New Zealand Shifts to Domestic Grain for Dairy Feed Security

New Zealand’s agricultural sector is exploring new ways to strengthen feed security by promoting locally grown wheat, barley, and maize as supplementary feed for dairy herds. The initiative aims to provide arable farmers with a more stable domestic market while reducing the reliance on imported bulk supplements. About 75% of the country’s wheat and barley is already used as animal feed, making it a logical choice for integration into dairy farming systems.

The partnership between grain growers and dairy businesses is particularly evident in Canterbury, where mixed farming systems allow cropland to support nearby dairy farms. Cereal grain provides essential starch and helps maintain dry-matter intake during summer feed shortages. Crop rotations involving dairy land also improve soil structure and nutrient distribution between arable and grazing systems.

Traditionally, dairy farms have imported large quantities of palm-kernel expeller and soybean meal, exposing them to shipping interruptions and commodity price fluctuations. Recent life-cycle assessments of domestic grain are helping dairy producers meet sustainability requirements, including scope-three emissions reporting. Domestic grain is being evaluated for its lower greenhouse-gas and transport footprints compared to imported supplements.

Arable farmers are facing rising costs for machinery, fertiliser, and compliance, while farmgate grain prices remain stagnant. Longer-term agreements between grain producers and dairy businesses could reduce reliance on intermediaries and improve cash-flow planning. On-farm bulk silos and regional transport capacity would allow dairy operators to buy grain during harvest when prices are more favourable. Better logistics between the South and North islands are also needed to expand the use of domestic cereals.