Dairy sector profit still on the table, but margin gap tightens
DairyNZ’s latest Econ Tracker update shows most farms will still finish the season in a positive position, although the gap has narrowed compared with early season expectations.
DairyNZ biosecurity, readiness and response manager Chris Morley says the Mycoplasma bovis outbreak has been “bloody awful” for those caught up in it.
“They are some of the best farmers we know and they’re going through hell.”
In countries where the disease is established it has a big impact, causing a nasty untreatable mastitis. Cows are culled and the disease goes quiet for a year or two then flares up again.
“It doesn’t go away; it survives in biofilms -- all those crevices in milking sheds and milking machines,” Morley explained. “It survives in the animal. And if they’re not stressed, sometimes it has no effect.”
Morley says that of the seven NZ farms with positive detections, two of the Van Leeuwen properties were having “real problems,” with serious mastitis and arthritis in calves that had drunk milk from infected cows.
But there were no clinical signs on the other positive properties, including the Rangiora lifestyle block and the calf rearer south of Oamaru.
“There was no sign of sickness. Those calves were really nice calves. There was nothing going on.”
Morley says the response team had done a lot of work assessing what it would cost dairy in the long term if not eradicated.
“Over 10 years we are talking hundreds of millions [of dollars] in impact to the industry. It’s a big number.”
It would also impact the meat industry, where there was increasing talk of the rising value of ‘fifth quarter’ products. Mycoplasma is very hard to take out of those products, he said.
However, confidence is building that eradication is possible.
“Unlike foot and mouth disease this doesn’t jump over the fence on the wind,” Morley adds. “We can contain it. I’m really optimistic that this might be one of those purity incursions that NZ can stop and will stop, unlike myrtle rust and velvetleaf and other things we struggle with.”
Meanwhile, Norton attacked the attitudes of those who believed the battle is already lost, saying the defeatists “need to be lined up in front of a firing squad”.
There has not been a single ounce of evidence of a spread.
“We will get eradication,” he said.
When American retail giant Cosco came to audit Open Country Dairy’s new butter plant at the Waharoa site and give the green light to supply their American stores, they allowed themselves a week for the exercise.
Fonterra chair Peter McBride says the divestment of Mainland Group is their last significant asset sale and signals the end of structural changes.
Thirty years ago, as a young sharemilker, former Waikato farmer Snow Chubb realised he was bucking a trend when he started planting trees to provide shade for his cows, but he knew the animals would appreciate what he was doing.
Virtual fencing and herding systems supplier, Halter is welcoming a decision by the Victorian Government to allow farmers in the state to use the technology.
DairyNZ’s latest Econ Tracker update shows most farms will still finish the season in a positive position, although the gap has narrowed compared with early season expectations.
New Zealand’s national lamb crop for the 2025–26 season is estimated at 19.66 million head, a lift of one percent (or 188,000 more lambs) on last season, according to Beef + Lamb New Zealand’s (B+LNZ) latest Lamb Crop report.
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