New Zealand Dairy Industry: Six Decades of Transformation
The DairyNZ head of economics, Mark Storey, points to the 60-year journey of New Zealand's dairy industry as chronicled by the Economic Survey, marking its transformation from small-scale, regional operations to globally competitive, tech-enabled enterprises. "This milestone edition charts a compelling transformation," notes Storey, highlighting that the average number of cows per farm has quadrupled, and milksolids production per cow nearly doubled over six decades.
Technological innovation, capital investment, and management expertise have driven productivity gains, but as Storey explains, these advances bring complexity, including higher financial risk and environmental issues.
Starting as the Economic Survey of Factory Supply Dairy Farmers in 1963–64, herd sizes have notably grown—from 92 cows on 59 hectares in the 1960s to 410 cows on 144 hectares by the 2010s. Rotary milking platforms, genetics, pasture management, and feed systems have facilitated these changes, leading to efficiency gains across larger herds.
The Survey also indicates financial dynamics, with on-farm costs rising faster than income over the past 30 years. Real feed expenses in 2021 were 13 times those of the 1960s, making it the largest expenditure category. These financial pressures cast a spotlight on DairyNZ's focus on research, aiming to improve pasture resilience and tackle profitability challenges.
Despite these challenges, Mark Storey remains optimistic, citing innovation and strategic management as catalysts for thriving in a complex world. The 2023–24 edition of the survey offers insights into recent trends, such as milksolid payouts, operating costs, on-farm expenditures, and a new focus on international competitiveness indicators.
