Editorial: Building Resilience
OPINION: The dairy sector has been told that it cannot afford to rest on its laurels.
DairyNZ's updated forecast for the 2025-26 season portrays a favourable outlook for farmers.
Driven by strong milk prices, DairyNZ estimates farmers will receive an average payout of $9.92/kgMS for the 2025-26 season. With a forecast breakeven milk price of $8.36/kgMS, this points to an average surplus of around $1.56/kgMS for the season.
At the same time, season-to-date milksolids production is running 3.3% ahead of the same period last season.
The combination of relatively high payout expectations and strong production means many farms are tracking towards a very solid revenue season. For many farms, margins will be comfortably above breakeven levels, despite increases in farm working expenses.
