Tim Mackle: Lessons from our wake-up call

Workshops and other strategies have helped DairyNZ reach thousands of farmers this year.

For many in the dairy industry, 2016 has been a testing year and one they might rather forget. But, looking ahead to the coming season, we can see some positives.

The low milk price has plagued us for three seasons now, giving us all something of a wake-up call as we continue to work through it.

A farm's financials underpin so many things - from seasonal spend on repairs and maintenance to the farm team and a family's sense of security.

Being profitable at a $4 milk price isn't easy, but many farms have achieved this.

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 onto 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. 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 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.

About 12,600 children visited dairy farms this year as part of Rosie's World Find a Farmer programme.

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.