Dairy profit record likely

Press, 26 October 1982, Page 1

Dairy profit record likely

PA Auckland The New Zealand dairy industry is headed for another year of record profits in spite of growing butter mountains overseas and reduced sales to the European Common Market. says Federated Farmers. The Auckland dairy section's chairman. Mr Bruce Tolish. said the industry earned about $l5OO million in overseas exchange last year but this would be increased by at least 10 per cent this year. There were record levels of both production and prices for New Zealand dairy products. “The Dairy Board has budgeted to sell an extra 15,000 tonnes this season and this should bring in another $l5O- - million." He said that although the E.E.C. wanted to cut New Zealand's butter quota by 5000 tonnes this year, a much better price would be paid. If the quota was finally set at the expected 87,000 tonnes. New Zealand would get the same amount of money as it would have got last year for 90,000 tonnes. “We are going to have hiccups but the dairy industry is essentially thriving and will carry on thriving and earn a lot of money for New Zealand." The booming returns had halted the long-term decline in the number of dairy farmers and the size of herds. With meat and wool farmers doing badly more farmers were returning to dairying and some record prices were being paid for cows. At recent sales up to $450 was paid for yearling heifers and an average of $lOOO a head for a herd of cows. Dairy Board figures showed that last season the average herd size increased from 129 to 131, bringing the national total to slightly fewer than 2 million, but Mr Tolish thought it would be bigger now.