Home' NZ Dairy Farmer : September 2009 Contents The Dairyman SEPTEMBER 2009 5
More pain on the farms
in autumn, say analysts
dairy farmers are
things have become so dif-
ficult so quickly.
It is predicted many will
go to the wall next autumn
especially in Canterbury and Southland.
According to PriceWaterhouseCoopers
Hamilton partner Roger Wilson, reduced
dairy payouts and increased costs were caus-
ing obvious financial pains on many farms.
Many farmers had been caught simply by
the "savagery" of the decline with world
"Also, farm asset values have dropped 30 to
40 per cent and there are a lot of stressed
farmers running significant cash deficits this
year," he said.
However, those associated with the indus-
try were managing to work through the
"We are starting to see foreclosures
already," he said, adding that he had seen
sales in south Waikato "encouraged" by
Mr Wilson said farm equity partnerships in
Canterbury and Southland, where people had
often borrowed against assets to
invest, were particularly vulner-
"Some of them are 100 per
cent debt loaded, more so than
"While for some it has been white gol-
drush, not so for the late arrivals who are now
He said he feared a rush of dairy farm fore-
closures in the autumn if farmers did not sell
assets and reduce costs or if payouts did not
"The enforcement of proposed internation-
al banking recommendations, requiring banks
to impose rigorous capital and risk manage-
ment policies will create a 'perfect storm' for
financially stressed farmers," he warned.
"It is going to affect the whole country but
the primary sector in particular."
He concluded medium to long term farm-
ing prospects were good and successful oper-
ators would survive.
Rabobank rural banking general manager
Ben Russell was reported recently as saying
up to 10 per cent of farmers had too much
debt to be sustainable.
LIANNE Zonneveld, 22, is a
fourth year student at the Van
Hall Larenstein, University of
Applied Sciences in Wageningen in
Studying Applied Animal
Sciences, Lianne, has done several
papers around Animal
Breeding and Genetics
and is currently in New
Zealand writing her
final thesis on the use
and effectiveness of
cross-bred bulls in our
dairy herd. Lianne
attended the National
and surveyed a number of farmers at
the event, but is looking for further
information for her research.
Are you using cross-bred bulls as
part of your dairy breeding strategy
or have you in the past? If so,
Lianne would love to hear from you
to find out what has worked and
what hasn't in your herd.
Contact Lianne at dairyre-
email@example.com for more infor-
mation or to be part of the research.
GROWING maize silage on-farm is an
option many dairy farmers are consider-
ing to reduce the cost of feed and to boost
Now, the Foundation for Arable
Research, Environment Waikato and
DairyNZ are offering a workshop in
Hamilton where farmers will be able to get
advice and guidance on how to get the best
results from the crop.
This workshop, on Monday September
21, is particularly valuable for dairy farmers
and comes amidst a three-year Sustainable
Farming Fund project. Dairy farmers who
are planning to grow their own maize this
season will benefit from the hands-on man-
agement tips provided, says Gabriele
Kaufler, sustainable agriculture co-ordinator
Farmers who want to attend are advised
to please register with Mel Bond at the FAR
office, phone 03 325 6353 or email:
firstname.lastname@example.org no later than Wednesday
GET more cows in calf with
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Workshop looks at maize silage options
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