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)

Mon, 08 Aug 2022

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...

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