| 101 nzdairy More farmers buying into technology As the landscape rapidly changes in the dairy industry, the BakerAg dairy team works with farmers to add value to the physical, financial, and environmental performance of their businesses. “One of the most obvious changes at the moment is the milk price coming down while farm operating costs are pushing up,” says BakerAg managing director Chris Lewis. “Farm operating costs per kg of milksolids increased by 22% last season, and this season just finished is looking like a 2.3% increase. This would have been even higher had farmers not put in a big effort to contain operating costs.” Average farm operating costs in 2020/21 were reported by BakerAg clients as $4.94 per kg of milksolids, with a milk price of $7.55. In 2021/22 the average operating cost was up to $6.03 as farmers increased their spending and per unit prices increased as well. “This year we’re expecting average farm operating costs to be $6.19 with the rise due to increasing per unit costs. Farmers have reduced their spending on feed and fertiliser to keep their costs under control as they’re faced with a low milk price of $8.20.” On-farm salaries in the lower North Island have increased by 5% in the past 12 months and while they probably haven’t kept up with inflation, they are one more thing that is squeezing farmers’ margins. “Farmers want to pay for good quality staff but there is a limit to how much money they can invest into people who are suitably skilled and matched to their business,” Chris says.“What we are now seeing is a strong demand for technology to reduce Kelly Deeks BakerAg NZ Director & MilkLines Editor Chris Lewis. ON FARM » BakerAg farmers’ reliance on people. There has been strong interest in things like cow collars and anything else that could have a labour saving effect. “If we get a recovery in milk price and a wider margin between income and cost, there will be more farmers quickly buying into that technology.” On farm repairs and maintenance will also see a resurgence of activity as soon as the milk price shows some upward signs. While plenty of rain caused damage for some last season, most of the country had a good grass growing summer and autumn so a lot of farmers are going into winter with a big store of supplementary feed. Chris says this is going to help farmers to keep their feed costs under control and reduce their spend on fertiliser next season. There have been significant shifts in spending on compliance and consenting as farmers are measuring and monitoring more information. Some accountants are now including compliance as a separate account code and the time and cost involved in compliance administration are both increasing. BakerAg is building its environmental capabilities to help farmers through their environmental compliance. “It’s really important to make sure we are working with central and regional government so we can understand mitigation options and answer farmers’ questions. Farmers are looking to the likes of us to interpret the regulations or the coming regulations and to find out how they can meet the expectations of the Government and also their communities. “We are looking at ways we can help farmers to find a good mitigation that will still give their business resilience and will help to make them compliant while their business remains physically and financially strong.” FREE DEMO One good decision can make all the difference. Let us help you make the right cost-saving decisions. Proud to support BakerAg | 0800 888 080 | farmfocus.co.nz Use OverseerFM to: • Inform farm planning • Optimise nutrient budgets • Manage greenhouse gas emissions ÷ 7HVW GLσHUHQW IDUP PDQDJHPHQW VFHQDULRV RU ODQG XVH FKDQJH ÷ )DFLOLWDWH SHHU WR SHHU FRPSDULVRQ DQG OHDUQLQJ 2YHUVHHU)0 LV XQGHUSLQQHG E\ RYHU \HDUV RI VFLHQWLðF UHVHDUFK ,W VXSSRUWV UHVLOLHQW IXWXUH SURRIHG IDUPLQJ EXVLQHVVHV Proud to work in partnership with BakerAg www.overseer.org.nz
RkJQdWJsaXNoZXIy NDc2Mzg=