Drought stricken Waikato dairy farmers will be an average $1400 worse off next season after DairyNZ announced a 25 per cent increase in its levy.
Drought ridden Waikato
From June 1 the organisation will collect a levy of 4.5 cents per kilogramme of milk solids, 0.9 of a cent more than the last 16 seasons.
The rise means the average Waikato dairy farmer producing about 160,000 kilogrammes of milk solids will pay DairyNZ $7200 – $1400 more than previously.
While milk production is up six per cent across the region, according to Fonterra, many farmers are being forced to dry off their hers about a month early due to the lack of rain and grass growth.
The rise followed a month-long consultation process in which 18 percent of farmers turned out to a dozen meetings and were asked if they would prefer a rise between 4.4 and 4.6 cents to maintain current science and research programmes and meet financial obligations or 4.7 and 5 cents to expand investment in science and research to keep ahead of challenges.
Keith Holmes
Waikato Federated Farmers president Keith Holmes was concerned with the low turnout.
“They are not connecting,” he told the branch’s executive at its April meeting.
“There was a mediocre response from those who are paying it,” said Waikato Federated Farmers Dairy chair Matthew Zonderop.
“It’s on the feedback 18 per cent. It’s still up to Federated Farmers to sit down with them.
“In fairness, it has not gone up in 16 years and we would not have the dairy industry we have today without DairyNZ’s research.”
“What right have they got to put the levy up?” asked North Waikato Federated Farmers branch chair Chris Woolerton.
“I understood it was only a discussion document.”
Cambridge dairy farmer and economics and finance spokesman Garry Reymer said the increase in milk production between 2009 and now would have led to increased revenue for DairyNZ.
The production of milk solids went from approximately 1.4 billion kilogrammes of milk solids in 2009 to 1.9 billion kilogrammes last year.
Tracy Brown
Waikato Federated Farmers executive resolved to invite DairyNZ chief executive Campbell Parker to its next meeting, alongside board chair Tracy Brown and board member Chris Lewis.
Last month Brown told King Country Farmer asking farmers to choose between two levy rises had caused angst and confusion and DairyNZ had got that wrong.
“In hindsight we should have had a third option to make that clearer,” Brown said.
Some farmers had little or no rain from Christmas until March, prompting Agriculture Minister Todd McClay to declare drought in the Waikato, King Country and neighbouring regions on March 7.
Holmes, who is chairing a multi-agency drought group, said it would be meeting again in a week.
“The drought certainly isn’t broken,” he said.
Dairy cows
