Blocked from taking immediate action by sharemilker Marthinus Vermaak’s demand that his sharemilking dispute go to mediation, Waiuku farm owner McNamara Farms had the High Court appoint receivers to take control of his mortgaged dairy herd ahead of concerns Mr Vermaak was likely to sell the herd on the sly, in what is the first instance of court intervention to override effect of the Farm Debt Mediation Act.
The Farm Debt Mediation Act 2019 prohibits creditors from seizing farm stock without first engaging in mediation.
The High Court was told the McNamaras agreed a 50/50 sharemilking agreement with Mr Vermaak’s farming partnership for the 2025/26 season.
Sharemilkers in a 50/50 agreement are expected to own their own herd.
Not having sufficient capital to buy his own herd, Mr Vermaak was lent $600,000 by the McNamaras who then took security over his livestock.
The High Court was told the McNamaras became concerned about Mr Vermaak’s erratic behaviour. There were allegations of meth use by Mr Vermaak.
Their sharemilking agreement required farm workers to be drug-free. He refused to undertake drug tests.
Notice was given terminating their sharemilking agreement three months ahead of what would be season end in May 2026.
The McNamaras became anxious about enforcement of their security over Mr Vermaak’s dairy herd.
Mr Vermaak was described as being uncooperative, difficult, evasive and abusive.
Out of Mr Vermaak’s herd of some 80 cows, at least eleven had been sold already, without permission from the McNamaras as secured creditors.
Local stock and station agents were alerted; one agreeing to hold proceeds of this initial sale while the legal niceties were sorted out.
In the High Court, Justice Becroft appointed receivers to take control of the balance of the herd with authority to sell the stock and account to the McNamaras for money owed.
This was necessary as a matter of urgency, he said.
Mr Vermaak was ignoring the McNamaras rights as secured creditors.
There were fears Mr Vermaak would truck the remaining stock out of the area for sale elsewhere, or sell the animals to an abattoir.
Plus, a new sharemilker was due to move onto the farm in a little over a week.
McNamara Farms Ltd v. Vermaak – High Court (22.05.26)
26.162