Arable Farmers Shift to Dairy as Fuel and Fertiliser Costs Surge
Some arable farmers are getting out of arable and converting to dairy in the faced of soaring fuel and fertiliser prices on top of a very poor growing season.
OPINION: Spare a thought for the arable farmer, squeezed on one side by soft global prices and on the other by limits on further yield increases.
Profitability issues facing arable farmers are the same across the world, says NZ Special Agricultural Trade Envoy Hamish Marr, an arable farmer himself.
The arable industry is facing "the perfect storm", the main issue being gross margin.
"There is simply not enough money being generated."
Yield has the biggest positive influence on cost of production and this needs to increase to produce more on less land. Hence some growers are considering dairy, hort or sheep as alternatives.
He also reckons the sector needs better advocacy in Wellington: "Onions NZ have a $200 million export market and have several people in Wellington, and they brief me before trade delegations. No one rings me from arable."
Ashleigh Gordon and Leilani Lobb have been named as the two finalists for Dairy Women's Network's (DWN) 2026 Regional Leader of the Year Award.
Animal and Plant Health New Zealand (APHANZ) says the approval of a new fungicide seed treatment is a positive, however growers will be hoping the final approval is completed ahead of the spring season.
North Canterbury farmer Adam Williamson has been appointed DairyNZ's associate director for 2026-27.
Fonterra farmers are set for a multi-billion-dollar payout this week.
The 2026 Holstein Friesian NZ Young Breeders Development Programme is off to a strong start, with this year's intake coming together for their first event on March 18 and 19.
State farmer Pāmu (Landcorp) has announced it will pay a $10 million special dividend to the Crown off the back of a strong outlook for the business and a capital repayment of $9.5 million following Fonterra's consumer business sale.

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