Early Bird I Friday April 11th 2025

Farmers get certainty with new DairyNZ levy structure, new report highlights forestry conversion concerns, and wool prices slip in latest South Island auction.

Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather!

 

Farmers get certainty with new DairyNZ levy structure

DairyNZ will increase its levy rate to 4.5 cents per kilogram of milksolids from June next year, the first adjustment in 16 years. The organisation plans to maintain this rate for at least three years, providing farmers with financial certainty following an extensive nationwide consultation that generated over 1500 submissions.

The revised levy will fund continued support for dairy farmers through science, research, policy advocacy and on-farm extension services. DairyNZ Chair Tracy Brown says the board carefully balanced different farmer perspectives with the organisation's financial sustainability and the need for sector resilience.

In response to farmer feedback, DairyNZ is implementing improvements in engagement, transparency around levy spending, and ensuring research programmes sharply focus on productivity, resilience and sustainability. Brown emphasises that DairyNZ is uniquely positioned to provide independent scientific research specifically for the dairy sector.

The organisation has already cut costs by $5.5 million in the past year while refocusing on high-value projects. Over the next three years, strategic priorities include accelerating on-farm productivity, creating more adaptable farms, and enabling sustainable competitive dairying.

 

New report highlights forestry conversion concerns

A new report from the Parliamentary Commissioner for the Environment has validated long-standing concerns about mass conversion of productive farmland to carbon forestry. The report warns current Emissions Trading Scheme settings are driving widespread land-use changes with serious environmental, economic and social risks.

Beef + Lamb New Zealand Chair Kate Acland says more than 260,000 hectares of sheep and beef farmland have been purchased for forestry conversion since 2017. Every 100,000 hectares planted represents nearly one million stock units lost, significantly impacting export earnings, rural businesses and communities.

Acland warns a buying rush is underway as investors look to beat upcoming government restrictions on which land classes can enter the ETS. Climate Change Commission modelling suggests New Zealand is on track to convert more than 900,000 hectares to mostly exotic forestry by 2050.

While B+LNZ welcomes the Commissioner's recommendation to phase out forestry offsets for fossil fuels, the industry strongly opposes proposals for a biogenic methane trading scheme. Acland points out the sector has already reduced methane emissions by 10 percent since 2017 through stock reductions from existing forestry conversions.

 

Wool prices slip in latest South Island auction

The South Island wool market has seen further deterioration with prices for most categories falling at yesterday's auction. The sale, which cleared 77% of the offering, showed buyers remaining highly selective in a market affected by ongoing global instability.

PGG Wrightson South Island Auction Manager Dave Burridge reports less stylish types and lamb's wool were hardest hit, with crossbred second shear in the 50-75mm length category dropping 6% for average style wool. Good style crossbred fleece showed more resilience with only a 1% decrease, while poor style wool surprisingly gained 4% to reach $3.60 clean.

Better prepared and more stylish types continue to find favor with buyers despite the challenging conditions. The South Island Str