New Zealand facing reduced dairy herd and milk output

Could the dairy landscape be about to change dramatically in New Zealand

The dairy landscape may be about to change dramatically in New Zealand as environmental constraints impact on the sector.

The basic foundations of New Zealand dairying could be reshaped in the near future, according to Ian Proudfoot, the Global Head of Agribusiness with KMPG.

The New Zealand-based analyst told the Agricultural Science Association (ASA) conference that the Kiwi government has a strong green component in it and issues such as the quality of rivers are now to the fore in the political agenda.

He said the impact of nitrogen and water quality is impacting government plans to move towards regulating water standards and he warned that New Zealand farmers face a future of having less cows on their farms.

“The government has indicated that its plans are to move quite quickly towards regulating water standards and farmers having to have less cows on their farms.

“The big picture for us is that new Zealand will have less cows and produce less milk in the future. So we have to think about how we use our products.”

He also predicted that there will be mo more mega driers built in New Zealand and that the real focus will be on value add with dairy products.

He also said that some industry commentators are saying that Fonterra may not need to exist and that the dairy industry will be about a low carbon future.

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Consumers, he said, want diets that have more variety in them and the food producing sector must react to this.

“We’re moving to a food system that’s integrated with health care, pharma companies are coming into your space and will change how things are.”

But he said that such disruption presents opportunities for the sector. “The consumer has to be understood and you get rewarded on the solution to bring to them.”

He also said that the sector should not be overly concerned by veganism.

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