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.
The milking shed at Keswick farm is a short drive from Rangiora's bustling town centre and like the town's mainstreet there's a tight squeeze on parking when the cows come for afternoon milking.
This 530-strong herd owned by Richard Stalker indicates why North Canterbury outperforms the national averages in the milk stats.
In the latest DairyNZ 2014-15 statistics North Canterbury cows topped annual milk production, averaging 4706L and 416kgMS.
Given the long drought in parts of North Canterbury, Dairy News has visited a top-performing farm to find out how they are able to produce 10% more than the national average.
The operations manager on this 160ha farm, Bob Bolanos, puts this difference down to a few things – size, better weather and farmers more open to sharing and learning.
Canterbury dairy farms tend to be larger than North Island farms; and while bigger isn't necessarily better, Bolanos says it brings with it economies of scale you can't get on a smaller farms especially in stockfeed deals and silage, and this gives you more 'elbow room'.
During his ten years as a dairy farmer in New Zealand, Bolanos has come to believe that Canterbury's more settled weather helps the cows achieve better milk stats. With Otago and Southland generally getting colder weather and the West Coast getting the nor-westers, North Canterbury is ideal for feed growth when combined with irrigation.
And Bolanos, in his time working on nine different NZ dairy farms, finds Canterbury farmers keener to use outside consultants and experts for advice. They also are ready to try new things, for example talking about his farm's transition to fodder beet as a winter feed.
Fodder beet was a revelation to them Bolanos says, with results that give them 40 tonne/ha at a cost of 9c/kgDM, this maintaining cow condition and milk production at much lower cost than the equivalent grass.
Keswick farm is a member of two dairy advice groups where farmers can share ideas and issues. Knowledge shared between these groups lead to Bolanos attending an irrigation seminar, which enabled them to tweak their irrigation to maximise grass growth.
Bolanos praises owner Richard Stalker's willingness to learn as a key aspect of improving the operation. The farm has won many awards for its operation, proudly displaying them in the staff workroom.
The latest was for most improved milk quality in the area. The results speak for themselves as only three cows in the herd had mastitis this year.
The quest for improvement has kept Bolanos at the farm; the three years he has stayed here is his longest stay on one NZ farm. This culture of improvement in Canterbury is why Bolanos believes they can outperform other regions.
New Zealand needs a new healthcare model to address rising rates of obesity in rural communities, with the current system leaving many patients unable to access effective treatment or long-term support, warn GPs.
Southland farmers are being urged to put safety first, following a spike in tip offs about risky handling of wind-damaged trees
Third-generation Ashburton dairy farmers TJ and Mark Stewart are no strangers to adapting and evolving.
When American retail giant Cosco came to audit Open Country Dairy’s new butter plant at the Waharoa site and give the green light to supply their American stores, they allowed themselves a week for the exercise.
Fonterra chair Peter McBride says the divestment of Mainland Group is their last significant asset sale and signals the end of structural changes.
Thirty years ago, as a young sharemilker, former Waikato farmer Snow Chubb realised he was bucking a trend when he started planting trees to provide shade for his cows, but he knew the animals would appreciate what he was doing.
President Donald Trump’s decision to impose tariffs on imports into the US is doing good things for global trade, according…
Seen a giant cheese roll rolling along Southland’s roads?