Tuesday, 03 October 2023 12:55

Low payout not helping

Written by  Peter Burke
Jim van der Poel. Jim van der Poel.

DairyNZ chair Jim van der Poel says the low forecast farmgate milk price is already putting a lot of pressure on dairy farmers and their cashflows.

He says if the drought is as bad as some people are saying, this will add to that pressure.

Van der Poel says while the potential for a drought is yet another stress, the good news is farmers have plenty of warning and can plan for what might be in store.

“We at DairyNZ are encouraging farmers to plan. We have a lot of resources, and we are running a lot of events to help farmers prepare for both the low payout and then what their options are to manage their way through a drought, should it turn up,” he told Dairy News.

He says many of the regions that could be hit by the drought have endured huge amounts of rain in the year and the prospect of facing a drought is tough on people.

He says the industry is hopeful the banks will help farmers through the impending tough times. He says the banks recognise that farmers have been very responsible in good seasons and paid down debt, so some are in a strong position.

“The banks have indicated that they will be sympathetic to farmers, and he hope this happens,” he says.

Van der Poel says if farmers need any help, all they need to do is call the DairyNZ 0800 number and they will be put them in touch with someone who can give them assistance.

More like this

Musical chairs

OPINION: DairyNZ's director elections has seen scientist Jacqueline Rowarth re-elected for another three-year term.

DairyNZ levy to increase?

Retiring chair Jim van der Poel has used his final AGM to announce the intention to increase the DairyNZ farmer levy for the first time in the industry-good body's 17-year history.

Tributes to retiring 'Jim the farmer'

Doing what is right, not what is easy, has been the hallmark of Jim van der Poel's leadership of, and advocacy for, the dairy industry, attendees at the DairyNZ annual general meeting heard last week.

Featured

New ag degrees at Massey

Changing skill demands and new job opportunities in the primary sector have prompted Massey University to create a new degree course and add a significant major into another in 2025.

The show is on!

It was bringing in a new Canterbury A&P Association (CAPA) show board, more in tune with the CAPA general committee, that has ensured that Christchurch will have a show this year, says CAPA general committee president Bryce Murray.

National

'Quite a journey'

Former Synlait chief executive Grant Watson says the past two years have been quite the journey.

DairyNZ levy to increase?

Retiring chair Jim van der Poel has used his final AGM to announce the intention to increase the DairyNZ farmer…

Former Fonterra CEO dies

Former Fonterra chief executive Theo Spierings passed away in the Netherlands over the weekend.

Machinery & Products

Milk Sustainability Centre launched

The recently announced Milk Sustainability Centre – a collaboration between global giant John Deere and milking and feed specialists De…

Data connection made easier

New Holland and Case IH are introducing new advancements in their precision technology stack to make farming easier and more…

» Latest Print Issues Online

Milking It

Feed from farmers

OPINION: The country's dairy farmers will now also have a hand in providing free lunch for schools.

Brighter future

OPINION: The abrupt departure of Synlait chief executive Grant Watson could be a sign that Chinese company Bright Dairy, the…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter