Dairy farms a hard sell as boom ends
Zealand rural spokesman Brian Peacocke said farmers were switching from dairying back to sheep and beef in Northland, southern Hawke’s Bay, Wairarapa and in Southland.
Both confirmed there were a significant number of dairy properties on the market.
Peacocke said some vendors had not accepted that values had eased and were holding out for an unrealistic price.
While REINZ’S statistical data showed an increase in the median price per hectare for dairy farms, Peacocke said the true story was not being told.
‘‘There is little demand for second or third tier properties. The good ones are still selling really well.’’
Many farmers had reached retirement age and were fed up with increased compliance costs and dissatisfaction with their milk processing company. For some there was frustration with the perceived lack of empathy emanating from central government, he said.
Availability of farm labour was another major factor.
Peacocke said a generational change was occurring with farm ownership in New Zealand.
Newbold said the dairy market was at the bottom of the cycle. ‘‘If you go back and look at the stats, 2014 was the peak. It’s not all doom and gloom, there just needs to be a re-think.’’