Editorial: Agri's mojo is back
OPINION: Good times are coming back for the primary industries. From sentiment expressed at Fieldays to the latest rural confidence survey results, all indicate farmer confidence at a near-record high.
DAIRY FARMERS in the North Island are facing a stern test. Most regions haven’t had decent rain for two months, pasture has disappeared and milk production is at a trickle.
Northland, Auckland, Waikato, Hawke’s Bay and Bay of Plenty are officially in drought.
One-third of New Zealand’s export receipts come from dairy. So, economists are already talking about a severe blow to our economy.
Northland milk production during February 2013 was 20% lower than February 2012. In the wider Waikato, production for the same month was down 15%. Dairy farmers in Northland will have $13 million less income from milk produced in the month of February 2013 than in the same month a year ago. About $8 million of this cut results from lower milk production, the remainder from lower milk prices.
The world is now also taking notice of our weather woes. Global Dairy Trade prices rose 10%, the biggest rise since June last year.
Farmers in drought-affected regions are drying off cows and keeping a close eye on cow condition.
And there’s more to it than looking after animals: there’s the financial and psychological strain on farmers. The Government’s drought declarations have triggered action by Rural Support Trust chapters in affected regions.
Farmers are not necessarily asking for financial assistance; what they need is someone to turn to. The best help can be a neighbour’s listening ear and his recounting of what he and others are doing to cope. DairyNZ is facilitating this via its farmer networks.
Dairy farmers are a resilient lot. They will work through this as through previous droughts, floods, hurricanes and earthquakes But they need all the support industry partners and communities can provide.
DairyNZ’s advice:
Look after yourself and talk with other farmers in your area
Monitor and record your cow body condition. Make sure you know how to do this or get expert help
Focus on milking on with a core group of cows until it rains
Assess how you can destock
Have a plan for feed, financials and stock, and communicate the plan to your team (family, staff, consultant, banker). Don’t be afraid to change to Plan B if things change
Manage young stock on and off the farm
Talk to your grazier
Attend a DairyNZ dry summer field day
Make best use of your rural professionals.
Questions are being raised about just how good the state of the dairy industry is - especially given that the average farmgate payout for the coming season is set to exceed $10/kgMS.
A leading financial and banking advisor says he doubts if most dairy farmers fully understand the dynamics of banking.
Dairy farmers are shoring up their balance sheets, with almost $1.7 billion of debt repaid in the six months to March 2025.
Virtual fencing company Halter is going global but for founder Craig Piggott, New Zealand farmers will always remain their main partners.
A former Fonterra executive is the new chair of the Dairy Companies Association of New Zealand (DCANZ).
New Federated Farmers national dairy chair Karl Dean is looking forward to tackling the issues facing the sector.
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