Northland dairy

Model chapter

This chapter contains model results and commentary from the 2009 dairy monitoring programme as a printable PDF. The chapter provides information on the production and financial status of the Northland dairy model farm. Model chapters will no longer be published in the pastoral monitoring report.

Download the model chapter in PDF format [340K PDF]

To request a printed copy of this document please contact policy.publications@maf.govt.nz

Data release

This release provides key points and excel tables from the 2009 dairy monitoring programme for the Northland dairy model. Final results from the 2009 monitoring round, with commentary on the model, are due for release in late July 2009. This budget was compiled in June 2009 and is based on farmer and industry expectations at the time.

Key points

A cold, wet winter/spring was experienced by much of Northland in 2008. This resulted in pugging and reduced pasture growth, which contributed to a 2 percent reduction in milksolids production to 77 800 kilograms or 640 kilograms per hectare. This decrease came despite a small increase in stocking rate from 2.2 to 2.3 cows per hectare.
Net cash income reduced 33 percent to $423 000 primarily from the reduced milk price, but the decrease in milk production and weaker livestock values also negatively impacted on the result.
By the time Fonterra substantially revised the milk price down to $5.20 per kilogram of milksolids in late January 2009, much of the season’s farm expenditure was either already committed or spent. As a result the model’s farm working expenses were up 11 percent for the 2008/09 season, to $3.63 per kilogram of milksolids.
The “perfect storm” resulting from the above factors saw the model farm post a cash deficit of $42 600. This deficit represents a $136 300 (146 percent) decline on the 2007/08 year’s result.
Heading into the 2009/10 season, farmer morale is low. This is in stark contrast to the high morale present in the region at the start of the 2008/09 season.

Northland dairy model tables and graph

Table 1: Key parameters, financial results and budget for the Northland dairy model
Table 2: Northland dairy model budget
Table 3: Northland dairy model expenditure
Figure 1: Northland dairy model profitability trends

Download Excel format [132KB XLS]

To request this information in CSV format please contact stats_info@maf.govt.nz

Information about the model

The Northland model represents approximately 1200 spring calving dairy herds north of Auckland city.

The model is created from information drawn from 25 dairy farms and a wide cross-section of agribusiness representatives. The aim of the model is to typify an average dairy farm for Northland. 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 this model contact: Russell.Knutson@maf.govt.nz

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