Ray Smith: Dairy still has growth potential despite flat export outlook
Ministry for Primary Industries (MPI) Director General Ray Smith believes there is potential for an increase in dairy farming in New Zealand.
Primary Industries Minister Nathan Guy met with local farmers near Ashburton yesterday and says that dry conditions are a concern.
"The dry summer may have been good news for holidaymakers but farmers are starting to feel the pinch in South and Mid-Canterbury, North Otago, and Wairarapa.
"Restrictions are in place for some irrigators as water levels drop, and the short term outlook is not showing much rain on the horizon.
"Most farmers I talked to today are managing by de-stocking and using feed supplies, but are hopeful of rain before too long to set them up for winter.
According to Guy, MPI is keeping a close eye on the amount of rainfall, soil moisture levels and river levels and gets good information from people on the ground. However, he says at this stage the Government is not planning to classify this event as a medium-scale adverse event.
"This threshold would be reached when the lack of rainfall has an economic, environmental and social impact on farming businesses and the wider community.
Guy advised farmers to take note of the support services already available from Government agencies in all regions. Farmers can contact the IRD if they need help or flexibility with making tax payments, while Work and Income offer standard hardship assistance.
"I would urge farmers to make use of the good advice and support available from their local Rural Support Trusts. They are doing a great job of coordinating farming communities and providing information," he adds.
"It is a tough situation for many with this coming on top of a lower dairy payout. However, I know that farmers are resilient and have come through many challenges like snowstorms, earthquakes and commodity price fluctuations before."
The sale of Fonterra’s global consumer and related businesses is expected to be completed within two months.
Fonterra is boosting its butter production capacity to meet growing demand.
For the most part, dairy farmers in the Waikato, Bay of Plenty, Tairawhiti and the Manawatu appear to have not been too badly affected by recent storms across the upper North Island.
South Island dairy production is up on last year despite an unusually wet, dull and stormy summer, says DairyNZ lower South Island regional manager Jared Stockman.
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