Canterbury dairy
This report contains the key results from the Ministry of Agriculture and Forestry’s 2008 dairy monitoring programme. The full Pastoral Monitoring Report 2008 will be available in December 2008.
Key points
- Despite the dry weather, per cow milksolids production lifted 5 percent in 2007/08 due to increased supplementary feeding throughout the season.
- Increased production coupled with the high payout, resulted in net cash income increasing by 88 percent for the 2007/08 year.
- Farm working expenditure increased 30 percent due to feed, labour, fertiliser and energy cost increases.
- Farm surplus for reinvestment increased dramatically to $586 000, from the $38 000 deficit in 2006/07.
- Outlook for 2008/09 is a reduction in cash surplus to $74 000 due to reduced payout and higher costs.
- Interest in expanding dairying in Canterbury is high.
Table 1: Key parameters, financial results and forecast for the Canterbury dairy model farm
Canterbury dairy model farm budget and expenditure
Table 2: Canterbury dairy model budget
Table 3: Canterbury dairy model expenditure
Canterbury dairy model farm profitability trends
Figure 1: Canterbury dairy model farm profitability trends
Information about the model
The model represents approximately 770 dairy farms throughout Canterbury and North Otago. It represents a farm that has a mix of spray and border irrigation, and does not own a run-off. All off-farm winter grazing costs are included as feed costs.
The model is created from information drawn from 30 dairy farms and a wide cross section of agribusiness representatives. The aim of the model is to typify an average dairy farm for Canterbury. Budget figures are averaged from the contributing properties and adjusted to represent a real dairy farm. Income figures include off-farm income, new borrowing, and other cash income.
For more information on the models contact: Murray.Doak@maf.govt.nz
Published by:
MAF Policy
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526
Wellington 6140
New Zealand
Tel: 64 4 894 0100
Fax: 64 4 894 0720
Web: www.maf.govt.nz
ISSN 1178-4385 (Online)
© Crown copyright - Ministry of Agriculture and Forestry 2008
The information in this report by the Ministry of Agriculture and Forestry is based on the best information available to the Ministry at the time it was drawn up and all due care was exercised in its preparation. As it is not possible to foresee all uses of this information or to predict all future developments and trends, any subsequent action that relies on the accuracy of the information in this report is the sole commercial decision of the user and is taken at his/her own risk. Accordingly, the Ministry of Agriculture and Forestry disclaims any liability whatsoever for any losses or damages arising out of the use of this information, or in respect of any actions taken.
Contact for Enquiries
Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
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