Wednesday, 09 March 2016 08:55

El Nino no-show helps Miraka suppliers

Written by 
Milk from Shanghai Pengxin farms are processed by Miraka for China. Milk from Shanghai Pengxin farms are processed by Miraka for China.

The no-show of El Nino has been a boon to farmers supplying Miraka, the Maori owned dairy company located near Taupo.

Chief executive Richard Wyeth says farmers are doing well for grass, but are challenged by the milk payout. His main concern now is the farmer suppliers and how they are coping.

"Suppliers are doing everything they can that's in their control. One told me recently that he was looking to strip costs out wherever possible. Obviously they are going to keep farming but they know that the future of the payout is not great short-term so they just need to pull back on expenditure."

Wyeth says production is down 7% on budget and he expects this trend to continue into next season. It results from farmers reducing cow numbers and feeding fewer supplements to cows during the peak.

"Ironically while production for the season is down, we've had the highest milk output ever for this time of the year. We've had a fantastic summer-autumn. People are still cutting silage which for this area is unheard of."

Wyeth says there is plenty of evidence that farmers are returning to pasture feeding and are using fewer supplements.

More like this

Featured

Editorial: Working Together for Results

OPINION: New health and safety guidance unveiled by the Government recently provides farmers greater certainty about what is expected of them when managing risks on farm.

Regenerative Grazing Project Backed by Global Fund in NZ

A New Zealand initiative supporting farmers to restore the health of grazing landscapes has received international backing through the Regenerative Fund for Nature, a global collaborative fund supporting regenerative agriculture and the communities that produce natural fibres for the fashion industry.

National

Ah Tatua, You've Done It Again!

Waikato milk processor Tatua has again declared a record milk payout to farmer shareholders, leaving other processors in the dust.

Machinery & Products

» Latest Print Issues Online

Milking It

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter