New Zealand Sustainable Dairy Farm



Dairy farmers are profoundly energetic to strengthen their own organizations furthermore, help manufacture a superior future for New Zealand. Worldwide dairy markets offer significant development and esteem creation opportunities throughout the following decades. Individual agriculturist activity furthermore, industry activities are as of now doing some of what should be done to catch these open doors, be that as it may, more should be possible especially in working for the advantage of all New Zealanders.

The strategic vision is ‘dairy farming working for everyone’. To accomplish this vision, dairy farming must be focused and mindful. Protecting furthermore, improving New Zealand dairy farming’s upper hand is a proceeded with exertion, expanding on past systems and focussing on the key territories that have any kind of effect to the monetary performance of dairy farming. Dairy farming must likewise address its duties inside and outside the cultivate door. A dependable dairy cultivating industry is one which illustrates great stewardship of assets, recognizes its obligation of care to individuals what’s more, creatures, and which assembles a superior New Zealand through the commitments agriculturists and the more extensive industry to New Zealand society.

This document outlines key destinations adjusted to being competitive and responsible. Meeting these objectives will make a more sustainable future for dairy farming in New Zealand.


According to Business Dictionary

Analysis of how scarce resources (‘factors of production’) are distributed among producers, and how scarce goods and services are apportioned among consumers. This analysis takes into consideration the accounting cost, economic cost, opportunity cost, and other costs of resources and goods and services. Allocation of resources is a central theme in economics (which is essentially a study of how resources are allocated) and is associated with economic efficiency and maximization of utility.

Definition of Resource Allocation

Resource allocation is a process and strategy including an organization choosing where scare resources ought to be utilized as a part of the production of goods or services. A resource can be considered as any factor of production, which is something used to deliver products or services. Resources include such things as labour, land, machinery, tools and equipment, technology, and natural resources, and monetary assets, for example, money.

Resource allocation is the process toward assigning and managing assets in a way that supports an association’s strategic objectives.

Resource allocation includes managing tangible assets, for example, equipment to make the best utilization of softer assets, for example, human capital. Resource allocation includes adjusting competing necessities and priorities and deciding the best strategy keeping in mind the end goal to maximize the successful utilization of limited resources and gain the best rate of return.


About the NZ Dairy Industry

Fast Facts

  • New Zealand represents 3% of aggregate world production
  • New Zealand exports around 95% of its dairy production
  • In the year to June 2016, dairy was New Zealand’s biggest export segment (18% of aggregate products and service exports)
  • New Zealand exported NZ$ 12.4 billion worth of dairy products in the year ending June 2016
  • The main five markets for New Zealand dairy exports are: China, United States, United Arab Emirates, Australia, Japan
  • New Zealand’s main four dairy export products are: whole milk powder (37%), cheese (12%), skim milk powder (10%), and butter (9%)
  • Protein products, UHT drain, and new-born child recipe represented 21% of New Zealand dairy exports in 2015, up from 16% in 2013

Dairy is a part of New Zealand Heritage

New Zealand’s first dairy processing plant was built up around 1875 and the principal export shipment of refrigerated butter left Dunedin in 1882. Since this time, the industry has taken after a way of development and combination, culminating in the Dairy Industry Restructuring Act 2001, which sets up the current regulatory framework for the industry.

New Zealand’s delivers an extensive variety of dairy products. Milk powders are a substantial part of the product mix, mirroring the sharp regularity of New Zealand milk production, distance from market, market access and demand flow, and New Zealand’s skill in milk powder producing. New Zealand dairy organizations are trusted providers of a full scope of dairy products, including of high esteem dairy nutritional products, specific dairy ingredients for food service, and new-born child recipes.


Budget allocation is a critical part of all business and not-for-profit financial plans. Budgets are ordinarily set every year and include allocating anticipated income and resources between various divisions and business interests. The amount of funding allocated to every area forces limitations on the extent of the department’s development. For instance, if there is a reduction in financing, then some staff must be made excess.

DairyNZ has developed straightforward budget formats and guides.

A cash flow outlines your month to month financial circumstance. It estimates; on a month-by-month basis, what salary you expect and what you anticipate spending. Effectively utilizing a financial plan during the season gives you a chance to monitor progress and make restorative move where essential.

Annual Cash Budget

An annual cash budget point of cash received and cash costs going out. It indicates if the business is sustainable and estimates any cash surplus or deficiency for the season.

Monthly Cash flow Budget

A cash flow budget traces your month to month finance related circumstance. It estimates; on a month-by-month basis, what income you expect and what you anticipate spending.

Personal Cash Budget

A personal cash budget is for any individual who needs to know where their cash is going. Finishing a personal budget gives more prominent control over personal expenditure and gives you a chance to figure out where reserve funds could be made for large items, for example, abroad occasions, or to develop an aggregate of cash for future investment or retirement. It is especially valuable for agriculturists on a wage or pay.

Partial Budget

Partial budgeting is a basic planning tool used to estimate the monetary benefit or loss by changing some part of the business or making a “partial” change to the farm system.


Water Meters and Monitoring

Water meters are the best approach to monitor water utilize. They can detect little breaks and losses and are a successful approach to track occasional and annual consumption.

A basic water meter (costing about $350) will help detect where water can be saved and recognize water proficiency choices on-farm. They are a profitable element of any farm taking a stab at sustainable water utilizes.

Monitoring Water Meters

Read meters in the meantime and day on a general timetable to guarantee readings are predictable. Readings can be recorded on DairyNZ’s.

At any rate once every month, read the meter late at night and again early the following morning, to check for little or unnoticed breaks.

Assigning meter-reading obligation to one individual makes it a player in a routine and diminishes the chance of it being overlooked.

Tracking Trends

Record meter readings consistently to track regular and yearly homestead water utilize. The business assesses that average water use for draining bovines is around 140 liters/day (70L for drinking and 70L in the homestead dairy).

Climate conditions and encourage will influence stock water consumption. On the off chance that general water use on the ranch consistently surpasses 140L/day, it merits having a more critical search for conceivable water misfortunes or wasteful aspects in operation.

Selecting a Water Meter

Introducing a water meter permits you to record genuine water utilize and distinguish regions where water can be utilized all the more proficiently.

Water system New Zealand’s Water Measurement ‘Blue Tick’ licensed administrators are suggested for establishment of water meters and can give exhortation on the most appropriate alternative.

Types of Water Meters

There are two fundamental sorts of water meter accessible to monitor shed water utilize; mechanical and electromagnetic. The cost and varies shifts between these meters. When all is said in done mechanical water meters are the least expensive in advance however require prior substitution and have poorer exactness than the electromagnetic.

Mechanical Water Meter

Most mechanical meters have an impeller that is pivoted by water going through the meter. The measure of turns is meant a volumetric perusing. The meters are accessible in different sizes and the funnels either side of them, must be brimming with water amid measuring to guarantee they are precise.


  • Reliable and accurate estimation giving the meter is accurately installed.
  • Moderately low introductory cost contrasted with electromagnetic
  • In-line support with basic productive component.
  • Replacement for parts (e.g. impellers) promptly accessible.


  • Hard to recognize breakdown or human impedance to meter while working if worked with an information lumberjack.
  • Inclined to wear in salty water, conceivably bringing about loss of exactness.
  • Some head loss qualities.

Electromagnetic Water Meter

An electromagnetic meter comprises of a segment of pipe with an attractive field around it and cathodes which decide stream in view of how the electrical voltage is changed by the water stream.

This sort of meter is delivered in a scope of standard sizes and flow capacities.


  • High level of exactness (+/ – 0.15-2%) and steady over full stream go.
  • Wide flow extend and no obstacles to stream.
  • Vigorous with insignificant routine upkeep required.
  • No moving parts.


  • Control supply required.
  • Electronic parts powerless against lightning harm.

Installing a Water Meter

Water Meter Placement

For the most part, water meters ought to be fitted:

  • After a water channel, to keep away from coarseness in the water which causes wear on the meter
  • Prior to any compound infusion, for example, fertigation.
  • Prior to any outlets so that the whole water yield is measured.

Most meters should be fitted in a long straight length of pipe. Meters won’t record the water stream precisely if stream is influenced by turbulence or discharge brought about by twists or intersections.

The length of straight pipe before the meter ought to be 10 times the pipe measurement.

The length of straight pipe after the meter ought to be five circumstances the pipe breadth (see chart underneath). Not all meters require this straight length of pipe to capacity, check the maker’s particulars of the meter.


Inside your crowd there will be an expansive scope of draining lengths; a few bovines with short draining terms to some with long. The most well-known is around 6 minutes. In the event that the turn time was set at around 10 minutes, then, contingent upon the season of year, around 7% of the slowest draining bovines would ‘go around’.

Speeding up the Rotation Time

Traditionally, agriculturists have gone for under 10% of cows ‘going around’. In the event that over 10% required a moment turn, the stage speed would be decreased to give the dairy animals longer to drain.

In fact, ‘go around’ dairy animals don’t adversely influence the quantity of bovines drained every hour and going for fewer than 10% will regularly confine the stage throughput.

Try not to stress over releasing dairy animals ‘around’. Set the turn time in light of the capacity of the ‘mugs on’ administrator. It’s ideal to continue measuring at a sensible rate all through draining, as opposed to put undue exertion or strain on the body attempting to keep up a debilitating pace.

Numerous revolving administrators utilize the quantity of ‘going around’ cows as the criteria for setting pivot time yet this can regularly confine proficiency.

How is Speeding up more efficient?

The condition underneath shows which is more productive.

Normal bunch sit out of equipment time for 10 min revolution; (3.6 minutes + 0.7 minutes) = 4.3 minutes.

Normal bunch sit out of gear time for 8 min revolution; (1.8 minutes + 1.5 minutes) =3.3 minutes.

  • Lessening bunch sit out of gear time or over-draining will enhance draining productivity. For the 10 minute turn in this case, there is less group sit without moving time utilizing a shorter revolution time with more ‘go-around’ bovines than a more drawn out pivot time permitting less ‘go around’ cows.
  • In a 50 safeguard turning utilizing this 10 minute pivot, each group would be sit without moving for 3.6 minutes because of cows that have completed the process of draining holding up to exit and 7% of safeguards would be utilized for ‘go around’ dairy animals – a likeness an additional 0.7 minutes of sit out of gear bunch time.
  • Shortening the turn to 8 minutes would diminish bunch sit out of gear time to 1.8 minutes in light of the fact that for most cows they are completing the process of draining nearer to the exit, yet now 19% of safeguards would be involved by a ‘go around’ dairy animals so this sit time would increment to 1.5 minutes.
  • Administrators ordinarily utilize a similar turn time paying little mind to revolving size. A greater rotating will mean less administrator time for each safeguard. As the speed builds, so does the rate of ‘go around’ dairy animals.
  • At the point when the revolving achieves the point where 20% of cows are ‘going around’ it is for the most part not more productive to accelerate the stage and abbreviate the turn time (yet it not less effective either).


The cost method commands that the investor account for the investment at its historical cost (i.e., the price tag). This data shows up as a benefit on the accounting report of the investor.

Once the financial specialist records the underlying exchange, there is no compelling reason to change it, unless there is proof that the honest estimation of the speculation has declined to underneath the recorded authentic cost. Provided that this is true, the financial specialist records the recorded cost of the venture to its new honest esteem.

1.Average Salary

Taken truly, the average salary of a specific position is the scientific “signify” of the pay rates surprisingly utilized in that position. This number is figured by including every one of the pay rates of individuals working in the position and after that isolating that total by the quantity of individuals working in the position. The number got is the “normal” salary. Most associations that track vocation pay rates, for example, Pay scale, ascertain this number through a testing of individuals.

2.Productivity Costs

A financial estimation used to anticipate future examples of expansion in the United States economy. The profitability estimation tracks the productivity of merchandise and ventures creation, and the cost estimation shows the work cost joined to each yield unit in the economy.

3.        Training Costs

Educational planning for playing out a vocation that is ordinarily given to staff by the business that has as of late enlisted them before they get to be distinctly dynamic in support of the organization. Worker preparing is progressively required to help the work constrain in utilizing current systems, apparatuses, procedures and materials in their occupations.

4.     Recruitment Costs

The Society for Human Resource Management offers an exhaustive record specifying the Cost-per-Hire Standard, an American National Standard for human asset administration.

This Standard is composed as an apparatus to permit an association to decide precise and similar expenses to staff position utilizing standard information and equations to compute the enlisting expenses to be joined into cost-per-contract.


The drought can be viewed as “broken” just when there has been sufficient rain to take the dirt to inside around 15% of field limit. That by and large means more than 50mm. Until then arrangement to get past in the most ideal shape.

Have a plan in place

Planning is critical to dealing with a dry summer. A good plan will decrease stress and guarantee that the dry summer won’t effect on the accompanying season’s creation.

A Summer Management Plan will amplify benefit and lessen worry in a dry summer.

It may not be anything but difficult to foresee when it will rain, however an arrangement gives the system to what choices should be made and when. The arrangement should be explored as conditions change.

Take Action Early

Dry-off Poor Performers

It is better to put scarce feed or costly supplements into bovines that are creating great. The others will eat significantly less when dry, and you may have the capacity to graze them off.

Use Supplements Wisely

Most importantly reserve 10-14 days of supplement for the period after rain (approx. 100kg/DM/bovine); progressively if extreme dry season, less if C4 grasses will develop after rain. There will be a great deal of field rot as of now and you require something to keep your dairy animals going and to keep the turn ease back to develop encourage supplies.

Nourishing supplements keeps creatures underway longer than would somehow or another is conceivable. However supplements can expand stock water rates. Consider giving water in the yards lessen the requests to diminish the request on troughs in the enclosure subsequent to draining.

Abstain from utilizing harvest time/winter supplements if at all conceivable. Utilize them just if all else fails in the wake of getting dry the whole group.

The productivity of sustain supplements relies on upon the persist reaction of having bovines in drain when it rains (the more drawn out the dry season, the lower the reaction) and the cost of supplement with respect to drain cost.

When bolstering supplements guarantee that stock have enough water as the request may increment. Consider giving water in the yards to decrease the request on troughs in the enclosure in the wake of draining.

Consider Milking Once-a-Day (OAD)

Milking OAD or once at regular intervals are great alternatives to take the weight off dairy animals when bolster supply is constrained. OAD reduces the weight on bovines strolling to the shed, and can expand the time accessible for sustaining out. The effect on drain generation will be subject to the creation of the cows, their genetic merit and the feed available.

Review the Plan

Monitor Farm and Rainfall

Review the arrangement consistently to 10 days (precipitation, nourish cover, supplement, generation).

Check dairy animals condition routinely (every 3-4 weeks), especially the 2 and 3 year olds, and get them dry in light of their condition score and days from calving, sustain accessible, winter field development rates and expected calving date.

Set up Next Season

Dry-off a greater amount of the crowd if required

Would it be gainful to continue draining an extent of your best makers and touch the rest off? Or, then again would it be ideal to get dry the entire group and oversee them all alone property? In what capacity will you keep up or enhance their condition so that next season’s creation is not influenced?


Planning for Success

Most activities which enhance the effectiveness of changing over farm contributions to milk are certain for the farm business financially and naturally. Go for a win outcome- embracing great practice enhances the productivity of your cultivating business and has enhanced natural outcomes.

The accompanying planning objectives are fundamentally focused around the ecological parts of a dairy change. Here are four focuses to consider:

Allow Plenty of time for due diligence

Permit time to talk with the greater part of the associations recorded in the Information Gathering stage, different agriculturists who have effectively finished a dairy transformation, and in addition proficient experts.

Be set up to put resources into data gathering e.g. soil mapping by experts – data which will empower you to completely evaluate the land’s potential reasonableness for dairy cultivating and gushing water system.

Putting it in writing

The old adage, “neglect to plan- plan to come up short” may seem to be accurate. Expressly stating plans (or drawing/schematic) permits you a chance to think about your thoughts, perhaps distinguish any contentions or shortages, and make it a great deal less demanding to impart your thoughts to staff and others you are working with.

Having a detailed timeline is an imperative piece of accomplishing the objectives of the transformation. Inability to do this, could bring about overwhelms in capital and time, and missing due dates, i.e. the begin of the season.

Connecting with contractual workers and tradesmen with a composed contract with concurred results, costs and time spans, in view of your arrangement is beneficial. Unified Farmers can give a scope of format contracts.

Have a dedicated project manager

A devoted project manager is fundamental for executing a change plan, whether this is the farm proprietor or director, or a procured proficient project supervisor.

Their part is basic to keep the project inside time and spending limitations, to ground-truth what is going on the ranch, and keep temporary workers on timetable amid the transformation.

Correspondence is principal, the venture director needs to stay in touch with everybody who has been appointed obligations, and also keeping different partners, for example, staff, speculators or invested individuals educated.

Utilize the help, advice and tool of experts

There is the wealth of learning and innovation officially accessible for agriculturists wishing to change over to dairy. Cases incorporate proficient homestead mapping and ranch architects.

Pro specialists, who have worked with other ranch changes, might have the capacity to do a considerable measure of your arranging and proposition for you. In any case, getting the correct proficient and administration is essential, “the quality is recalled, long after the cost is overlooked”.

The time that a qualified and legitimate proficient can spare you, and the esteem they can include, in contrast with the cost of their administrations can make them a decent speculation.


The Five Production Systems are an approach to group farm production frameworks by allocation of imported feed.

As New Zealand peaceful farming is about profitably balancing feed supply and demand, five production frameworks have been depicted by DairyNZ basically on the basis of when imported feed is encouraged to dry or lactating cows during the season and furthermore by the measure of imported feed as well as off homestead grazing. The definitions do exclude touching or feed for youthful stock.

Framework 1 – All grass independent, all stock on the dairy platform

No feed is imported. No supplement fed to the crowd with the exception of supplement gathered off the compelling milking area and get cows are not nibbled dry the successful milking region.

Framework 2 – Feed imported, either supplement or grazing off, fed to dry dairy cows

Approx. 4 – 14% of aggregate feed is imported. Substantial variety in % as in high rainfall areas and cold atmospheres, for example, Southland, a large portion of the dairy cows are wintered off.

Framework 3 – Feed imported to extend lactation (regularly autumn feed) and for dry cows

Approx. 10-20% of aggregate nourish is imported. Westland – feed to extend lactation might be foreign made in spring as opposed to autumn.

Framework 4 – Feed imported and utilized at both ends of lactation and for dry dairy cows

Approx. 20 – 30% of aggregate feed is imported onto the farm.

Framework 5 – Imported feed utilized all year, all through lactation and for dry dairy cows

Approx. 25 – 40% (yet can be up to 55%) of aggregate feed is imported.

*Note: Farms feeding 1-2kg of meal or grain per cow every day for the majority of the season will best fit in System 3.


Wise use of Natural Resources

New Zealand dairy agriculturists have contributed greatly to the preservation and utilization of New Zealand’s common habitat. Numerous beautiful parks, saves and recreational trails all through the nation have been created with dairy agriculturists’ help and as a result of their energy for preservation. Numerous dairy ranches have widely planted less profitable parts of their homesteads in local vegetation or potentially improved planting to ensure delicate conduits and wetlands. Like most New Zealanders, dairy ranchers are turning out to be progressively mindful of the total impacts of changes in arrive utilize. The obligation of person farmers and land-proprietors is to work proficiently and mindfully, in this way having the ideal ecological impression.

Innovative Technologies

NZ dairy farming is to a great extent in light of very effective broad peaceful brushing frameworks. This is an aggressive advantage, additionally a potential risk seeing that New Zealand is little on a worldwide scale. The considerably bigger dairy businesses of the northern half of the globe, which are normally based around housed frameworks, order far more prominent interest in regions, for example, hereditarily designed encourage products and dairy computerization to suit those frameworks. There is potential for troublesome advances in these advances to essentially change the playing field, and challenge New Zealand dairy cultivating’s aggressiveness.

This goal is gone for creating or catching new information to push out the limits of what is in fact achievable on homesteads, and making these advancements available to dairy ranchers.


The result recommend that great feed management of field, when contrasted and poor, can increment operating profit by $176/ha at a milk price of $3.65. As a general rule, most administrators will fall between these two classifications – great and poor management- and field monitoring exercises will perpetually be affected via seasonal workload. Additionally, the quality of field mass evaluations will shift contingent upon how these are directed as well as the ability of the assessor. In any case, this review indicates that the expenses related with time and effort required for touching administration are little in examination with potential gains in operating profit.

REFERENCES and-costs.html