Tuesday, 03 October 2023 11:55

‘Don’t try to buy yourself out of any drought’

Written by  Peter Burke
AgFirst chief executive James Allen says if the drought is bad, there may be a shortage of feed nationwide and it will be hard and costly to buy-in feed. AgFirst chief executive James Allen says if the drought is bad, there may be a shortage of feed nationwide and it will be hard and costly to buy-in feed.

A warning to dairy farmers: don’t try to buy yourself out of any drought.

That’s the message from AgFirst chief executive and dairy specialist James Allen in light of warnings from Niwa that El Nino conditions could cause a significant drought in many parts of the country. Already there have been signs of the El Nino conditions hitting Hawke’s Bay and Tairawhiti regions with higher-thanaverage temperatures.

Allen told Dairy News that dairying areas most at risk are Northland, the Waikato – especially northern parts of the region – and possibly Bay of Plenty. He says he’s been told by colleagues further south that Manawatū may also get hit by a drought as they have in the past.

“But certainly, the further north you go, the more I get worried,” he says.

He says many regions went into winter with good levels of supplement and says they were needed. He says now one of the key things farmers need to do is to take stock of what they have got left and start building up reserves again.

Allen says the options will vary from region to region and from farm to farm, with some opting for crops while others will focus on producing as much grass silage as they can for the season ahead.

“But equally it’s important to keep the budget in mind as well, especially given the projected lower payout, and farmers need to be clear on what action is profitable and what is not. The dynamics are much different to… two or three years ago. In past drought years, farmers have tended to hold on to poor performing animals longer, but this year getting stock off early will take the pressure off the farm,” he says.

Allen says in this regard it’s important that farmers communicate frequently and well with their processors and book stock in early. He says it’s no longer possible to ring up a company one night and expect the animals to be picked up the next day.

“This doesn’t happen anymore,” he says.

Planning is therefore critical and Allen says it’s often better getting the cull cows off early to reduce the amount of feed that might have to bought in. And on this subject, Allen says that if the drought is bad, there may be a shortage of feed nationwide and it will hard and costly to buy-in feed.

“I certainly wouldn’t be budgeting on sourcing feed from the South Island,” he says.

Allen reiterates that, given the low commodity prices, the prospect of buying oneself out of the drought is fraught.

More like this

Cash flow is king

Cash flow budgeting is going to be critical for dairy farmers in the coming season.

Marlborough drought declaration welcomed

Marlborough Federated Farmers has got some real concern about the mental wellbeing of farmers and their families in the region because of the drought and there’s a lot of pressure starting to build.

Drought classification welcome news - Feds

Federated Farmers Marlborough Province says it welcomes the announcement yesterday that current dry weather in the top of the South Island would be classified as a medium-scale adverse event.

Featured

Demand for food support increases

New findings from not-for-profit food supply and distribution organization, the New Zealand Food Network (NZFN) have revealed a 42% increase in demand for food support in 2023 compared to 2022.

Herd production performance soars

New data released by LIC and DairyNZ shows New Zealand dairy farmers have achieved the highest six week in-calf rate and lowest notin- calf rate on record.

Council lifeline for A&P Show

Christchurch City Council and the Canterbury Agricultural and Pastoral Association (CAPA) have signed an agreement which will open more of Canterbury Agricultural Park for public use while helping to provide long-term certainty for the A&P Show.

Rural Advocacy Hub announced for Fieldays

This year’s Fieldays will feature a Rural Advocacy Hub - bringing together various rural organisations who are advocating for farmers and championing their interests as one team, under one roof, for the first time.

Struggling? Give us a call

ASB head of rural banking Aidan Gent is encouraging farmers to speak to their banks when they are struggling.

National

Machinery & Products

New name, new ideas

KGM New Zealand, is part of the London headquartered Inchcape Group, who increased its NZ presence in August 2023 with…

» Latest Print Issues Online

Milking It

Plant-based bubble bursts

OPINION: Talking about plant-based food: “Chicken-free chicken” start-up Sunfed has had its valuation slashed to zero by major investor Blackbird…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter