The good news? Cows doing great work

While the value of milk production had nosedived, jobs and production levels had stayed stable within the Bay of Plenty region.

The value of milk production to the Bay of Plenty economy has plummeted from $1billion in 2013/14 to $599 million in 2014/15, new figures show.

Data from DairyNZ revealed that while the value of milk production had nosedived, jobs and production levels had stayed stable within the region. In 2014/15 dairy jobs accounted for 2.2 per cent of total regional employment, up slightly from 2 per cent in 2013/14.

Production from the Bay of Plenty accounted for 6.8 per cent of New Zealand's total milk production after it produced 127.6 million kg/MS for 2014/15 compared to 126 million kg/MS in 2013/14.

The New Zealand dairy cow produced on average 4235L of milk last season, 18 per cent more than 10 years ago when she was producing 3574L, according to the New Zealand Dairy Statistics 2014/15, published annually by DairyNZ and herd improvement cooperative LIC.

DairyNZ senior economist Matthew Newman said that in 2014/15 there were 5.2 million cows producing milk across the country, up from 4.9 million in 2013/14.

However, this season farmers had been reducing cow numbers because of the low milk price, he said.

LIC genetics business manager Greg Hamill said high quality farm pasture provided the perfect synergy to help make New Zealand's pasture-based farming system so efficient.

"That's our core competitive advantage here in New Zealand - a cost-efficient pasture-based farming system using great cows that are fed well - and that becomes even more important in seasons with a lower milk payout," Mr Hamill said.

"Today's New Zealand dairy cow, and the new benchmarks she sets each year, is a result of good breeding and high levels of genetic gain over many years.

"Combine that with the care and skill of the country's 11,970 dairy farmers and their ongoing commitment to improving year on year, and our cows are highly efficient converters of pasture into milk solids. That is key to maximising a farm's profitability."

-DairyNZ subsidiary New Zealand Animal Evaluation Limited manages the National Breeding Objective for New Zealand dairy cattle and calculates genetic gain as worth more than $250,000 to an average sized herd over 10 years. That equates to a contribution of about $300 million annually to the national economy.