DairyNZ: Strong payouts offset high farm costs
The dairy sector is in a relatively stable position, with strong milk price payout forecasts continuing to offset ongoing high farm costs, according to DairyNZ.
‘Our Land 2018’ is the latest report in the environmental reporting series published by the Ministry for the Environment and Stats NZ.
“The report makes it clear that we need to pay attention to what’s going on in our soil, which underpins our economy. It shows us where we need to focus,” Penny Nelson, Deputy Secretary at the Ministry for the Environment said.
The report found erosion and intensive agriculture are the main culprits for declining soil quality. It found 192 million tonnes of soil are lost every year from erosion – 44% of this is from pasture.
Soil quality testing shows 2 out of 7 indicators give reason for concern, with 48% of tested sites outside the target range for phosphorus content and macroporosity.
The report also found nearly 83% of our native birds, bats, reptiles, and frogs are classified as threatened or at risk of extinction (between 2010 and 2016).
DairyNZ chief executive Dr Tim Mackle says much of the work farmers have underway to improve water quality has the co-benefit of improving soil quality and reducing greenhouse gas emissions.
“Our farmers rely on good quality soil for their businesses to be productive and profitable,” says Mackle. “We are working hard right now to address water quality, and much of this involves the way in which we care for our land and soil.”
“No farmer wants to see their soil damaged, as it inevitably leads to a drop in productivity,” says Mackle. “We are seeing more and more farmers using mitigations like standoff pads and removing stock from the paddock at times when the soil is most vulnerable to compaction, and management of areas highly susceptible to erosion and sediment loss.
Mackle says the report highlights the importance of the hard work the dairy sector is carrying out to improve its environmental footprint, but more work is required.
