DairyNZ chairwoman, Tracy Brown.
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By Tracy Brown, DairyNZ Chair
OPINION
Over the last few years, New Zealand dairy has enjoyed a strong run the likes of which many of us have never seen.
Consecutive seasons of strong or record milk prices, interest rates coming down, and even a momentary easing of the hectic pace of regulatory changes have all combined to create a tailwind for our industry.
It feels like we’re getting the basics right and are due some long-awaited stability.
That’s not to trivialise the shocks, such as extreme weather that many farmers have endured over the same period, and last month in Southland I saw first-hand the damage and stress that caused.
We also keep an eye on that milk price and input costs.
But for the most part, it’s been a great time to be a dairy farmer and, together, we deserve the success that’s coming our way.
If I can make one point today, it’s that this is a shared success.
It’s something New Zealand dairy does well. Can I even suggest that we do it the best in the world?
What happens on your farm is because of you.
It’s your hard work, care and plans that move your farm business forward.
But there’s a lot of what you do that keeps getting better because for generations we’ve been part of each other’s success.
We’ve shared knowledge. We’ve shared the cost and on-farm solutions from future-focused research.
And we’ve had a clear, united dairy voice that has meant a move towards more practical policy, and the Government currently supporting the primary sector.
This is made possible in part because, for the past century, farmers have collectively invested in their industry’s future, including for the past couple of decades via the DairyNZ levy.
DairyNZ’s vision is to ensure the levy is the best investment for every New Zealand dairy farmer.
We seek to deliver that via our strategy, which is focused on doing three things really well: helping farmers drive productivity, strengthening farm systems, and competing on sustainability.
To measure how well we are delivering on that vision, the DairyNZ board recently commissioned independent economic analysts, Nimmo Bell, to measure DairyNZ’s return on investment from the milksolids levy since 2020.
The key finding of their report is that from the $341 million of levy revenue received in that period, DairyNZ generated an estimated $2.98 billion of value - equating to 26c kgMS/year – more than 7x return on investment. This includes both productivity gains (45%) and costs avoided (55%).
One example of our strategy delivering for farmers is our current focus on on-farm productivity through improved forage gains and more resilient pastures.
Homegrown feed is important, and productive pastures keep the cost of production low and are central to our low-emissions milk production.
Research has shown us pasture isn’t lasting as long, and so we’re re-grassing more, and that’s an issue for New Zealand because our competitive edge is our pasture-based systems.
To help combat this, DairyNZ is leading a joint programme, Resilient Pastures, with MPI through the Primary Sector Growth Fund and with other sector partners, including Beef + Lamb NZ.
We are working with farmers to find solutions to help solve the problems we are facing in Northland and the top of the North Island, and the lessons will provide solutions across the whole country as they’re needed.
The Nimmo Bell report also identified a number of areas for improvement, including increasing our focus on helping farmers adopt the solutions of our research programmes.
Extension is key, and is a core element of what we do.
At the International Dairy Federation Conference in Chile, I presented on dairy’s economic contribution to rural communities and the economy.
But at the foundational level, it is the support of every dairy farmer contributing towards their industry-good body that provides for the continuity of DairyNZ’s work on your behalf.
This means we can keep delivering a positive future for the New Zealand dairy industry.
A future in which our highly productive herds stand out for exceptional genetics, herd health and wellbeing.
So much so that New Zealand leads the world in responsible dairy production.
It’s an industry where responsible growth continues to be possible because we tread more lightly in the environment and understand the carrying capacities of different regions.
It’s one where dairy farmers share innovation and best-practice methodologies freely to increase production while ensuring nobody is unwillingly left behind.
Next year’s levy vote is an opportunity to keep supporting this vision for dairying as a vibrant and rewarding industry, which we are all proud to be a part of.
Enjoy the festive season with your family and friends, and thanks for getting up every morning and doing it for New Zealand.