Sharemilking is an entry point for new dairy producers in the New Zealand industry, but growing milk price volatility increases the business risks for sharemilkers. We tested the hypothesis that flexible sharemilking arrangements will reduce the income variability of sharemilkers. The results illustrated the feasibility of a flexible model which shifts some of the risk from the sharemilker to the farm owner, while still allowing both to generate a positive ROA and a positive net profit with high probability.