Dairy sector profit still on the table, but margin gap tightens
DairyNZ’s latest Econ Tracker update shows most farms will still finish the season in a positive position, although the gap has narrowed compared with early season expectations.
Southern Dairy Development Trust chair Matthew Richards says the trust this month updated the directors of DairyNZ and AgResearch on their fundraising, and sought their approval and financial backing.
Farmer pledges numbered 516, amounting to $1.3 million.
The target was $2 million in farmer pledges, but because a majority of southern dairy farmers pledged money a decision was made to proceed.
“DairyNZ and AgResearch were pleased with the number of farmers prepared to back the proposal, especially in a low milk payout time. Both boards wanted to see strong farmer commitment… and this was a key to going ahead. Both boards know how important the hub project is for our region. Their support means we can move to the next phase of the hub development.”
The next step will be to buy a suitable farm, Richards says. “We have been looking at some properties that could meet our needs.”
Then consents, design and planning will go ahead.
“It’s going to be a tight timeframe to be ready for milking cows in June next year, but our team is ready and focused.”
The pledging website will remain ‘live’ until the day the hub is completed, to receive any more pledges.
