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.
Dairy farmers are being urged to help shape the future of the dairy sector.
DairyNZ chief executive Dr Tim Mackle says a refresh of the sector’s strategy is now on and while he acknowledges this is a busy time for farmers he’s hoping they will make time to give feedback.
They can do it on a purpose-built website, Mackle says, and via Federated Farmers dairy group, Dairy Companies Association of NZ and Dairy Woman’s Network.
He says it’s four years since the present strategy was put in place and a lot has changed since then.
“On the farm it’s been one of the toughest economic challenges in recent memory. Public scrutiny of how we farm has increased -- especially about the environment and animal welfare -- and challenges are greater in recruiting and retaining the best and brightest people in the industry.”
Overseas the milk quota is gone in the EU, consumer aspirations and tastes have changed and consumers are concerned about farm practices including animal welfare. So a refresh of the dairy strategy is timely, Mackle says.
DairyNZ has a big role in developing the strategy but it requires ownership by all the partners. The goal is to complete the strategy by late 2017.
“Our board will consider the implications for DairyNZ and how it can play its part in the strategy,” Mackle says. “Down the track it will influence how levies are [spent].”
The need is rising for NZ to compete globally and it will get tougher, so a good strategy is essential.
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