The Country 10/12/25: Campbell Parker talks to Jamie Mackay

The chief executive of DairyNZ releases the latest break-even price ($8.50) for milk production, and celebrates some good wins in 2025 on the biosecurity and research fronts.

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Episode Transcript

Speaker 1 (00:00):
Campbell. Parker is the chief executive at Dairy and Z.
We're wrapping the air chatting to the industry. Good body, Campbell.
You've just released hot off the press, your latest econ tracker,
and this gives you a number of how much cost
to do business?

Speaker 2 (00:16):
Now?

Speaker 1 (00:16):
The cost a kilogram of milk solids was eight dollars
sixty six. But surely Campbell, with interest rates dropping and
that is the biggest on farm cost, that number must
have come down.

Speaker 2 (00:28):
Yeah, it has, Jamie. Today we've announced that it's actually
come back to eight dollars fifty, so a drop around
sixteen cents. And as you say, biggest cost reflection in there. Well,
there's still some upward pressure on input prices fertilizer, etc.
Interest costs have come down significantly. So you know, when
you look at a brake even book price of eight
dollars fifty and a you know midpoint at nine dollars fifty.

(00:52):
I'm reconfirmed by Fonterra last week. Things are still in
a resume good space for our sector.

Speaker 1 (00:58):
Is a dollar a kilogram perk keelogram of milk solids
enough to make a meaningful profit?

Speaker 2 (01:04):
Yeah? I think. Look the key thing I would say
is you know, there's always a range in terms of
those costs, and you know the most important thing for
farmers through is keep a tight control on costs, particularly
when you you know, when you see increased milk price,
it's often easy for the cost piece to get away
and good farmers of it passed to someone in Canterbury

(01:24):
two weeks ago, you know, people running at a very
lean cost structure and producing very good profit. So it's
still achievable, but needs to keep need to keep tight
control on costs.

Speaker 1 (01:34):
Milk production has surged this year, or up three point
four percent on last season. It'll be interesting to see
what a potentially dry season could mean for that production number.
But we're through the peak of the curve, so a
lot of that production for this season has already been banked.

Speaker 2 (01:52):
Yeah, look, three point four percent up. You know, nationally
South Island's leaving the charge they are up five point
seven percent. So that's to the end of ourt. So
you know we'll get the December the November stats in
December shortly. But yes, continuing to drive. I think it
reflects where milk price has been. We've also seen a
twenty percent lift in the likes of palm kernel over

(02:14):
the last twelve months, so you know, people are taking
that marginal milk and driving more production and profit, you know,
in these current times.

Speaker 1 (02:23):
Just a couple to tick off before we bid you
farewell for twenty twenty five, A couple of wins when
it comes on the biosecurity and research fronts. I want
to start with biosecurity. We're absolutely in the home straight
against m BOVAS, and I know we didn't get it
right all of the time, right at the beginning, but
my goodness, MPI has done a good job there.

Speaker 2 (02:43):
Yeah, I think collectively the industry and mp I have
and the coordination around that. I actually sit on the
m BOVAS Governance Council, which we've kind of transitioned now
to the National Pest Management Plan, and you know, we
will be the first country to you know, self declare
eradication of bobus, but we've got to keep the foot
on the threat around that, keep working through. You know,

(03:04):
that could be earlier than the twenty twenty eight target
based on the tracking and the reporting, but we keep
a very close siron on that. And then the other
one that I think has been a highlight this year
has been the Foot and Mouth Disease Operational Agreement and
the seven parties including MPI and the livestock sectors coming
to an agreement around that. That was announced at Field

(03:24):
Days this year on the chair of the inaugural FMD
Council and we actually had a council meeting yesterday. So
we're making good progress around some of the readiness activities,
but we've got to keep working hard on that.

Speaker 1 (03:35):
Yeah, And a quick final word on research. I'm running
short on time here. I'm going to run myself out
of time before the end of the air, Campbell, but
away you go.

Speaker 2 (03:43):
Yeah. Look, there's a lot of good work going on
in the research space, particularly in their missions for pasture
work around methane levels and some direct science around that.
Plus also you know we announced Resilient Pastures, the programming
work that's going to happen in Northland. There's other things
happening around dairy BF opportunities as well, So lots happening
in the research space and turning those into tangible tools

(04:05):
that farmers can adopt on farm.

Speaker 1 (04:07):
Gampbell Parker, chief executive of Dairy and Z to you
and all the team, have a merry Christmas and hopefully
a prosperous new farming here. See you next year.

Speaker 2 (04:16):
Thanks Jomie and now all the best you. Hopefully you
get a few rounds of golf and over the Christmas
period