National dairy
This report contains the key results from the Ministry of Agriculture and Forestry’s 2008 dairy monitoring programme. The full Pastoral Monitoring Report 2008 will be available in December 2008.
Key points
- A major drought affected most dairying areas, particularly the Waikato, southern Taranaki, and northern Southland. As a result national milksolids production in 2007/08 dropped 4.3 percent compared with 2006/07.
- Despite the drought, profitability as measured by farm profit before tax, rose 436 percent on the back of a record payout of $7.90 per kilogram milksolids.
- Farm working expenses rose 26 percent, largely fuelled by significant spending on supplementary feed as farmers sought to combat the drought.
- Total feed costs jumped an average of $43 000, or 44 percent, in 2007/08.
- Profitability is forecast to drop back in 2008/09, with farm profit before tax expected to be down 42 percent; the forecast higher production being offset by a lower payout. Despite this profitability is still very strong compared with 2 to 3 years earlier.
- Although many farms entered the 2008 winter in less than ideal condition as a result of the drought, farmer morale is buoyed by the high payouts.
Table 1: Key parameters, financial results and forecast for the national dairy model
National dairy model budget and expenditure
Table 2: National dairy model budget
Table 3: National dairy model expenditure
National dairy model profitability trends
Figure 1: National dairy model farm profitability trends
Information about the model
The national dairy model budget depicted above has been constructed via a weighted average of the MAF dairy farm monitoring models. The weighting is based on the number of dairy cows in each region from the 2007 Livestock Improvement survey. The weighting, on a model basis, was as follows:
- Northland: 8.3 percent
- Waikato/Bay of Plenty: 42.8 percent
- Taranaki: 12.9 percent
- Lower North Island: 10.4 percent
- Canterbury: 14.4 percent
- Southland: 11.2 percent
Based on these weightings the 2007/08 national model has an effective area of 131 hectares and milks 380 cows.
Income figures include off-farm income, new borrowing, and other cash income.
For more information on the models contact: Phil.Journeaux@maf.govt.nz
Published by:
MAF Policy
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526
Wellington 6140
New Zealand
Tel: 64 4 894 0100
Fax: 64 4 894 0720
Web: www.maf.govt.nz
ISSN 1178-4385 (Online)
© Crown copyright - Ministry of Agriculture and Forestry 2008
The information in this report by the Ministry of Agriculture and Forestry is based on the best information available to the Ministry at the time it was drawn up and all due care was exercised in its preparation. As it is not possible to foresee all uses of this information or to predict all future developments and trends, any subsequent action that relies on the accuracy of the information in this report is the sole commercial decision of the user and is taken at his/her own risk. Accordingly, the Ministry of Agriculture and Forestry disclaims any liability whatsoever for any losses or damages arising out of the use of this information, or in respect of any actions taken.
Contact for Enquiries
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
