increase font size
DairyNZ is encouraging farmers to plan for the months ahead, amid increasing costs and an expected El Niño weather pattern.
DairyNZ has updated the national breakeven forecast to $7.78/kgMS, a 27c increase from its previous forecast.
The breakeven milk price is the milk sale price per kgMS to cover the farm’s costs in a season, excluding capital expenditure and principal repaid on loans.
DairyNZ head of economics, Mark Storey, explains that the breakeven figure has been updated based on new pricing information, tax changes and in response to milk price and dividend payment announcements.
“Outside the breakeven milk price, we have seen farm expense forecasts increase, impacting overall costs, while revenue expectations have shifted with high dividend payouts, accompanied by decreasing milk price expectations for the 2023/24 season,” says Storey.
“It’s also important to understand your overall business. The breakeven milk price is one indicator, however operating profit margin, debt-to-asset ratio and return on assets are all part of a farm’s overall business picture.
“Some of these indicators are available on the Econ Tracker, to allow farmers to see how their numbers compare and consider where they may require additional support to get through the season ahead.”
DairyNZ is also encouraging farmers to plan for the months ahead, amid increasing costs and an expected El Niño weather pattern potentially bringing a variety of challenges on farm.
DairyNZ’s general manager of farm performance, Sarah Speight, explains that right now farmers need to focus on growing and utilising as much pasture as possible, as it remains the cheapest source of feed.
“Farmers are faced with high costs, so attention to detail and a focus on financial outcomes ahead of production will drive better business outcomes,” says Sarah.
“This is especially important at this time of year where pasture cover and getting cows back in calf will determine financial and production outcomes, not just for this season, but into next season too.”
The new forecasts are published on the DairyNZ Econ Tracker and expressed as a national average, which does not necessarily reflect individual farm situations.
Farmers can contact their DairyNZ regional team, call 0800 4 DairyNZ, or go online to dairynz.co.nz/budgeting for more information and advice on how to navigate the season ahead.
North Canterbury dairy farmer and recently-elected deputy chair of DairyNZ, Cameron Henderson, is enjoying a huge reduction in irrigation water use after converting a pivot irrigator to drag perforated drip tubes across the ground instead of elevated sprinkler heads.
DairyNZ's Kirsty Verhoek ‘walks the talk’, balancing her interests in animal welfare, agricultural science and innovative dairy farming.
North Canterbury dairy farmer and recently elected deputy chair of DairyNZ, Cameron Henderson is not afraid to break the mould when it comes to finding farming systems that work for him.
Dairy farmers are faring well despite data showing above average temperatures for most of the country.
In its submission on proposed amendments to the Biosecurity Act, DairyNZ says its levy-paying members invested more than $60 million across the biosecurity system last year, through multiple biosecurity levies across several entities and legislative frameworks to collect this funding.
The Neogen World Angus Forum, a major event in global Angus beef industry, is set to return in 2025.
Whatever an animal is raised for, it deserves a good life — and just as importantly, a “good death”.
North Canterbury dairy farmer and recently-elected deputy chair of DairyNZ, Cameron Henderson, is enjoying a huge reduction in irrigation water use after converting a pivot irrigator to drag perforated drip tubes across the ground instead of elevated sprinkler heads.
OPINION: Without doubt, a priority of the Government this year will be to gain traction on the elusive free trade deal with India.
Rugby league legend Tawera Nikau is set to inspire, celebrate and entertain at the East Coast Farming Expo's very popular Property Broker's Evening Muster.
Fonterra has announced $15 million in investments in electrification projects across the North Island over the next 18 months.
OPINION: A keen pair of eyes wandering down the main street of the hub of the Horowhenua, Levin recently came…
OPINION: The demise of Organic Dairy Hub is official.
