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.
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."
