Dairy farmer profits to hit record levels in 2025
The profitability of dairy farmers is likely to increase in the coming year, accordign to the latest report by the Ministry for Primary Industries (MPI) on the outlook for the primary sector.
He says as the middle class rises around the world, demand for protein, especially that produced by New Zealand, will remain elevated.
Marr was speaking at the Dairy Women’s Network annual conference in Hamilton this morning.
An arable farmer from Canterbury, Marr says his confidence in dairy is reflected on his decision to buy a neighbouring 600-cow dairy farm this year.
“The middle class is rising, and they will be hungry for protein,” he told the conference.
He noted that New Zealand’s dairy offering is unique in the world.
NZ’s low-cost system of rotational grazing is the key point of difference with many other dairy producers, he says.
“Our cows walk to the feed, eat and come back: in many countries under the high-cost model feed goes to the animals.”
But he adds that many countries the New Zealand dairy industry as a threat to their domestic sector.
“They fear New Zealand will flood our market and put cheaper products on supermarket shelves,” he says.
“That’s one thing the dairy sector needs to be cognisant of.”
