New Zealand has announced it will spend an extra $100 million to get the dairy industry pumping milk.
Key points:NZ farmers are hoping to tap a lucrative milk market in Australia’s northern states, where demand for milk has soared over the last decadeDespite the announcement, farmers are still fighting the drought, which has seen some of their supply cutNZ farmers have had to ration their supply in recent months due to a severe drought.
The Government has already announced $30 million in funding to help the dairy sector, and has promised another $25 million to boost dairy farmers over the coming years.
It comes as dairy producers around the country continue to struggle to meet growing demand.
There are more than 3,000 dairy farms in New Zealand, but there are only a few thousand of them, and they are largely run by family farms.
Many of them have been left struggling with supply shortages, with some farms reporting that their production is running at around half the normal level.
In some areas, the milk supply has dwindled significantly, leading some to switch to pumping at a lower rate of milk, which reduces the amount of milk being produced for sale.
Farmers in the southernmost parts of New Zealand have had little to no milk supply for some time, but farmers in the northernmost regions have had a lot of milk supply available, with more than 1,500 farms operating.
The Department of Conservation and Environment (DOC) has said it wants to give more than half of the farms in the Northern New Zealand region a boost in their milk production.
The dairy industry is not the only area of New Zeland experiencing shortages.
The national dairy sector is also facing a severe shortage of milk.
In July, the National Farmers Union (NFU) released a report saying that over 50% of the dairy farms operating in the country were at risk of being closed in the next year due to low milk supply.
The NFU also revealed that a total of 1,828 farmers were in the process of closing their dairy farms, and it has estimated that about a third of Newzealands dairy farms will close by the end of the year.
It’s estimated that there will be a further 1,000-1,500 dairy farms closing by the year end.
Farm supply is key to the health of New South Wales, which produces around 40% of Australia’s milk.
The drought has also impacted on New Zealand’s dairy industry.
In recent months, the dairy production in New South, Victoria and South Australia has suffered.
The New Zealand Dairy Association has warned that it will have to stop producing milk by 2019.
It is hoped that the Government’s $50 million funding will help fill the gap in dairy production.
Topics:government-and-politics,farm-industry,dairy-production,drought,industry-and/or-finance,government-offices,new-zealandFirst posted February 06, 2019 13:50:51Contact Emily Young