is up to each individual.  Some prefer to look after their own tax affairs while others choose to use the services of an accountant.  You'll have to complete an annual self assessment tax return, but so do many conventionally employed people nowadays.  LKL simplifies the overall process for you with self-billing invoices.  LKL can also recommend specialist accountants for you.

Q. So, what are the financial benefits of self-employment?

A. Most herdspeople say they earn more money on a contract than if they were in direct employment.  This is achievable because there are more work-related expenses (such as all your work clothing) against which tax can be offset.  A typical example for a person earning a gross salary of £22,000 per annum would be as follows.

With conventional employment, the monthly take-home pay after all deductions will be approximately £1,384.  A self-employed person with the same gross income and a non-working partner will receive a monthly amount without any deductions made.  After setting aside an amount for tax and national insurance, they will have the equivalent of £1,525 per month.

A. There are many important elements in the LKL package that support contract herdspeople:

Why choose LKL?

All part of the package

Successfully managing a 100-cow herd is one thing, but doing the same on a 300-cow unit, with a team of three people is another.  As part of LKL's package for its staff, and to help develop their careers within the industry, the company runs a 'Leadership Skills and Man Management' course.

The three-day course, which is spread over three months, is offered free of charge to any LKL herdsmen who feels they would gain from the experience.  There are specific modules within it to cover some of the subject areas associated with running a larger herd and multi-man team.

For example, the leadership and motivation day looks at leadership styles, decision-making, delegating and what motivates and de-motivates people.  The second day looks in depth at effective communication covering subjects such as assertiveness, your questioning and listening skills and how to engender respect in a team.

The third and final day focuses on team building and aims to equip delegates to define the kind of team they want and then to work towards achieving that by understanding the dynamics of a team, how successful teams work and how to develop trust.

LKL herdspeople who have attended the course have found it very useful for furthering their career within the industry.  This is just one of the courses on offer to LKL herdspeople.  Interested to find out more?  Contact our regional staff, or the office in Salisbury.

Why should you consider an LKL contract position?

• A tried and tested approach - LKL was established in 1951

• We offer access to the best dairy herd management positions

• Improved levels of pay through the LKL incentive scheme

• Better job security through LKL's wide range of contracts

• Greater working flexibility and job satisfaction

• Third party support in all labour/management issues

How do I know if being an LKL herdsperson is for me?

LKL Services Ltd operates a team of five area managers who are available to help you with all aspects of starting work through LKL's herdcare contracts.  The first step towards starting to manage your own future more effectively is to contact anyone in our management team.  They will be happy to explain exactly how the system works and discuss how we can help you develop your career in dairy herd management.

LKL also has nationwide relief opportunities available.  Relief work can often be a very good way of gaining experience before taking on a full time contract, or as an interesting and rewarding career in a variety of farming systems.  In short, if you're a competent herdsperson, we will always be able to provide you with quality positions.