Herd production performance soars
New data released by LIC and DairyNZ shows New Zealand dairy farmers have achieved the highest six week in-calf rate and lowest notin- calf rate on record.
Herd Improvement company LIC’s earning guidance has taken a hit as this season’s forecast milk price for farmers continues to plummet.
LIC says its underlying earnings for 2023-24 financial year will be in the range of $17-$22 million. In July, the co-operative expected underlying earnings to be in the range of $22-28.
LIC is also leaving open the possibility of another revision if milk prices continue to fall.
It says the revised guidance assumes “no further milk price changes or significant climate events take place”.
In the past two weeks, Fonterra has slashed $1.25 from its forecast farmgate milk price range mid-point.
Farmers now expect to be paid $6.75/kgMS for milk this season.
LIC board chair Murray King says earnings were anticipated to be lower than initially forecasted, however the co-op remains committed to ensuring farmers can continue their investment to breeding the most efficient cows for their herd.
“Although it is early into the season, the lower forecast milk payout has created a challenging economic landscape for many dairy farmers across New Zealand.
“Our farmers will be reviewing their cost structures and as their co-operative we are doing the same.
“The board is committed to protecting the long-term sustainability of the co-op and the efficiency of our farmers’ herds, while ensuring that we continue to deliver exceptional value on farm.”
LIC says it will continue to update the market in line with its continuous disclosure obligations.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.
The Ministry for Primary Industries (MPI) has informed staff it will cut 391 jobs following a consultation period.
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