Dairy prices down as are costs
Dairy prices are easing but cost inflation is down across the board, providing some relief to farmers.
Westpac wull support its dairy customers to the tune of about $2/kgMS deficit in their cashflow this year, says Mark Steed, head of agribusiness and property.
"It is a case of coming through [the deficit] in the medium term and coming out the other side," he says.
Steed says the banking sector saw the agri sector as highly volatile. Sheep, beef and horticulture are doing reasonably well but dairy is going through volatility. "The role Westpac has -- and all banks -- is to manage that volatility, assist in the volatility variances in some way.
"Our role is very much to stand by the customers through the highs and the lows.
"We are obviously seeing the lows in the dairy sector. We are ensuring we come through that in a moderate kind of way. It is intriguing that a number of our dairy customers have some variances in their cost base when you think about production. Some have costs around $3.50/kgMS to as high as $5.50/kgMS and when you overlay the leverage on top of that, interest is another $1-$1.20/kgMS.
"So when you've got a payout at $4.60/kgMS that is going to be really challenging. We expect to have to support our customers to the tune of about a $2/kgMS deficit on the cashflow this year."
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Two major red meat sector projects are getting up to a combined $1.7 million in funding from the New Zealand Meat Board (NZMB).
Angus Barr and Tara Dwyer of The Wandle, Lone Star Farms in Strath Taieri have been named the Regional Supreme Winners at the Otago Ballance Farm Environment Awards in Dunedin.
OPINION: The distress that the politicians and bureaucrats are causing to the people of Wairoa and the wider Tairāwhiti is unforgivable.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.