DairyNZ's Economic Update Highlights the Importance of the Milksolids Levy

DairyNZ has provided an economic update that underscores the importance of the Milksolids Levy in supporting New Zealand's dairy farming sector. The update stresses that the continuation of the levy will enable DairyNZ to offer valuable economic insights and support to farmers, particularly through tools like the EconTracker.

The EconTracker, funded by the Milksolids Levy, offers national and regional economic analyses to help farmers make informed decisions. According to Mark, a representative of DairyNZ, global economic uncertainties, such as rising oil prices and shipping costs, could impact farmers by increasing expenses related to fertilizers and transportation.

Farmers are encouraged to vote on the continuation of the Milksolids Levy by 5 pm on Friday, March 13. Tracy, another DairyNZ representative, emphasizes the collective efforts to advance the dairy sector and the critical role of the levy in supporting research, development, and advocacy.

The DairyNZ update also notes that the insights provided by the EconTracker are powered by DairyBase, which integrates data from New Zealand farms and agricultural partners. This data contributes to shaping effective strategies to help the sector grow.

The breakeven milk price, a key metric in the update, is defined as the price per kilogram of milksolids required to cover a farm's costs, excluding capital expenditures and loan repayments. The forecast average payout considers estimated milk receipts and dairy company dividends for the specified season.