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 central idea is to breed cattle with less nitrogen in their urine.
Participating scientists will come from DairyNZ, Abacus Bio, A. L. Rae Centre for Genetics and Animal Breeding, AgResearch and Lincoln University.
The Government has granted $8.4m to the project, $11.5m will come from farmers’ levy payments to DairyNZ, and the balance will come from CRV Ambreed and Fonterra.
CRV Ambreed’s genetic discovery that led to the launch of LowN Sires this year is an important aspect of the work.
DairyNZ’s strategy and investment leader Dr Bruce Thorrold applauds the government’s place in the project, a key in dairy’s drive to lower its environmental footprint.
It will be based on large-scale research into thousands of cows on farms nationwide to test the effectiveness of breeding and measure the reduction of nitrogen leaching expected by the change – potentially up to a 20%.
“Equally, it is important to the beef and sheep sectors where animals raised for meat also contribute to nitrogen levels,” Thorrold says. “Beef farmers will be able to rear low-nitrogen cattle bred from dairy herds.
“Better options to reduce nitrogen levels... give choices for our rural communities in achieving environmental gains and maintaining local businesses.”
Thorrold says farmers are determined to solve the nutrient loss problem, by fencing waterways, managing effluent better and innovating on farms.
“It’s a further step towards sustainable dairying, and will continue keep us as world leaders in this.”
The use of the nitrogen-lowering trait to reduce nitrogen leaching was recognised by CRV Ambreed research scientist Phil Beatson.
