OSPRI writes off $17m over botched traceability system
Animal disease management agency OSPRI has written off nearly $17 million after a botched attempt to launch a new integrated animal disease management and traceability system.
Figures released at DairyNZ annual general meeting (AGM) in Ashburton shows the 2015/16 dairy season was the most challenging year yet for dairy farmers.
The 2015/16 milk price of $3.90/kgMS was the lowest in more than a decade and impacted farmers who last season were, on average, operating at a break-even cost of $5.25/kg milksolids.
DairyNZ board chair Michael Spaans says despite an obvious shortfall in farm income, last season farmers made positive steps in reducing their costs of production.
“Our data shows farmers have become more efficient and fine-tuned their farm management – so much so, that in August we revised the average farm’s break-even cost down to $5.05/kg milksolids for 2016/17,” says Spaans, speaking to an audience in Ashburton.
“This is a rare positive from a period of low milk prices and something farmers should be immensely proud of. Farmers’ abilities to sharpen the pencil and remain focused is key to maintaining our industry’s international competitiveness.”
The 2015/16 challenges were compounded by the low milk price in 2014/15. With no significant retrospective payments from the previous season, many farmers in 2015/16 increased debt to cover costs.
The previous 2014/15 season had been somewhat buffered by the $8.40/kgMS price of 2013/14.
Nationally, dairy farmers produced 1.862 billion kgMS, worth $8 billion in 2015/16.
The industry’s milk production benefited the New Zealand economy by $12.2 billion from dairy exports in 2015/16 and provided around 35,000 full-time jobs on-farm and a further 14,500 jobs in milk processing and wholesaling.
DairyNZ chief executive Tim Mackle says 2015/16 was another busy year for DairyNZ, which makes a range of industry investments through the $67 million levy, plus additional government and commercial funding.
“Investing farmers’ money into a wide range of programmes is designed to deliver direct benefits for farmers and the industry as a whole,” says Mackle.
“While each year we focus on supporting farmers through immediate issues, such as managing the low milk price, we also maintain our long-term work in such areas as research, environmental management and our workforce.”
This coming year, $16m will be invested into each of the three key areas – research; farm profit; biosecurity and product integrity. Environmental work will also receive $12m funding.
Prime Minister Christopher Luxon will be fronting farmers at three large public meetings organised by Federated Farmers over the coming weeks.
Federated Farmers and a major Australian-owned bank are at loggerheads over emissions reduction targets set for New Zealand farmer clients.
More locally grown tomatoes are coming to stores this month and you can thank New Zealand greenhouses for that.
Changing skill demands and new job opportunities in the primary sector have prompted Massey University to create a new degree course and add a significant major into another in 2025.
It was bringing in a new Canterbury A&P Association (CAPA) show board, more in tune with the CAPA general committee, that has ensured that Christchurch will have a show this year, says CAPA general committee president Bryce Murray.
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