In a first for the dairy sector DairyNZ, Fonterra, and LIC have combined the data from around 8,000 farms to investigate the link between physical farm performance measures and profitability.
The Emissions and Profitability Project used the three anonymised datasets to identify what distinguishes high-profit farms with lower emissions intensity and what the opportunities are for farmers.
DairyNZ Head of Data Science and Modelling Mark Neal says combining the data from the three partners was unprecedented.
“This is a first for New Zealand and shows our shared vision and commitment for a productive and profitable sector,” he says.
“Our farmers are among the most emissions-efficient in the world, and research to develop ways of reducing emissions is key to helping them maintain that position.”
DairyNZ Chair Tracy Brown says the project found that the key to high profit and low emission intensity is using low footprint feed to achieve good milk production.
“Importantly for farmers, it shows that all farms have opportunities to lower their emission intensity, without compromising profitability,” she says.
Fonterra Strategic Advisor Malcolm Ellis says the data showed farmers with high profits and lower environmental impacts used their resources much more efficiently.
“The efficient and profitable operations were not necessarily on farms that were smaller, square, simple or on the best soil type in the region either. Even farms with comparatively lower pasture growth potential could be low emissions and high profit,” says Malcolm, who is a fourth-generation farmer who spent more than a decade at LIC before joining Fonterra in 2023.
“The project clearly identified the significant benefits of feed utilisation and the key drivers of farm efficiency. It showed that working smarter with what you have can help farms be both more profitable and better achieve environmental goals.”
LIC Chief Executive David Chin says the project demonstrates what can be achieved for farmers through collaboration between industry groups.
“Achieving the right balance between productivity and better environmental outcomes is important for our sector today and for the future. This collaboration is a great example of the industry coming together to give farmers useful insights to help them achieve that balance.”
The research found a few different ways farmers could increase profitability while reducing emissions intensity, including:
- Understanding their farm's data, and where their next opportunity is to increase profit and reduce environmental footprint.
- Growing and using more homegrown feed eaten per hectare.
- Optimising cow performance through better reproduction, cow quality and herd structure.
- Using imported feed smartly, to boost output, not costs.
The research is the first stage of the project with the next phase looking to improve liveweight estimates and deepen the sector’s understanding of the drivers between profit, production, and environmental footprint.
DairyNZ, Fonterra and LIC are working together to share the insights and takeaways with farmers as well as with the rural professionals who advise them. This includes through webinars, podcasts, articles, and other direct-to-farmer channels.
For more information, go to: Emissions and Profitability Project
Media contact
Kahlia McNulty
Senior Corporate Communications Advisor
p: 022 854 2451
e: kahlia.mcnulty@dairynz.co.nz
