Substantial support for premium dairy genetics, and rising cow price through forward herd sales underscore sector positivity.

Confidence in dairy is strong.

Despite some falls in Global Dairy Trade auctions during April, and ongoing geopolitical uncertainty, Fonterra recently lifted its 2025/26 payout to $9.70. Meanwhile New Zealand’s milk production is rising: as of late March it was 19.8 million metric tonnes, up 3.35 per cent compared to the same point in the previous season.

Farmers are positive and assured in their outlook. Trade in dairy livestock is responding accordingly.

Among several recent sales featuring premium dairy genetics, the biennial Busybrook, Duntroon, North Otago sale of Nathan and Amanda Bayne in early April comprised 144 pedigree lots with a top price of $40,000 and an average of $11,600. Buyers attended in person and via bidr from all parts of New Zealand and throughout Australia, as well as the United States and Asia.

Another outstanding April sale, held by Warren and Michelle Ferguson of Ferdon Genetics, Waikato, offered 68 top echelon lots consisting of in-calf and unjoined Jersey heifers. Top price of $25,000 was paid by a Jersey breeder based in the United Kingdom and the sale average was $5270.

This season’s forward herd sales, for settlement on 1 June, have curtailed. Due to an increased dairy footprint through conversions and dairy farmers expanding their operations, more herds transacted than in recent years. In a busy market the price per dairy cow lifted approximately $800 on the previous season. Because prices for land and livestock are so strong at present, several farmers are deciding that this is a good time to exit the industry.

Making the most of the increased payout, many farmers have continued milking longer this season too. As herds dry off, cull cows are now coming forward for processing in greater numbers, subject to space in the schedules.

April is a busy month for stock inspections and sales ahead of the traditional heifer settlement and delivery week in the first week of May. This is followed by the dairy herd settlement and delivery week of 1 June, traditionally the dairy calendar’s biggest day.

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