NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

Dairy farmers endure lowest pay

By Gerald Ford
Wairarapa Times-Age·
17 Jul, 2015 06:00 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

TIGHT TIMES: Chris Engel says dairy farmers will need bank support just to pay the bills this winter, and they will have no discretionary spending. PHOTO/LYNDA FERINGA

TIGHT TIMES: Chris Engel says dairy farmers will need bank support just to pay the bills this winter, and they will have no discretionary spending. PHOTO/LYNDA FERINGA

Dairy farmers are coping with their lowest pay cheques ever this winter, with major flow-on effects for the region, says Federated Farmers Wairarapa dairy chairman Chris Engel.

From July to August, dairy farmers normally receive deferred payment cheques from last year's milk, which "keeps you going till your new season kicks in".

These payments are normally "good healthy cheques" of up to 80 cents per kilogram of milk solids.

This year, the payment for July was zero, which means "if you're not milking you get nothing".

For August, "we had [an extra] 30 cents on our budgets, and then [Fonterra] lowered it to 5 cents, saying 'we paid you 25 cents too much last year'," Mr Engel said.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

The September deferred payment is again zero, and the payment for October is again 5 cents.

"Farmers have never received such low income," Mr Engel said.

"Because they're needing the banks' assistance to just continue at fixed expenses, you can't do any more.

Advertisement
Advertise with NZME.

"It's going to have big, big effects in town."

Last August, Mr Engel had said it would be good if the dairy payout stabilised around $7, after a drop to $6.

The current forecast is $5.25.

That amount, however, is "at the very end of next season, with dividends".

The advance this month is just $3.66 per kilogram, whereas last year's was closer to $5.

Farmers are closing their chequebooks based on the principle that "if you haven't earned it, you can't spend it", Mr Engel said.

"We've got budgets - I've got mine in my pocket, and if it's not in your budget you don't buyit."

Mr Engel said the cash restriction would eventually reach New Zealand's cities also.

"It takes a couple of years to reach the cities, but it does."

Becoming "very conscious" of every cent spent, Mr Engel said he found "it's amazing how many people one farm supports".

Advertisement
Advertise with NZME.

He said many dairy expenses were not for immediate gain, but "for tomorrow".

These include fertiliser, artificial breeding costs, and irrigation.

"It's quite a fine line to cut costs and not jeopardise the future ... people are having to make hard decisions."

A major expense for dairy farms is supplementary feed, which is a change from "the old days" when cattle weren't fed as much.

Mr Engel said he was in the position where "I can go back to grass again, or more grass - that's still the cheapest feed".

Some farmers, however, had been putting American genetics into their herds, which meant bigger animals which needed the supplementary input.

Advertisement
Advertise with NZME.

Mr Engel said even labour costs were being watched week-to-week, although "you've got to have a certain amount of staff.

"Anyone who thought they were retired is back in action ... I guess that's the strength of the family farm - I don't know how the corporates are going to geton."

As Fonterra trims 530 staff in an effort to remain viable, Mr Engel said the question must arise, "How come they were there to start with?

"That's a bit of a chomp. "Someone approved them, the business is still there, [but] somehow we don't need themnow."

Mr Engel said a lower payout was usually balanced somewhat by a higher dividend, but this year farmers faced "a double whammy" with drops in pay cheques, compounded by three months of little rain.

This year, even world political events had influenced dairy prices in a new way, Mr Engelsaid.

Advertisement
Advertise with NZME.

"I've never believed that [Russian President Vladimir] Putin would affect me."

He was referring to the Russian boycott of EU milk, in response to EU sanctions against Russia sparked by the Ukraine crisis.

The result was more milk from the EU in the global market "which competes with me", Mr Engel said.

Federated Farmers Wairarapa chairman Jamie Falloon said on the positive side, a lower dollar and hopes of falling interest rates would ease the situation somewhat.

But it would "be really challenging", he said.

Save

    Share this article

Latest from New Zealand

New Zealand

Car submerged in Christchurch’s Avon River

Christchurch

Car submerged in Christchurch river, emergency services at scene

07 Jul 08:19 AM
New Zealand

Health NZ board re-established by Government

07 Jul 08:03 AM

From early mornings to easy living

sponsored
Advertisement
Advertise with NZME.

Latest from New Zealand

Car submerged in Christchurch’s Avon River

Car submerged in Christchurch’s Avon River

Emergency services are at the scene of a submerged car in Christchurch’s Avon River.

Car submerged in Christchurch river, emergency services at scene

Car submerged in Christchurch river, emergency services at scene

07 Jul 08:19 AM
Health NZ board re-established by Government

Health NZ board re-established by Government

07 Jul 08:03 AM
'The man I once trusted violently raped me': Man jailed for attacking ex-wife next to sleeping child

'The man I once trusted violently raped me': Man jailed for attacking ex-wife next to sleeping child

07 Jul 08:00 AM
Solar bat monitors uncover secrets of Auckland’s night sky
sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP