DairyNZ lifts breakeven milk price forecast to $8.68 for 2025/26 season
According to DairyNZ's latest Econ Tracker update, there has been a rise in the forecast breakeven milk price for the 2025/26 season.
Dairy farmers are seemingly more upbeat than they were three months ago but how long this positivity remains seems to depend on what the new Government does in the coming months.
So says Sarah Speight, DairyNZ's general manager of farm performance. She says the election of the new Government is playing a big part in the positive mood of farmers, along with the stabilisation of world dairy prices. But at the same time, she says farmers are particularly worried about the way that the new freshwater regulations are being implemented by regional councils around the country.
She says the limit setting process that is coming through from councils is a big worry - especially in places such as Southland, Canterbury, Manawatū, and Waikato.
"Some of these things are unworkable for farmers. There is a real hope that the incoming Government with its strong agricultural understanding around the caucus table will help with that and sort it out. But while farmers are positive they are wary about how much the new Government can get done in a reasonable timeframe," she says.
Speight says she's not sure that some of the councils know what the limit settings are going to mean for farmers and that is a worry. She says Northland, Southland and Otago are high on the radar for DairyNZ.
A brilliant result and great news for growers and regional economies. That's how horticulture sector leaders are describing the news that sector exports for the year ended June 30 will reach $8.4 billion - an increase of 19% on last year and is forecast to hit close to $10 billion in 2029.
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