Banking Advisor: Most dairy farmers don’t fully understand how banks assess credit
A leading financial and banking advisor says he doubts if most dairy farmers fully understand the dynamics of banking.
DairyNZ subsidiary New Zealand Animal Evaluation (NZAEL) will update the genetic base used to calculate Breeding Worth (BW) next month.
This routine update will cause a drop of approximately $185 in BW across all cows, bulls, and herds but does not reflect any loss in genetic value or animal performance.
To assist with ranking within a population, it's helpful to have a benchmark. In animal evaluation, this reference point is called 'Base Cow'. A Base Cow change causes very minimal re-ranking among bulls, cows, herds, or breeds. It simply shifts animals up or down depending on the genetic base that is chosen. Base Cow creates the yard stick to measure how much genetic progress is being made with each passing generation.
"New Zealand's dairy herd continues to make meaningful genetic improvement. Each generation of heifers enters the herd with higher BW on average, than the previous generation, leading to higher protein, fat and greater efficiency. Updating the Base Cow ensures BW remains an important and accurate ranking tool, reflecting the performance of today's dairy animals," says Andrew Fear, NZAEL manager.
From 20 June, the BW of the average dairy animal will move from $241 to $56. This shift follows the introduction of an updated reference point, known as a Base Cow, which will now be based on 2015-born animals instead of the current 2005 cohort.
Questions are being raised about just how good the state of the dairy industry is - especially given that the average farmgate payout for the coming season is set to exceed $10/kgMS.
A leading financial and banking advisor says he doubts if most dairy farmers fully understand the dynamics of banking.
Dairy farmers are shoring up their balance sheets, with almost $1.7 billion of debt repaid in the six months to March 2025.
Virtual fencing company Halter is going global but for founder Craig Piggott, New Zealand farmers will always remain their main partners.
A former Fonterra executive is the new chair of the Dairy Companies Association of New Zealand (DCANZ).
New Federated Farmers national dairy chair Karl Dean is looking forward to tackling the issues facing the sector.
OPINION: Dust ups between rural media and PR types aren't unheard of but also aren't common, given part of the…
OPINION: The Hound hears from his canine pals in Southland that an individual's derogatory remarks on social media have left…