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.
Making your farm a ‘biosecurity island’ can help you protect your business sustainability.
Last month I compared farms in the DairyNZ Economic Farm Survey of the 2016-17 season.
The data, over time, has shown that high input farms have, on average, made more profit, had greater equity growth, had a higher return on assets and had lower term liabilities/kgMS.
While financial performance is important for business sustainability, the recent outbreak of M. bovis has highlighted the impact that a biosecurity breach can have on business sustainability. Farmers have moved swiftly to attend meetings and upskill themselves to deal with potential biosecurity outbreaks on their properties.
M. bovis, due to the efforts of MPI and other industry organisations, is unlikely to directly affect most of us. The actual effect of M. bovis is a huge wake-up call to farmers about biosecurity. Most of us had become very slack at averting the risk that bio-hazards (i.e. weeds, pests and diseases) could have on our systems. Because of M. bovis that has now changed.
Farmers face many biosecurity threats: cropping farmers face threats from, e.g. velvetleaf, alligator weed, Chilean needle grass or broomcorn millet. All these weeds (esp. velvetleaf) have enormous potential to undermine the sustainability of cropping. Here are some tips to reduce the chance of your farm becoming infected:
We have noticed that many farmers are moving to be completely self-contained feedwise by growing all their feed on land they control. This enables them to keep their cows at home over winter, so reducing the risk of cross infection.
The approach by dairy farmers in preventing new incursions of M. bovis is exactly the same as cropping farmers need to take, i.e. consider your farm an ‘island’ with you as the custom control officers.
Lastly, my heart goes out to all those farmers who have become innocent victims of the reckless behaviour of one individual. Hopefully, if we all remain vigilant, the chance of any further incursions of harmful substances will be greatly reduced.
• Ian Williams is a Pioneer forage specialist. Contact him at This email address is being protected from spambots. You need JavaScript enabled to view it.
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