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DairyNZ’s Econ Tracker forecast signifies some reduction for dairy farmers with lowering feed and fertilizer prices supported by the latest carry in international returns flowing by the farm gate.
Total, feed prices are projected to fall round 5% for the present season, pushed by falling product costs.
Whole farm working bills have additionally seen an general lower, pushed by feed and fertilizer costs this 12 months, nevertheless, different prices proceed to expertise inflationary pressures.
DairyNZ’s not too long ago up to date forecast information on the Econ Tracker, exhibits the nationwide breakeven forecast at the moment sits at $7.79/kgMS, which is revised from the earlier forecast of $7.78/kgMS.
The breakeven milk worth is the milk sale worth per kilogram of milksolids to cowl a farm’s prices in a season, excluding capital expenditure and principal repaid on loans.
That is beneath DairyNZ’s forecast common payout obtained of $8.06/kgMS, based mostly on the estimated milk receipts for the 2023/24 season and dairy firm dividends.
This constructive distinction between the forecast breakeven and common payout will seemingly deliver reduction to some, notably owner-operated farms.
The brand new forecasts are revealed on the DairyNZ Econ Tracker and expressed as a nationwide common, which doesn’t essentially mirror particular person farm conditions.
A quarterly replace, targeted on the important thing drivers of feed prices, can also be accessible on-line.
Farmers and the sector can use this device to help knowledgeable determination making in terms of monetary planning, forecasting, and budgeting.
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