The banks have long cautioned that a six dollar payout was optimistic and we have seen Westland go the way of the banks. Though things could change for the better, there is little support for this.
The real financial pinch won’t come until next year, but the decisions made by dairy farmers now could influence their ultimate financial position at the end of the season.
DairyNZ has long urged farmers to revise their budgets, talk to the banks and carefully monitor spending. A two-pronged attack will make a serious difference: cull poor-producing cows, maximise pasture and look carefully at supplementary inputs. First question all spending, then look creatively at ways to make extra money.
Last week there was an excellent seminar in Manawatu on dairy beef integration. Creative options canvassed at that seminar are mentioned below and detailed on other pages; they make sense.
Calves should no longer be seen as a by-product of the dairy industry, especially when beef prices and demand internationally is rising.
There are opportunities for dairy farmers to apply science that is readily available in genetics and general management. It’s time to look at the real data and not fall back on old myths and prejudices.
Maybe this crisis will see the dairy industry look more closely at the beef industry and maybe beef farmers will learn a thing or two from dairy farmers. The natural synergy between the two sectors has never been fully exploited. Time for a change.
