DairyNZ: Strong payouts offset high farm costs
The dairy sector is in a relatively stable position, with strong milk price payout forecasts continuing to offset ongoing high farm costs, according to DairyNZ.
This was revealed last week at DairyNZ's annual meeting in Morrinsville.
Dairy earnings for the year totalled $13.2 billion. Waikato remains the dairy heartland with 34% of the herds; it produced $2.4b of milk last year.
The Waikato's 4020 dairy herds produced 518m kgMS in 2014-15, 27% of NZ's total milk production. But Waikato's $2.4b earnings were down $1.8b on the 2013-14 season when the high milk price ($8.47 average payout) boosted the region's coffers by $4.2b.
Outgoing DairyNZ chairman John Luxton says the 2014-15 season's low milk price has affected all farms as owners and sharemilkers strove to remain profitable.
"The value of milk production to Waikato's economy is huge; the region takes a big hit when farmers do," says Luxton.
The North Island had 74% of herds, producing 59% of total milksolids; the South Island 26% of herds but produced 41% of milksolids.
The industry employed 40,730 people during the year; 27,830 worked on farms and 12,900 in processing and wholesaling.
The total number of herds reached 11,970; average herd size was 419. Last year the industry had 5 million cows.
