Dairy Farmers See Lower Feed Costs Ahead Of Summer

Published: Fri 15 Dec 2023 10:19 AM
DairyNZ’s Econ Tracker forecast indicates some relief for dairy farmers with reducing feed and fertiliser costs supported by the recent lift in global returns flowing through to the farm-gate.
Overall, feed costs are projected to fall around 5% for the current season, driven by falling product prices.
Total farm working expenses have also seen an overall decrease, driven by feed and fertiliser prices this year, however, other costs continue to experience inflationary pressures.
DairyNZ’s recently updated forecast data on the Econ Tracker, shows the national breakeven forecast currently sits at $7.79kg/MS, which is revised from the previous forecast of $7.78kg/MS.
The breakeven milk price is the milk sale price per kilogram of milksolids to cover a farm’s costs in a season, excluding capital expenditure and principal repaid on loans.
This is below DairyNZ’s forecast average payout received of $8.06 kg/MS, based on the estimated milk receipts for the 2023/24 season and dairy company dividends. This positive difference between the forecast breakeven and average payout will likely bring relief to some, particularly owner-operated farms.
The new forecasts are published on the DairyNZ Econ Tracker and expressed as a national average, which does not necessarily reflect individual farm situations. A quarterly update, focused on the key drivers of feed costs, is also available online.
Farmers and the sector can use this tool to support informed decision-making when it comes to financial planning, forecasting, and budgeting.
Farmers can contact their DairyNZ regional team, call 0800 4 DairyNZ, or go online more tools, information and advice.

Next in Business, Science, and Tech

68% Say Make Banks Offer Fraud Protection
By: Horizon Research Limited
Banks Seek Government Support For Anti-Scam Centre
By: NZ Banking Association
National Road Carriers Praises NZTA State Highway Investment Proposal Turnaround
By: National Road Carriers
Cameras Reveal Mass Underreporting Of Dolphin, Albatross And Fish Bycatch By Commercial Fishing Industry
By: Greenpeace
Sharesies Expands B2B Offering With First Acquisition
By: Sharesies
Contact Empowers Kiwis To Make Positive Changes To Their Energy Habits
By: Contact Energy
View as: DESKTOP | MOBILE © Scoop Media