Business

DairyNZ’s newly-released Economic Survey 2017-18 shows farmers have taken advantage of increased milk income to catch up on deferred farm maintenance and revisit capital expenditure, previously delayed due to lower milk prices. DairyNZ senior economist Matthew Newman said the annual farmer survey shows the largest increases in spend during 2017-18 (1 June 2017 to 31 May 2018) were on feed, repairs, maintenance and labour. But, it is likely expenditure has increased further in 2018-19. “The 2017-18 season was difficult due to a dry spring/early summer for all regions. That affected pasture growth and peak milk production. It’s also the season that Mycoplasma bovis was discovered,” said Matthew. “Overall, the break-even milk price increased 70 cents to $5.87 per kg milksolids in 2017-18, due to the higher farm working expenses, increased tax payments and increased drawings. “This survey is a good reminder that as a sector, we need to maintain our competitiveness by striving to produce milk at profitable margins and being prepared for fluctuations in milk prices.” DairyNZ farm business developer Angie Fisher said the Economic Survey can help inform planning for the 2019/20 dairy season. “The Economic Survey provides financial data for both owners and herd-owning sharemilkers, along with forecasts for the 2019-20 seasons. This makes it a useful resource for farm budgeting,” said Angie. Along with the Economic Survey, DairyNZ also collates other information that helps farmers plan for the season ahead. DairyNZ analyses financial figures of top-performing dairy farmers nationwide through DairyBase. DairyNZ also provides budgets and results from 17 Budget Case Study farmers nationwide who have opened their books for others to learn from. “Through data analysis and looking more closely at above-average performers, we’ve got a good picture of what influences profitability and returns,” said Angie. “There can be cases when the business owner’s goals […]

DairyNZ chief executive Tim Mackle has welcomed an increase in funding for mental health in yesterday’s Budget, saying he hopes the increased frontline services for mental health will include sufficient support for rural communities. “Dairy farming has always come with some challenges that can impact wellbeing, but the number and scope of these challenges is increasing,” said Dr Mackle. “The agricultural sector, like other sectors, is facing changes to the way it operates, as well as increased regulations. People deal with changes in different ways and there is a growing awareness of the importance of mental health and resilience for those in the rural sector. We need to ensure our rural communities have better access to mental health professionals when additional help is needed. “We know that on the whole our farmers are doing OK, but we have seen a rise in farmers reporting feeling stressed, anxious, fatigued and even depressed from time to time.” Reported stress amongst farmers is often attributed to financial concerns, staffing issues, and increased concerns about the perception of farming, as well as worry over increasing regulation. There are also high rates of reported loneliness amongst farmers, who often live remotely and in isolation from others. Isolation is one of the main factors of mental illness. “The good news is the growing awareness of mental health in the rural sector and we know that many farmers feel comfortable to seek the support they need,” said Dr Mackle. “Almost one in five farmers have contacted someone for help with mental health or addiction problems in the past year. “We look forward to seeing more detail on how this funding will be applied to be accessible and practical for rural communities, and especially for our more isolated farmers.”  

DairyNZ welcomes the Government’s announcement today that it will not be introducing a Capital Gains Tax. “Farmers are relieved by this. They work extremely hard alongside other New Zealanders to build a strong future for their families, while contributing to the economy and communities.” DairyNZ chief executive Tim Mackle says. There would have been wide-ranging ramifications for farmers if a Capital Gains Tax had been introduced. There have been strong concerns for the sector since the Tax Working Group’s report came out in February, as it described a system that looked likely to have significant implications for farmers across a broad range of areas from business asset valuations, administrative costs, succession planning and retirement schemes. DairyNZ is also very pleased with the announcement that there will be no water or fertiliser tax. “Farmers are already working throughout the country on continuously improving environmental sustainability on farms. Initiatives include more than 27,000 kilometres of fenced-off and measured waterways, putting in bridges or culverts at regular stock crossing points, and introducing farm environment plans – among just a few of the activities. “This investment in environmental work contributes considerably more to improving water quality and mitigating emissions than an environment tax would. Incentivising behaviour change has more positive impact than penalising farmers,” Dr Mackle says. “We are focused on ensuring the dairy sector achieves a balance between being competitive and profitable, while also meeting the expectations of our customers and communities and our desire to do the right thing.” DairyNZ said at the time that the Tax Working Group’s report came out that any changes to the tax system should better support the productive sector. “We are very pleased to have been listened to with the announcement today,” Dr Mackle says.  

  DairyNZ says today’s Environment Aotearoa 2019 report gives honest insight into New Zealand’s environment and where the opportunities lie for the dairy sector, particularly for water quality, biodiversity and climate change. Strategic leader for DairyNZ’s environmental portfolio, Dr David Burger, said while the report shows the dairy sector has work to do, there is no doubt farmers are working hard to look after the environment – with significant work already undertaken over the last 10 years to improve environmental practices across New Zealand. “The Environment Aotearoa report helps us understand the changes over time. There are some areas where more work needs to happen or where current initiatives will take time to deliver results,” said Dr Burger. “There is also an opportunity for the dairy sector, government and conservation groups to work more closely together to support farmers in making changes and understanding the effects downstream. For example, in Southland’s Aparima Catchment we are working closely with all land users to collectively improve the estuary. “Dairy has a clear vision – we all need to improve our environment and that’s why we’re actively in the community, talking about the role we all play. We have been on a journey for many years to look after the environment, and we will continue that good work. Cow numbers have now stablilised so our focus is managing our farm systems more sustainably. “We farm in areas of immense cultural value, as well as where people come to connect and play. Our farmers take their responsibilities seriously and are working toward leaving the environment in a better state. We know this will take time but we are committed to this kaitiaki.” The Dairy Tomorrow sector strategy launched in 2017 includes a strong commitment by dairy to protect and nurture the environment for future generations, […]

DairyNZ chief executive Tim Mackle has reconfirmed the dairy sector’s commitment to play its part to reduce its biological emissions, and supports the intent of the direction of the Zero Carbon Bill.  “Our farmers are committed to sustainable farming practices, and need long-term certainty to make business decisions based on reduction targets. We are pleased the Government has listened to the science regarding the short-lived nature of methane, recognising it has a different impact on the environment,” says Dr Mackle. “DairyNZ supports a science-based approach, where each gas is reduced based on its warming impact. We have not yet seen the Government’s analysis behind the 2050 target range. The 2050 target, of reducing methane by 24 to 47 per cent, is based on global scenarios that are not grounded in the New Zealand context.  “This range for methane, combined with reducing nitrous oxide to net zero, goes beyond expert scientific advice for what is necessary for New Zealand agriculture to limit global warming to no more than at 1.5° C. “It is very important to get the range right.  If we get this wrong it will have significant impacts on not just the dairy sector, but the economic, social and cultural wellbeing of New Zealand.  “While we can support much of what is in the Zero Carbon legislation, we will be pushing for the range to be reviewed and aligned with the recommendations made by the Parliamentary Commissioner for the Environment, of 10-22 per cent reduction in methane.  When combined with our commitment on nitrous oxide to net zero, this is an equitable, yet ambitious and challenging target, that is grounded in robust science. “We know our farmers will be concerned by the 47 per cent and what that might mean for their livelihoods.  It is not set in stone, […]