Dairying increases in importance in South Island

DAIRYNZ MEDIA RELEASE

15 October 2010

Dairying increases in importance in the South Island

The South Island now accounts for 39.3% of New Zealand’s dairy production.

DairyNZ chairman the Hon John Luxton told the industry good organisation’s annual general meeting in Lincoln yesterday (14 September) that the latest DairyNZ figures show production has steadily increased over the last decade.

“In the 2009/10 season, South Island dairy farms produced 565 million kilograms of milksolids (kgMS) of New Zealand’s total milk production. That’s up more than 5.5% from last year."

He says South Island milksolids production has more than doubled since 2000, with an increase of 307 million kgMS or +7.7% per annum, and 610 new dairy herds in the last 10 years.

"And it’s growing the South Island economy,” he says. “In 2009-10 the dairy gross revenue invested in Canterbury was $1.65 billion (that’s with milk valued at $6.37/kgMS). In Southland, it was $1.15 billion.”

He said DairyNZ has reflecting the increased importance of the South Island with an increased level of investment, and increased staffing.

“In the first half of 2008, soon after DairyNZ’s inception, we had 16 positions here. Now it’s 35, and we’re investing in multiple South Island specific projects, as well as leading national research from our base at Lincoln.”

Mr Luxton said as well as research, DairyNZ staff have been on the ground to assist farmers during both the Canterbury earthquake and the Southland snows.

“Our staff visited over 70 dairy farms in the quake-affected area within a couple of days after the quake, to assess the situation and assist with advice on matters ranging from once a day milking, dealing with mastitis and coping with stress.

“In Southland more than 400 farmers attended the nine wet weather events we held to assist farmers with feed budgeting, use of supplements and animal health. We flew in extra consulting officers and feed budgeting specialists, and their help was gratefully receiving by farmers dealing with the atrocious conditions.”

DairyNZ reported its overall profit of $2.4 million for the 2009/10 financial year was higher than expected. A loss had been forecast, in line with the company’s policy of using up accumulated cash reserves. The difference is attributable to the later than forecast confirmation of PGP funding from the government.

DairyNZ had committed funds to leverage the government funds available, but the funding was not secured until September, after the end of the 2009/10 financial year.

The results of two postal resolutions were announced at the meeting, with 64% approving an increase in directors’ remuneration and 92% ratifying the appointment of independent director Dr Helen Anderson to the DairyNZ board.

Ends

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