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 head of regional teams, Claire Bekhuis, says that dairy farmers are doing well although the weather has varied from region to region.
“The Waikato and Bay of Plenty have experienced some summer rain combined with good growth conditions, season to date, meaning there is lots of feed available as well as supplementary feed on hand,” Bekhuis says.
She says that patches in the South Taranaki and Northland regions are experiencing relatively dry conditions, impacting pasture growth and day-to-day operations.
She says these regions are being watched and regularly assessed to see whether or not conditions worsen.
The rest of the lower North Island is experiencing relatively normal summer temperatures and has seen some rain in recent weeks, meaning that while those regions are slightly dry, it is not at a concerning level.
Bekhuis says in the South Island, conditions are similar, with Canterbury experiencing recent rain and Southland seeing consistent grass growth in the past month. However, the latter is still impacted by the extreme wet conditions that hit the region in the spring.
“While conditions are comfortable for most dairy farms right now, we are only halfway through summer, and conditions may change in the coming weeks,” she says.
“It is key for farmers to constantly assess and monitor their situation, and plan on how to handle feed, reduce stress and minimise the impacts on next season.
“This could include JESSICA MARSHALL DairyNZ head of regional teams, Claire Bekhuis. “While conditions are comfortable for most dairy farms right now, we are only halfway through summer, and conditions may change in the coming weeks.” considering different flexible milking options to reduce pressure on cows, demand on feed and people,” she says.
According to recent data from the National Institute of Water and Atmospheric Research (NIWA), 2024 marked New Zealand’s 10th warmest year on record.
According to NIWA’s 2024 Annual Climate Summary, annual temperatures were above average for much of Northland, northern Waikato, Bay of Plenty, coastal Hawke’s Bay, southern Taranaki, Whanganui, eastern and southern Wairarapa, Tasman, inland northern Canterbury, Banks Peninsula, and eastern Otago.
