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Farmers too slow to respond BY NADINE PORTER
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Dairy farmers were yesterday slammed by a leading consultant, who believed they were too slow to respond to the global dairy downturn. Jeremy Savage told farmers attending the Lincoln University Demonstration Dairy Farm focus day that they were just as responsible as the European farmers for the current over-supply of milk on the world market. “We continued to make milk in the 2014/15 season even though the payout was forecast to be awful … we didn’t respond.” Mr Savage said the industry didn’t see a dramatic change in attitude from farmers to production levels until July
2015 – a full year into a low payout environment. “The Agrifax payout forecast fell through the $5 mark in October 2014. Yet it was not for another nine months before we noted significant change in industry attitudes. Cows that were culled after “the panic button” was pushed in July last year, should have been culled four months earlier in March, he said. “We’ve typically reacted far too late. That’s the nature of farmers. We are slow to respond.” Mr Savage said farmers had invested in infrastructure and saw production as a way of paying for it. They did not like culling “perfectly good cows”. “I’d like to think we’ve learnt a bit
about this downturn and will respond quicker next time but I have some concerns around European and Irish farmers who are slow to respond as well, so there will be a bit of a bow-wave of milk to come.” However, he did remain optimistic on the long-term demand for milk, saying global demand is projected to increase at an increased rate of 2 to 2.6 per cent per year. Recent reports out of Europe and Ireland continue to show that although dairy farmers aren’t making money, milk production levels had still not eased. Mr Savage said Friesland Campina, a Netherlands processor, had run out of processing room while trying to deal with a 6.4 per cent lift in production.
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