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.
Speaking to Dairy News just after the launch of the report at Fieldays, he pointed out the significance of the fact that more than 80% of NZ's export earnings come from the ag sector. He says, despite the challenges in front of the sector, its contribution continues to grow and be the major contributor to our export earnings.
Van der Poel says its dairy exports that make it possible for Kiwis to buy cars and medicines and all the items that people take for granted. He says if it wasn't for the dairy industry the country would be a very different place.
"People don't connect the dots and realise this," he says.
He says the numbers in the report don't surprise him and says this illustrates just how resilient farmers are, despite the challenges outlined in the SOPI report.
"We have to take the challenges head on and try to work through them. We have confronted these all before and we will continue to find ways through them," he says.
