1.0 Introduction
In the media and greater agricultural community there has been speculation about the future of the small scale dairy farm.
Recent studies by the NZ Dairy Group have indicated that of their approximately 6,000 suppliers, 20% of farms milk less than 110 cows and produce less than 27,000 kg/MS. Further to this, 40% of suppliers produce less than 40,000 kg/MS.
These suppliers are highly exposed to changes in payouts and also in changes in land prices, as this results in erosion of farmers' equity. Drops land value of between 20% and 30% have recently been observed in many of these small farms.
There is also concern as to the perceived declining profitability of smaller sized units. The impact of the possible reduction in the number of these sized properties is unknown.
Specifically this project will look at the following points.
- The historical and current financial position of the smaller sized dairy farm
- What the future holds for these farms.
- Implications for the dairy industry and the rural community
Contact for Enquiries
Manager
North Island Regions
Sector Performance Policy
MAF Policy
Hamilton
NEW ZEALAND
Phone: +64 7 957 8313
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