Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Dairy Graziers proactivity will stave off cost

Dairy Graziers proactivity will stave off cost

As the fallout from the steep decline in global diary prices spreads, Crowe Horwath agribusiness specialist Haylee Preston is advising dairy graziers to be proactive to avoid being out-of-pocket this coming season.

“With budgets under pressure from severely restricted cash flows, dairy farmers are moving to cut costs, with many looking to tweak their farming systems accordingly,” says Preston.

“In many farming operations, supplementary feed and grazing are a significant cost when it comes to production,” indicates Preston. “This means they will be some of the most closely scrutinised costs given the current drive to save.”

Preston notes some farmers are looking at reducing feed costs by culling out the bottom 5-10 per cent of their herd. “Older cows, late calvers and poor producers are being culled, reducing the number of cows on the milking platform. This allows more intense farming systems to cut back on supplemental feed costs”.

This reduction in the number of cows may mean some dairy farmers will have the ability to winter more stock on-farm, leading to a reduction in demand for off-farm grazing. “There could be a 20 – 25 per cent reduction in cows needing grazing for the 2016 winter, due to more self-sustaining dairy systems and the heavy culling of herds, especially with the favourable beef schedule at the moment,” says Preston.

It’s not only the milking herd which might not be heading off the farm for grazing. Preston says “by reducing herd numbers, more farmers may also look at carrying through their young stock to 18 months themselves to cut costs rather than off-farm grazing”.

Preston herself is in the dairy support industry and is advising fellow graziers to speak to their agent or herd owners sooner rather than later to understand their requirements for 2016 winter grazing.

“It’s important to have these conversations as soon as possible and get contracts in place prior to sowing winter crops” says Preston.

Preston says graziers also need to look at their budgets closely to ensure their business remains viable. If there are signs of pressure on cash flows they should speak to their business advisor and/or bank manager for advice on how to adjust their finances, which may mean making changes within their farming systems.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Police: Counterfeit Banknotes - Businesses Urged To Be Aware

Wellington Police are asking businesses to be on the lookout for counterfeit money, after fake $50 and $100 banknotes were presented at businesses recently. While Police are making enquiries to establish the source of these banknotes, a person has been ... More>>

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>


Travel: Air New Zealand Celebrates Busiest Day Since COVID-19

Today is shaping up to be the biggest flying day for the airline since New Zealand closed its borders due to COVID-19. Air New Zealand General Manager Customer Leeanne Langridge says around 42,000 customers will be travelling on nearly 520 Air New Zealand ... More>>

Stats NZ: Prices For Transport And Housing Rise In March 2021 Quarter

Higher prices for transport and housing led to a 0.8 percent lift in the consumers price index in the March 2021 quarter, Stats NZ said today. Prices for getting around rose in the March quarter. Transport prices rose 3.9 percent, the biggest quarterly ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO: