DairyNZ: Canterbury dairy conversions reflect more measured sector growth

DairyNZ chief executive Campbell Parker.

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New Zealand’s dairy sector is changing shape, with new conversions in Canterbury adding to the national herd following the end of a temporary ban on dairy farm conversions.

The Canterbury Regional Council says up to 25,000 more dairy cows could be added to the region as a result.

While this may seem like a lot of cows, DairyNZ’s chief executive Campbell Parker said the situation wasn’t so black and white.

Parker was in Canterbury this week and spoke to a farmer converting from arable to dairy.

“It’s coming out of cropping land, and it’s going into dairy at a lower footprint than was previously farmed, so that’s the first point,” he told The Country’s Jamie Mackay.

“The second point is they’re including storage for effluent at five times more than what they’re required to by the council because they actually want to put that across 100% of the land.”

Parker said this showed farmers were being more precise in how they converted land, and “the leading practices in Canterbury are very good around that”.

“So yes, the activity’s happening, but it’s very different from what people may have a lens of historic conversions,” he said.

While Canterbury’s dairy cow intake may rise, the national herd has declined from its mid-2010s peak.

Parker said this was an example of farms coming out of dairy production.

“[In] the annual dairy statistics, the numbers of cows have come well off the peak from 2015, and we see about 115 to 120 farms go out of dairy production either into things like horticulture, urban sprawl, or amalgamations on an annual basis, and that’s a trend that is continuing.”

Parker said the dairy sector was the mainstay of New Zealand’s economy and led to prosperity in communities.

“We do dairy well in this country, and that should be celebrated.”

This was evident at the recent NZ Dairy Industry Awards in Rotorua last weekend.

Parker said it was “a wonderful evening” with 640 people celebrating “right across the sector”.

He particularly enjoyed seeing new blood coming up the ranks.

“What I love about those awards is that it’s where the emerging leaders come through that will take the sector forward, whether it be a trainee, farm manager, or share farmer.”

Meanwhile, Fieldays is coming up next month, and Parker said he was looking forward to taking part.

He said DairyNZ will be in three places at this year’s event: the main pavilion, the Science for Farmers hub, and the Advocacy Hub, along with Federated Farmers.

“We’ve got a small site for our dairy training business as well – skills and supporting farmers with that,” he said.

“So we’ll be well represented.”

Also in today’s interview: Parker discussed the “Five Fs” farmers need to keep an eye on: fuel, fertiliser, feed, freight and finance.