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.
The review was conducted by a Plan Governance Group (PGG) including representatives of the Ministry for Primary Industries (MPI), DairyNZ, Beef+Lamb New Zealand (B+LNZ), and Deer Industry New Zealand (DINZ) and chaired by Dr Helen Anderson, an experienced primary sector board director.
Anderson said while New Zealand has made great progress in reducing the impact of TB, there was more to do to protect valuable dairy, beef and deer industries and to safeguard rural communities.
"While the disease remains in possums, we will keep having outbreaks of reinfection."
The PGG is seeking feedback on a number of matters including prioritising eliminating TB in the remaining hot spots of highly-infected possum populations as soon as possible, using the most cost effective tools in large 'landscape-scale' operations and updating the TB Plan milestones to achieve TB freedom in both herds and possums by 2040.
Primary sector levy organisations represented on the PGG are encouraging farmers to have their say.
"Wether or not you've been directly affected by TB, eradicating this disease is vital for the future of our entire sector," said DairyNZ chief executive Campbell Parker.
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Anderson says it is proposes to replace the current milestone of TB freedom in herds by 2026.
"We are so close to achieving zero infections in our livestock, with just 15 herds, or around 0.01 percent, infected in June this year. That’s an amazing achievement, thanks to decades of hard work and ongoing investment.”
OSPRI operational developments which contribute to the goals of the TB Plan include changes to targeted criteria-based on-farm TB testing and potential simplification of the herd status classification system. These are included in the consultation for feedback.
For the next five years the TBfree programme will be receiving $60 million in funding per year, with 60% derived from farmer levies and the remaining 40% from the Crown. Anderson said that the sooner New Zealand could get rid of TB in possums and herds, “the sooner cost to farmers can reduce”.
“Beyond 2031, its currently expected there will be a [funding] shortfall, but it’s proposed to undertake a further review of long-term funding before we get to that point.”
Deer Industry New Zealand chief executive Rhys Griffiths said that farmer input “plays a crucial part in the primary sector’s future, and here’s your chance to feed into important decisions. Get informed on what the plan is proposing and make sure you have your say”.
Consultation on draft proposals for the TB Plan runs from 1 September through to 12 October. For more information or to make a submission visit www.tbplanreview.co.nz
