Help available for flood-hit farmers
The chair of the Otago Rural Support Trust, Tom Pinckney, says he believes that they will be especially busy in the coming months as the enormity of the floods hit home.
A Ministry of Primary Industries report says the 2020-21 season payout won’t be as high as last season.
It says Covid-19 has impacted the dairy sector around logistics and supply channel disruptions.
However, it notes that despite the recent fall in commodity prices, dairy companies had contracted a high proportion of milk from last season at good prices and this helped.
But the outlook for the coming season is not good with markets signalling a 14% fall in farm gate prices.
It says the current range sits between $5.60 and $6.50/kgMS which will be close to, and in some cases below, break-even levels of profitability.
“It has the potential to undermine the financial viability of some marginal and highly indebted farm businesses,” says the report.
The report flags the potential of the drought and shortage of feed as being a factor, but points to concerns around protectionist and subsidised dairying in the US and the European Union.
It notes that if there is a flood of subsided dairy products on the global market this could add to the volatility and weakening of the dairy market which will impact on New Zealand.
Overall the report is stating what one might expect in the Covid-19 environment. Uncertainty in many areas and questions being asked about whether some trends, such as consumer preferences, will remain once life returns to whatever normal there will be in the future.
The report flags uncertainty and challenges ahead, mostly related to Covid-19.
The good news is that in the past year to the end of June, revenue from primary exports will be up by $1.7 billion on the previous year, helped significantly by dairy exports which were up $512 million from the start of March.
A governance group has been formed, following extensive sector consultation, to implement the recommendations from the Industry Working Group's (IWG) final report and is said to be forming a 'road map' for improving New Zealand's animal genetic gain system.
Free workshops focused on managing risk in sharefarming got underway last week.
Annual farmer gathering, the South Island Dairy Event (SIDE), is set to make history as it heads to Timaru for the first time.
Installing 400 solar panels at their Taranaki piggery and cropping operation will have significant environmental, financial and animal welfare benefits for the Stanley family.
WoolWorks, New Zealand’s largest wool-scouring company, has partnered with the Lions Club of Riverton to help raise money for much-needed repairs to the Southland town’s swimming pool.
OPINION: The dairy industry will be a major beneficiary of a new free trade deal between NZ and the Gulf Co-operation Council (GCC).
OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.
OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.