Taranaki 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
- Taranaki experienced a drought in the 2007/08 season resulting in a 7 percent drop in production.
- The high milksolids payout more than offset the impact of lower production with farm profit before tax increasing 245 percent compared with 2006/07.
- Production for 2008/09 is expected to rebound to 2005/06 season’s level, up 10 percent on 2007/08.
- The lower milk payout and increased farm working expenses forecast for 2008/09 will lower farm profit before tax by 27 percent.
- Although farm surplus for reinvestment for 2008/09 is expected to be significantly lower than 2007/08 it will still be considerably higher than seasons prior to 2007/08.
Table 1: Key parameters, financial results and forecast for the Taranaki dairy model farm
Taranaki dairy model budget and expenditure
Table 2: Taranaki dairy model budget
Table 3: Taranaki dairy model expenditure
Taranaki dairy model profitability trends
Figure 1: Taranaki dairy model farm profitability trends
Information about the model
The Taranaki dairy model represents approximately 1800 dairy farms in the Taranaki region. The model is based on an owner-operated business with a predominantly cross-bred herd. It does not own a run-off but grazes replacement stock off and buys in 8 to 12 percent of feed used.
The model is created from information drawn from 26 dairy farms and a wide cross section of agribusiness representatives. The aim of the model is to typify an average dairy farm for Taranaki. Budget figures are averaged from the contributing properties and adjusted to represent a real dairy farm. Income figures include off-farm income, new borrowing, and other cash income.
For more information on the models contact: Loretta.Dobbs@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
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
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