NZ dairy herd rose last year as other livestock numbers fell

Tuesday 10th February 2009

New Zealand's dairy herd grew to a record size in the year to June 2008, reflecting surging prices and farm conversions, according to Statistics New Zealand.

Dairy was the only livestock type to climb in the latest year, with the national sheep flock sinking 12% to 33.9 million, the lowest level since 1950, according to the Agricultural Production Statistics, released today. Beef cattle numbers fell 6% to 4.1 million as at June 30 last year.

The changes to national livestock numbers highlight the roller-coaster ride for farmers as dairy prices have tumbled from their record highs of last year while prices for lamb have picked up from the doldrums. Fonterra Cooperative Group last month cut its forecast milk payments for the 2009 season to NZ$5.10 a kilogram, some 35% below the record NZ$7.90 it paid last season.

Fonterra blamed a drop in world prices for dairy products as the global economy stumbled. By contrast, prices for sheep meat have climbed as Australia rebuilds its flock after drought and the U.K. flock dwindles.

The data also indicates livestock numbers will be slow to respond to changing market prices because of a reduction in breeding stock. Some 23.4 million breeding ewes, two-tooth and older, were put to ram last year, down 10% from 2007. The 30.9 million lambs tailed were the lowest since 1960. In dairy, the ratio between the replacement herd and the milking herd climbed to 26.9% from 22.5% in 2005, according to the government statistician.

Total deer numbers fell 14% to 1.2 million, the lowest since 1994, with an estimated 596,900 female deer mated in the latest year, down 12%.

The area of exotic forest harvested rose to 42,100 hectares in the 12 months through March last year, up from 40,800 hectares in 2008.

The wheat harvest was 345,300 tonnes in 2008, up slightly from 2007's 344,400 tonnes. Barley tonnage jumped 22% to 409,200 tonnes and maize grain rose 13% to 210,400 tonnes.

By Jonathan Underhill

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