Conrad Smith: Farming and sport share similar demands
The challenges of high-performance sport and farming are not as dissimilar as they may first appear.
The Dairy Business of the Year recognises leading farms with high achievement in financial performance, people productivity and environmental management.
The recently announced supreme winner for 2016 (judged using farm data from the 2014-15 dairying season), was Landcorp's Ruapehu Farm at Moutoa, near Foxton. This property also won the Best Manawatu Farm Performance, Lowest Environmental Impact and High Input Farm with the Best Financials Awards.
Waikato farmers Rex and Sharon Butterworth were named runner-up and they won the regional award for Best Waikato Farm Performance.
Landcorp's Ruapehu farm manager Glenn Weitenberg says the decision to lock in guaranteed milk to Fonterra during that season paid off for the farm, with a superior return on capital in comparison to the other eight finalists. Their pasture management and animal performance were extremely good and their supplementary feed costs very low.
Supplements, including Pioneer brand maize silage, comprised 27% of the feed on Landcorp Ruapehu and 36% of the feed on Butterworths' farm.
The 2014-15 DairyNZ Economic Survey was released in May. It contains data on the average physical and financial performance of 296 randomly selected owner-operator herds during the 2014-15 season.
It was the start of the tough times for most farmers. While weather was generally favourable and seasonal production was up 3.6%, the milk price was on its way down. The average cash payout was $5.76/kgMS supplied for 2014-15 (net of the industry-good levy, including advance, final payments and dividend). This was 25% lower than the average milk payout received in 2013-14.
Higher input farms (system 4 and 5) feeding at least 20% imported feed kept performing well despite the challenging times. They produced more milk per cow and per hectare, had higher operating profit and a better total return on assets than low (4 - 14% imported feed) or medium (10 - 20% imported feed) farms.
The ten year average data shows that across a range of seasons and payout conditions, higher input farms were the most profitable (see table here).
Events like Dairy Business of the Year show the industry what is possible under good management conditions. The DairyNZ Economic Farm Survey shows there are huge variations in the profitability of all dairy farm systems. Every farmer must find the optimum balance between controlling costs and maximising milk production in their system.
Finally, I want to encourage farmers not to be tempted to make major systems changes as a response to low payout conditions. You run the risk of being worse off while you adjust your management to a new way of farming. A better option is to look at what you are already doing and see how you can do it better.
In the first of two articles focusing on electrification in New Zealand, Leo Argent talks with Mike Casey, operator of the 100% electric-operated Electric Cherries orchard and founder of advocacy group Rewiring Aotearoa.
A Foundation for Arable Research initiative which took a closer look at the efficiency of a key piece of machinery for arable farmers - their combine harvesters - has been recognised at the Primary Industry NZ Awards.
Prime Minister Christopher Luxon has reiterated New Zealand’s ‘China And’ policy, adding that it wasn’t about choosing one market over another but creating more options for exporters.
A long running trade dispute between New Zealand and Canada over dairy access has been resolved.
New Zealand Police is urging rural property owners to remain vigilant and ensure their property is secure.
New Zealand and Malaysia have agreed to boost trade for high-quality halal meat products.
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