A Northland dairy goat operation once valued at more than $24 million has gone quiet. The sheds are empty, the land is for sale, and Barry and Judy Foote, who built the Whakapara farm over nearly five decades and helped shape New Zealand’s dairy goat sector from the ground up, are under increasing pressure from their bank.
The Collapse of the Dairy Goat Co-operative and Its Impact
The collapse of export markets during the pandemic, paired with Dairy Goat Co-operative (DGC’s) inability to secure a key licence for China, hit the cooperative hard. Once a leader in goat milk infant formula, the co-op saw milk prices tumble from over $20 to $11 per kg.
“At one point, the co-op had a year’s worth of inventory stacked up in a warehouse,” the Footes said. The crisis triggered major leadership departures, including CEO David Hemara and chair Campbell Storey.
Alastair Hulbert stepped in to lead the recovery, stating, “It may take two or three years.” But for long-time suppliers like the Footes, the losses had already set in.
BNZ’s Lending and the Footes’ Financial Strain
The Footes returned to BNZ in 2017, decades after first banking with them as newlyweds in 1976. Lower rates and the ability to use DGC shares as collateral sealed the deal. “It was nice to have a bank that turned up and said, ‘We will lend you money,’” Judy said.
Their plans to retire in 2020 were derailed by the pandemic and the farm was listed as lockdowns began, and a livestock deal collapsed.
Goats that were expected to sell for $1,200 brought just $45 at the freezing works. The Footes anticipate a $480,000 shortfall after asset sales, with a $4.5 million debt.
Debt Mediation and the Risk of Mortgagee Sale
After failing to service their debt, the Footes entered mediation with BNZ in March 2024. The bank, which had provided working capital support from 2020 to 2023, cited concerns over repayment. “While the erosion of value of both DGC shares and goat infrastructure has impacted BNZ’s security, the key issue is customers’ ability to service their debt,” said agribusiness head David Handley.
A temporary extension followed, but by February 2025, much of the property remained unsold. The couple’s request for a confidential shortfall settlement was declined, and BNZ warned of a mortgagee sale.
“They haven’t been willing to let us take the time to do that,” Barry said. “This is a terrible market – as anyone will be able to tell you – to sell on.”
Conclusion
The Footes are now preparing to move into a converted milking shed, situated on the final 50 hectares of their once-thriving farm. After years of mounting pressure and $3.5 million in interest paid to BNZ, the couple plans to subdivide and sell what remains of their land in a last effort to ease their debt burden.
“But as soon as they had that tick in the box from mediation, the gloves come off and then they start getting nasty,” Judy said.
The couple describes a shift in tone from their lender following debt mediation, and with no resolution in sight, they face an uncertain future shaped by market collapse and financial strain.