Farmers get certainty with new DairyNZ levy structure, new report highlights forestry conversion concerns, and wool prices slip in latest South Island auction.

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Farmers get certainty with new DairyNZ levy structure

DairyNZ will increase its levy rate to 4.5 cents per kilogram of milksolids from June next year, the first adjustment in 16 years. The organisation plans to maintain this rate for at least three years, providing farmers with financial certainty following an extensive nationwide consultation that generated over 1500 submissions.

The revised levy will fund continued support for dairy farmers through science, research, policy advocacy and on-farm extension services. DairyNZ Chair Tracy Brown says the board carefully balanced different farmer perspectives with the organisation's financial sustainability and the need for sector resilience.

In response to farmer feedback, DairyNZ is implementing improvements in engagement, transparency around levy spending, and ensuring research programmes sharply focus on productivity, resilience and sustainability. Brown emphasises that DairyNZ is uniquely positioned to provide independent scientific research specifically for the dairy sector.

The organisation has already cut costs by $5.5 million in the past year while refocusing on high-value projects. Over the next three years, strategic priorities include accelerating on-farm productivity, creating more adaptable farms, and enabling sustainable competitive dairying.

 

New report highlights forestry conversion concerns

A new report from the Parliamentary Commissioner for the Environment has validated long-standing concerns about mass conversion of productive farmland to carbon forestry. The report warns current Emissions Trading Scheme settings are driving widespread land-use changes with serious environmental, economic and social risks.

Beef + Lamb New Zealand Chair Kate Acland says more than 260,000 hectares of sheep and beef farmland have been purchased for forestry conversion since 2017. Every 100,000 hectares planted represents nearly one million stock units lost, significantly impacting export earnings, rural businesses and communities.

Acland warns a buying rush is underway as investors look to beat upcoming government restrictions on which land classes can enter the ETS. Climate Change Commission modelling suggests New Zealand is on track to convert more than 900,000 hectares to mostly exotic forestry by 2050.

While B+LNZ welcomes the Commissioner's recommendation to phase out forestry offsets for fossil fuels, the industry strongly opposes proposals for a biogenic methane trading scheme. Acland points out the sector has already reduced methane emissions by 10 percent since 2017 through stock reductions from existing forestry conversions.

 

Wool prices slip in latest South Island auction

The South Island wool market has seen further deterioration with prices for most categories falling at yesterday's auction. The sale, which cleared 77% of the offering, showed buyers remaining highly selective in a market affected by ongoing global instability.

PGG Wrightson South Island Auction Manager Dave Burridge reports less stylish types and lamb's wool were hardest hit, with crossbred second shear in the 50-75mm length category dropping 6% for average style wool. Good style crossbred fleece showed more resilience with only a 1% decrease, while poor style wool surprisingly gained 4% to reach $3.60 clean.

Better prepared and more stylish types continue to find favor with buyers despite the challenging conditions. The South Island Strong Wool Indicator is currently tracking significantly below last season's levels, reflecting the broader market weakness.

The next South Island wool auction is scheduled for April 16.

 

North Shore fruit fly controls lifted after successful response

Biosecurity New Zealand has lifted all movement restrictions on fruit and vegetables in Auckland's Birkdale suburb after confirming no further Oriental fruit flies have been detected since February. The successful conclusion of the response follows three months of intensive surveillance and control measures.

The targeted restrictions were introduced after a single male Oriental fruit fly was discovered in a surveillance trap in the North Shore suburb in February. Biosecurity New Zealand's national fruit fly surveillance programme remains active in the area, maintaining vigilance through the established network of traps.

 

Otago farmers recognised for outstanding environmental practices

Matakanui Station has claimed the Regional Supreme Award at the Otago Ballance Farm Environment Awards, recognising Tracy and Andrew Paterson's exceptional commitment to environmental stewardship and community involvement. The 5,300-hectare Omakau property, purchased by Andrew's grandfather in 1958, has undergone significant transformation since the couple took ownership in 2014.

Judges praised the Patersons for their forward-thinking approach to farm management, including extensive investment in irrigation, fencing and pasture development while simultaneously restoring wetlands and improving water quality. The station runs 22,000 Polwarth sheep producing fine wool for high-end brands, alongside 1,100 Hereford cattle and a successful Polwarth stud.

Other winners included Francois and Shelley Tillard of Clydesdale Dairy, who took home three awards including the Beef + Lamb New Zealand Livestock Farm Award and the DairyNZ Sustainability and Stewardship Award.

Matt Lawlor and Teresa O'Riordan of Caldervan were also recognised for their outstanding environmental practices, rounding out an impressive field of Otago farmers leading the way in sustainable agriculture and demonstrating the region's commitment to farming excellence.

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