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

DairyNZ plantain trials cut nitrate leaching by 26%

DairyNZ says its plantain programme continues to deliver promising results, with new data confirming that modest levels of plantain in pastures reduce nitrogen leaching, offering farmers a practical, science-backed tool to meet environmental goals.

Featured

'One more push' to eliminate FE

Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

New McHale terra drive axle option

Well-known for its Fusion baler wrapper combination, Irish manufacturer McHale has launched an interesting option at the recent Irish Ploughing…

Amazone unveils flagship spreader

With the price of fertiliser still significantly higher than 2024, there is an increased onus on ensuring its spread accurately at…

» Latest Print Issues Online

Milking It

Tough times

OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.

MSA triumph

OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter