Tuesday, 28 March 2017 11:55

Calamity on the Coast

Written by  Peter Burke
Ross Bishop, DairyNZ. Ross Bishop, DairyNZ.

A ghastly period: that’s how DairyNZ West Coast consulting officer Ross Bishop describes the situation facing the region’s dairy farmers.

They are deeply frustrated and struggling to maintain faith in their dairy company Westland Milk Products, he says.

The company is in a financial mess and chief executive Toni Brendish has the unenviable task of trying to return it to a reasonable financial footing. Already she has made clear there will be a lower payout for farmers and job losses at its factories.

This is hard on farmers, Bishop says. “If we had a bad season by itself or a poor payout season by itself we’d have been able to manage, but the two combined is more than the effect of two. It will be difficult for them to transition their way through this,” he says.

Bishop says until a month ago there has been incessant moisture on the Coast and when it wasn’t raining there were poor drying conditions.

“The ground has never really dried out enough to get fertiliser on in time, to get tractors on for topping or making supplement. And because we are looking after our pastures we were grazing higher than normal to avoid treading damage so we didn’t accumulate a lot of feed surpluses. It was difficult to get in winter crops so they are either delayed or if they were sown there was a very low strike.”

Coming into summer, farmers were down on supplements they’d normally have for the winter and they are also down on winter crops. Farmers are also facing pasture damage caused by treading.

Bishop says in the last month things have changed for the better with warm dry weather and they have been able to catch up on some work on their paddocks.

“But now it’s generally too late to get crops in, or they will have had to select crops that won’t yield quite as much. There’s been a bit of supplement made but nowhere near what people would be expecting to make. People are now going to have to make strategic decisions about their farms as we move into the autumn proper.”

He says farmers must decide soon whether to buy in extra feed to keep the cows milking or instead to quit dry cows to reduce feed demand. Milk production is on average down by 5-7% on the West Coast, but Bishop is unsure whether this is due entirely to the wet season or partly to farmers reconfiguring their businesses in the light of previous poor seasons.

The weather and the financial woes of WMP are also a blow to the region.

“The Coast has had the coal slump and the dairy slump and there just isn’t the same amount of money circulating in the local economy. It’s not stagnant but it’s not buoyant. I think the dairy farming business here is still profitable but work is still to be done on what those businesses need to look like,” Bishop says.

While the Coasters are renowned for getting through tough times, Bishop says someone needs to find a replacement word for ‘resilience’.

More like this

DairyNZ supports vocational education reforms

DairyNZ is supporting a proposed new learning model for apprenticeships and traineeships that would see training, education, and pastoral care delivered together to provide the best chance of success.

Editorial: GMO furore

OPINION: Submissions on the Government's contentious Gene Technology Bill have closed.

DairyNZ seeks more cash

For the first time in 17 years, DairyNZ wants farmers to contribute more cash to run the industry-good organisation.

Featured

DairyNZ supports vocational education reforms

DairyNZ is supporting a proposed new learning model for apprenticeships and traineeships that would see training, education, and pastoral care delivered together to provide the best chance of success.

The Cook Islands squabble

The recent squabble between the Cook Islands and NZ over their deal with China has added a new element of tension in the relationship between China and NZ.

Wyeth to head Synlait

Former Westland Milk boss Richard Wyeth is taking over as chief executive of Canterbury milk processor Synlait from May 19.

National

Certainty welcomed

There's been very little reaction to the government science reform announcement, with many saying the devil will be in the…

Science 'deserves more funding'

A committee which carried out the review into New Zealand's science system says the underinvestment will continue to compromise the…

Machinery & Products

Landpower win global award

Christchurch-headquartered Landpower and its Claas Harvest Centre dealerships has taken out the Global After Sales Excellence award in Germany, during…

Innovation, new products galore

It has been a year of new products and innovation at Numedic, the Rotorua-based manufacturer and exporter of farm dairy…

» Latest Print Issues Online

Milking It

MVM struggles

OPINION: Nearly four years after buying a 75% stake in Southland processor Mataura Valley Milk (MVM), A2 Milk is still…

No backing down

OPINION: Fonterra isn't backing down in its fight with Greenpeace over the labelling of its iconic Anchor Butter.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter