The latest Waikato, BOP Dairy 2024 report is available to download now.
Key Points 2024:
-The 2023 winter and early spring were relatively mild, although mid spring turned quite wet in most areas. Predictions of an El Niño drought saw farmers endeavouring to rebuild supplementary feed supplies prior to the summer. As it turned out the summer and autumn saw good rains and resulting good pasture growth.
-While milk solids production was down on most farms by Christmas, the good conditions post-Christmas saw total production for the season, on average, on a par with the 2022/23 season, although there was some variation around this.
-Going into the new season, most farms are in good heart physically; cow condition is good, pasture covers are at target levels or better, and supplementary feed inventories are also good.
-Financially, the farm operated at a loss in the 2023/24 season, although this was offset, for Fonterra suppliers, by a good capital repayment plus dividend payment, such that the end result for the business as a whole was positive.
-Currently the expectation is for a similar result in 2024/25. While the forecasted payout has increased slightly, costs and interest rates are still high, and the model is budgeting for another loss to the farm business, again largely offset by the expected dividend payment.
-As this report shows, the current expected payout is below the breakeven point. If other costs are included, e.g. principal repayments, full capital expenditure to equate with depreciation, full R&M spending, then the model needs a payout of around $9.00/kgMS to operate profitably.
-Currently farmer morale is okay. Physically farms are going into the new season in good shape, and while finances are still very tight, there is some expectation that the worst is behind us.
Previous year reports available below.
Waikato & BOP:
2023- Waikato BOP Dairy Report V2
2023- Waikato BOP Dairy Report V1
2022- Waikato, BOP Dairy Report
2020- Waikato, BOP Dairy Presentation
2020- Waikato, BOP Dairy Report
2019- Waikato, BOP Dairy Report
2018- Waikato, BOP Dairy Report
2017- Waikato, BOP Dairy Report
2016- Waikato, BOP Dairy Report
2014- Waikato, BOP Dairy Report
Southland:
2016- Southland Dairy Report
2015- Southland Dairy Report
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