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.
DairyNZ says Waikato farmers need certainty on Plan Change 1, but they say that certainty must be matched with practical, workable rules and a clear transition that doesn't get ahead of the new resource management system currently under review.
OPINION: The dairy sector has been told that it cannot afford to rest on its laurels.
The dairy industry cannot rest on its laurels despite providing one in every four export dollars earned by the country, says DairyNZ chief executive Campbell Parker.
Increased competition for water means the whole community is looking at how irrigators use water.
Analysis of decades of research has revealed the implementation of good farming practices plays a critical role in reducing nutrient losses to improve freshwater outcomes.
New Zealand dairy farmers are set to be the first in the world to receive access to a new digital physical milk pricing tool that enables them to fix the price for their physical milk.
State farmer Pāmu is opening its farm gates this summer in an effort to give the rural sector the opportunity to see how large-scale, multi-system farming is delivering productivity and profitability across New Zealand.
A five-year study has found that the cost of reducing emissions without technology may be significant and unsustainable for Northland dairy farmers.
DairyNZ says Waikato farmers need certainty on Plan Change 1, but they say that certainty must be matched with practical, workable rules and a clear transition that doesn't get ahead of the new resource management system currently under review.
While the Government has moved quickly to make commercial hauliers' lot easier during the current fuel crisis, they appear to be stuck in the creep box when it comes to the agricultural industry.
Waikato farmers have been told that the Government’s new planning system legislation and the region’s Plan Change 1 (PC1) “won’t mesh together very well”.
OPINION: No one messes around with Winston Peters, more so in a general election year.
OPINION: Staying on Federated Farmers, this week's annual general meeting in Auckland is shaping up to be an interesting one.
