"Look at where the fat can be trimmed and where efficiency gains can be made, for instance growing and utilising more homegrown feed and looking at where supplementary feed can be reduced."
Farmers should also look at what contingency plans are in place for a possible dry summer -- perhaps early culling and once-a-day milking, rather than supplementary feed. And with large tax bills looming from last year's record season, farmers should also contact their accountant to recalculate their tax.
REGIONAL IMPACT
The estimated drop in farmer income ($7 down to $6 milk price)*.
Northland $100 million
Waikato $484 million
Bay of Plenty $126 million
Taranaki $183 million
Hawke's Bay $15 million
Manawatu $82 million
Wairarapa/Tararua $60 million
Canterbury $353 million
Otago $92 million
Southland $218 million
New Zealand $1.825 billion
*Based on $1 drop multiplied against estimated regional production.
For more information on budgeting, visit www.dairynz.co.nz/budgets