Arable Farmers Shift to Dairy as Fuel and Fertiliser Costs Surge
Some arable farmers are getting out of arable and converting to dairy in the faced of soaring fuel and fertiliser prices on top of a very poor growing season.
OPINION: Spare a thought for the arable farmer, squeezed on one side by soft global prices and on the other by limits on further yield increases.
Profitability issues facing arable farmers are the same across the world, says NZ Special Agricultural Trade Envoy Hamish Marr, an arable farmer himself.
The arable industry is facing "the perfect storm", the main issue being gross margin.
"There is simply not enough money being generated."
Yield has the biggest positive influence on cost of production and this needs to increase to produce more on less land. Hence some growers are considering dairy, hort or sheep as alternatives.
He also reckons the sector needs better advocacy in Wellington: "Onions NZ have a $200 million export market and have several people in Wellington, and they brief me before trade delegations. No one rings me from arable."
Āta Regenerative is bringing international expertise to New Zealand to help farmers respond to growing soil and water challenges, as environmental monitoring identifies declining ecosystem function and reduced water-holding capacity across farms.
Yili's New Zealand businesses have reported record profits following a major organisational and strategic transformation.
Owners and lessees of certain Hino Trucks New Zealand diesel vehicles have just 10 days remaining to register or opt out of a proposed $10.9 million class action settlement.
Silver Fern Farms has successfully produced and delivered 90 tonnes of premium chilled New Zealand lamb and beef to the United Arab Emirates via airfreight.
For the first three months of 2026, new tractor deliveries saw an increase over the previous two months, resulting in year-to-date deliveries climbing to 649 units - around 5% ahead of the same period in 2025.
QU Dongyu, director-general of the Food and Agriculture Organization of the United Nations (FAO), has issued a warning saying that global fertiliser scarcity caused by disruptions in the Strait of Hormuz will lead to lower yields and tightening food supplies into 2027.

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