Northland 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
- The record payout for the 2007/08 season combined with a 2 percent increase in milksolids production resulted in an 86 percent increase in milksolids income compared with 2006/07.
- A 27 percent increase in farm working expenses in 2007/08, followed by a further forecast increase of 14 percent in 2008/09 will be of concern to farmers who anticipate the payout coming off its current highs in future years.
- The net cash income for the model farm was up 74 percent in 2007/08. It is forecast to reduce 11 percent in 2008/09 due to a forecast lower milksolids payout.
- Higher than expected milksolids payouts will mean effective tax planning is likely to be important in 2008/09, especially for those farmers who did not plan ahead in 2007/08.
- The widespread drought of 2007/08 had a minimal impact on Northland with only the most southern areas moderately affected.
Table 1: Key parameters, financial results and forecast for the Northland dairy model farm
Northland dairy model budget and expenditure
Table 2: Northland dairy model budget
Table 3: Northland dairy model expenditure
Northland dairy model farm profitability trends
Figure 1: Northland dairy model farm profitability trends
Information about the model
The Northland model represents about 1200 spring calving dairy herds north of Auckland city.
The model is created from information drawn from 25 dairy farms and a wide cross section of agribusiness representatives. The aim of the model is to typify an average dairy farm for Northland. 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: Russell.Knutson@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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