"Milk prices have risen 4.3 per cent since Fonterra's inception but in the current season that trend appears to have reversed," Watters says.
"MyFarm recognises this volatility is a fact of life.
"We expect milk prices to return to the long-term average of around $7/kg of milksolids, possibly as soon as the 2015/16 season. However, we understand we need to operate farming systems that give our syndicates the flexibility to respond to these short-term milk price changes as well as fluctuations in on-farm costs.
"Hokonui's ability to graze its entire stock on-farm sets it apart from many of its neighbours in Southland and further afield.
Notably, it protects the syndicate from volatility in grazing costs, which have been rising at an annual rate of 6 per cent to 7 per cent in many areas.
"Farms in good locations, and where all stock remain on-farm, are becoming increasingly rare; this represents a significant shift in MyFarm's experience buying farms over the past 20 years."
LAND LESSONS
The Fertiliser Quality Council (FQC) is developing a tablet-based learning tool called "Plants, Soil and Society" which has been piloted in urban and rural schools.
Youngsters grow strawberry plants and eat the fruit, helping them learn where food comes from before it reaches supermarket shelves.
The programme is designed to encourage pupils into careers in science and the FQC aims to roll it out next year.