“It is extremely tough right now for farmers – some more than others,” DairyNZ chief executive Dr Tim Mackle said.
“Their ability to survive the downturn will depend on the size of their debt and the level of their costs.
“Sharemilkers are one of the very vulnerable groups and so we are already currently running joint workshops with Federated Farmers to help them look at their options.
About 10% of the most indebted farms had 30% of the total dairy debt – $11 to $12 billion or $10 million each – but that didn’t mean all those farms were at risk.
“Half of total debt is held by only 20% of farms.
“But bald figures don’t necessarily spell doom and gloom for all.
“While many in this group will be facing extreme pressure it is the combination of high debt and high farm costs that will require urgent action.”
“I have met with all the banks to talk through the issues at an industry level.
“We are working with others like Federated Farmers, the Dairy Women’s Network and Rural Support Trusts to ensure a united approach to pooling all our resources,” Mackle said.
“Their ability to survive the downturn will depend on the size of their debt and the level of their costs.
Dr Tim Mackle
DairyNZ
With help from the community, the industry and the banks most farmers would be able to find a way through the downturn.
The next phase of the DairyNZ Tactics campaign would focus on pasture as the key driver of farming competitively through high and low payouts.
On that matter, farmers were urged to do their homework and look for hard data when buying grass seed this autumn.
AgResearch science leader Warren King said ensuring farmers got certified, treated seed appropriate for their farm and the right endophyte was paramount.
It was easy to get the formula wrong and many competing claims presented conflicting information.
“The Forage Value Index (FVI) through DairyNZ is an excellent place to get that information.
“It is based on decades of seed company data, independently analysed and is consistent, well measured and the very best source of information.”
Most reputable seed companies gave great information on choosing endophytes but because a few companies didn’t, there was danger of mixed messages.
“In the upper North Island you have to have appropriate endophytes to protect against black beetle, Argentine stem weevil and the root aphid.
“Anywhere above Taupo, it has to be AR37 or NEA2. Anything else and you are just taking a massive risk,” King said.
