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 supports vocational education reforms

DairyNZ is supporting a proposed new learning model for apprenticeships and traineeships that would see training, education, and pastoral care delivered together to provide the best chance of success.

Editorial: GMO furore

OPINION: Submissions on the Government's contentious Gene Technology Bill have closed.

DairyNZ seeks more cash

For the first time in 17 years, DairyNZ wants farmers to contribute more cash to run the industry-good organisation.

Featured

DairyNZ supports vocational education reforms

DairyNZ is supporting a proposed new learning model for apprenticeships and traineeships that would see training, education, and pastoral care delivered together to provide the best chance of success.

The Cook Islands squabble

The recent squabble between the Cook Islands and NZ over their deal with China has added a new element of tension in the relationship between China and NZ.

Wyeth to head Synlait

Former Westland Milk boss Richard Wyeth is taking over as chief executive of Canterbury milk processor Synlait from May 19.

National

Certainty welcomed

There's been very little reaction to the government science reform announcement, with many saying the devil will be in the…

Science 'deserves more funding'

A committee which carried out the review into New Zealand's science system says the underinvestment will continue to compromise the…

Machinery & Products

Landpower win global award

Christchurch-headquartered Landpower and its Claas Harvest Centre dealerships has taken out the Global After Sales Excellence award in Germany, during…

Innovation, new products galore

It has been a year of new products and innovation at Numedic, the Rotorua-based manufacturer and exporter of farm dairy…

» Latest Print Issues Online

Milking It

MVM struggles

OPINION: Nearly four years after buying a 75% stake in Southland processor Mataura Valley Milk (MVM), A2 Milk is still…

No backing down

OPINION: Fonterra isn't backing down in its fight with Greenpeace over the labelling of its iconic Anchor Butter.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter