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."
A verbal stoush has broken out between Federated Farmers and a new group that claims to be fighting against cheaper imports that undermine NZ farmers.
According to the latest ANZ Agri Focus report, energy-intensive and domestically-focused sectors currently bear the brunt of rising fuel, fertiliser and freight costs.
Having gone through a troublesome “divorce” from its association and part ownership of AGCO, Indian manufacturer TAFE is said to be determined to be seen as a modern business rather than just another tractor maker from the developing world.
Two long-standing New Zealand agricultural businesses are coming together to strengthen innovation, local manufacturing capability, and access to essential farm inputs for farmers across the country.
A new farmer-led programme aimed at bringing young people into dairy farming is under way in Waikato and Bay of Plenty.
The Government has announced changes to stock exclusion regulations which it claims will cut unnecessary costs and inflexible rules while maintaining environmental protections.

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