So, while the low milk price has been challenging, positives are emerging from it: we are developing farm businesses which are more robust, efficient and profitable.
This year, our DairyNZ team has continued to work with farmers nationwide as they've adapted their farm systems and trimmed costs. As a result, in August the average break-even cost for farmers was cut back to $5.05/kg milksolids for 2016/17. It was $5.25 last season and $5.77 in 2014/15.
So, while the low milk price has been challenging, positives are emerging from it: we are developing farm businesses which are more robust, efficient and profitable. The new challenge is holding on to those learnings.
Pasture first
For DairyNZ, the volatile milk price has seen us reaffirm the message that pasture-based farming is the most efficient, effective and financially sound way forward.
This year, our Tactics campaign promoted the 'pasture first' message and helped farmers put it into practice. The Tactics campaign has involved one-on-one feed review visits, touching base visits and financial review visits with farmers, along with Pasture First events, feed tactics field days, sharemilker events and online budget case studies.
Collectively, the DairyNZ team has worked with more than 6800 farmers during 2016. In addition, our online budget case studies have been viewed by more than 8000 people.
Long-term goals
While responding to the immediate effects of the milk price, DairyNZ has continued working towards achieving our long-term goals.
This year, the two-year report on the Sustainable Dairying: Water Accord showed dairy farmers are making significant progress on meeting their environmental commitments.
More than $1 billion has been spent by farmers over the past five years in environmental actions, including the biggest highlight of 96per cent of dairy cattle being fenced off from waterways on farms. That equals 25,656km of waterways fenced.
DairyNZ continues to focus on research and development. One highlight this year saw the Forages for Reduced Nitrate Leaching project identify that alternative pasture species and cover crops can achieve substantial reductions of nitrate leaching. This shows great potential for reducing dairy's environmental footprint.
DairyNZ has also enabled more than 750 Sustainable Milk Plans or consent process support for farmers from Northland to Southland. And, in our public perception work, the Rosie's World Find a Farmer programme has helped 12,600 children visit dairy farms and learn how milk is produced.
Looking ahead
In 2017, DairyNZ will be refreshing the Strategy for Sustainable Dairy Farming.
This strategy guides the industry's future direction and helps us shape our priorities. We will be keen to get farmers' thoughts and feedback on this.
Other key initiatives include the Southern Dairy Hub for Southland-Otago farmers, and the Lincoln Hub in Canterbury. Both facilities are planned to deliver innovative, industry-led agricultural research and education opportunities.
DairyNZ's key research and development programmes nationwide will continue, along with policy work in the regions, as regulatory requirements need to be discussed and met.
To get the latest details, visit dairynz.co.nz.
Tim Mackle is chief executive of DairyNZ. This column was first published in Inside Dairy.
