Dairy Farmers' Preference for Imported Feed Threatens NZ Grain Industry
New Zealand arable growers are facing weaker demand as dairy farmers opt for imported feed due to higher transport costs. Domestic grain from the South Island is being disadvantaged by shipping, rail, and handling charges that raise its delivered price.
Andrew Darling, an arable operator in Mid Canterbury and vice-chair of the arable sector at Federated Farmers, described the market as 'pretty disappointing'. He noted that domestic grain supply does not match the pattern of demand from dairy farms in other parts of New Zealand.
The lower landed cost of imported commodities has pushed down domestic feed-grain prices to levels close to or below the cost of producing the grain locally. This price pressure has reduced cash flows for arable farms and made it harder for them to compete with imports.