The «average» farm is considered to be 146 hectares, milking 414 cows.
But despite the hard times, Statistics NZ figures show imports of expensive palm kernel and fertiliser were higher in 2015 than the year before.
In 2015, 2.2 million kilograms of palm kernels worth $421 million were imported, up from 2.01 million kg in 2014.
Fertiliser imports for the 12 months to the end of January 2016 cost $790m, up 20.3 per cent on the year before, while tractor imports were 3408, down from 5232 in 2014.
At the beginning of the 2015-16 season, the DairyNZ forecast was an even worse $250,000 deficit.
DairyNZ economist Matthew Newman said higher milk production and lower fuel costs had slightly improved the situation.
«Milk production is only about 2 per cent down for the season, so that’s been a real positive. We had forecast about 5 per cent,» Newman said.
He said it was intriguing that the statistics showed the higher imports of palm kernel and fertiliser.
The goods would not have been imported if farmers were not buying them.
In December fertiliser companies lowered their prices, which could have implied farmers were not buying or that companies’ inventories were higher than they liked.
Federated Farmers dairy spokesman Andrew Hoggard said the increase in fertiliser imports could be explained by other sectors such as sheep and beef, or horticulture.
However palm kernel was used only by dairy farmers.
«If you’re harvesting as much of your feed as possible, when you’re buying in supplements you’re still on a winner. But if you’re buying in supplements when you’re not harvesting your own grass, then you’re wasting money,» Hoggard said.
A fertiliser company spokeswoman said it was not stockpiling fertiliser because it did not have the capacity.
Since June last year, buying had been stable, she said.
Dairy NZ’s forecast income for the average farmer, based on $3.90 per kilogram of milksolids, is $591,000 from milk sales, with livestock values at $73,000 for a total of $664,000.
On the expenses side, farm working costs are $572,000, interest and rent $216,000, tax $8000 and net drawings $78,000 for a total of $874,000.
