DairyNZ Urges Farmers to Plan for Higher Costs in 2026/27 Season
Farmers should be cautiously optimistic as the 2026/27 season kicks off, says DairyNZ.
DairyNZ's Tactics campaign continues to support farmers through field days which will be underway in September and October.
These Tactics for Spring events will help farmers extract maximum value from their pasture.
"Pasture First is a message we are promoting with farmers. Our research shows pasture drives in excess of 85% profit for most farms at a $7/kgMS milk price, but 98% at a $4/kgMS milk price. So it makes sense to get our focus clearly set on managing this important feed source well – we've got to make the most of it, particularly this spring," says DairyNZ Chief Executive Tim Mackle.
"While increasing revenue is important, it's even more important to keep hold of as much of it as possible. This means running a tight budget.
"Following on from the huge interest in this area last year, farms with a low cost of production have opened their books once again and revealed their 2016/17 budgets – enabling other farmers to improve their own business, by comparing themselves.
"It's this information sharing which is so important and we will continue to work with our farmers to get through the low milk price cycle."
In advance of the Budget, Finance Minister Nicola Willis put a clear damper on expectations and delivered accordingly.
Farmers should be cautiously optimistic as the 2026/27 season kicks off, says DairyNZ.
RaboResearch senior analyst Emma Higgins expects the 2026/27 dairy season to be another profitable one.
The new dairy season is kicking off with plenty of risks to the forecast farmgate price, both upside and downside, says ANZ agricultural economist Matt Dilly.
A potential showdown between the top two Federated Farmers leaders looms at the farmer lobby's annual meeting later this month.
FarmIQ Systems has developed a free land management app to help remove barriers to New Zealand farmers and growers adopting digital tools.
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