Ministry of Agriculture and Forestry

 

Dairy Monitoring Report

A short-term financial and physical forecast reflecting farmer, farm consultant and industry perceptions of farming trends and issues, production and financial figures

ISSN 1175-2939

July 2004

Disclaimer

The information contained in this report by the Ministry of Agriculture and Forestry is based upon the best information available to the Ministry at the time it was drawn up and all due care was exercised in its preparation. Because it is not possible to foresee all uses of this information or to predict all future developments and trends, any subsequent action in reliance on the accuracy of the information contained in it is the sole commercial decision of the user of the information and is taken at his/her own risk. Accordingly, the Ministry of Agriculture and Forestry disclaims any liability whatsoever in respect of any losses or damages arising out of the use of this information or in respect of any actions taken.

© Crown Copyright - Ministry of Agriculture and Forestry 2004

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise stored in any retrieval system of any nature without the written permission of the copyright holder and the publisher, application for which is to be made to the copyright holder, MAF Policy, PO Box 2526, Wellington, telephone (04) 894 0100.

Acknowledgement

Editing services provided by John Lomas, WordWise, Hamilton. Report formatted by Shona Richards, Ruakura.

This report is produced and published by:

Copies are available from:

MAF Policy
Ministry of Agriculture and Forestry
Private Bag 3123
Hamilton

Publications Officer
MAF Information Bureau
PO Box 2526
Wellington

Telephone:

(07) 856 1824

Telephone:

(04) 894 0100

Facsimile:

(07) 856 1825

Facsimile:

(04) 894 0720

Monitoring Reports are published in March for Pipfruit, and in July for sectors: Arable, Dairy, Deer, Horticulture, and Sheep and Beef; as well as regions: North, North Central, South Central, and South.

Dairy Monitoring Team

Sector Controller: Phil Journeaux, MAF Policy, Hamilton

Dairy

Model Controller

Telephone

Northland

John Squire

(09) 430 7305

Waikato/Bay of Plenty

Phil Journeaux

(07) 856 1824

Lower North Island

Chris Ward

(04) 474 4168

Canterbury

Murray Doak

(03) 358 1860

Southland

Trish Burborough

(03) 477 8454

West Coast South Island

Murray Doak

(03) 358 1860

All information for the model and commentary-only reports has been contracted in by MAF.

Foreword

Monitoring is a process whereby MAF Policy monitors the production and financial status of farms and orchards in terms of their cash income and expenditure. Trends, issues, and sector concerns are also monitored.

The report discussed within reflects farmers' and growers' expectations and intentions, and the thoughts of those servicing the sector. They are not MAF price or production predictions.

The model farms depicted in this report are representative of their farm type within the region. They are based on the average farm, in a statistical sense, for the regions. However, they have been adjusted to represent real farms.

From time to time the models are revisited. This results in some changes, and caution should be taken in comparing between years.

Information for each model is drawn from 20 real farmers and discussions with a wide cross-section of agribusiness.

The aim of each model is to best typify an average farm for the region. Budget figures are therefore indicative of the average levels of income and expenditure, management, stock performance or farm production, debt and expenditure on development and capital purchases. Similarly, drawings, new borrowing and off-farm income are averaged.

Quartile analysis on the basis of Net Farm Profit per hectare for the actual farms/orchards is provided in a summary page.

Monitoring is being constantly improved to better accommodate the needs of the users of the reports.

The Economic Farm Surplus (EFS) depicted in the model budgets is calculated as follows:

Gross Revenue + Change in Livestock Value - Working Expenses (excluding interest, rent and lease costs) - Depreciation - Wages of Management.

Wages of Management are calculated as follows:

$38,000 allowance for labour input + 1% of total capital as managerial reward. An upper limit for WoM of $75,000 has been set.

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Contact for Enquiries

Farm Monitoring Programme Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
Contact this person