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.
DairyNZ chairman Jim van der Poel has clarified that Environment Minister David Parker did not call for a cut in cow numbers.
Addressing the DairyNZ Farmers Forum in Hamilton today, van der Poel says Parker was speaking about nutrient budgets.
“We want to be clear that he did not say this was about dairy or cow numbers – but was picked up by media in that light. The Prime Minister reinforced that view this morning,” van der Poel told 600 farmers at the opening of the two-day forum.
Media reports say Parker did not rule out a cut in cow numbers during a TV interview over the weekend. National jumped on the media reports and accused the Government of being “out to get farmers”.
Van der Poel says DairyNZ in principle supports nutrient budgets.
“They have been around for a while….we do agree on managing nutrients on a catchment-by-catchment basis, and that it’s important that all farmers and communities – not just dairy farmers – work in a sustainable way.
“Achieving clean waterways is a responsibility for all New Zealanders and we are and will play our part.
“Dairy farmers are very often part of the solution and are also often leading the work in catchments. We are working closely with the government and David Parker on this issue and although media interpreted this as being about cow numbers, we don’t believe that is the case.”
Van der Poel says it’s important to protect rural communities as they adjust to new farming practices. “Thriving rural communities are important to this government as well. It’s issues such as this which highlight how important it is that as we plan for the future we continue providing natural, high quality milk products and we have made great strides in being a more sustainable sector – but as we plan for the future, we need both attributes to shine.”
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