Tuesday, 03 October 2023 12:55

Low payout not helping

Written by  Peter Burke
Jim van der Poel. Jim van der Poel.

DairyNZ chair Jim van der Poel says the low forecast farmgate milk price is already putting a lot of pressure on dairy farmers and their cashflows.

He says if the drought is as bad as some people are saying, this will add to that pressure.

Van der Poel says while the potential for a drought is yet another stress, the good news is farmers have plenty of warning and can plan for what might be in store.

“We at DairyNZ are encouraging farmers to plan. We have a lot of resources, and we are running a lot of events to help farmers prepare for both the low payout and then what their options are to manage their way through a drought, should it turn up,” he told Dairy News.

He says many of the regions that could be hit by the drought have endured huge amounts of rain in the year and the prospect of facing a drought is tough on people.

He says the industry is hopeful the banks will help farmers through the impending tough times. He says the banks recognise that farmers have been very responsible in good seasons and paid down debt, so some are in a strong position.

“The banks have indicated that they will be sympathetic to farmers, and he hope this happens,” he says.

Van der Poel says if farmers need any help, all they need to do is call the DairyNZ 0800 number and they will be put them in touch with someone who can give them assistance.

More like this

Editorial: On the mend

OPINION: DairyNZ's latest forecast data on the Econ Tracker, that the outlook for the current season has improved, will be welcome news for farmers.

Returns lift, costs down - DairyNZ

The outlook for dairy farmers this season has improved, especially when compared to forecasts only six months ago, according to DairyNZ.

From Sky Tower to cowshed

Every morning dairy farmer Sam Waugh sees the Auckland Sky Tower through his window. It's a great reminder of one of his key life goals - giving young people from towns and cities insights into farm life.

Featured

Vaccinate against new lepto strain

A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.

TV series to combat food waste

Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.

National

Frontline biosecurity 'untouchable'

Biosecurity Minister Andrew Hoggard has reiterated that 'frontline' biosecurity services within Ministry for Primary Industries (MPI) will not be cut…

Machinery & Products

New name, new ideas

KGM New Zealand, is part of the London headquartered Inchcape Group, who increased its NZ presence in August 2023 with…

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

» Latest Print Issues Online

Milking It

Plant-based bubble bursts

OPINION: Talking about plant-based food: “Chicken-free chicken” start-up Sunfed has had its valuation slashed to zero by major investor Blackbird…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter