Levies return 26c/kgMS per year in value, DairyNZ reports
Milksolids levies paid by dairy farmers over the past six years have generated nearly $3 billion in value, according to an independent review.
The Independent Working Group's (IWG) final report looked at the dairy sector's genetic improvement progress and has put forward recommendations to drive faster rates of genetic gain in New Zealand's dairy herd.
Industry good body DairyNZ, LIC and CRV say they are committed to making changes for the sector's benefit and will each consider the IWG's recommendations.
LIC chair Corrigan Sowman and CRV managing director James Smallwood say that they're pleased with the focus on transparency and consistency.
"Genetic gain is a critical pillar in the future success of our farmers' businesses. It is only right that, where needed, we come together to improve the structures underpinning this success," Sowman says.
"We're looking forward to working closely with DairyNZ to set up the right governance structures, workstreams and reporting mechanisms so we can effectively achieve the report's stated objectives for the betterment of their dairy herds to support New Zealand's future."
Smallwood says LIC and CRV appreciate the IWG's recognition of their focus on genetic improvement for the betterment of the national herd, and the important contribution of their combined work to date.
"It's pleasing to see the IWG encouraging the consideration of existing international models to help us find workable solutions. We both thank the IWG for the work it has undertaken," he says.
DairyNZ chair Jim van der Poel says the report is groundbreaking because it captures in one place the reasons New Zealand has fallen behind international competitors, while clearly outlining a way forward that can involve all sector players.
"It also shows New Zealand can catch up quickly by taking key actions and underscores the immense benefits to dairy farmers - including efficiency and productivity gains through animals that are more resilient, profitable and easier to farm," he says.
"Overcoming sector challenges to provide New Zealand farmers with world-leading genetic gain will require significant contributions from all parties."
Recommendations include strengthening the role and impact of the National Breeding Objective (NBO) for achieving genetic gain in the New Zealand dairy herd. This is expected to improve the amount and quality of phenotypic data collected from commercial dairy herds and encourage all sector players to use genomic technologies to make genetic gain (aligned to the NBO) as fast as possible.
