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NEW FARM DAIRIES
Season well set up for Farmers have headed into this season on the back of a financially strong year, meaning the 2020-21 season may be the perfect time to invest on-farm. The DairyNZ 2019-20 Economic Survey shows farmer resilience to the challenges of Covid-19, price volatility and unpredictable weather, with a positive year for milk production and farm businesses. DairyNZ chief economist Dr Graeme Doole says operating profit, milksolids per cow and per ha were all up on previous years. “For the 2019-20 season we were fortunate to receive an above-average milk price of $7.05 per kilogram milksolids, which has continued into this season,” says Graeme. “This enabled some farmers to catch-up on farm maintenance and debt repayment, while continuing to invest in environmental improvement on-farm. “Farm costs also increased, with higher fertiliser and supplementary feed costs. “Although we saw a decrease in interest costs, this was not enough to offset increases in other areas of expenditure.” The annual survey shows that average operating profit was up 28 per cent on the previous season, at $2750 per ha for 2019-20, while milksolids per cow and ha were at their highest level to date. “This on-farm success results in a strong contribution to the New Zealand economy, delivering around $20 billion in export value, while employing around 50,000 people on and off farm,” says Graeme. “It is positive to see such a high
operating profit for farms for 2019-20, compared to the 10-year average of $1645 per ha. “Despite many farms nationwide being affected by a dry summer, production remained strong.” Operating expenses increased to $5.31 per kilogram milksolids compared to 2018-19, which is above the previous high of $5.17 reported in 2013-14. “Feed continues to be the largest cost on New Zealand dairy farms, which is important for farmers looking to control farm costs. “To build their resilience for periods when milk prices are lower, farmers should look at their overall cost structures on-farm and identify where they can trim costs.” Sharemilkers experienced a good year, recording a 35 per cent increase in operating profit on the previous season to $1050 per ha, while faced with similar cost changes, price volatility and weather conditions. Farmers are encouraged to analyse their individual performance and compare their results with similar farms through DairyNZ’s DairyBase and budget case studies. Budget case studies look at several top-performing farms nationwide for the current season, to help identify opportunities to reduce the cost of production. This is a useful benchmarking tool for farmers to get insights and ideas from. The annual Economic Survey analyses a representative sample of farmers, surveying 326 owner-operators and 124 herd-owning sharemilking farms (50:50 sharemilkers) across New Zealand for the 2019-20 season.
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DISTRICT
Old Kookaburra Farm
Central Plateau
PAGE 4-7
Waerenga
Waikato
8-9
Martin Parks
Waikato
10-11
Ashleigh Lodge
Waikato
12-15
Darby Sheep
Waikato
16-17
Brynn Lands
Waikato
18-19
Harris Partnership
Waikato
20-23
Rushbrooke Farm
Waikato
24-27
Kaimai Farms
Waikato
28-31
Crows Nest
Waikato
32-33
Golden Elm Farms
Waikato
34-37
Arnold
Waikato
38-39
Schuler Sheep
Waikato
40-43
Alexandra Road Farms
Waikato
44-47
Niaruo Farms
Taranaki
50-53
Lepper
Taranaki
54-57
Twin Creek Dairy
South Auckland
58-61
Cawte
King Country
62-65
Green Park Sheep
King Country
66-69
Glenkylie Farm
Southland
70-71
Kaikaha
Southland
72-75
Avon Lea
Canterbury
76-77
Kairoma Farm
Canterbury
78-79
Selwyn Dairy
Canterbury
80-83
Omanuka Farming
Horowhenua
84-85
Barnes
United Kingdom
86-87
Weavian Farms
United Kingdom
88-89
Gorey
Ireland
90-91
Shengjiang Group
China
92-93
