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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.
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