Catching up
DairyNZ’s Economic Survey 2017-18 shows farmers have taken advantage of increased milk income to catch up on deferred farm maintenance and “revisit” capital expenditure. Senior economist Matthew Newman said the annual survey showed the largest increases in spend from June 1, 2017, to May 31 last year, were on feed, repairs, maintenance and labour. It was likely that spending had continued to increase. “The 2017-18 season was difficult due to a dry spring/early summer for all regions,” Mr Newman said. “That affected pasture growth and peak milk production. It’s also the season that Mycoplasma bovis was discovered. Overall, the break-even milk price increased 70 cents to $5.87 per kg milksolids in 2017-18, due to higher farm working expenses, increased tax payments and increased drawings.”