Dairy power
OPINION: The good times felt across the dairy sector weren't lost at last week's Beef + Lamb NZ annual meeting.
White the lamb crop is the lowest since 1953, sheep farmers have become much more productive, says Beef + Lamb NZ chief economist Andrew Burtt.
He says there is still constant tension and pressure to improve efficiency and productivity.
"Farmers have responded to the signals from processors about lambs in tight specifications. That sort of thing will just continue," he adds.
BLNZ's Lamb Crop 2015 report estimates 23.9 million lambs were tailed this spring – the smallest lamb crop since 1953. Lamb export receipts for 2015-16 are estimated at $2.8 billion, down 4.2% on 2014-15.
Burtt says demand, overseas markets, currency rates and interest rates are constantly moving factors that farmers do not directly control.
"Their best focus is on the things they do have some control over, which is their productivity in getting the weights desired by their customers, the meat companies. They're doing the best they can do as efficiently as possible."
The overall focus is an increasing demand to grow animals to specifications.
He says sheep numbers fell because of key factors like drought; and dairy cows are expected to have the first noticeable downturn in a long time – driven by prices and drought. However, the decline in beef cattle numbers has slowed substantially.
"But sometimes we miss the story if we focus solely on the number of sheep or beef cattle," Burtt adds.
"We miss the productivity improvements through farm management and pasture management; all farmers know about El Nino and make and implement their plans to deal with El Nino should it eventuate.
"There are some [farmers] in Hawkes Bay who say it has rained so much at present that 'if this is El Nino bring it on'. Nevertheless they are working on the prospect of dry conditions later in the year.
"I think that responsiveness and resilience to these sorts of things is getting stronger and stronger in the industry, nevertheless there are still improvements in confidence needed."
Regarding the Silver Fern Farms investment by the Chinese company Shanghai Maling, Burtt says it shows there is enough confidence in the industry for people to invest in it.
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.
Nationwide rural wellbeing programme, Farmstrong recently celebrated its tenth birthday at Fieldays with an event attended by ambassador Sam Whitelock, Farmers Mutual Group (FMG), Farmstrong partners, and government Ministers.
Six industry organisations, including DairyNZ and the Dairy Companies Association (DCANZ) have signed an agreement with the Ministry for Primary Industries (MPI) to prepare the country for a potential foot and mouth outbreak.
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