Wednesday, April 24, 2024

Doing the global dance

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Being so closely connected to global markets is a double-edged sword for the New Zealand dairy industry. When the world is buying, we are grinning. When it isn’t, we need to hunker down and count the pennies. We are so good at producing milk that our relatively small domestic market has no buffering effect against the hokey cokey dance that is global dairy trade.
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What happens outside the farmgate is largely uncontrollable. Farmers can participate and engage with their co-operative or processor but ultimately it is inside the farmgate they can exert the most control, most quickly.

Efficiency needs to be the goal. Whether you are chasing marginal production through shrewd feeding strategies to dilute fixed costs or are riding the pasture growth curve and focusing on maximising milk in the vat pre-Christmas, it needs to be about seeking greater efficiency. There is no room for wastage this season.

In this issue, our special report on Smart Irrigation focuses on leveraging technology to boost the efficiency of something fast becoming one of our most precious resources – water. Doing more with less. Getting the right amount of water, in the right place, at the right time.

Technology is progressing quickly. Tools like variable rate application are increasingly becoming more mainstream. Techniques like electromagnetic soil mapping are making it possible for farmers to know what is actually going on under the grass and to tailor application rates accordingly. At heart I am a bit of a tech nerd so it’s an exciting time and getting more so as agricultural applications of the so-called “internet of things” takes off.

Efficiency is also to the fore in making the most of pasture, both grown and harvested. In this issue we catch up with a couple of farmers with a real focus on growing and grazing the green stuff that forms the foundation of New Zealand farming’s competitive edge.

Following on from the November issue, we talk to a couple more farmers who have adopted once-a-day milking systems. For both operations, dealing with fickle climates and challenging farm layouts were the key drivers.

Coming out of the busy calving and mating period, heading into the busy (for a different reason) holiday season, take some time out to reflect on your business. When we are faced with tight financial times, the inclination is often to work harder. I would argue it’s equally, if not more, important to work smarter. The old adage of working on the business rather than in it rings true. Talk to your banker, talk to your accountant, attend your local DairyNZ discussion group – share the load.

As ever, we welcome your feedback about this month’s issue – let us know what you think.

Erin Hutchinson

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