Waikato/Bay of Plenty 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 2007/08 season saw the worst drought on record, which significantly affected most parts of the region.
- Overall milksolids production dropped 12 percent compared to 2006/07.
- Despite the drought and resulting increased expenditure, farm profit before tax lifted by around 400 percent due to the record payout.
- Farms are not in a good physical position entering the 2008/09 season, with pasture covers and cow condition well below optimum level. Currently the model is budgeting on an 8 percent increase in production in 2008/09.
- The record payout and prospect of a good payout in 2008/09 has buoyed farmers’ morale, despite the carryover effects of the drought.
Table 1: Key parameters, financial results and forecast for the Waikato/Bay of Plenty dairy model farm
Waikato/Bay of Plenty dairy model budget and expenditure
Table 2: Waikato/Bay of Plenty dairy model budget
Table 3: Waikato/Bay of Plenty dairy model expenditure
Waikato/Bay of Plenty dairy model farm profitability trends
Figure 1: Waikato/Bay of Plenty dairy model farm profitability trends
Information about the model
The Waikato/Bay of Plenty dairy model represents about 5140 dairy farms in the Waikato and Bay of Plenty regions. The model is a seasonal supply farm based on an average property of 106 hectares, milking 300 cows, and producing around 100 000 kilograms of milksolids in a normal season. Heifers are grazed off the farm for 12 months.
The model is created from information drawn from 50 dairy farms and a wide cross section of agribusiness representatives. The aim of the model is to typify an average dairy farm for the Waikato/Bay of Plenty region. 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: Phil.Journeaux@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
Contact this person
