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.
That's the message from the DairyNZ Pasture Improvement Leadership Group (PILG).
Ensuring farmers get certified, treated seed appropriate for their farm and the right endophyte is paramount, according to AgResearch science impact leader and PILG member Dr Warren King.
It is a critical time of year for farmers to choose their new pasture cultivars and King says it's easy to get the formula wrong.
He says there is conflicting information in the marketplace and urges farmers to look for good evidence-based information before making a decision. "Beware of farmer testimonials; there's a lot of it around at the moment and it will only get you so far," King says.
"What farmers need to be saying is 'show me the money, show me the data. Where is the evidence that shows me that your cultivar is going to perform on my farm?'
"The Forage Value Index (FVI) through DairyNZ is an excellent place to get that information. It is based on decades of seed company data, independently analysed. It is consistent, well measured and the very best source of information."
He says most reputable seed companies give great information on choosing endophytes but because a few companies don't there is danger of mixed messages.
"In the upper North Island you have to have appropriate endophytes to protect against black beetle, Argentine stem weevil and the root aphid.
"Anywhere above Taupo, it has to be AR37 or NEA2. Anything else and you are taking a massive risk," King adds.
In 2000, perennial ryegrass with the endophyte AR1 was commercially released to NZ farmers. It provides only limited protection against black beetle and is no longer recommended in the upper North Island.
King says using no endophyte is extremely risky.
Similarly, he urges farmers buying pasture seed to recognise that it is a perishable product. It's vital to know that it's been kept in a coolstore and transported appropriately, and hasn't been sitting in a hot warehouse or outside.
"If you are going to pay the premium for grass seed with the best endophyte... get it from a reputable source. In addition, seed treatment is strongly recommended to protect your pastures from insect attack during early establishment.
"Everyone recognises that pasture renewal involves some risk so it's a case of minimising that and maximising the return on your investment," says King.
"It's a big decision and it's important to get it right, so make sure you use the very best information available."
