Global, Large Scale Dairy Developments
The global demand for milk is growing consistently at 2% per annum 2.5 times the total annual production of NZ and Australia together. The growth in demand for drinking milk, manufactured dairy product, and dairy ingredients is outstripping the global supply. Essentially, for the children of the world’s rapidly growing new middle classes the demand creates a need that the world is currently not equipped to supply. International dairy prices are rising accordingly.
Given that the majority of the world’s milk supply comes from confinement-based operations, the global price of milk will continue to be underpinned by the increasing input costs these operators are incurring. With a positive outlook for higher milk prices, pasture/forage-based grazing systems have an arbitrage opportunity to capture a greater margin, given an inherently lower cost base.
The costs of energy and grain will rise in response to increasing population, dietary change (increasing middle class) and production of bioethanol. This will inevitably mean the cost of confinement systems will also increase, giving pasture-based systems a clear advantage from the correlated milk price increase and a greater profit margin
Industrial agricultural land development utilising the latest technology and research will deliver improved performance and profits. Corporate farmers, dairy processors, regional and national bodies are all recognising the need to secure supply and maximise both the quantity and quality of production. Dairy SolutioNZ (NZ) Ltd offers the pathway to achieving this goal.
New Zealand is a recognised world leader in low cost farm production systems.
Waikato Innovation Park acts as the central partner in a commercial consortium of established agricultural producers and suppliers – Dairy SolutioNZ (NZ) Ltd. This consortium combines the vast experience, technology and delivery capabilities of the AgBio cluster, provides leading edge, low cost, sustainable farm production systems.
We design and build (or convert) large scale farm operations that adopt leading low cost technologies and systems. A feature of our offering is the “Best of Breed” turnkey solutions for large scale land development and technology deployment. We also deliver support and education for ongoing farm operations.
Dairy SolutioNZ (NZ) Ltd Approach
The Dairy SolutioNZ (NZ) Ltd team work with the client to develop and design a commercial model suitable for both parties, combining operation services contracts to achieve the business case, alongside technology acquisitions. A performance bonus share of production beyond the baseline business case ensures both parties work together to strive for optimum results.
Land owners transform land use and returns through applying the knowledge, skills and technologies sourced largely from the Dairy SolutioNZ (NZ) Ltd team. Conceptual business cases indicate a 15% (minimum) return on assets for dairy development in developing nations. Larger scale projects are forecast to achieve still greater returns through economies of scale.
The Dairy SolutioNZ (NZ) Ltd team have demonstrated continuous improvement to farm performance of approximately 2.5% per year in NZ. Our customers benefit from future performance improvement, derived from the NZ community of researchers and developers.