NEW ZEALAND – The New Zealand dairy industry has demonstrated resilience amid rising costs and economic uncertainty, according to the latest annual New Zealand Dairy Statistics report, published by DairyNZ and LIC.
The 2023/24 season saw dairy companies process 20.5 billion liters of milk, containing 1.88 billion kilograms of milk solids (kgMS), reflecting a 0.5% increase in kgMS compared to the previous season.
DairyNZ Chief Executive Campbell Parker noted that despite a 12% reduction in the national dairy herd over the past decade and a 5% decline in milking cows, production levels have remained stable.
“We have seen our dairy herd numbers reduce by 12% over the last decade, and a 5% decrease in the total number of milking cows,” Parker stated.
“Despite this, total milksolids processed have remained relatively stable, emphasizing the resilience of our farmers and their focus on ongoing productivity improvement,”
He attributed the 2023/24 increase in total milksolids production to a slight rise in cow numbers and favorable weather conditions.
Cow numbers reached 4.7 million in the 2023/24 season, up from 4.67 million in 2022/23, though still 2% below the five-year average of 4.80 million.
Additionally, milksolids per cow averaged 400 kgMS, 6 kg higher than the five-year average of 394 kgMS, nearing record levels.
Parker emphasized that these improvements reflect farmers’ dedication, technological adoption, and science-driven decision-making.
According to the report, the average herd size has plateaued at around 445 cows per herd over the past three years, indicating a stabilization trend after years of consistent growth.
The percentage of cows undergoing herd testing declined slightly to 77.1% (3.62 million cows), while artificial breeding remained relatively stable at 81.1% (3.81 million cows).
LIC Chief Executive David Chin attributed these slight decreases to challenging financial conditions but highlighted their importance to the sector’s long-term success.
“The dairy sector is still producing more kilograms of milksolids per cow, which is a great result driven by farmers’ increased focus on cow productivity and farm efficiency,” Chin remarked.
He expressed optimism about future recovery, adding, “While there was a slight decrease in herd testing and artificial breeding uptake this year, these practices remain critical, and as the economic outlook improves, we’re optimistic that these numbers will rebound.”
The report also highlighted a growing preference for crossbreed genetics, with cows averaging 277 days in milk during the 2023/24 season—a record high.
Chin emphasized the benefits of this trend, pointing to improved herd health and productivity through advancements in genetics, diagnostic testing, and farm software.
Financially, the average dairy co-operative payout, including dividends from Fonterra and Tatua, rose to US$8.90 per kgMS, up from US$8.76 in the previous season.
However, when adjusted for inflation, the payout stood US$0.35 below the five-year average of US$9.25 per kgMS.
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