Commodities
Dairy Farmers Ditch Domestic Grain as Imports Win Out
New Zealand's arable growers are facing declining demand due to dairy farmers' preference for imported feed.
The South Island's domestic grain supply is being disadvantaged by transportation and handling costs, which make it more expensive than imports.
Dairy farmers operating under pressure on their margins have opted for lower-priced imported feed, including Australian barley, global maize, and palm kernel expeller (PKE).
The increased competition from imports has pushed domestic feed-grain prices down to levels close to or below the cost of producing grain locally.