The Country 26/11/25: Tracy Brown talks to Jamie Mackay

The Chair of DairyNZ previews the industry-good body’s return on levy-payer investment, the profitability of dairy farming at $9.50, and why you should always look under the hood!

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Episode Transcript

Speaker 1 (00:00):
Tracy Brown is the chair of Dairy and Zed. She's
a wye gado farmer farming at Madamata, just near Hobbiton. Tracy,
I was having a winch to you in the commercial
break about having to do a fire warden drill evacuation
this morning. And that's a towny, first world problem, but
at this time of the year, very very serious issue
on farms. You were talking about the need to have

(00:22):
your fire extinguishers and all that up to speed because
you've got the bloody birds nesting under your tractor hoods.
Good afternoon, Good afternoon, Jamie.

Speaker 2 (00:32):
And that is right, and farmers should be lifting their
bonnets and making sure that the safety equipment is up
to speak as it should be.

Speaker 1 (00:42):
Well, let's lift the bonnet on the return on investment
in the dairy industry. Apparently Dairy and Zed has a
report out next week. Don't blind me with numbers here, Tracy,
But is dairy farming still a good gig at nine dollars.

Speaker 2 (00:57):
Fifty dairy farming as a good gig, Jamie. You will
have seen on our website the break even melt price
is eight sixty eight. So even though you know the
malt Fronteio and Milt price has just been revised down
this week. You know, farmers are stole making money. It
was a record high last year it I think it

(01:20):
was ten dollars sixteen. So nine dollars fifty is, you know,
still a good price just in terms of the return
on investment piece that was specifically around Darien said, And
because we've got a levy vote coming up next year
leading into that, we always get an independent analysis just
to have a lock at whether Dariens has been making

(01:40):
wise use of the levy investment or not. And this
return on investment report will come out next week for
farmers to just sort of have a look at some
of the projects that we've been investing in and sort
of what those returns are. But just very high level,
and I know you don't like too many numbers, Jamie,
but very high level. Of the eight hundred and forty

(02:01):
one million Levy invested between twenty and twenty five in
about ninety two projects that return two point nine to
eight billion of value for farmers, which is around about
twenty sixteenths per kilogram of monk solids or one hundred
and eighty seven dollars per heat there, so we believe

(02:21):
that's that's a wise use.

Speaker 1 (02:23):
Hey, you talked about the break even price from Dairy
and Z at eight dollars sixty eight. I was talking
to Mike McIntyre from Jardin yesterday because he's the guy
who gives me the future's numbers. And not surprisingly, the
futures market is sitting bang on nine dollars fifty for
a milk price for this current season, which is where
Fonterra and most of the industry commentators are. But and

(02:45):
I know there's a lot of water to go under
the bridge or through the cow shed wash till next season.
But twenty six twenty seven, the futures market is currently
sitting at eight dollars sixty eight, which would be your
break even price. So under that's farmers theoretically wouldn't make
any money. But I'm putting, I'm suggesting to you, with

(03:05):
falling interest rates the biggest on farm cost, surely the
cost of running a dairy farm has to go down.

Speaker 2 (03:12):
You would expect that decrease and interest rights to flow
through to farmers, Jamie. Some may not have received that
benefit yet, but it will flow through. And as you say,
there's a huge part that of those expenses on farm.

Speaker 1 (03:28):
Next week you've got a big dairy conference, a Precision
Dairy Conference in christ Church. Give me thirty seconds on this.
Why should people go as or is it too late
to register?

Speaker 2 (03:38):
It's not too late to register it. There's a special
website called Precision Dairy Farming Conference dot nzed all one
word and so farmers can go on near royal professionals
as well and register. It's from the theater to the
fifth of December. So it's an international conference and Dairy
en Z has having a tune at hosting it this year,
so there's people coming from twenty two countries and it's

(04:00):
a really unique opportunity, Jamie, to see what leading researchers
and technology manufacturers are doing in terms of sort of
practical solutions in the innovation space across animals, feed nutrients, environment,
people and it's about how we can improve our decision

(04:21):
making and accuracy. So I'm really looking forward to it.
It's going to be a great couple of days.

Speaker 1 (04:26):
How's the season going on? Like can I Well, we had.

Speaker 2 (04:29):
I think last time I talked to you, we'd had
some quite cold late weather in late September early October,
so grass growth is a little bit behind where it
would normally be. I'm actually in Southland yesterday and today,
Jamie and I think last time we spoke, but just
had the big storm down here and I've just come
down for a couple of events discussion growth today and

(04:51):
a home growth feed event yesterday. So good to see
how farmers are going down here. Obviously still a lot
of work to go, but you know, grass is growing.
The sun's been shining, so unpleased, you know in.

Speaker 1 (05:03):
That regards as you'd expect in God's own farming province.
Tracy Brown, enjoy the rest of your day in Southland,
how could you not. And safe travels home to Madamatta.

Speaker 2 (05:13):
Thanks very much, Jamie,