Waiting game on winter grazing

Dairy farmers are delaying committing to winter grazing contracts with many taking the view graziers were asking too much reports The ODT. Southland consultant Ivan Lines urged both parties to take a longer-term view, to develop long-lasting business relationships and to ensure both parties were treated fairly. Mr Lines said contracts were later in being signed as parties waited for the market to find itself. He said if the price was too low, there could be a shortage of grazing next year but, equally, dairy farmers were finding their cash flows were tight, with many budgeting on breaking even this year. It appears winter grazing contract prices were falling below last year, which, in some cases, reached $34 a week. Early-season agreements last year were between $22 and $24 a week and contracts signed close to winter were between $30 and $34. Sources have revealed that, depending on the stock management agreement, grazing prices for this year ranged from $25 to $28 a week. Part of the dispute stems from the cost of planting crops which coincided with fertiliser reaching record levels. Mr Lines said given tighter budgets, dairy farmers were looking for grazing closer to their farms and that was possible because there was much more available. "There is no shortage of grazing. There are oceans of it." Federated Farmers Southland dairy section chairman Rod Pemberton said he had heard of contracts signed at $28 a week and one at $32 a week, but admitted dairy farmers were resisting paying high rates.