Positive aspects of NZ dairying emphasised

The 2013-14 dairying season was ''a fantastic year to be reporting on'', DairyNZ chairman John Luxton told the organisation's annual meeting.

It was the first time South Canterbury had hosted the event, held in Timaru on October 16. Both Mr Luxton and chief executive Tim Mackle commented on the excellent turnout.

However, board members and staff made up about a quarter of the 60 people attending.

Information targeted at the local audience was to the fore in both men's presentations.

Mr Luxton noted record national production of more than 1.8 billion litres of milk in the year to May 31, farmers' confidence in DairyNZ as shown by voting to continue funding it through levies, and ''a very large drop in payments''.

''It was pleasing to see, hopefully, some stability in last night's dairy auction.''

He focused on ''positive attributes of the industry''. There was a slight increase in herd numbers as 37 more dairy farms were set up. Herd size continued to grow, as did average production per cow.

Dairying accounted for a third of New Zealand's merchandise exports and was an important employer on farms and in the processing and servicing industries, Mr Luxton said.

''Its importance to regional economies is often not understood.''

Milk solids production was growing - ''it's a very significant driver of the economies of the South Island''.

Dairying was the biggest employer in South Canterbury, providing 7% of jobs. In the Waimate district, agriculture made up 50% of both employment and gross domestic product, Mr Luxton said.

Having been involved with the industry for more than 40 years, he was ''very optimistic''.

''Price volatility will remain a core feature of dairy markets,'' he said. However, New Zealand had remained internationally competitive because of its ability to respond to change.

''The increasing global supply could take some time to work through. Milk production is growing in key export regions - in the EU it was up 5.1% for the first six months of this year.

''Over the long term, demand prospects remain solid.''

A 36% increase in demand was forecast for the next 10 years.

''The growth of the middle class in Asia is very, very significant and important to our industry - China in particular.

''It is about ensuring the long-term success and international competitiveness of the New Zealand industry. We have to keep doing the research and development.

"If we don't succeed, there's very little New Zealand can do to replace the importance and impact of dairying.''

- Sally Brooker 

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