Dairy farms need $8.66 per kilogram of milksolids to cover costs

Dairy farms need $8.66 per kilogram of milksolids to cover costs
DairyNZ says operating expenses are 22% higher than in the season to May 2021. (Image: Getty)
Rebecca Howard
A milk payout of $9.50 per kilogram of milksolids looks good on paper, but a 22% jump in farm costs is eating into any gains, data from DairyNZ shows.Operating expenses for dairy farms, including interest, rent, principal repayment and tax, were $7.07/kgMS in the season that ended May 2021, DairyNZ head of economics Mark Storey said.  They are now 22% higher at $8.66/kgMS.DairyNZ also recently completed budget case studies of eight farms across New Zealand. This showed that over three seasons (2020/21 to 2022/23 forecast) milk income has r...

More Primary Sector

Zespri on track for 'moderate increase' in volume next year
Primary Sector

Zespri on track for 'moderate increase' in volume next year

Zespri's producer vote to expand global supply passed this week.

Riley Kennedy 12 Dec 2024
Yashili NZ revenue dropped 42%
Primary Sector

Yashili NZ revenue dropped 42%

The Chinese-owned dairy processor’s accounts were due in May.

Riley Kennedy 12 Dec 2024
Zespri growers vote in favour of expanding global supply
Primary Sector

Zespri growers vote in favour of expanding global supply

Zespri’s growers have voted to support the expansion of the kiwifruit marketer’s global supply.A total of 90.6% of voting growers and 93.3% by fruit weight voted in favour of the resolution, which will allocate up to 420 hectares of SunGold fruit per year over six years in Italy,...

Riley Kennedy 11 Dec 2024
Greyhound racing to end
Primary Sector

Greyhound racing to end

Winston Peters says it will be phased out over 20 months.

Riley Kennedy 10 Dec 2024