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.
THE GLOBAL dairy industry is seeing a reversal of fortune; after a lacklustre 2012, this year is shaping up to be an exceptional year, according to the International Dairy Federation.
In its World Dairy Situation report released last week, the IDF says weather is playing a crucial role and 2013 seems to be a "reverse portrait of 2012, with a sluggish start and a dynamic finish."
"First in 2012, adverse weather conditions were concentrated mostly in the second half-year, while conditions were rather favourable during the first six months," it says.
"Unlike 2012, the first half of 2013 was not a bonanza time."
Many countries in Europe were still recovering from adverse weather conditions and this affected the forage quality given to cows. The animals were also released to pasture a month later than usual in most European countries.
The report says a severe drought in New Zealand earlier this year resulted in "massive culling and a severe milk production decline" compared to the first half of last year.
While the report stops short of predicting the weather for the remainder of this year, it says the July to September period appears to be more favourable than 2012.
"No severe drought has occurred in the US and Russia; and weather patterns seems to be returning to normal in Europe, South America and New Zealand."
Cow's milk still represents 83% of the total world milk production. The 2012 milk yield grew 2.1% compared to 2.7% the year before. India, the world's biggest milk producer, and Pakistan helped Asia lead the way with a 4.4% increase in production. Oceania was a mixed bag; New Zealand's production rising 8.5% and Australia's declining 3%.
The report was prepared by IDF's standing committee on dairy policies and economics, chaired by Sarah Paterson (pictured), Fonterra. In their foreword, Paterson and IDF director general Nico van Belzen say market volatility remains a constant for the global dairy industry.
"Weather remains a key driver of variability in milk supply," the say.
The long term prospects for dairy products are encouraging and driven by demand out of Asia, Middle East and Latin America. But they warn that while dairy commodity prices have recovered, farmers are under pressure in many regions due to rising input costs.
*Sudesh Kissun attended the 2013 World Dairy Summit in Yokohama, Japan with the assistance of the Asia New Zealand Foundation.
A technical lab manager for Apata, Phoebe Scherer, has won the Bay of Plenty 2025 Young Grower regional title.
Following heavy rain which caused flooding in parts of Nelson-Tasman and sewerage overflows in Marlborough, the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) is urging homeowners and tenants to be cautious when cleaning up and to take the right steps to support claims.
Newly elected Federated Farmers meat and wool group chair Richard Dawkins says he will continue the great work done his predecessor Toby Williams.
Hosted by ginger dynamo Te Radar, the Fieldays Innovation Award Winners Event put the spotlight on the agricultural industry's most promising ideas.
According to DairyNZ's latest Econ Tracker update, there has been a rise in the forecast breakeven milk price for the 2025/26 season.
Despite the rain and a liberal coating of mud, engines roared, and the 50th Fieldays Tractor Pull Competition drew crowds of spectators across the four days of the annual event.
OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.
OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.