Farmers in for a bumpy ride

Sustainability the key, audience told

Survival is the new word for growth in the dairy industry, says Marilyn Davies of Taranaki accounting firm Busing Russell.

Ms Davies addressed an audience of more than 100 dairy farmers at the 2009 Jersey New Zealand AGM and Conference in New Plymouth yesterday morning.

"We want people to be here next year so you should be looking for every opportunity to make money and every opportunity to reduce costs. While this doesn't mean you need to pack up pine cones and sell them at the gate, you should get your kids to do it," she said half jokingly.

Ms Davies said she had not seen prices fluctuate as much as they had in the previous 12 months, which led her to advise clients to sit tight.

"My theory is put your crash helmet on and focus on sustainable farming."

She said while the forecast payout of $4.55 per kilogram of milksolids was well down on the record payout of $7.90 last year, it was still above the average payout over the past 20 years. "Commentators are hoping Fonterra has been conservative with its forecast," she said.

"They're hoping for $5. I'm hoping for $5 because I have clients that really need it at that."

ABN AMRO Craigs chartered accountant Colin Clarke earlier said the past year had been tough in New Zealand, but the rest of the world had been struggling for longer than that.

He then laid out a controversial piece of advice that found agreement with much of the audience.

"Women make far better investment advisers then men so when it comes to selling your farm and sorting out the dosh, listen to your wives."

- © Fairfax NZ News