Milk continues key role in economy
DAIRY: Farmers should be proud of sustainable success of Kiwi dairying, says Mackle
New Zealand dairy farmers continue to play a key role in a post-Covid economy, as a sustainable producer of milk for the world. DairyNZ chief executive Dr Tim Mackle says our communities and regional economies see real benefits from dairy, particularly with current increased global demand for dairy product.
“We should be really proud of our dairy farmers for sustaining our country’s success through more environmentally efficient products, while supporting our communities and the New Zealand economy,” said Dr Mackle.
“Our analysis has shown this past season’s increase in milk price delivered an additional $2.1 billion within our communities alone. The total increase in revenue for the country therefore sits at around $3.28b.
“Our findings have shown these flow-on effects have meant the total economic contribution from dairy was around $42b this season.”
Dr Mackle said for every $1 increase in milk price, about a further $1.80 flows into other sectors within the economy. Flow-on spending pays wages and injects cash into other sectors, including farm purchases, pharmaceutical products, construction, electricity and voluntary household expenditure.
“Dairy farmers achieve all this while being the most emissions efficient producers globally,” said Dr Mackle. “We are committed to remaining a sustainable producer of dairy product and, to do that, we have a wide range of work under way to enhance the environment, including reducing emissions and improving water quality, while maintaining profitability.”
Farmers nationwide have fenced waterways, 100 per cent of stock crossing points have bridges and culverts, while thousands of farmers are carrying out extensive planting alongside waterways.
In 2019 the dairy sector accounted for more than 5 per cent of GDP in seven regions — and more than 10 per cent in four of those.
In dollar terms, this equates to dairy contributing more than $100 million to GDP in most regions — including nearly $2b in Canterbury and $2.5b in Waikato.
The sector delivers nearly $21b in export value.