DairyNZ: Strong payouts offset high farm costs
The dairy sector is in a relatively stable position, with strong milk price payout forecasts continuing to offset ongoing high farm costs, according to DairyNZ.
Spokesman Andrew Reid says the signs are ominous: NIWA reports show all New Zealand was drier than normal in November – strange given that a month ago people were talking about how wet it was.
This shows how quickly conditions can change, so farmers need to prepare to deal with a big dry, Reid says. The implications of the November dry, and what the rest of the season will bring, is “top-of-mind for us at DairyNZ”.
“People need a management plan in case things get worse and there is no rain in the traditionally dry months,” Reid says. “And they must be ready and willing to act on it. Having a plan is one thing; acting on it in a timely way and making decisions makes all the difference.”
Reid says the present dry spell is compounding the problems of incessant rain that fell earlier in the season. Farmers have since been playing catch-up to cope with a marginal start to the season. Now their focus is on the next couple of months.
One problem is the prospect of a supplement shortage.
“Pasture supplements weren’t harvested in spring because they were needed at the time so that option has been compromised. One option while pastures are still growing is to apply nitrogen or to extend rotations out to 30 days or so.”
Keep an eye on the weather so that if things turn a lot worse you can respond in a timely manner, Reid says.
Once-a-day milking is an option, but it should not be the first choice because of the long-term implications in the loss of production and the risk of increased somatic cell counts.
Christmas can wait
Stay alert to what is happening, regardless of the festive season, says Andrew Reid.
While DairyNZ staff traditionally take a break at Christmas they remain on call; and before then the consulting officers will get out messages via discussion groups.
“Also our website is a massive resource for people wanting to get clarification on any issue. On the website we have management plans available that people can work through.”
Despite the weather watch it is equally important everyone gets a break and has time to recharge their batteries, Reid says. Staff rosters should be arranged to facilitate this.
