News

DairyNZ has released its submission on the Zero Carbon Bill and is calling on the Government to revise the methane target in the Bill to one that does not put at risk New Zealand’s world-leading dairy sector.  Farm profit could go down by as much as 42 percent and have a huge effect on national and regional economies under the current proposed range. “Dairying in New Zealand is world-leading in producing low emissions milk. We have a reputation for sustainability, and we want to keep it that way,” says DairyNZ Chief Executive Tim Mackle. “We are committed to playing our part in the transition to a low-emissions economy alongside the rest of New Zealand, but it must be done fairly, and consider the science as well as the economic impacts. “DairyNZ supports much in this Bill.  However, we still have strong concerns about the proposed 2050 methane reduction target range, and our continued support for the Bill is conditional on this changing” said Dr Mackle. The Bill contains a 2030 methane target and a 2050 methane target range. “While the 10% reduction by 2030 will be very challenging, we believe we can make a decent crack at it.  Our modelling indicates an average annual cost could be up to $13,000 per farm between 2020 and 2030. That’s why we are advocating for the target to be checked by the Commission once they are established, and regularly reviewed.  “However, the 2050 target is just not realistic and must be changed. ”The Government’s proposed 2050 target range of 24 – 47% is not soundly based in science in a New Zealand context and it is higher than official advice. “The economic modelling used to inform the Bill was also undercooked and did not include a robust analysis of the implications for dairy […]

DairyNZ chief executive Dr Tim Mackle is today joining with other primary sector leaders to launch a Primary Sector Climate Change Commitment: He Waka Eke Noa – our future in our hands to manage agricultural emissions. “This Commitment is an unprecedented sector-wide proposal to work constructively and collaboratively with Government, Maori and Iwi to make real and meaningful changes at the farm-level to reduce emissions. “What’s really positive about this proposal is it doesn’t just identify a problem – it provides a clear pathway forward and a way for the primary sector to work with the government rather than just impose regulations” said Dr Mackle. The proposal is being put forward in response to the Interim Climate Committee’s (ICCC) recommendation that agriculture be brought into the Emissions Trading Scheme (ETS) for a five-year period, until a farm-level pricing mechanism is constructed. “We and the ICCC both agree that a farm-based mechanism is the best way to address biological emissions, however, our views diverge when it comes to how we get there. “Bringing agriculture into the ETS at the processor level amounts to little more than a broad-based tax on farmers before we have the knowledge, support and tools to drive the practice change that will reduce emissions. “The stakes are high. New Zealand’s primary sector contributes one fifth of our GDP, generates 1 in 10 jobs and produce 75% of our merchandise exports.  We want to avoid shocks like the 80s and make any changes in a stable and considered way. “As an alternative we have put forward a proposed five-year work programme to build an enduring farm-level emission reduction framework and work with farmers and the wider rural sector to provide real options to reduce their footprint. “While appropriate pricing mechanisms for incentivising emissions reductions at farm level can […]

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.”