Arable Sector Costs Are the Biggest Problem, Says FAR
Flat pricing in the face of significant increases in costs is the greatest problem facing the arable sector, says Foundation for Arable Research (FAR) chief executive Dr Scott Champion.
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."
Farmlands has reported higher operating earnings and a profit before income tax of $4.5 million, up 118.9%, for the year ended 30 June 2026.
AgriZeroNZ has invested a further NZ$17.7 million in methane vaccine developer ArkeaBio and NZ$5.1 million in BioLumic, a New Zealand-founded company that uses ultraviolet light to develop low-emissions pasture..
Good news for Fonterra farmers. The co-op has raised this season’s farmgate milk price mid-point by 25c to $9.75/kgMS.
OPINION: Political parties are getting plenty of advice and recommendations from sector groups as the election approaches.
In farming there are external factors that can influence behaviour of a whole herd, such as a bad weather event, triggering false positive heat detections or health attentions.
For Canterbury dairy farmer Cameron Henderson, supporting Meet the Need comes down to a simple question: how can the success of New Zealand farming benefit more than just those within the industry?