Green but not much grass!
Dairy farmers in the lower North Island are working on protecting next season, according to Federated Farmers dairy chair Richard McIntyre, who farms just north of the Horowhenua township of Levin.
Federated Farmers believes that the continuing fall in fuel prices should result in lower farm input costs.
Petrol and diesel pump prices have declined by more than 40 cents per litre since October.
Federated Famers transport spokesperson Ian Mackenzie, says he expects the persistent decline in the cost of fuel to be reflected in farm expenses.
“The direct expenses of running machinery are accounted for with a lower fuel bill for the farmer. But there are other high fuel use industries, in particular transport, where we would expect to see some reduction in the costs from now on,” he says.
“We have spent years seeing the rates we have to pay for transport of stock and equipment go up, because of escalating fuel bills. Now petrol and diesel are going down, then the cost of these services should also go down.”
Mackenzie says fuel prices are so influential that prices and charges of farm costs generally should be expected to fall.
“For farmers this means expenses in their downstream processing should reduce, and so should the prices we pay for physical inputs, such as fertilisers, but also for agriculture chemicals, and contracting.”
Mackenzie says the lower fuel prices are currently one of the few short-term reasons for farm optimism.
“Most of the country is getting seriously dry and production has or will fall. Dairy farmers have been hit with low payout prices, and sheep farmers are struggling with the dry and low store stock prices. But eventually it will rain and so too will the prices paid for our products rise again.”
“In the meantime, low interest rates, a lower dollar and now lower fuel costs and their flow on effects, should in combination help farmers weather what could be a difficult year.”
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
Horticulture NZ chief executive Nadine Tunley will step down in August.
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