Our sister internet site www.interest.co.nz has been running a blog on this subject and has had a large response on this issue. With our site agriculturally based I thought it important to encourage our readers to view this discussion and comment whether this perspective is fair. Look here https://www.interest.co.nz/ratesblog/index.php/2009/06/19/big-problems-with-big-dairy-herds-tell-us-what-youve-heard-or-seen/ and give us your feedback to confirm or deny these issues with big dairy farms. Now over 90 responses from the urban site, is this picture they are painting as bad as it sounds?? Ag Minister John Carter on the Farming Show today said 1 or 2 farmers may be in trouble???!!!!!! If Colin Ridens figures are right the average debt of dairy farms is $21/kgms . Using 2007/08 dairy industry figures the average 351 cow herd produced 307kgms/cow which will produce 107000kg/ms/farm. If the average debt is $21/kg/ms this would equate to $2,262,897 of debt. If that debt could be funded with an interest rate of .085% this will cost over $192,000 per year interest only. This equates to $1.78/kg/ms and if deducted from the projected $4.55 leaves just $2.77 for costs to break even. The Lincoln University Dairy farms farm working expenses last year were $3.37!!!!!
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