“As you can imagine with farmers; they’re not hesitant to hold back and tell us what they think, which is great,” he told The Country’s Jamie Mackay.
“So we’ll find out today a little bit more about what the good farmers in Southland think about DairyNZ’s work.”
The current milksolids levy rate of 3.6c/kgMS was set in 2009 and has not changed for 16 years.
Of the 3.6 cents collected by DairyNZ, 0.8 cents ($14.5m) is collected on behalf of Ospri and on-paid to them for the TB-free programme, meaning DairyNZ retains approximately 2.8 cents per annum.
Listen below:
The DairyNZ Board reviews the rate every year against its investment commitments.
Dairy farmers are consulted on any proposed changes to the levy and any decision to change the levy will be communicated as soon as is practicable after the decision.
“We’re looking at options for increasing that rate, really to match inflation and achieve a few other outcomes,” Henderson said.
“It’s well past time to review that and look at what the future of DairyNZ is.”
Henderson acknowledged that increasing the levy may lead to a difficult but necessary discussion.
“It’s never a great time to go out and ask farmers for more money,” he said.
“But that’s part of our conversation, just trying to understand, where they want DairyNZ to be heading in the future.
“What are those key topics they want us to be focusing on?
“That’s the feedback we’ve been getting, and I really enjoy these conversations.”
Henderson said that even though the Board decided whether to raise the levy or not, DairyNZ would take farmers’ opinions into account.
“We’re absolutely listening to farmers’ views.”
Also in today’s interview: Henderson gives an update on Canterbury’s weather and how it has affected the season.
