Fonterra Whareroa sets cheese record, wins top award
Fonterra Whareroa wrapped up a successful season with a record-breaking cheese production volume and several gongs at the co-op's annual Best Site Cup awards.
Former Fonterra director Greg Gent says grass will become fashionable again as the effects of lower dairy prices continue.
The Northland farmer believes this one of the positive consequences of the current crisis.
"Our comparative advantage in the world is grass, and not all dairy farmers moved away from that," he told Dairy News at the opening of Shanghai Pengxin's Central North Island Dairy Academy in Taupo last week.
"There was quite a chunk of farmers who've stayed with that straightforward farming system. Moving back to greater use of grass and less reliance on supplements will make for a stronger industry," he says.
Gent says in the days when New Zealand was getting $US5000 a tonne for milk powder any farm system could work and make money.
But the fallout from the price downturn is now showing, and as a result farmers will probably take a different view of risk management; they will look at how they handle risk and maybe build more resilience into their businesses -- a positive consequence.
One concern raised by banks over the years has been the lack of financial literacy of some farmers, but Gent says risk management is a bigger issue.
"You can blame all sorts of things. You can equally say that banks have had a fairly short corporate memory. I would translate financial literacy more as risk management... and if I saw a weakness it would be that," he says.
Farmers will in time take greater ownership of their budgets, instead of these being largely owned by the banks Gent says. Farmers will get into developing various scenarios and planning for these.
Another former Fonterra director, Colin Armer, says clearer market signals from Fonterra would have been useful for farmers trying to manage through the present difficult times. While the low dairy prices can't be blamed on Fonterra, clearer signals would have helped.
Armer says restoring profitability to the industry requires a move back to basics -- volumes of production coming off farms and the cost of production.
"There will have to be a reset and some costs taken out of the business. We don't know how long this oversupply situation will last, but in the meantime people can't go on banking losses."
Armer says the present crisis arose from many factors including the Chinese market going off the boil, increased dairy production in Europe and US and trade bans imposed by Russia.
Newly elected Federated Farmers meat and wool group chair Richard Dawkins says he will continue the great work done his predecessor Toby Williams.
Hosted by ginger dynamo Te Radar, the Fieldays Innovation Award Winners Event put the spotlight on the agricultural industry's most promising ideas.
According to DairyNZ's latest Econ Tracker update, there has been a rise in the forecast breakeven milk price for the 2025/26 season.
Despite the rain and a liberal coating of mud, engines roared, and the 50th Fieldays Tractor Pull Competition drew crowds of spectators across the four days of the annual event.
Nationwide rural wellbeing programme, Farmstrong recently celebrated its tenth birthday at Fieldays with an event attended by ambassador Sam Whitelock, Farmers Mutual Group (FMG), Farmstrong partners, and government Ministers.
Six industry organisations, including DairyNZ and the Dairy Companies Association (DCANZ) have signed an agreement with the Ministry for Primary Industries (MPI) to prepare the country for a potential foot and mouth outbreak.
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