It said the maximum number of cows that could be milked through the shed was 25,818 cows, among the approved consents.<\/p>\n
Federated Farmers\u2019 arable group chairman, David Birkett, said around half of those 32 consents would likely be arable farmers converting at least part of the farm into dairy.<\/p>\n
\u201cA number of arable farmers have gone down that path and are converting arable farms to dairy,\u201d Birkett said.<\/p>\n
He said low global wheat prices were hurting profitability locally, and animal feed was under increased pressure from imported feeds like palm kernel expeller (PKE).<\/p>\n
\u201cIt\u2019s a two-sided sword,\u201d he said.<\/p>\n
\u201cI guess one, it tugs people out of the arable industry, which means there are less growers. But it also means that, are we losing the critical mass of the industry?\u201d<\/p>\n
He said the arable industry required a lot of infrastructure collectively, including drying machinery.<\/p>\n
\u201cDo we get to a point where that infrastructure can\u2019t be supported because we don\u2019t have the critical mass of the number of growers?<\/p>\n
\u201cWe\u2019re not at that point yet, but I guess we\u2019re as we lose growers, we are getting closer to that point.\u201d<\/p>\n
The Leeston farmer integrated sheep into his own cropping farming system to diversify income, and said strong meat prices were a \u201cgodsend\u201d.<\/p>\n
\u201cMost people we think are around that break-even point, but a lot of that additional income has probably come from the livestock that they\u2019ve had on-farm.\u201d<\/p>\n
Canterbury farmer David Birkett was named Arable Farmer of the Year. Photo \/ RNZ, Conan Young<\/p>\n
The lobby group\u2019s latest twice-annual farmer confidence survey in July found that general confidence had soared to its highest level in more than a decade.<\/p>\n
Some 81% of dairy farmers surveyed were making a profit, versus just 1% making a loss.<\/p>\n
However, for arable, 40% were making a profit while 29% were making a loss.<\/p>\n
Last week, Fonterra dropped its farmgate milk payout price forecast for the current season to $9.50 per kilogram of milk solids from $10.<\/p>\n
Despite the drop, though, dairy could still be considered a strong industry to be in, with DairyNZ\u2019s breakeven forecast sitting at $8.68.<\/p>\n
Dairy cow numbers peaked a decade ago<\/p>\n