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.
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.
