The dairy payout increased by an average of 14 cents to $8.90 in the 2023-24 dairy season, according to the latest annual New Zealand Dairy Statistics report, just 89 cents above DairyNZ’s breakeven milk price for the season.
Dairy cows produced 20.5 billion litres of milk on the 2023-24 season.
It was $1.10 per kilograms of milksolids below this season’s current forecast of $10.
The average dairy co-operative payout (including dividends) from Fonterra and Tatua near Morrinsville increased from $8.76 in the previous season.
When adjusted for inflation, the 2023-24 payout was $0.35 below the five-year inflation-adjusted average of $9.25 per kg milksolids.
Milksolids production rose half a per cent to 1.88 million kilograms from 20.5 billion litres of milk, the report released by DairyNZ and Livestock Improvement Corporation (LIC) showed.
The main figures
• 20.5 billion litres of milk, containing 1.88 billion kilograms of milksolids produced
• Average milk production per cow – 400kg of milksolids
• Cow numbers up marginally to 4.7 million.
• 3.62 million cows herd tested.
• 3.81 million cows mated to artificial breeding.
• Average dairy co-op payout – $8.90 per kg milksolids, up from $8.76.
The Waikato region has the largest share of the national cow population with 1,075,811 cows, up from 1,057,651, in 3,022 herds, up from 3020 (22.9 per cent, up from 22 per cent) producing 411,769,631 kilograms of milk solids, down from 412,514,347 kilograms. North Canterbury is the second largest with 14.9 per cent of the national herd and Taranaki has 9.5 per cent.
Matamata-Piako district has 843 herds, the largest number in the region, while Waikato district is the second largest with 573 herds and Waipā third with 492 herds, down from 493.
Otorohanga district has 330 herds, down one, and Waitomo district has 55, down from 59.
“The increase in total milksolids production in the 2023-24 season was driven by a combination of the slight increase in cow numbers and favourable weather conditions,” said DairyNZ chief executive Campbell Parker.
“Milksolids per cow are once again near record levels, which is a result of farmers dedication, technology uptake, and the application of science and insights driving better on-farm decisions and outcomes.”
Milksolids per cow increased to an average of 400kg, 6kg higher than the five-year average.
Cow numbers reached 4.7 million cows in 2023-24, slightly up from 4.67 million in the 2022-23 season, two per cent below the five-year average.
The 2023-24 season saw a slight decrease in the percentage of cows herd tested on the previous season, at 77.1 per cent (3.62 million cows), while artificial breeding remained relatively stable, with a slight decrease to 81.1% of cows (3.81 million cows).
“The dairy sector is still producing more kilograms of milksolids per cow, which is a great result driven by farmers’ continued increased focus on improving cow productivity and farm efficiency,” said LIC chief executive David Chin.
“While there was a slight decrease in herd testing and artificial breeding uptake this year, it’s important to note that these practices remain critical to our sector’s success and as the economic outlook improves, we’re optimistic that these numbers will rebound in the coming season.
“This year’s Dairy Statistics once again highlight the growing preference for crossbreed genetics, which is delivering measurable benefits for dairy farmers, including a record-high average of 277 days in milk in 2023-24.
“This trend also supports the breeding of more profitable animals and reinforces LIC’s commitment to improving herd health and productivity through ongoing investment in genetics, diagnostics testing and farm software.”
Campbell says that the Dairy Statistics 2023-24 report indicates another positive production season for the sector and continues to demonstrate the importance of dairy to the New Zealand economy.
“As we look ahead, the outlook for the current season is positive, with increases to the forecast milk price and reducing interest rates. This improved forecast will likely improve the cash position of many farmers this season, which will in turn increase farmer spending, stimulate economic activity, and continue delivering economic growth for the country.”
