New Zealand Dairy Statistics 2013-14

New Zealand Dairy Statistics 2013-14

Copyright in this publication (including text, graphics, logos and icons) is owned by or licensed to DairyNZ. Other than for the purposes of, and subject to the conditions prescribed under, the Copyright Act 1994 and similar legislation which applies in your location, and except as expressly authorised by these terms and conditions, you may not in any form or by any means adapt, reproduce, store, distribute, print, display, perform, publish or create derivative works from any part of this publication or commercialise any information, products or services obtained from any part of this publication without our written permission. Price for hand-held copy: $35.00 (excl. GST). Levy-paying dairy farmers can obtain a free copy by contacting DairyNZ. New Zealand Dairy Statistics is also available online, at no charge, at: www.lic.co.nz (select News and Publications, followed by Publications), or at: www.dairynz.co.nz/dairystatistics LIC Private Bag 3016 Hamilton 3240 New Zealand Telephone: 64-7-856 0700 Fax: 64-7-856 0608 Email: minda@lic.co.nz Website: www.lic.co.nz DairyNZ Private Bag 3221 Hamilton 3240 New Zealand Telephone: 0800 4 DAIRYNZ Email: info@dairynz.co.nz Website: www.dairynz.co.nz 2014 Livestock Improvement Corporation Limited and DairyNZ Limited DNZ30-003

Contents 1. Introduction 4 2. National dairy statistics 5 A. Industry statistics 5 i) Production 5 ii) Population 6 B. Herd production statistics 8 i) Production per cow and per hectare 9 ii) Herd size distribution 11 3. Regional dairy statistics 13 A. Region 13 B. District 16 C. Operating structures 20 D. Breed breakdown 24 4. Herd improvement 25 A. Use of herd testing 25 B. Herd test averages 27 i) Seasonal averages 27 ii) Monthly averages 29 iii) Breed category averages 31 C. Artificial Breeding (AB) statistics 33 D. Herd reproduction 38 E. Calving 41 i) Planned start of calving and median calving dates 41 ii) Calving interval 42 F. Animal Evaluation 43 i) Sire Evaluations 44 ii) Cow Evaluations 45 5. Prices received 49 A. Milk prices 49 B. Dairy farm land prices 50 6. Disease control 51 A. Tuberculosis (Tb) control 51 Appendix 1: Farming regions and districts 52 New Zealand Dairy Statistics 2013-14 1

List of tables 2.1 Summary of milk production statistics for the last 35 seasons 5 2.2 Summary of herd statistics since 1974/75 7 2.3 Summary of herd production for the last 35 seasons 8 2.4 Average production per cow by herd size in 2013/14 11 3.1 Herd analysis by region in 2013/14 14 3.2 Herd production analysis by region in 2013/14 15 3.3 Herd analysis by district in 2013/14 16 3.4 Herd production analysis by district in 2013/14 18 3.5 Herd analysis by operating structure in 2013/14 20 3.6 Herd production analysis by operating structure in 2013/14 21 3.7 Trend in the percentage of herds in each operating structure for the last 10 seasons 21 3.8 Trend in the number of herds in each operating structure for the last 10 seasons 21 3.9 Operating structure by region in 2013/14 22 3.10 Operating structure by herd size in 2013/14 23 4.1 Trend in the use of herd testing services for the last 20 seasons 25 4.2 Use of herd testing by region in 2013/14 26 4.3 Season herd test averages per cow by region in 2013/14 27 4.4 Trend in the national herd test averages for the last 20 seasons 28 4.5 Monthly herd test averages by region in 2013/14 29 4.6 Herd test averages by breed category and age in 2013/14 31 4.7 Liveweight by age and by breed category of cow in 2013/14 32 4.8 Trend in Artificial Breeding use for the last nine seasons by region: Cows and yearlings to AB 33 4.9 Mean herd reproductive performance since 2008/09 38 4.10 Mean 6-week in-calf rate by farming region for the last three seasons 39 4.11 Actual 6-week in-calf rate in 2013/14 39 4.12 Estimated 6-week in-calf rate in 2013/14 40 4.13 Mean calving interval by breed since 2000/01 42 4.14 Economic values used from 15 February 2014 43 4.15 Average Breeding Values and Breeding Worth of 2009-born bulls 44 4.16 Number of sires by birth year and breed category 44 4.17 Herd Breeding Worth in 2013/14 45 4.18 Herd Production Worth in 2013/14 45 4.19 Cow Breeding Worth in 2013/14 46 4.20 Cow Production Worth in 2013/14 46 4.21 Average Breeding Worth and Breeding Values of all cows by breed category born in 2011 48 4.22 Survivability percentages since 1996/97 48 5.1 Trend in prices received for milksolids for the last 20 seasons 49 5.2 Trend in dairy land sale values since 2009/10 50 6.1 Tuberculosis (Tb) testing and results in 2013/14 51 2 New Zealand Dairy Statistics 2013-14

List of graphs 2.1 Trend in the number of herds and average herd size for the last 30 seasons 6 2.2 Milksolid production per cow and per effective hectare since 1992/93 9 2.3 Distribution of herds by milksolids production per cow for the last three seasons 10 2.4 Herd size distribution for 2013/14 compared with 2008/09 12 3.1 Regional distribution of dairy cows in 2013/14 13 3.2 Breed percentages of cows for New Zealand in 2013/14 24 3.3 Breed percentages of cows by region in 2013/14 24 4.1 Trend in the percentage of herds testing for the last 30 seasons 26 4.2 Average milkfat and protein production per cow by region in 2013/14 28 4.3 Liveweight by age and breed category of cow in 2013/14 32 4.4 Trend in the percentage of cows to Artificial Breeding for the last 30 seasons 34 4.5 Average number of inseminations per cow for the last 20 seasons 35 4.6 Ayrshire semen usage (%) over breed category for the last five seasons 35 4.7 Holstein-Friesian / Jersey Crossbreed semen usage (%) over breed category for the last five seasons 36 4.8 Jersey semen usage (%) over breed category for the last five seasons 36 4.9 Holstein-Friesian semen usage (%) over breed category for the last five seasons 36 4.10 Trend in the percentage of inseminations of each breed category for the last 40 seasons 37 4.11 Mean actual and estimated 6-week in-calf rate since 2008/09 38 4.12 Distribution of actual 6-week in-calf rate in 2013/14 39 4.13 Distribution of estimated 6-week in-calf rate in 2013/14 40 4.14 Planned start of calving and median calving dates for cows (excluding first calvers) by region 41 4.15 Trend in planned start of calving dates for cows (excluding first calvers) by region 42 4.16 Genetic trend of proven dairy bulls by year of birth 44 4.17 Distribution of Herd Breeding Worth in 2013/14 45 4.18 Distribution of Herd Production Worth in 2013/14 45 4.19 Distribution of Cow Breeding Worth in 2013/14 46 4.20 Distribution of Cow Production Worth in 2013/14 46 4.21 Trend in Breeding Worth for all cows 47 4.22 Trend in Production Worth for all cows 47 5.1 Trend in milksolids payout to dairy farmers for the last 30 seasons 50 New Zealand Dairy Statistics 2013-14 3

1. Introduction The purpose of New Zealand Dairy Statistics is to provide statistical information related to the New Zealand Dairy Industry. Funding is provided by Livestock Improvement Corporation (LIC) and DairyNZ Incorporated (dairy farmer levy). Contributors include New Zealand Animal Evaluation Limited. Data are sourced from the LIC Herd Improvement Database, New Zealand dairy companies, Animal Evaluation database, TBfree New Zealand, Real Estate Institute of New Zealand, and Statistics New Zealand. New Zealand Dairy Statistics 2013/14 is a report that shows historical information up to and including the 2013/14 season. Data for seasons prior to 2006/07 were released under Dairy Statistics from 1998/99 to 2005/06, Annual Report (Livestock Improvement Division) in 1987/88, Livestock Improvement Report from 1984/85 to 1986/87, and New Zealand Dairy Board Farm Production Report up to 1983/84. Prior to 1991/92 the information for the Dairy Statistics publication was obtained primarily from the analysis of the New Zealand Dairy Industry Cow Census (an annual survey of all dairy farmers). The 1991/92 Dairy Statistics publication was a transition year for which only minimal data was available. As of March 2002, LIC became a user-owned co-operative, with responsibility for farm production activities and, in particular, dairy herd improvement and herd records. LIC s activities can broadly be described as genetics, information and advice. Services provided to farmers include farm management information, automation technologies, herd testing and artificial breeding services, DNA analysis, a farm advisory service, research to improve farm profitability, statistical information related to the New Zealand dairy industry, and herd recording on the LIC Herd Improvement Database. For more information, visit www.lic.co.nz. DairyNZ is the industry organisation representing New Zealand s dairy farmers, funded by farmers through a levy on milksolids. DairyNZ s purpose is to secure and enhance the profitability, sustainability and competitiveness of New Zealand dairy farming. For more information, visit www.dairynz.co.nz. 4 New Zealand Dairy Statistics 2013-14

2. National dairy statistics A. Industry statistics i) Production 10.1% increase in milksolids processed In 2013/14, dairy companies processed 20.7 billion litres of milk containing 1.83 billion kilograms of milksolids (Table 2.1). Total milksolids processed increased by 10.1% from the 1.66 billion kilograms processed in the previous season. This was a record level of milk production, surpassing the 20 billion litre mark for the first time. Table 2.1: Summary of milk production statistics for the last 35 seasons Season Milk processed (million litres) Milkfat processed (million kgs) Protein processed (million kgs) Milksolids processed (million kgs) 1979/80 5,997 291 215 506 1980/81 5,868 282 209 491 1981/82 5,979 282 209 491 1982/83 6,096 290 214 505 1983/84 6,733 324 239 564 1984/85 6,965 332 245 578 1985/86 7,326 350 257 609 1986/87 6,385 301 222 524 1987/88 6,921 333 245 579 1988/89 6,533 311 237 541 1989/90 6,868 330 242 572 1990/91 7,077 343 254 599 1991/92 7,454 365 270 637 1992/93 7,629 373 277 651 1993/94 8,603 423 313 736 1994/95 8,633 422 311 733 1995/96 9,325 452 335 788 1996/97 10,339 506 375 880 1997/98 10,651 513 378 891 1998/99 10,563 503 377 880 1999/00 11,630 560 421 981 2000/01 12,925 626 470 1,096 2001/02 13,607 657 495 1,152 2002/03 13,906 676 515 1,191 2003/04 14,599 716 538 1,254 2004/05 14,103 694 519 1,213 2005/06 14,702 724 543 1,267 2006/07 15,134 750 566 1,316 2007/08 14,745 722 548 1,270 2008/09 16,044 791 602 1,393 2009/10 16,483 817 622 1,438 2010/11 17,339 859 654 1,513 2011/12 19,129 954 731 1,685 2012/13 18,883 939 719 1,658 2013/14 20,657 1,034 791 1,825 Note: Prior to 1998/99, Table 2.1 consisted of milk production statistics that were processed into export products (i.e., town milk supply was excluded). These statistics on milk, milkfat, protein and milksolids processed were provided by the New Zealand Dairy Board and are no longer available. Consequently, totals from 1998/99 include all milk processed by New Zealand dairy companies, including milk for the domestic market. New Zealand Dairy Statistics 2013-14 5

ii) Population Sixth consecutive season of small increase in the number of herds Cow numbers increase by 138,600 to 4.92 million cows Between 1980/81 and 2007/08 total herd numbers declined at an average rate of about 170 herds per season (Graph 2.1). However, the total number of herds in the 2013/14 season increased by 36 to 11,927. This was the sixth consecutive season of small increases in herd numbers. The average herd size was 413 in 2013/14, up 11 cows on the previous season. The average herd size has tripled in the last 30 seasons, and has increased by 111 cows in the last 10 seasons. Expansion of the dairy herd in the South Island has assisted the increase in average herd sizes. Graph 2.1: Trend in the number of herds and average herd size for the last 30 seasons 17,000 440 16,500 16,000 15,500 15,000 420 400 380 360 340 Number of herds 14,500 14,000 13,500 13,000 12,500 320 300 280 260 240 220 Herd size 12,000 11,500 11,000 10,500 200 180 160 140 120 10,000 100 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Season Number of herds Average herd size 6 New Zealand Dairy Statistics 2013-14

The total cow population in the 2013/14 season was 4.92 million (Table 2.2), an increase of 2.9% over the previous season. Average effective hectares increased slightly to 144 hectares. A stocking rate of 2.87 cows per hectare was similar to the previous season (2.85). Total effective hectares (support block excluded) were 1.72 million an increase of about 40,000 ha on the previous season. Table 2.2: Summary of herd statistics since 1974/75 Season Herds Total cows Total effective hectares a Average herd size Average effective hectares b Average cows per hectare b 1974/75 18,540 2,079,886-112 - - 1975/76 18,442 2,091,950-113 - - 1976/77 17,924 2,074,443-116 - - 1977/78 17,363 2,052,624-118 - - 1978/79 16,907 2,039,902-121 - - 1979/80 16,506 2,045,808-124 - - 1980/81 16,089 2,027,096-126 - - 1981/82 15,821 2,060,898 996,723 130 63 2.07 1982/83 15,816 2,128,199 1,012,224 135 64 2.10 1983/84 15,932 2,209,725 1,035,580 139 65 2.13 1984/85 15,881 2,280,273 1,016,384 144 64 2.24 1985/86 15,753 2,321,012 1,008,192 147 64 2.30 1986/87 15,315 2,281,849 995,475 149 65 2.29 1987/88 14,818 2,236,290 963,170 151 65 2.32 1988/89 14,744 2,269,073 973,104 154 66 2.33 1989/90 14,595 2,313,822 977,865 159 67 2.37 1990/91 14,685 2,402,145 1,023,545 164 70 2.35 1991/92 14,452 2,438,641-169 - - 1992/93 14,458 2,603,049 1,069,892 180 74 2.43 1993/94 14,597 2,736,452 1,122,509 188 77 2.44 1994/95 14,649 2,830,977 1,175,940 193 80 2.41 1995/96 14,736 2,935,759 1,208,352 199 82 2.43 1996/97 14,741 3,064,523 1,267,726 208 86 2.42 1997/98 14,673 3,222,591 1,276,551 220 87 2.52 1998/99 14,362 3,289,319 1,306,942 229 91 2.52 1999/00 13,861 3,269,362 1,292,566 236 93 2.53 2000/01 13,892 3,485,883 1,329,173 251 96 2.62 2001/02 13,649 3,692,703 1,404,930 271 103 2.63 2002/03 13,140 3,740,637 1,463,281 285 111 2.56 2003/04 12,751 3,851,302 1,421,147 302 111 2.71 2004/05 12,271 3,867,659 1,411,594 315 115 2.74 2005/06 11,883 3,832,145 1,398,966 322 118 2.74 2006/07 11,630 3,916,812 1,412,925 337 121 2.77 2007/08 11,436 4,012,867 1,436,549 351 126 2.79 2008/09 11,618 4,252,881 1,519,117 366 131 2.80 2009/10 11,691 4,396,675 1,563,495 376 134 2.81 2010/11 11,735 4,528,736 1,638,706 386 140 2.76 2011/12 11,798 4,634,226 1,638,546 393 139 2.83 2012/13 11,891 4,784,250 1,677,395 402 141 2.85 2013/14 11,927 4,922,806 1,716,464 413 144 2.87 - Not available a Total effective hectares between 1981/82 and 1999/00 are estimates. b Average effective hectares and average cows per hectare for 1981/82 to 1990/91 are based on factory supply herds only. Note: The number of cows used to calculate the average herd size since 1992/93 includes all cows lactating in that season, whereas in earlier years the number of cows used to produce the average herd size was based only on those cows lactating on 31 December. This change in method has had a small effect on reported cow numbers New Zealand Dairy Statistics 2013-14 7

B. Herd production statistics Record milk production Herd production has increased most years since 1992/93 (Table 2.3). Exceptions were evident in 1998/99, 2007/08 and 2012/13 when production dropped markedly due to drought conditions. In contrast, the average milksolids per effective hectare of 1,063 kg in 2013/14 was a new record, and 35 kg/ha higher than the previous high (2011/12). Production per cow increased by 7.2% in 2013/14 to an average of 371 kg milksolids (comprising 210 kg milkfat and 161 kg protein). Table 2.3: Summary of herd production for the last 35 seasons Season Average litres per herd milkfat per herd protein per herd milksolids per herd milkfat per effective hectare protein per effective hectare milksolids per effective hectare Average litres per cow milkfat per cow protein per cow milksolids per cow 1979/80 a - 19,000 - - - - - - 151 - - 1980/81 a - 18,864 - - - - - - 147 - - 1981/82 a - 19,090 - - 310 - - - 144 - - 1982/83 a - 19,600 - - 312 - - - 143 - - 1983/84 a - 21,618 - - 345 - - - 154 - - 1984/85 a - 22,190 - - 359 - - - 152 - - 1985/86 a - 23,489 - - 379 - - - 157 - - 1986/87 a - 20,885 - - 331 - - - 138 - - 1987/88 a - 23,500 - - 374 - - - 154 - - 1988/89 a - 22,442 - - 340 - - - 143 - - 1989/90 a - 23,578 - - 352 - - - 147 - - 1990/91 a - 24,495 - - 351 - - - 148 - - 1991/92 b - 26,567 - - - - - - 157 - - 1992/93 554,040 26,982 20,138 47,120 374 279 653-148 111 259 1993/94 618,139 30,220 22,458 52,678 407 301 708-160 119 278 1994/95 614,203 29,886 22,117 52,002 386 285 671-156 115 271 1995/96 663,248 32,050 23,827 55,877 405 300 705-163 120 283 1996/97 728,874 35,436 26,387 61,823 425 316 741-173 128 301 1997/98 752,399 36,383 26,984 63,367 430 318 748-168 124 292 1998/99 735,544 35,047 26,254 61,301 392 292 684-147 109 256 1999/00 839,066 40,365 30,396 70,761 439 329 768-165 123 288 2000/01 930,047 45,063 33,850 78,914 472 353 825-177 133 310 2001/02 996,904 48,137 36,300 84,436 471 353 824-175 132 307 2002/03 1,058,307 51,447 39,174 90,621 471 357 828-179 136 315 2003/04 1,144,938 56,150 42,171 98,321 509 380 889 3,737 184 138 322 2004/05 1,149,262 56,520 42,305 98,825 494 368 862 3,574 176 132 308 2005/06 1,237,228 60,955 45,705 106,660 520 387 907 3,763 186 139 325 2006/07 1,301,308 64,495 48,687 113,182 534 400 934 3,791 189 142 330 2007/08 1,289,337 63,158 47,876 111,033 498 375 873 3,567 175 132 307 2008/09 1,381,573 68,116 51,850 119,966 524 396 921 3,710 184 139 323 2009/10 1,409,875 69,859 53,184 123,043 519 392 912 3,642 181 137 318 2010/11 1,477,531 73,184 55,762 128,946 524 399 923 3,829 190 144 334 2011/12 1,621,344 80,875 61,936 142,811 582 446 1,028 4,128 206 158 364 2012/13 1,587,980 78,948 60,462 139,410 560 429 988 3,947 196 150 346 2013/14 1,731,985 86,682 66,330 153,012 602 461 1,063 4,196 210 161 371 - Not available a Figures prior to 1991/92 exclude town milk herds b 1991/92 figures include some town milk herds 8 New Zealand Dairy Statistics 2013-14

i) Production per cow and per hectare Average milksolids per cow in 2013/14 was 371 kg, compared with 346 kg last season (Graph 2.2). Average milk production per hectare was 1,063 kg well above last season s 988 kg. Variations from season to season are masked by the considerable effect of the weather on each season s actual production. For example, widespread drought in 2012/13 caused milk production to decline while in 2013/14 favourable pasture growth conditions throughout the season enabled record milk production. Graph 2.2: Milksolid production per cow and per effective hectare since 1992/93 400 1,200 milksolids per cow 360 320 280 240 200 1,100 1,000 900 800 700 600 1992/93 1993/94 1994/95 1995/96 milksolids per effective hectare 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Season milksolids per cow milksolids per effective hectare New Zealand Dairy Statistics 2013-14 9

Average production per cow varies considerably from farm to farm. This variation is caused by many factors, including temperature, rainfall, soil fertility, stocking rate, the genetic merit of the herd, level of supplementary feed and farm management practice. Graph 2.3 shows the distribution of milksolids production in 2013/14 compared with the previous two seasons. Thirty-three per cent of the herds had an average production of over 400 kilograms milksolids per cow, compared with 21% the previous season and 27% in 2011/12. Graph 2.3: Distribution of herds by milksolids production per cow for the last three seasons 18 16 14 Percentage of herds 12 10 8 6 4 2 0 <150 150-174 175-199 200-224 225-249 250-274 275-299 300-324 325-349 350-374 375-399 400-424 425-449 450-474 475--499 500-224 525-549 550-574 575-599 600+ milksolids per cow 2011/12 2012/13 2013/14 10 New Zealand Dairy Statistics 2013-14

ii) Herd size distribution 12% of herds have 750 or more cows A little over fifty percent (6,243) of herds have between 100 and 349 cows (Table 2.4). In 2013/14, 3,291 (28%) had 500 or more cows, 1,380 (12%) had 750 or more cows, and 600 (5%) had 1,000 cows or more. Averages of milkfat, protein and milksolids per cow, by herd size, are also included in Table 2.4. Aside from the 249 herds with fewer than 100 animals, the average milksolids per cow varies between 287 kg (herds with 1,500+ cows) and 405 kg (herds with 850-899 cows). Table 2.4: Average production per cow by herd size in 2013/14 Herd size Number of herds Percentage of herds Number of cows Percentage of cows milkfat per cow protein per cow milksolids per cow 10-49 8 0.1 308 0.0 279 209 488 50-99 241 2.0 18,822 0.4 149 113 262 100-149 725 6.1 90,471 1.8 185 140 325 150-199 1,362 11.4 234,461 4.8 195 146 341 200-249 1,670 14.0 368,798 7.5 205 153 358 250-299 1,287 10.8 346,398 7.0 209 157 366 300-349 1,199 10.1 382,604 7.8 208 157 365 350-399 807 6.8 297,080 6.0 213 161 374 400-449 757 6.3 316,936 6.4 216 164 380 450-499 580 4.9 271,187 5.5 217 164 381 500-549 548 4.6 282,911 5.7 219 167 386 550-599 409 3.4 232,218 4.7 217 167 384 600-649 418 3.5 257,430 5.2 221 170 391 650-699 281 2.4 186,995 3.8 221 171 392 700-749 255 2.1 182,401 3.7 222 173 395 750-799 205 1.7 156,923 3.2 221 172 394 800-849 213 1.8 173,156 3.5 217 168 385 850-899 142 1.2 122,598 2.5 228 177 405 900-949 137 1.1 124,760 2.5 220 171 391 950-999 83 0.7 79,984 1.6 217 171 388 1000-1099 181 1.5 186,173 3.8 213 165 378 1100-1199 111 0.9 125,578 2.6 207 161 368 1200-1499 173 1.5 225,638 4.6 208 164 371 1500+ 135 1.1 258,976 5.3 161 127 287 Total/Avg 11,927 4,922,806 210 161 371 New Zealand Dairy Statistics 2013-14 11

The herd size distribution presented in Graph 2.4 shows an increase in larger herds (400+ cows) and a decrease in herds with fewer than 350 cows since 2008/09. The most common herd size remains in the range 200 to 249 cows (comprising 14.0% of herds, compared with 15.4% in 2008/09). Graph 2.4: Herd size distribution for 2013/14 compared with 2008/09 18 16 14 12 10 8 6 4 2 0 10-49 50-99 100-149 150-199 Percentage of herds 200-249 250-299 300-349 350-399 400-449 450-499 500-549 550-599 600-649 650-699 700-749 750-799 800-849 850-899 900-949 950-999 1000-1099 1100-1199 1200-1499 1500+ Herd size 2008/09 2013/14 12 New Zealand Dairy Statistics 2013-14

3. Regional dairy statistics A. Region 74% of dairy herds located in North Island 61% of dairy cows located in the North Island The majority of dairy herds (74%) are located in the North Island, with the greatest concentration (30%) situated in the Waikato region. Taranaki, with 14% of dairy herds, is the next largest region on a herd basis. Although South Island dairy herds account for 26% of the national total, they contain 39% of all cows (Graph 3.1). Twenty-four per cent of all dairy cows are located in the Waikato region, followed by North Canterbury (13%), Southland (11%) and Taranaki (10%). Graph 3.1: Regional distribution of dairy cows in 2013/14 Northland 5.8% North Island 60.7% Auckland 2.3% Waikato 23.7% Western Uplands 0.9% Taranaki 10.0% Manawatu 4.5% Bay of Plenty 4.0% East Coast 0.1% Central Plateau 5.1% Hawkes Bay 1.0% Wairarapa 3.4% West Coast 3.1% Nelson/Marlborough 1.8% North Canterbury 13.4% Southland 11.2% South Canterbury 4.7% Otago 5.1% South Island 39.3% New Zealand Dairy Statistics 2013-14 13

More than 1.9 million cows in the South Island Largest average herd size (815) in North Canterbury South Island average herd sizes increasing faster than North Island Farms in the South Island are, on average, larger than those in the North Island (both in terms of farm area and cow numbers, see Table 3.1). Sixty-one percent of all cows are in the North Island, with 24% in the Waikato region. The average herd size in both islands continues to increase. Within the South Island, North Canterbury has the largest average herd size (815 cows). In the North Island, Hawkes Bay has the largest average herd size of 673 cows. The smallest average herd sizes are in Auckland, Taranaki, and Northland, averaging 262, 287 and 307 cows respectively. North Canterbury has the highest average cows per hectare (3.51), followed closely by South Canterbury (3.45). The regions with the lowest average cows per hectare are the West Coast (2.19), Auckland (2.27) and Northland (2.28). Table 3.1: Herd analysis by region in 2013/14 Farming region Total herds Percentage of herds Total cows Percentage of cows Total effective hectares Percentage of effective hectares Average herd size Average effective hectares Average cows per hectare Northland 929 7.8 284,924 5.8 124,848 7.3 307 134 2.28 Auckland 423 3.5 110,823 2.3 48,826 2.8 262 115 2.27 Waikato 3,536 29.6 1,164,661 23.7 395,037 23.0 329 112 2.95 Bay of Plenty 597 5.0 197,425 4.0 70,137 4.1 331 117 2.81 Central Plateau 470 3.9 252,056 5.1 93,340 5.4 536 199 2.70 Western Uplands 87 0.7 44,679 0.9 17,478 1.0 514 201 2.56 East Coast 8 0.1 4,648 0.1 1,746 0.1 581 218 2.66 Hawkes Bay 72 0.6 48,444 1.0 16,691 1.0 673 232 2.90 Taranaki 1,719 14.4 493,361 10.0 173,022 10.1 287 101 2.85 Manawatu 555 4.7 219,832 4.5 78,919 4.6 396 142 2.79 Wairarapa 463 3.9 169,397 3.4 61,337 3.6 366 132 2.76 North Island 8,859 74.3 2,990,250 60.7 1,081,381 63.0 338 122 2.77 Nelson/Marlborough 239 2.0 88,665 1.8 31,383 1.8 371 131 2.83 West Coast 372 3.1 150,363 3.1 68,611 4.0 404 184 2.19 North Canterbury 808 6.8 658,282 13.4 187,469 10.9 815 232 3.51 South Canterbury 293 2.5 233,561 4.7 67,637 3.9 797 231 3.45 Otago 414 3.5 251,462 5.1 81,566 4.8 607 197 3.08 Southland 942 7.9 550,223 11.2 198,417 11.6 584 211 2.77 South Island 3,068 25.7 1,932,556 39.3 635,083 37.0 630 207 3.04 New Zealand 11,927 4,922,806 1,716,464 413 144 2.87 14 New Zealand Dairy Statistics 2013-14

Highest average production recorded in North Canterbury South Island farms have, on average, higher per herd production than herds in the North Island, with North Canterbury recording the highest average herd production at 323,824 kilograms of milksolids (Table 3.2). This reflects a combination of larger herd sizes, a high stocking rate, and high kilograms of milksolids per cow. In the North Island, Hawkes Bay recorded the highest average herd production of 234,572 kilograms of milksolids, reflecting large herd sizes. In 2013/14, average production per effective hectare and production per cow was higher in the South Island than in the North Island. North Canterbury recorded the highest average milksolids per hectare in the South Island (1,396 kg), while Taranaki had the highest average milksolids production per hectare in the North Island (1,068 kg). Southland had the highest average milksolids per cow (407 kg), followed by North Canterbury (397 kg). In the North Island, Taranaki had the highest average milksolids per cow (375 kg), followed by Central Plateau (371 kg). Table 3.2: Herd production analysis by region in 2013/14 Farming region Total kg milksolids Percent milk-solids Average litres per herd milkfat per herd protein per herd milksolids per herd milkfat per effective hectare protein per effective hectare milksolids per effective hectare milkfat per cow protein per cow milksolids per cow Northland 89,076,228 4.9 1,096,603 54,892 40,992 95,884 408 305 713 179 134 313 Auckland 37,112,851 2.0 1,017,700 49,902 37,835 87,737 432 328 760 190 144 335 Waikato 415,195,697 22.8 1,333,854 67,155 50,265 117,420 601 450 1,051 204 153 356 Bay of Plenty 72,704,824 4.0 1,409,339 69,300 52,484 121,784 590 447 1,037 210 159 368 Central Plateau 93,525,693 5.1 2,271,467 114,293 84,698 198,991 576 426 1,002 213 158 371 Western Uplands 13,465,967 0.7 1,734,238 88,844 65,938 154,781 442 328 770 173 128 301 East Coast 1,373,386 0.1 2,005,468 97,317 74,356 171,673 446 341 787 167 128 295 Hawkes Bay 16,889,153 0.9 2,726,503 131,934 102,638 234,572 569 443 1,012 196 153 349 Taranaki 184,823,225 10.1 1,176,948 61,569 45,949 107,518 612 457 1,068 215 160 375 Manawatu 80,833,831 4.4 1,688,252 82,411 63,235 145,647 580 445 1,024 208 160 368 Wairarapa 61,262,730 3.4 1,487,199 75,450 56,867 132,317 570 429 999 206 155 362 North Island 1,066,263,585 58.4 1,364,337 68,763 51,597 120,359 563 423 986 204 153 357 Nelson/Marlborough 31,955,762 1.8 1,480,667 76,431 57,275 133,706 582 436 1,018 206 154 360 West Coast 53,718,300 2.9 1,564,736 82,999 61,405 144,404 450 333 783 205 152 357 North Canterbury 261,649,961 14.3 3,693,908 180,550 143,274 323,824 778 618 1,396 222 176 397 South Canterbury 91,462,353 5.0 3,548,718 174,292 137,866 312,158 755 597 1,352 219 173 392 Otago 96,009,960 5.3 2,647,068 129,248 102,660 231,908 656 521 1,177 213 169 382 Southland 223,911,600 12.3 2,669,237 132,788 104,910 237,698 630 498 1,128 227 180 407 South Island 758,707,935 41.6 2,793,586 138,426 108,872 247,297 669 526 1,195 220 173 393 New Zealand 1,824,971,520 100.0 1,731,985 86,682 66,330 153,012 602 461 1,063 210 161 371 New Zealand Dairy Statistics 2013-14 15

B. District South Taranaki continues to be the district with the most herds (1,030) followed by Matamata-Piako (985). The Southland district has the most cows (413,097), followed by Ashburton (339,801) (Table 3.3). Christchurch City in North Canterbury has the highest average herd size with 960 cows. The next largest is Ashburton, also in North Canterbury, with 904 cows. The number of owner-operators and sharemilkers is included in Table 3.3. Sixty-five per cent of herds are run as owner-operators, while the remainder are run as sharemilkers of various types (Table 3.5) Table 3.3: Herd analysis by district in 2013/14 Region District Total herds Number of owneroperators Number of sharemilkers Total cows Total effective hectares Average herd size Average effective hectares Average cows per hectare Northland Far North 263 198 65 76,154 34,223 290 130 2.23 Whangarei 313 223 85 101,913 42,285 326 135 2.41 Kaipara 353 276 77 106,857 48,340 303 137 2.21 Auckland Rodney 159 104 55 42,901 19,497 270 123 2.20 Manukau / Papakura 17 9 8 3,736 1,536 220 90 2.43 Franklin 247 142 102 64,186 27,793 260 113 2.31 Waikato Waikato 688 451 235 228,546 82,063 332 119 2.79 Hamilton City 15 8 7 4,341 1,511 289 101 2.87 Waipa 577 369 208 199,982 65,816 347 114 3.04 Otorohanga 381 242 139 141,013 47,798 370 125 2.95 Thames-Coromandel 95 65 30 27,003 10,266 284 108 2.63 Hauraki 408 276 131 116,248 41,723 285 102 2.79 Matamata-Piako 985 578 407 294,237 94,087 299 96 3.13 South Waikato 387 248 139 153,291 51,773 396 134 2.96 Bay of Plenty Western Bay of Plenty 198 142 55 69,704 24,064 352 122 2.90 Tauranga 15 10 5 4,917 1,654 328 110 2.97 Kawerau/Whakatane 309 225 84 98,722 35,805 319 116 2.76 Opotiki 75 42 33 24,082 8,614 321 115 2.80 Central Plateau Taupo 155 104 51 115,944 44,053 748 284 2.63 Rotorua 315 199 116 136,112 49,287 432 156 2.76 Western Uplands Waitomo 60 41 19 32,153 12,507 536 208 2.57 Ruapehu 27 15 12 12,526 4,971 464 184 2.52 East Coast Gisborne / Wairoa 8 7 1 4,648 1,746 581 218 2.66 Hawkes Bay Napier / Hastings 31 26 5 20,050 7,021 647 226 2.86 Central Hawkes Bay 41 33 8 28,394 9,670 693 236 2.94 Taranaki New Plymouth 439 269 170 113,602 42,755 259 97 2.66 Stratford 250 168 82 62,134 23,050 249 92 2.70 South Taranaki 1,030 581 449 317,625 107,217 308 104 2.96 Manawatu Wanganui 21 15 6 7,544 2,950 359 140 2.56 Rangitikei 92 71 21 43,849 15,754 477 171 2.78 Manawatu 257 182 75 98,759 35,289 384 137 2.80 Palmerston North City 47 37 9 18,405 6,678 392 142 2.76 Horowhenua 118 90 28 45,480 15,898 385 135 2.86 Kapiti Coast / Upper Hutt 20 15 5 5,795 2,350 290 118 2.47 Wairarapa Tararua 306 210 96 101,324 37,321 331 122 2.71 Masterton 18 11 7 8,667 2,975 482 165 2.91 Carterton 56 46 10 21,288 7,767 380 139 2.74 South Wairarapa 83 58 25 38,118 13,274 459 160 2.87 North Island 8,859 5,786 3,060 2,990,250 1,081,381 338 122 2.77 16 New Zealand Dairy Statistics 2013-14

(table 3.3 continued) Region District Total herds Number of owneroperators Number of sharemilkers Total cows Total effective hectares Average herd size Average effective hectares Average cows per hectare Nelson/Marlborough Marlborough 58 46 11 18,251 6,080 315 105 3.00 Kaikoura 24 14 10 10,715 3,505 446 146 3.06 Tasman / Nelson City 157 134 23 59,699 21,798 380 139 2.74 West Coast Buller 129 103 26 49,451 21,536 383 167 2.30 Grey 87 59 28 40,950 18,331 471 211 2.23 Westland 156 118 38 59,962 28,744 384 184 2.09 North Canterbury Hurunui 87 62 25 77,710 21,304 893 245 3.65 Waimakariri 103 71 32 62,561 18,161 607 176 3.44 Christchurch City 17 12 5 16,327 5,179 960 305 3.15 Banks Peninsula 7 4 3 2,118 863 303 123 2.45 Selwyn 218 163 55 159,765 48,968 733 225 3.26 Ashburton 376 252 124 339,801 92,994 904 247 3.65 South Canterbury Timaru 162 110 51 126,038 35,565 778 220 3.54 MacKenzie 16 11 5 12,825 4,418 802 276 2.90 Waimate 115 62 47 94,698 27,654 823 240 3.42 Otago Waitaki 133 49 84 98,428 28,110 740 211 3.50 Dunedin City 64 33 31 27,150 9,497 424 148 2.86 Clutha 193 114 66 105,371 37,299 546 193 2.83 Central Otago 24 17 7 20,513 6,660 855 278 3.08 Southland Gore 159 103 56 93,196 34,144 586 215 2.73 Invercargill 79 47 32 43,930 15,878 556 201 2.77 Southland 704 442 262 413,097 148,395 587 211 2.78 South Island 3,068 2,026 1,021 1,932,556 635,083 630 207 3.04 New Zealand 11,927 7,812 4,081 4,922,806 1,716,464 413 144 2.87 Note: Districts with fewer than four herds have been added to a neighbouring district to preserve anonymity New Zealand Dairy Statistics 2013-14 17

Christchurch City had the highest average production per herd with 364,495 kilograms of milksolids followed by Ashburton with 361,563 kilograms of milksolids (Table 3.4). Ashburton district also had the highest average milksolids per effective hectare with 1,462 kilograms. MacKenzie district recorded the highest production per cow (445 kg of milksolids). The North Island district that has the highest milksolids production per herd is Taupo with an average of 267,826 kilograms of milksolids. Of all the North Island districts, Masterton produced the highest average kilograms of milksolids per hectare (1,164). Masterton also produced the highest average kilograms of milksolids per cow (400). Table 3.4: Herd production analysis by district in 2013/14 Region District Average litres per herd milkfat per herd protein per herd milksolids per herd milkfat per effective hectare protein per effective hectare milksolids per effective hectare milkfat per cow protein per cow milksolids per cow Northland Far North 1,045,515 51,642 38,993 90,635 397 300 697 178 135 313 Whangarei 1,210,705 61,811 45,644 107,455 458 338 795 190 140 330 Kaipara 1,033,493 51,178 38,357 89,535 374 280 654 169 127 296 Auckland Rodney / Auckland 955,809 47,774 35,711 83,485 390 291 681 177 132 309 Manukau / Papakura 832,457 40,259 30,637 70,896 446 339 785 183 139 323 Franklin 1,070,289 51,936 39,697 91,633 462 353 814 200 153 353 Waikato Waikato 1,304,589 65,062 48,744 113,805 545 409 954 196 147 343 Hamilton City 1,213,420 59,320 45,164 104,484 589 448 1,037 205 156 361 Waipa 1,431,554 72,127 54,017 126,145 632 474 1,106 208 156 364 Otorohanga 1,418,802 71,701 53,548 125,249 572 427 998 194 145 338 Thames-Coromandel 1,094,171 54,918 41,222 96,140 508 381 890 193 145 338 Hauraki 1,077,924 53,867 40,545 94,412 527 396 923 189 142 331 Matamata-Piako 1,229,074 62,531 46,622 109,154 655 488 1,143 209 156 365 South Waikato 1,756,596 88,068 66,080 154,149 658 494 1,152 222 167 389 Bay of Plenty Western Bay of Plenty 1,441,336 72,733 54,293 127,026 598 447 1,045 207 154 361 Tauranga 1,418,839 70,051 53,216 123,267 635 483 1,118 214 162 376 Kawerau/Whakatane 1,421,159 68,930 52,588 121,518 595 454 1,049 216 165 380 Opotiki 1,274,267 61,610 47,132 108,742 536 410 947 192 147 339 Central Plateau Taupo 3,027,481 154,287 113,540 267,826 543 399 942 206 152 358 Rotorua 1,899,461 94,614 70,505 165,119 605 451 1,055 219 163 382 Western Uplands Waitomo 1,719,593 87,664 65,160 152,824 421 313 733 164 122 285 Ruapehu 1,766,783 91,464 67,665 159,130 497 368 864 197 146 343 East Coast Gisborne / Wairoa 2,005,468 97,317 74,356 171,673 446 341 787 167 128 295 Hawkes Bay Napier/Hastings 2,393,963 117,077 89,398 206,475 517 395 912 181 138 319 Central Hawkes Bay 2,977,935 143,167 112,648 255,816 607 478 1,085 207 163 369 Taranaki New Plymouth 1,020,388 53,276 39,434 92,710 547 405 952 206 152 358 Stratford 1,013,181 52,418 39,260 91,678 569 426 994 211 158 369 South Taranaki 1,283,425 67,325 50,349 117,674 647 484 1,130 218 163 382 Manawatu Wanganui 1,653,208 75,992 60,450 136,442 541 430 971 212 168 380 Rangitikei 1,940,765 95,659 73,200 168,859 559 427 986 201 154 354 Manawatu 1,634,778 80,273 61,332 141,605 585 447 1,031 209 160 368 Palmerston North City 1,636,412 80,398 61,711 142,108 566 434 1,000 205 158 363 Horowhenua 1,708,989 82,715 63,657 146,372 614 472 1,086 215 165 380 Kapiti Coast / Upper Hutt 1,250,099 58,622 45,884 104,507 499 391 889 202 158 361 Wairarapa Tararua 1,325,830 68,086 50,740 118,827 558 416 974 206 153 359 Masterton 2,217,038 109,011 83,370 192,382 660 504 1,164 226 173 400 Carterton 1,601,757 79,201 60,696 139,897 571 438 1,009 208 160 368 South Wairarapa 1,846,555 92,788 71,124 163,912 580 445 1,025 202 155 357 North Island 1,364,337 68,763 51,597 120,359 563 423 986 204 153 357 18 New Zealand Dairy Statistics 2013-14

(Table 3.4 continued) Region District Average litres per herd milkfat per herd protein per herd milksolids per herd milkfat per effective hectare protein per effective hectare milksolids per effective hectare milkfat per cow protein per cow milksolids per cow Nelson/Marlborough Marlborough 1,322,391 66,962 50,219 117,181 639 479 1,118 213 160 372 Kaikoura 1,763,895 88,375 68,025 156,400 605 466 1,071 198 152 350 Tasman/Nelson City 1,495,843 78,103 58,239 136,342 563 419 982 205 153 359 West Coast Buller 1,458,950 76,467 56,376 132,843 458 338 796 199 147 347 Grey 1,960,344 103,505 76,958 180,463 491 365 856 220 164 383 Westland 1,431,586 76,964 56,891 133,855 418 309 726 200 148 348 North Canterbury Hurunui 4,010,577 196,548 154,872 351,420 803 632 1,435 220 173 393 Waimakariri 2,779,840 133,781 106,447 240,229 759 604 1,362 220 175 396 Christchurch City 4,101,764 203,592 160,902 364,495 668 528 1,196 212 168 380 Banks Peninsula 1,208,691 56,302 46,192 102,493 457 375 831 186 153 339 Selwyn 3,330,054 162,496 128,656 291,153 723 573 1,296 222 176 397 Ashburton 4,109,818 201,398 160,165 361,563 814 648 1,462 223 177 400 South Canterbury Timaru 3,396,494 165,835 131,151 296,986 755 597 1,353 213 169 382 MacKenzie 4,002,482 198,533 158,302 356,835 719 573 1,292 248 197 445 Waimate 3,700,022 182,832 144,484 327,316 760 601 1,361 222 175 397 Otago Waitaki 3,181,022 156,724 123,899 280,623 742 586 1,328 212 167 379 Dunedin City 2,005,106 95,411 77,432 172,844 643 522 1,165 225 183 407 Clutha 2,405,885 116,396 92,549 208,946 602 479 1,081 213 170 383 Central Otago 3,339,486 170,571 133,538 304,109 615 481 1,096 200 156 356 Southland Gore 2,610,936 129,793 102,177 231,970 604 476 1,080 221 174 396 Invercargill 2,567,400 127,001 100,763 227,764 632 501 1,133 228 181 410 Southland 2,693,832 134,114 105,992 240,107 636 503 1,139 229 181 409 South Island 2,793,586 138,426 108,872 247,297 669 526 1,195 220 173 393 New Zealand 1,731,985 86,682 66,330 153,012 602 461 1,063 210 161 371 Note: Districts with fewer than four herds have been added to a neighbouring district to preserve anonymity New Zealand Dairy Statistics 2013-14 19

C. Operating structures The main operating structures found on New Zealand dairy farms are owner operator, sharemilker and, to a lesser extent, contract milker. Owner operators are farmers who either own and operate their own farms, or who employ a manager to operate the farm for a fixed wage. Owner-operators receive all the farm income, although they may pay wages. Owner operators comprise the largest group of all operating structures, being 65% of all herds. Sharemilking has traditionally been the first step to farm ownership. Sharemilking involves operating a farm on behalf of the farm owner for an agreed share of the farm receipts (as opposed to a set wage). Two types of sharemilking agreement are commonly used: Variable-order sharemilking agreement and 50% agreements. Under the 50% agreement (also called 50/50) the sharemilker owns the herd and any plant and equipment (other than the milking plant) needed to farm the property. The sharemilker is usually responsible for milk harvesting expenses, all stock related expenses, and general farm work and maintenance. The owner is usually responsible for expenses related to maintaining the property. The percentage quoted in a 50% sharemilking agreement usually refers to the proportion of milk income the sharemilker receives. While this percentage is most commonly 50%, it can range from 45% to 55%. Under the 50% agreement the sharemilker receives the agreed percentage of milk income plus the majority of income from stock sales, and the farm owner receives the remaining percentage of milk income. Unlike the 50% agreement, where the owner may have little to do with farm management, a variable-order sharemilking agreement often sees the owner heavily involved in management. The variable-order sharemilking agreement involves the farm owner retaining ownership of the herd and bearing more of the farm costs, such as animal health and breeding. The amount of farm work required by the sharemilker is determined by the individual agreement, with responsibility ranging from herd management only to carrying out all farm work. Contract milkers are contracted to milk a herd at a set price per kilogram of milksolids produced. The rate is set according to the amount of farm work done. In 2013/14, not all farms with contract milkers could be identified, and consequently any farms with contract milkers are included with owner-operators. 65% of all herds are operated as owner-operators 54% of all sharemilkers are 50/50 sharemilkers The number of herds farmed, average herd size, effective area and number of cows per hectare for each of the main operating structures are shown in Table 3.5. Thirty-four per cent (4,081) of New Zealand dairy herds operated under a sharemilking agreement in 2013/14. Fifty-four percent (2,201) of all sharemilkers have 50/50 agreements. Table 3.5: Herd analysis by operating structure in 2013/14 Operating structure Number of herds Percentage of herds Average herd size Average effective hectares Average cows per effective hectare Owner-operators 7,812 65.5 410 144 2.84 Sharemilkers: less than 20% 206 1.7 716 218 3.29 20-29% 1,151 9.7 440 152 2.90 30-49% 177 1.5 399 141 2.84 50/50 2,201 18.5 379 132 2.88 over 50% 346 2.9 392 136 2.88 All sharemilkers 4,081 34.2 415 142 2.92 Unknown 34 0.3 617 203 3.04 All farms 11,927 413 144 2.87 Note: Contract milkers are included with owner-operators 20 New Zealand Dairy Statistics 2013-14

Herd production in each of the main operating structure groups is shown in Table 3.6. The table shows that, on average, sharemilkers on less than 20% agreements have the highest production. Table 3.6: Herd production analysis by operating structure in 2013/14 Operating structure Average litres per herd milkfat per herd milksolids per herd milkfat per effective hectare milksolids per effective hectare milkfat per cow milksolids per cow Owner-operators 1,722,367 85,902 151,758 595 1,051 209 370 Sharemilkers: less than 20% 3,299,354 163,373 291,616 751 1,341 228 407 20-29% 1,832,729 92,423 163,005 610 1,075 210 370 30-49% 1,561,723 79,344 139,058 564 989 199 349 50/50 1,578,213 79,812 140,233 606 1,064 210 370 over 50% 1,697,918 84,777 150,187 622 1,101 216 383 All Sharemilkers 1,746,310 87,987 155,090 618 1,088 212 373 All farms 1,731,985 86,682 153,012 602 1,063 210 371 Note: Contract milkers are included with owner-operators Changes to the operating structure in the last ten seasons have seen the percentage of 50/50 sharemilkers decrease. The percentage of all sharemilkers has eased over the last ten seasons. Table 3.7 shows the percentage of herds in each operating structure type, whereas Table 3.8 gives the actual number of herds. Table 3.7: Trend in the percentage of herds in each operating structure for the last 10 seasons Operating structure 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Owner-operators 63.7 63.9 63.4 63.1 63.6 65.1 65.4 65.8 64.6 65.5 Sharemilkers: less than 20% 0.6 0.7 0.8 1.0 1.5 1.3 2.0 2.0 1.9 1.7 20-29% 8.2 8.6 8.8 9.1 10.4 10.5 10.9 9.9 9.6 9.7 30-49% 2.1 1.9 1.8 1.7 1.8 1.7 2.3 1.6 1.4 1.5 50/50 23.3 22.9 22.3 21.7 20.5 19.7 19.2 18.8 18.7 18.5 over 50% 1.9 1.7 1.7 1.7 1.8 1.4 0.2 1.8 3.5 2.9 All sharemilkers 36.1 35.8 35.4 35.4 36.0 34.6 34.6 34.2 35.2 34.2 Other/Unknown 0.2 0.2 1.2 1.5 0.5 0.3 0.0 0.0 0.3 0.3 Table 3.8: Trend in the number of herds in each operating structure for the last 10 seasons Operating structure 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Owner-operators 7,820 7,594 7,374 7,215 7,384 7,616 7,677 7,764 7,679 7,812 Sharemilkers: less than 20% 68 78 93 119 177 147 233 234 224 206 20-29% 1,012 1,026 1,019 1,045 1,206 1,222 1,274 1,173 1,140 1,151 30-49% 257 231 208 198 207 200 273 193 170 177 50/50 2,863 2,719 2,599 2,483 2,381 2,303 2,249 2,218 2,229 2,201 over 50% 228 206 203 199 207 169 29 216 417 346 All sharemilkers 4,428 4,260 4,122 4,044 4,178 4,041 4,058 4,034 4,180 4,081 Other/Unknown 23 29 134 177 56 34 0 0 32 34 Total 12,271 11,883 11,630 11,436 11,618 11,691 11,735 11,798 11,891 11,927 New Zealand Dairy Statistics 2013-14 21

Table 3.9 compares the number (and percentage) of owner-operators with sharemilkers by region. In the South Island there were more variable order sharemilkers than 50/50 sharemilkers, while the opposite was the case in 2013/14 in the North Island. Table 3.9: Operating structure by region in 2013/14 Farming region Owneroperators Owneroperators % All sharemilkers All sharemilkers % 50/50 sharemilkers 50/50 share-milkers % Variable order share-milkers Variable order share-milkers % Total herds (excl. unknown) Northland 697 8.9 227 5.6 121 5.5 106 5.6 924 Auckland 255 3.3 165 4.0 106 4.8 59 3.1 420 Waikato 2,237 28.6 1,296 31.8 828 37.6 468 24.9 3,533 Bay of Plenty 419 5.4 177 4.3 109 5.0 68 3.6 596 Central Plateau 303 3.9 167 4.1 109 5.0 58 3.1 470 Western Uplands 56 0.7 31 0.8 17 0.8 14 0.7 87 East Coast 7 0.1 1 0.0 0 0.0 1 0.1 8 Hawkes Bay 59 0.8 13 0.3 10 0.5 3 0.2 72 Taranaki 1,018 13.0 701 17.2 345 15.7 356 18.9 1,719 Manawatu 410 5.2 144 3.5 69 3.1 75 4.0 554 Wairarapa 325 4.2 138 3.4 69 3.1 69 3.7 463 North Island 5,786 74.1 3,060 75.0 1,783 81.0 1,277 67.9 8,846 Nelson/Marlborough 194 2.5 44 1.1 24 1.1 20 1.1 238 West Coast 280 3.6 92 2.3 39 1.8 53 2.8 372 North Canterbury 564 7.2 244 6.0 112 5.1 132 7.0 808 South Canterbury 183 2.3 103 2.5 32 1.5 71 3.8 286 Otago 213 2.7 188 4.6 63 2.9 125 6.6 401 Southland 592 7.6 350 8.6 148 6.7 202 10.7 942 South Island 2,026 25.9 1,021 25.0 418 19.0 603 32.1 3,047 New Zealand 7,812 100.0 4,081 100.0 2,201 100.0 1,880 100.0 11,893 22 New Zealand Dairy Statistics 2013-14

Table 3.10 shows the number and percentage of owner-operators and sharemilkers by herd size. Table 3.10: Operating structure by herd size in 2013/14 Herd size Owneroperators Owneroperators % All sharemilkers All sharemilkers % 50/50 sharemilkers 50/50 sharemilkers % Variable order sharemilkers Variable order sharemilkers % Number of herds (excl. unknown) Percentage of herds 10-49 8 0.1 0 0.0 0.0 0.0 8 0.1 50-99 211 2.7 29 0.7 14 0.6 15 0.8 240 2.0 100-149 575 7.4 148 3.6 80 3.6 68 3.6 723 6.1 150-199 938 12.0 421 10.3 263 11.9 158 8.4 1,359 11.4 200-249 1,082 13.9 586 14.4 363 16.5 223 11.9 1,668 14.0 250-299 842 10.8 443 10.9 289 13.1 154 8.2 1,285 10.8 300-349 725 9.3 474 11.6 268 12.2 206 11.0 1,199 10.1 350-399 500 6.4 306 7.5 165 7.5 141 7.5 806 6.8 400-449 460 5.9 296 7.3 153 7.0 143 7.6 756 6.4 450-499 339 4.3 239 5.9 117 5.3 122 6.5 578 4.9 500-549 323 4.1 222 5.4 104 4.7 118 6.3 545 4.6 550-599 251 3.2 157 3.8 70 3.2 87 4.6 408 3.4 600-649 268 3.4 148 3.6 65 3.0 83 4.4 416 3.5 650-699 187 2.4 92 2.3 31 1.4 61 3.2 279 2.3 700-749 154 2.0 100 2.5 43 2.0 57 3.0 254 2.1 750-799 131 1.7 72 1.8 34 1.5 38 2.0 203 1.7 800-849 143 1.8 70 1.7 32 1.5 38 2.0 213 1.8 850-899 98 1.3 44 1.1 16 0.7 28 1.5 142 1.2 900-949 90 1.2 45 1.1 19 0.9 26 1.4 135 1.1 950-999 56 0.7 26 0.6 17 0.8 9 0.5 82 0.7 1000-1099 127 1.6 54 1.3 20 0.9 34 1.8 181 1.5 1100-1199 81 1.0 29 0.7 13 0.6 16 0.9 110 0.9 1200-1499 121 1.5 48 1.2 20 0.9 28 1.5 169 1.4 1500+ 102 1.3 32 0.8 5 0.2 27 1.4 134 1.1 Total/Avg 7,812 100.0 4,081 100.0 2,201 100.0 1,880 100.0 11,893 100.0 New Zealand Dairy Statistics 2013-14 23

D. Breed breakdown Three types of dairy cattle, Holstein-Friesian, Jersey, and Holstein-Friesian/Jersey crossbreed, dominate the dairy cow inseminations carried out in New Zealand, as recorded on the LIC Herd Improvement Database. The Jersey breed dominated the national dairy herd until the late 1960s. By 1970, Holstein-Friesian was the dominant dairy breed in New Zealand, as a result of changes in farm management practices and farmers raising larger numbers of dairy calves for beef. Of the other breeds of cattle used to inseminate dairy cows, the main beef breed currently in use is Polled Hereford. Other beef breeds used to a lesser degree include Angus, Belgian Blue, and Simmental. Other breeds of dairy cattle present in smaller numbers in New Zealand include Milking Shorthorn, Guernsey and Brown Swiss. Holstein-Friesian/Jersey Crossbred now makes up a large proportion of the national dairy herd. The percentages of the major dairy breeds for New Zealand and each region are shown in Graphs 3.2 and 3.3. Percentages are given for Holstein-Friesian, Jersey, Holstein-Friesian/Jersey crossbreed and Ayrshire cows with the remaining breeds and crossbreeds grouped into Other. Holstein-Friesian is the prevalent breed in Northland, Bay of Plenty/East Coast and Manawatu/Wairarapa. Holstein-Friesian/Jersey crossbreed is the prevalent type of cow in Waikato, Taranaki and all South Island regions. The Manawatu/Wairarapa region continues to have the highest percentage of Holstein-Friesian cows (47%) followed closely by Bay of Plenty/East Coast (44%). Tasman/West Coast has the highest proportion of Jerseys (19%) followed by Taranaki (18%). Marlborough/Canterbury has the highest proportion of Holstein-Friesian/Jersey crossbreeds (50%), followed by Tasman / West Coast (49%) and Otago/Southland (48%). Graph 3.2: Breed percentages of cows for New Zealand in 2013/14 New Zealand 0.7% 8.1% 11.7% Holstein-Friesian / Jersey crossbreed 42.6% Holstein-Friesian Jersey Ayrshire 37.0% Other Graph 3.3: Breed percentages of cows by region in 2013/14 100 90 80 14.6 12.9 11.3 18.2 10.9 19.3 5.4 5.7 Percentage 70 60 50 40 41.4 34.3 44.1 29.0 46.6 22.8 35.5 37.3 30 20 34.9 44.8 38.3 42.0 34.5 49.1 50.1 48.2 10 0 Northland Waikato Bay of Plenty / East Coast Taranaki Manawatu / Wairarapa Tasman / West Coast Marlborough / Canterbury Otago / Southland 24 New Zealand Dairy Statistics 2013-14

4. Herd improvement A. Use of herd testing Herd testing enables farmers to collect information about individual cows in their herds. The information gained from herd testing is vital for effective herd management and decision making. Farmers are able to benchmark animal performance within herd, within region, and nationally. Farmers currently have the choice of two herd testing service providers (CRV AmBreed and LIC), and are able to choose the frequency of testing. Data used in the following analysis includes figures from both herd test providers. Herd testing involves the collection of individual milk samples from animals in the herd. A full herd test provides information on milk volumes, milkfat and protein yields, and somatic cell counts. Herd testing provides an overall picture of the production of the herd, and enables the mastitis status to be monitored. More specifically, herd test information identifies low-producing cows (for culling or drying off), high producers (for breeding), and cows with mastitis (for therapy or culling). Fewer cows herd-tested in 2013/14 The percentage of total herds and the percentage of total cows using herd testing decreased markedly (68.7% and 66.9% respectively for 2013/14, Table 4.1). A total of 3.29 million cows were herd-tested in 2013/14, down on the previous two seasons. Table 4.1: Trend in the use of herd testing services for the last 20 seasons Season Number of herds herd-tested % of total herds Number of cows herd-tested (000) % of total cows Total herds Total cows (000) 1994/95 12,446 85.0 2,474 87.4 14,649 2,831 1995/96 12,620 85.6 2,592 88.3 14,736 2,936 1996/97 12,851 87.2 2,746 89.6 14,741 3,065 1997/98 12,510 85.3 2,826 87.7 14,673 3,223 1998/99 12,059 84.0 2,819 85.7 14,362 3,289 1999/00 11,521 83.1 2,806 85.8 13,861 3,269 2000/01 11,472 82.6 2,942 84.4 13,892 3,486 2001/02 11,113 81.4 2,974 80.5 13,649 3,693 2002/03 10,113 77.0 2,855 76.3 13,140 3,741 2003/04 9,772 76.6 2,842 73.8 12,751 3,851 2004/05 9,306 75.8 2,811 72.7 12,271 3,868 2005/06 9,082 76.4 2,846 74.3 11,883 3,832 2006/07 8,692 74.7 2,791 71.2 11,630 3,917 2007/08 8,405 73.5 2,871 71.5 11,436 4,013 2008/09 8,589 73.9 3,040 71.5 11,618 4,253 2009/10 7,870 67.3 2,812 64.0 11,691 4,397 2010/11 8,409 71.7 3,186 70.4 11,735 4,529 2011/12 8,673 73.5 3,362 72.6 11,798 4,634 2012/13 8,585 72.2 3,426 71.6 11,891 4,784 2013/14 8,188 68.7 3,294 66.9 11,927 4,923 New Zealand Dairy Statistics 2013-14 25

The trend in the percentage of total herds using herd testing shows a continuing decrease from previous seasons (Graph 4.1). Graph 4.1: Trend in the percentage of herds testing for the last 30 seasons 100 90 80 70 Percentage of herds 60 50 40 30 20 10 0 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Season The regional uptake of herd testing services in 2013/14 is shown in Table 4.2, where the number of cows tested refers to all cows tested at least once in the season. Taranaki had the highest percentage of herds using herd testing (77%) followed by Wairarapa (72%). Taranaki also had the highest percentage of cows herd tested (77%). Aside from the East Coast (46%), Western Uplands and Central Plateau recorded the lowest percentage of cows herd tested (each with 55%). Table 4.2: Use of herd testing by region in 2013/14 Farming Region Herds tested Total herds Percentage of total herds Cows tested Total cows Percentage of total cows Average herd size tested Average herd size Northland 603 929 64.9 188,526 284,924 66.2 313 307 Auckland 276 423 65.2 74,545 110,823 67.3 270 262 Waikato 2,505 3,536 70.8 821,814 1,164,661 70.6 328 329 Bay of Plenty 398 597 66.7 132,122 197,425 66.9 332 331 Central Plateau 280 470 59.6 139,717 252,056 55.4 499 536 Western Uplands 52 87 59.8 24,577 44,679 55.0 473 514 East Coast 5 8 62.5 2,114 4,648 45.5 423 581 Hawkes Bay 51 72 70.8 31,701 48,444 65.4 622 673 Taranaki 1,317 1,719 76.6 381,281 493,361 77.3 290 287 Manawatu 365 555 65.8 141,907 219,832 64.6 389 396 Wairarapa 332 463 71.7 116,524 169,397 68.8 351 366 Nelson/Marlborough 164 239 68.6 57,288 88,665 64.6 349 371 West Coast 229 372 61.6 89,980 150,363 59.8 393 404 North Canterbury 564 808 69.8 444,784 658,282 67.6 789 815 South Canterbury 172 293 58.7 136,140 233,561 58.3 792 797 Otago 286 414 69.1 169,252 251,462 67.3 592 607 Southland 589 942 62.5 341,269 550,223 62.0 579 584 New Zealand 8,188 11,927 68.7 3,293,541 4,922,806 66.9 402 413 Note: Table includes figures from both herd test providers 26 New Zealand Dairy Statistics 2013-14

B. Herd test averages The lactation yield figures in this section are for herd-tested cows. Seasonal and breed averages (parts i and iii) are calculated on lactation yields for herds tested four or more times during the season. Monthly averages (part ii) are calculated on lactation yields for herds tested at least once during the season, and only cows that lactated for 100 days or more were included in the herd test averages. These figures are different to the average milksolids figures given in Chapters 2 and 3 (national and regional dairy statistics, respectively), which were based on all herds supplying a dairy company (regardless of whether herd testing was used) and represented the average production per cow as supplied to the dairy company. Days-in-milk (herd testing) information is the number of days from the start of lactation to the calculated end of lactation. The start of lactation is four days from calving (with a maximum of 60 days between the estimated start of lactation and the first herd test). The end of lactation is the last herd test date plus 15 days. The inclusion of herds with fewer than four tests reduces the calculated average lactation length: therefore, the number of days-in-milk, calculated using this method, does not necessarily reflect the average lactation length of dairy cows. The days-in-milk (production) figure is the number of days from the estimated start of lactation to the estimated end of lactation (reported since 1997/98). The results are derived from seasonal supplier tanker pick-up information, adjusted for calving spread. The days-in-milk (production) methodology provides a more accurate measure of the average lactation length of dairy cows than the herd-testing methodology. i) Seasonal averages North Canterbury has the highest protein and milksolids production (kg/cow) Taranaki has the highest milkfat and milksolids percentages The average per-cow statistics for each region are summarised in Table 4.3. North Canterbury recorded the highest per cow milk volume (5,086 litres), protein (195 kg) and milksolids (423 kg), of cows herd tested. Taranaki recorded the highest percentage for milkfat (5.05%) and milksolids (8.94%) followed by West Coast (4.98% milkfat, 8.91% milksolids). Herds in Otago recorded the lowest average somatic cells (163,000 cells/m), while herds in East Coast and Hawke s Bay had the highest averages (249,000 and 241,000 cells/ml respectively). Table 4.3: Season herd test averages per cow by region in 2013/14 Region Milk (litres) Milkfat (kg) Milkfat (%) Protein (kg) Protein (%) Milksolids (kg) Milksolids (%) Days in milk (herd testing) Days in milk (production) Somatic cell count (000 cells/ millilitre) Northland 3,483 170 4.87 129 3.71 299 8.58 210 266 225 Auckland 3,922 185 4.71 144 3.67 329 8.38 216 264 217 Waikato 4,269 206 4.83 160 3.74 366 8.57 229 261 181 Bay of Plenty 4,460 210 4.70 165 3.70 375 8.40 232 270 196 Central Plateau 4,720 224 4.74 174 3.70 398 8.43 227 264 205 Western Uplands 3,635 180 4.94 137 3.76 316 8.70 215 252 206 East Coast 3,251 145 4.46 118 3.62 263 8.08 209 280 249 Hawkes Bay 4,004 183 4.56 148 3.71 331 8.27 217 274 241 Taranaki 4,274 216 5.05 166 3.89 382 8.94 229 263 179 Manawatu 4,448 205 4.61 164 3.68 369 8.29 221 272 223 Wairarapa 4,206 204 4.86 159 3.78 363 8.63 227 271 220 Nelson/Marlborough 4,382 212 4.85 167 3.82 380 8.66 237 271 179 West Coast 4,140 206 4.98 163 3.93 369 8.91 232 269 178 North Canterbury 5,086 228 4.49 195 3.82 423 8.31 233 277 172 South Canterbury 4,763 218 4.58 184 3.86 402 8.43 231 274 172 Otago 4,851 223 4.60 187 3.86 410 8.46 239 270 163 Southland 4,939 230 4.65 192 3.89 422 8.53 233 271 178 New Zealand 4,480 212 4.74 170 3.80 383 8.54 229 266 187 The 2013/14 milkfat and protein lactation regional averages for herd-tested cows (Graph 4.2) show some variability in figures among regions, with milkfat production ranging from 145 (East Coast) to 230 kg per cow (Southland) and protein production from 118 (East Coast) to 195 kg per cow (North Canterbury). New Zealand Dairy Statistics 2013-14 27

Graph 4.2: Average milkfat and protein production per cow by region in 2013/14 450 400 Milkfat per cow (kg) Protein per cow (kg) Kilograms 350 300 250 200 129 144 160 165 174 137 118 148 166 164 159 167 163 195 184 187 192 170 150 100 50 170 185 206 210 224 180 145 183 216 205 204 212 206 228 218 223 230 212 0 Northland Auckland Waikato Bay of Plenty Central Plateau Western Uplands East Coast Hawkes Bay Taranaki Manawatu Wairarapa Nelson / Marlborough West Coast North Canterbury South Canterbury Otago Southland New Zealand Production per cow highest in 20 seasons Milk production for 2013/14 increased on previous seasons, consistent with the trend of the last 20 seasons (Table 4.4). The herd test average milksolids per cow was about 60 kilograms higher than a decade ago. The average herd somatic cell count dropped to 187,000 cells/millilitre for 2013/14 the first time that it has dropped below 190,000 cells/ millilitre in the last 20 seasons. Average days in milk at 266 in 2013/14 was higher than the previous season, but still lower than the two seasons prior to 2012/13. The milksolids percentage of 8.54% was up slightly on the previous season and the second highest in the last 20 seasons. Table 4.4: Trend in the national herd test averages for the last 20 seasons Season Milk (litres) Milkfat (kg) Milkfat (%) Protein (kg) Protein (%) Milksolids (kg) Milksolids (%) Days in milk (herd testing) Days in milk (production) Somatic cell count (000 cells/ millilitre) 1994/95 3,253 154 4.77 118 3.64 272 8.36 208-206 1995/96 3,501 164 4.72 126 3.60 290 8.28 224-206 1996/97 3,641 173 4.78 133 3.66 306 8.40 223-197 1997/98 3,373 158 4.67 119 3.52 277 8.21 209 266 195 1998/99 3,189 147 4.51 113 3.44 260 8.15 208 266 200 1999/00 3,601 169 4.69 130 3.58 299 8.30 221 263 193 2000/01 3,706 173 4.68 134 3.59 307 8.28 224 268 196 2001/02 3,791 176 4.64 138 3.61 314 8.28 227 268a 210 2002/03 3,736 175 4.68 138 3.66 313 8.38 219-213 2003/04 3,871 184 4.75 142 3.64 326 8.42 224 265 220 2004/05 3,812 181 4.75 140 3.66 321 8.42 225 265 229 2005/06 3,951 186 4.72 146 3.68 332 8.40 227 266 213 2006/07 4,014 191 4.85 150 3.76 341 8.50 230 267 232 2007/08 3,987 187 4.68 148 3.70 334 8.38 225 252 246 2008/09 4,043 190 4.70 150 3.72 340 8.42 228 266 253 2009/10 4,097 194 4.73 154 3.76 348 8.48 227 260 235 2010/11 4,101 194 4.73 154 3.75 348 8.48 229 274 232 2011/12 4,409 210 4.77 167 3.80 378 8.56 235 275 204 2012/13 4,386 207 4.72 166 3.79 373 8.51 227 258 204 2013/14 4,480 212 4.74 170 3.80 383 8.54 229 266 187 - Not available a Average excludes Northland, Taranaki and Wellington/Hawkes Bay 28 New Zealand Dairy Statistics 2013-14

ii) Monthly averages Highest average production per cow per day occurred in September The seasonal average figures presented in Table 4.5 are calculated using national monthly herd test averages, and are therefore affected by the number of samples processed. Statistics for May, June, and July are based on far fewer cows than the statistics for the other months, as only a few herds (generally winter milk herds) test in these months. Differences in climate between regions (which in turn can affect the mating period), available feed, and cow condition are reflected in differing months of peak production. All cows herd tested in each month were included, provided they were tested at least once during the season (Table 4.5). Average peak cow production occurs between August and October, with regions in the mid to lower South Island peaking in October. Table 4.5: Monthly herd test averages by region in 2013/14 Average litres of milk per cow per day Farming region 2013 Jun Jul Aug Sep Oct Nov Dec 2014 Jan Feb Mar Apr May Season average Northland 16.81 17.55 19.46 19.89 19.30 17.58 16.49 13.74 11.73 10.44 10.45 15.71 15.55 Auckland 18.14 18.28 21.99 21.21 20.90 19.64 17.36 15.40 13.05 10.37 10.32 14.41 16.87 Waikato 17.46 19.78 23.16 23.59 22.45 20.54 18.43 16.36 13.77 10.72 10.81 14.41 17.80 Bay of Plenty 9.96 19.43 23.23 23.60 22.99 21.23 19.39 16.51 15.99 12.08 11.54 14.18 18.33 Central Plateau.. 28.50 25.34 25.12 23.45 20.36 18.28 16.85 14.03 12.06 11.39 19.51 Western Uplands.. 23.56 21.95 20.83 20.17 17.14 16.07 13.50 10.12 9.08 8.42 16.05 East Coast... 20.63 21.51 18.43 17.54 12.96 12.89 10.31.. 16.21 Hawkes Bay 17.23 17.32 30.51 22.57 24.71 19.85 20.30 14.98 14.52 11.96 11.00 9.55 17.44 Taranaki 17.24 16.58 20.31 23.19 22.36 20.68 18.37 16.94 16.12 12.23 10.90 12.63 17.79 Manawatu 16.95 18.81 21.76 24.86 23.81 22.37 20.46 17.60 16.25 13.04 10.99 14.03 18.81 Wairarapa 13.86 15.44 19.19 22.90 22.47 21.45 18.60 16.71 15.55 12.75 10.68 11.09 17.38 Nelson/Marlborough 17.05 13.85 16.66 23.67 22.29 21.73 19.02 17.42 15.40 12.47 10.67 11.33 17.33 West Coast. 11.40 17.75 22.63 21.84 20.69 18.74 16.56 15.85 13.40 11.14 9.21 17.07 North Canterbury 18.31 18.34 20.12 25.05 25.55 23.91 22.25 20.56 19.19 16.72 14.45 12.30 20.42 South Canterbury 17.54 21.18 20.46 23.95 24.36 23.77 20.82 19.78 18.09 15.56 13.37 12.09 19.37 Otago. 16.25 20.80 24.17 24.97 23.03 20.50 18.67 17.76 15.71 13.03 11.47 19.22 Southland 19.23 16.29 23.81 25.39 25.73 24.26 21.80 19.62 18.95 16.11 14.18 12.59 20.15 New Zealand 1 17.12 18.35 22.13 23.58 23.55 21.70 19.69 17.52 16.17 13.30 12.26 12.56 18.50 of milkfat per cow per day Farming region 2013 Jun Jul Aug Sep Oct Nov Dec 2014 Jan Feb Mar Apr May Season average Northland 0.79 0.81 0.91 0.93 0.91 0.84 0.79 0.71 0.64 0.61 0.59 0.81 0.79 Auckland 0.80 0.83 1.00 0.97 0.95 0.90 0.83 0.77 0.68 0.60 0.59 0.79 0.83 Waikato 0.85 0.92 1.09 1.11 1.05 0.96 0.88 0.83 0.75 0.66 0.66 0.81 0.91 Bay of Plenty 0.61 0.83 1.07 1.08 1.04 0.97 0.88 0.81 0.81 0.69 0.64 0.76 0.90 Central Plateau.. 1.11 1.18 1.14 1.07 0.94 0.91 0.86 0.80 0.71 0.68 0.98 Western Uplands.. 1.14 1.02 0.99 0.96 0.81 0.81 0.71 0.61 0.59 0.53 0.83 East Coast... 0.87 0.97 0.79 0.84 0.61 0.69 0.53.. 0.76 Hawkes Bay 0.84 0.81 1.28 1.02 1.06 0.91 0.88 0.72 0.74 0.63 0.62 0.56 0.84 Taranaki 0.92 0.89 0.96 1.11 1.08 1.01 0.92 0.92 0.87 0.75 0.69 0.76 0.95 Manawatu 0.80 0.92 1.01 1.11 1.08 1.00 0.93 0.84 0.81 0.70 0.64 0.77 0.92 Wairarapa 0.71 0.74 0.98 1.08 1.06 1.01 0.89 0.86 0.82 0.72 0.64 0.65 0.89 Nelson/Marlborough 0.79 0.73 0.85 1.10 1.03 0.99 0.91 0.89 0.81 0.70 0.65 0.65 0.89 West Coast. 0.67 0.83 1.06 1.03 1.00 0.90 0.85 0.84 0.77 0.68 0.60 0.89 North Canterbury 0.91 0.87 0.88 1.08 1.11 1.05 0.98 0.96 0.92 0.86 0.79 0.70 0.97 South Canterbury 0.89 0.88 0.89 1.06 1.06 1.05 0.95 0.91 0.88 0.81 0.74 0.71 0.93 Otago. 0.82 0.96 1.07 1.08 1.03 0.94 0.90 0.87 0.81 0.72 0.67 0.93 Southland 1.01 0.89 1.11 1.13 1.14 1.09 1.00 0.96 0.94 0.86 0.79 0.74 0.99 New Zealand 1 0.82 0.87 1.03 1.09 1.07 1.00 0.92 0.87 0.83 0.76 0.71 0.72 0.93 New Zealand Dairy Statistics 2013-14 29

of protein per cow per day Farming region 2013 Jun Jul Aug Sep Oct Nov Dec 2014 Jan Feb Mar Apr May Season average Northland 0.62 0.67 0.72 0.73 0.71 0.66 0.62 0.52 0.46 0.44 0.45 0.63 0.6 Auckland 0.66 0.68 0.79 0.78 0.76 0.72 0.65 0.58 0.51 0.43 0.44 0.59 0.64 Waikato 0.67 0.76 0.87 0.88 0.82 0.77 0.69 0.63 0.54 0.46 0.47 0.62 0.69 Bay of Plenty 0.44 0.73 0.86 0.87 0.84 0.78 0.70 0.62 0.61 0.50 0.49 0.61 0.7 Central Plateau.. 1.02 0.93 0.91 0.85 0.74 0.70 0.65 0.57 0.53 0.51 0.75 Western Uplands.. 0.89 0.82 0.77 0.75 0.64 0.62 0.53 0.43 0.41 0.39 0.63 East Coast... 0.75 0.79 0.65 0.66 0.47 0.51 0.41.. 0.60 Hawkes Bay 0.71 0.66 1.04 0.86 0.89 0.73 0.73 0.57 0.56 0.49 0.47 0.46 0.67 Taranaki 0.67 0.65 0.75 0.88 0.85 0.80 0.71 0.69 0.66 0.53 0.49 0.56 0.72 Manawatu 0.64 0.72 0.80 0.91 0.87 0.82 0.75 0.67 0.62 0.53 0.47 0.59 0.72 Wairarapa 0.54 0.58 0.76 0.86 0.83 0.80 0.70 0.65 0.62 0.54 0.48 0.50 0.69 Nelson/Marlborough 0.60 0.53 0.66 0.88 0.83 0.80 0.71 0.68 0.62 0.53 0.49 0.52 0.69 West Coast. 0.53 0.74 0.86 0.82 0.79 0.72 0.67 0.65 0.59 0.52 0.46 0.7 North Canterbury 0.69 0.69 0.70 0.92 0.95 0.89 0.85 0.81 0.78 0.71 0.64 0.56 0.81 South Canterbury 0.72 0.77 0.73 0.89 0.91 0.89 0.80 0.78 0.74 0.67 0.60 0.57 0.78 Otago. 0.64 0.79 0.90 0.93 0.87 0.78 0.74 0.72 0.66 0.58 0.53 0.77 Southland 0.73 0.66 0.91 0.96 0.97 0.92 0.83 0.78 0.78 0.69 0.63 0.58 0.81 New Zealand 1 0.65 0.70 0.83 0.88 0.87 0.81 0.74 0.68 0.64 0.57 0.54 0.57 0.73 Average somatic cell count (000 cells per millilitre) Farming region 2013 Jun Jul Aug Sep Oct Nov Dec 2014 Jan Feb Mar Apr May Season average Northland 215 205 181 175 183 182 214 233 274 285 308 285 225 Auckland 229 197 155 191 170 165 208 215 262 278 351 228 217 Waikato 213 208 176 151 151 141 163 168 201 249 260 261 181 Bay of Plenty 513 226 275 178 168 163 184 197 208 228 247 342 196 Central Plateau.. 240 184 181 187 187 191 217 224 262 313 205 Western Uplands.. 299 189 179 169 173 169 211 256 302 303 206 East Coast... 235 244 175 357 224 363 235.. 249 Hawkes Bay 254 292 76 241 168 219 158 251 238 280 313 291 241 Taranaki 222 294 223 157 152 153 157 169 187 206 256 289 179 Manawatu 275 225 210 185 186 187 201 221 223 273 301 297 223 Wairarapa 273 269 285 183 185 179 189 207 236 253 297 296 220 Nelson/Marlborough 70 152 792 142 157 139 147 164 178 210 239 274 179 West Coast. 362 217 151 152 157 150 165 170 202 233 274 178 North Canterbury 268 248 240 178 169 155 157 154 158 172 204 236 172 South Canterbury 270 248 300 180 174 164 150 150 150 185 194 222 172 Otago. 254 177 178 145 155 149 158 158 157 181 221 163 Southland 437 331 499 169 171 165 176 173 176 183 190 209 178 New Zealand 1 236 233 187 167 164 159 169 178 193 218 237 248 187 1 Volume weighted averages 30 New Zealand Dairy Statistics 2013-14

iii) Breed category averages Holstein-Friesian/Jersey Crossbred cows show highest milksolids (kg) production Herd test statistics by breed category (Table 4.6) include cows herd tested four or more times during the season. On average, Holstein-Friesian cows produced a higher volume of milk than other breeds. Cross-bred cows produced the highest milkfat (kg), protein (kg) and milksolids (kg). Jerseys have the highest milkfat and protein percentages. For all breeds except Ayrshire, six-year-old cows produced more milksolids (kg) than any other age group. A crossbreed is defined as having at most 13/16 of any one breed. For example, a Holstein-Friesian/Jersey crossbreed may be 13/16 Holstein-Friesian, 2/16 Jersey and 1/16 Ayrshire. Table 4.6: Herd test averages by breed category and age in 2013/14 Holstein-Friesian Age Cows tested Days in milk Milk (litres) Milkfat (kg) Protein (kg) Milksolids (kg) Milkfat (%) Protein (%) Milksolids (%) 2 186,272 227 3,724 164.4 138.1 302.6 4.47 3.72 8.19 3 154,442 222 4,495 196.6 166.2 362.8 4.43 3.71 8.14 4 140,327 222 4,929 214.9 180.9 395.8 4.41 3.68 8.09 5 149,985 221 5,083 224.4 186.3 410.7 4.47 3.68 8.15 6 121,133 220 5,150 226.3 187.2 413.5 4.44 3.65 8.09 7 87,262 218 5,129 220.4 184.6 405.0 4.34 3.61 7.95 8 64,286 215 4,978 216.2 179.6 395.8 4.39 3.62 8.01 9 37,905 211 4,747 206.7 169.8 376.5 4.39 3.59 7.98 10+ 49,487 207 4,347 191.2 154.2 345.4 4.44 3.56 8.00 Total 991,099 211 4,414 193.0 160.6 353.6 4.43 3.67 8.10 Jersey Age Cows tested Days in milk Milk (litres) Milkfat (kg) Protein (kg) Milksolids (kg) Milkfat (%) Protein (%) Milksolids (%) 2 62,393 226 2,743 152.6 111.8 264.4 5.60 4.09 9.69 3 56,584 221 3,262 180.3 134.1 314.4 5.56 4.12 9.68 4 54,058 221 3,498 197.7 145.0 342.8 5.69 4.15 9.84 5 49,788 221 3,611 205.5 150.0 355.5 5.73 4.17 9.90 6 41,955 220 3,612 206.1 149.8 355.9 5.74 4.16 9.90 7 31,322 219 3,587 204.2 148.8 353.0 5.72 4.16 9.88 8 24,246 216 3,496 199.1 144.4 343.5 5.73 4.14 9.87 9 14,886 213 3,395 190.8 138.3 329.1 5.65 4.08 9.73 10+ 19,041 207 3,087 173.3 124.9 298.2 5.64 4.06 9.70 Total 354,273 220 3,338 188.2 137.6 325.8 5.67 4.13 9.80 Holstein-Friesian/Jersey crossbreed Age Cows tested Days in milk Milk (litres) Milkfat (kg) Protein (kg) Milksolids (kg) Milkfat (%) Protein (%) Milksolids (%) 2 307,929 227 3,404 166.5 132.7 299.2 4.95 3.91 8.86 3 255,664 223 4,094 199.2 160.4 359.6 4.92 3.93 8.85 4 232,344 222 4,469 218.1 174.5 392.5 4.93 3.92 8.85 5 198,854 222 4,602 226.2 179.3 405.5 4.97 3.91 8.88 6 151,310 220 4,630 228.2 179.3 407.5 4.99 3.89 8.88 7 101,455 219 4,638 225.2 178.1 403.4 4.91 3.86 8.77 8 72,309 217 4,519 220.7 173.1 393.8 4.93 3.85 8.78 9 42,718 213 4,372 213.0 165.7 378.7 4.91 3.80 8.71 10+ 54,250 208 4,001 196.0 150.4 346.5 4.94 3.77 8.71 Total 1,416,833 222 4,200 205.3 163.1 368.4 4.94 3.90 8.84 New Zealand Dairy Statistics 2013-14 31

Ayrshire Age Cows tested Days in milk Milk (litres) Milkfat (kg) Protein (kg) Milksolids (kg) Milkfat (%) Protein (%) Milksolids (%) 2 3,386 236 3,363 150.0 120.6 270.7 4.49 3.60 8.09 3 3,061 231 4,032 178.8 145.4 324.2 4.46 3.62 8.08 4 2,783 230 4,414 195.1 159.0 354.1 4.45 3.61 8.06 5 2,485 227 4,523 198.6 163.1 361.7 4.42 3.62 8.04 6 2,133 227 4,533 198.3 163.4 361.7 4.40 3.62 8.02 7 1,662 226 4,481 194.4 160.8 355.2 4.36 3.60 7.96 8 1,372 222 4,321 188.7 155.2 343.9 4.40 3.61 8.01 9 915 222 4,237 182.9 151.3 334.2 4.34 3.59 7.93 10+ 1,379 214 3,918 170.2 139.2 309.4 4.37 3.57 7.94 Total 19,176 228 4,150 182.5 149.2 331.6 4.43 3.61 8.04 Holstein-Friesians have the highest average liveweight across all ages for the breeds shown in Table 4.7. In contrast, Jerseys have the lowest average liveweight at all ages. Liveweight by age and breed is illustrated in Graph 4.3. Table 4.7: Liveweight by age and by breed category of cow in 2013/14 Holstein-Friesian Jersey Holstein-Friesian/Jersey crossbreed Age Average liveweight Number of cows Average liveweight Number of cows Average liveweight Number of cows (kg) (kg) (kg) 2 434 9,064 351 4,034 405 16,968 3 479 2,613 391 692 449 4,276 4 488 2,534 429 813 462 3,894 5 489 2,743 438 672 475 3,082 6 497 2,058 430 524 476 2,223 7 494 1,442 443 390 479 1,668 8 493 1,163 447 307 477 1,044 9 499 575 440 186 477 549 10+ 517 627 442 260 482 673 Weighted Avg 481 414 454 Graph 4.3: Liveweight by age and breed category of cow in 2013/14 550 500 Liveweight (kg) 450 400 350 300 2 3 4 5 6 7 8 9 10+ Age Holstein-Friesian Holstein-Friesian/Jersey crossbreed Jersey 32 New Zealand Dairy Statistics 2013-14

C. Artificial Breeding (AB) statistics A record 3.6 million cows to AB in 2013/14 All artificial inseminations are recorded on the LIC Herd Improvement Database. Table 4.8 provides a summary of cows mated to AB for the last nine seasons. The percentage of cows to AB has fluctuated between 72% (2009/10) and 76% (2007/08) for the last nine seasons (Graph 4.4). The number of cows to AB increased slightly on the previous season to a record 3.6 million. The number of yearlings to AB increased to 226,800 from 198,700 in the previous season (Table 4.8). Table 4.8: Trend in Artificial Breeding use for the last nine seasons by region: Cows and yearlings to AB Cows to AB Region 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Northland 176,370 172,786 175,082 171,472 168,427 171,390 180,615 192,066 190,785 Auckland 81,693 75,613 75,624 73,708 70,604 70,730 73,516 76,013 74,961 Waikato 802,112 810,022 831,945 816,985 803,113 817,660 837,380 867,180 843,758 Bay of Plenty 141,621 143,911 146,265 142,908 135,087 138,554 136,183 137,806 139,262 Central Plateau 116,980 121,672 127,817 129,853 128,561 132,040 143,101 160,005 157,294 Western Uplands 17,370 19,455 20,522 21,781 20,508 25,415 25,136 28,427 28,256 East Coast 686 514 1,466 3,163 1,343 714 1,474 2,240 2,025 Hawkes Bay 23,896 25,703 27,561 29,426 28,480 32,338 34,433 36,878 38,851 Taranaki 380,806 371,923 390,732 381,876 379,318 389,668 392,236 396,646 395,722 Manawatu 140,106 138,647 140,265 138,830 131,907 141,879 151,327 160,485 155,417 Wairarapa 124,159 121,840 126,863 129,383 124,670 128,243 133,934 133,086 135,131 Nelson/Marlborough 67,119 65,909 65,512 67,270 64,028 67,256 68,986 68,423 65,670 West Coast 94,924 98,435 99,874 103,470 98,785 96,423 96,049 98,182 103,085 North Canterbury 261,166 278,983 313,423 365,250 374,378 411,344 455,981 502,449 524,567 South Canterbury 82,519 91,096 102,486 128,466 130,043 141,565 154,917 171,235 183,195 Otago 122,572 128,254 140,696 147,975 158,855 170,412 175,922 180,320 178,088 Southland 229,360 239,914 268,036 315,849 334,520 366,399 381,678 367,641 379,911 New Zealand 2,863,459 2,904,677 3,054,169 3,167,665 3,152,627 3,302,030 3,442,868 3,579,082 3,595,978 % Cows to AB Region 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Northland 65.8 65.0 66.2 64.0 62.0 62.3 64.6 67.2 67.0 Auckland 68.6 65.0 66.9 64.9 64.5 63.9 67.1 67.9 67.6 Waikato 74.6 74.8 77.2 74.0 71.7 72.0 73.5 75.5 72.4 Bay of Plenty 75.9 75.5 76.4 73.9 70.0 72.1 71.1 71.4 70.5 Central Plateau 58.1 58.7 59.7 58.2 55.3 55.8 59.8 64.8 62.4 Western Uplands 61.3 63.9 64.1 63.8 55.5 63.9 64.2 67.5 63.2 East Coast 11.9 12.2 37.7 76.7 24.1 15.1 30.7 45.7 43.6 Hawkes Bay 66.9 68.9 74.7 67.8 62.0 69.3 73.7 77.2 80.2 Taranaki 79.1 77.6 82.3 80.3 79.3 80.0 81.0 80.9 80.2 Manawatu 77.9 73.2 73.7 70.2 65.0 66.6 71.3 74.7 70.7 Wairarapa 79.5 76.7 80.0 78.4 75.6 77.9 80.3 78.9 79.8 Nelson/Marlborough 80.1 81.1 80.8 82.3 77.0 79.3 81.7 79.4 74.1 West Coast 76.6 77.2 75.3 74.0 68.8 66.4 65.4 66.5 68.6 North Canterbury 80.3 80.0 81.0 82.1 78.8 80.4 81.5 82.7 79.7 South Canterbury 77.2 76.9 78.4 78.3 73.9 76.8 80.2 78.4 78.4 Otago 80.1 79.7 82.5 81.1 79.9 80.1 76.2 76.1 70.8 Southland 75.8 75.3 75.9 75.5 73.0 75.7 75.5 69.1 69.0 New Zealand 74.7 74.2 76.1 74.5 71.7 72.9 74.3 74.8 73.0 New Zealand Dairy Statistics 2013-14 33

Yearlings to AB Region 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Northland 7,334 8,533 11,759 10,796 8,816 8,744 9,637 10,377 11,876 Auckland 2,420 2,338 3,454 3,336 2,588 3,073 3,170 2,994 3,622 Waikato 13,312 16,126 22,341 22,557 15,505 18,676 23,609 26,144 28,667 Bay of Plenty 6,696 7,723 11,508 10,495 7,116 7,871 7,461 8,373 9,375 Central Plateau 2,008 3,374 4,811 3,944 2,917 2,704 4,118 4,533 5,343 Western Uplands 655 550 1,141 853 782 1,048 1,577 2,066 2,344 East Coast 0 0 29 3 7 2 0 0 60 Hawkes Bay 968 1,042 1,417 2,037 1,010 1,986 2,025 3,725 2,955 Taranaki 3,375 3,420 8,227 6,775 4,822 5,191 6,458 7,651 7,920 Manawatu 3,553 3,205 6,423 6,215 4,137 4,717 6,341 7,119 8,575 Wairarapa 2,850 3,357 5,091 5,044 4,150 4,055 4,537 4,721 5,792 Nelson/Marlborough 3,088 3,522 5,096 4,651 2,499 4,006 4,826 4,874 5,012 West Coast 1,747 1,981 3,658 4,265 3,580 3,706 4,481 3,760 5,201 North Canterbury 16,653 17,920 32,205 25,831 18,911 29,168 36,916 43,063 48,312 South Canterbury 9,193 9,750 14,020 14,669 11,395 14,808 18,151 23,201 25,707 Otago 8,201 10,225 14,767 13,599 13,043 15,754 16,392 16,974 20,490 Southland 14,302 25,160 25,358 25,210 18,209 22,947 27,266 29,161 35,522 New Zealand 96,355 118,226 171,305 160,280 119,487 148,456 176,965 198,736 226,773 Graph 4.4: Trend in the percentage of cows to Artificial Breeding for the last 30 seasons 90 85 80 Percentage of cows 75 70 65 60 55 50 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Season 34 New Zealand Dairy Statistics 2013-14

In 2013/14 the average number of inseminations per cow (1.33) (recorded on the LIC Herd Improvement Database) is similar to the previous three seasons. Graph 4.5: Average number of inseminations per cow for the last 20 seasons Number of inseminations 1.36 1.34 1.32 1.30 1.28 1.26 1.24 1.29 1.29 1.28 1.25 1.27 1.27 1.30 1.30 1.31 1.30 1.30 1.30 1.32 1.35 1.34 1.32 1.34 1.34 1.34 1.33 1.22 1.20 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Season The use of Ayrshire, Holstein-Friesian and Jersey semen over different cow breeds for the past five seasons is shown in the graphs below. Ayrshire semen use over Ayrshire cows is 33.7% (Graph 4.6). Holstein-Friesian/Jersey Crossbreed semen is used predominantly over Holstein-Friesian/Jersey crosses (Graph 4.7). The use of Jersey semen over other breeds is illustrated in Graph 4.8. The percentage of Holstein-Friesian semen over Holstein-Friesian/Jersey Crossbreed cows continues to increase (Graph 4.9). Graph 4.6: Ayrshire semen usage (%) over breed category for the last five seasons 2013/14 33.7 5.5 5.9 13.9 21.6 19.3 2012/13 31.5 5.7 7.6 15.0 21.2 19.0 Season 2011/12 2010/11 27.8 5.5 8.8 16.7 20.6 20.6 26.7 6.2 10.0 16.5 20.4 20.1 2009/10 0% 28.3 6.7 10.7 14.6 21.4 18.3 20% 40% 60% 80% 100% Ayrshire Jersey Holstein-Friesian Holstein-Friesian/Jersey Crossbreed Ayrshire crossbreed Other New Zealand Dairy Statistics 2013-14 35

Graph 4.7: Holstein-Friesian/Jersey Crossbreed semen usage (%) over breed category for the last five seasons 2013/14 5.5 14.0 43.4 5.7 31.3 Season 2012/13 2011/12 2010/11 6.1 15.0 43.1 5.5 30.3 6.2 16.8 42.1 5.7 29.2 6.5 19.4 40.7 5.5 28.0 2009/10 7.0 20.9 39.9 5.4 26.7 0% 20% 40% 60% 80% 100% Jersey Holstein-Friesian Holstein-Friesian/Jersey Crossbreed Ayrshire crossbreed Other Graph 4.8: Jersey semen usage (%) over breed category for the last five seasons 2013/14 39.0 11.5 21.2 4.3 24.0 Season 2012/13 2011/12 2010/11 38.6 12.2 21.5 4.3 23.3 36.9 14.0 22.0 4.3 22.8 35.7 16.0 21.8 4.2 22.3 2009/10 0% 35.2 17.7 21.9 4.2 21.1 20% 40% 60% 80% 100% Jersey Holstein-Friesian Holstein-Friesian/Jersey Crossbreed Ayrshire crossbreed Other Graph 4.9: Holstein-Friesian semen usage (%) over breed category for the last five seasons 2008/09 3.0 33.9 29.0 34.1 Season 2012/13 2011/12 2010/11 3.1 35.8 28.4 32.8 3.3 37.1 27.8 31.9 3.5 39.2 26.7 30.7 2009/10 3.6 41.5 26.3 28.6 0% 20% 40% 60% 80% 100% Jersey Holstein-Friesian Holstein-Friesian/Jersey Crossbreed Other 36 New Zealand Dairy Statistics 2013-14

The percentage of inseminations for each breed category, Holstein-Friesian, Jersey, Holstein-Friesian/Jersey Crossbreed, and Ayrshire, as recorded on the LIC Herd Improvement Database is shown in Graph 4.10. The percentage of inseminations for Holstein-Friesian continued at 55%, while inseminations for the Jersey breed continues to decline (now at 14%). The percentage of inseminations for Holstein-Friesian/Jersey Crossbreed (shown since 2000/01) increased to 27%. Graph 4.10: Trend in the percentage of inseminations of each breed category for the last 40 seasons 100 90 80 Percentage of inseminations 70 60 50 40 30 20 10 0 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Season Ayrshire Holstein-Friesian Jersey Holstein-Friesian/Jersey Crossbreed New Zealand Dairy Statistics 2013-14 37

D. Herd Reproduction Reproductive performance is a key determinant of farm productivity. The 6-week in-calf rate is the best overall measure of herd reproductive performance and is used to compare performance between herds and to monitor national performance. The not-in-calf rate at end of mating is important at a herd level, but is not suitable for comparison between herds due to differences in length of mating period. Actual 6-week in-calf rate (Detailed Fertility Focus Reports) is calculated for herds with sufficient early aged pregnancy test records (at least 80% of cows in the herd, and at least 80% of all pregnancy test results are less than or equal to 122 days pregnant, or non-pregnant). The 6-week in-calf rate for herds without sufficient early aged pregnancy test records is estimated from calving and mating data (Intermediate Fertility Focus Reports). The statistics in this section are for LIC MINDA recording herds only. There has been a trend towards more early aged pregnancy testing and thus more actual results are available from Detailed Fertility Focus Reports, since the launch of the DairyNZ InCalf programme in 2008/09. The number of herds with detailed reports has increased from 354 in 2008/09 to 3,170 in 2013/14 (Table 4.9). The mean actual 6-week in-calf rate over the past three seasons (about 66%) is greater than that achieved in 2008/09 to 2010/11. The mean estimated 6-week in-calf rates are 1-3% lower, but a similar trend for improvement is evident. The mean 3-week submission rate and mean conception rate have also increased, mostly between 2010/11 and 2011/12. Conception rates are not available for Intermediate Fertility Focus Reports. Table 4.9: Mean herd reproductive performance since 2008/09 Mating season Actual Estimated Number of herds Mean 6-week in-calf rate (%) Mean 3-week submission rate (%) Mean conception rate (%) Number of herds Mean 6-week in-calf rate (%) Mean 3-week submission rate (%) 2008/09 354 63.4 78.5 50.1 4,872 62.1 72.7 2009/10 712 63.5 77.5 51.0 4,749 61.6 72.2 2010/11 1,190 63.6 77.9 50.5 4,707 61.6 72.0 2011/12 1,684 66.1 80.0 52.3 4,692 63.0 74.5 2012/13 2,331 66.5 81.0 52.9 4,465 64.2 76.6 2013/14 3,170 65.6 79.9 52.2 5,681 63.6 75.0 Graph 4.11: Mean actual and estimated 6-week in-calf rate since 2008/09 67 66 65 Mean 6-week in-calf rate 64 63 62 61 60 59 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Season Actual 6-week in-calf rate Estimated 6-week in-calf rate 38 New Zealand Dairy Statistics 2013-14

Mean actual 6-week in-calf rate ranged between 60.6% (Northland / Auckland) and 67.4% (Taranaki) in 2013/14 (Table 4.10). Mean estimated 6-week in-calf rates ranged between 59.7% for Northland / Auckland, and 64.8% for Taranaki in 2013/14. Table 4.10: Mean 6-week in-calf rate by farming region for the last three seasons. Farming region Number of herds Actual Estimated 2011/12 2012/13 2013/14 2011/12 2012/13 2013/14 Mean 6-week in-calf rate (%) Number of herds Mean 6-week in-calf rate (%) Number of herds Mean 6-week in-calf rate (%) Number of herds Mean 6-week in-calf rate (%) Number of herds Mean 6-week in-calf rate (%) Number of herds Mean 6-week in-calf rate (%) Northland / Auckland 55 63.4 101 63.2 190 60.6 419 59.1 390 60.6 699 59.7 Waikato / Western Uplands 481 67.6 654 68.2 899 67.3 1,397 63.9 1,353 65.4 1,807 64.4 BoP / Central Plateau / East Coast 130 65.7 183 66 235 64.6 421 63.3 390 64.9 494 64.5 Hawkes Bay / Manawatu / Wairarapa 159 64.4 235 64.3 321 63.3 429 60.8 388 61.6 499 61.4 Taranaki 106 67 173 69.7 249 67.4 1,000 63.7 972 65.1 1,170 64.8 West Coast / Nelson / Marlborough 33 70.7 62 68.5 95 66.6 306 63.4 281 63.7 346 64.1 North & South Canterbury 365 66 458 66.0 618 65.4 292 64.6 273 64.4 258 63.5 Otago / Southland 355 64.9 465 65 563 65.7 428 63.0 418 63.2 408 64.1 In 2013/14, 50% of herds had an actual 6-week in-calf rate of 67% or higher and 10% had an in-calf rate of 75% or higher (Table 4.11). Ten per cent of herds had an in-calf rate of 55% or lower. Table 4.11: Actual 6-week in-calf rate in 2013/14 Number of herds Median Top 10% Top 25% Bottom 25% Bottom 10% 6-week in-calf rate 3,170 67 >75 >72 <61 <55 Graph 4.12: Distribution of actual 6-week in-calf rate in 2013/14 30 25 20 15 10 5 0 < 40 40-45 45-50 50-55 55-60 60-65 65-70 70-75 75-80 80-85 85-90 > 90 Percentage of herds Actual 6-week in-calf rate (%) New Zealand Dairy Statistics 2013-14 39

The distribution of estimated 6-week in-calf rates is tighter than the actual results reflecting that estimates tend towards the mean. This is because estimates for low performing herds tend to be overestimated while estimates for high performing herds tend to be underestimated. In 2013/14, 50% of herds had an estimated 6-week in-calf rate of 65% or higher and 10% of these herds had an in-calf rate of 71% or higher (Table 4.12). Ten per cent of herds had an in-calf rate of 54% or lower. Table 4.12: Estimated 6-week in-calf rate in 2013/14 Number of herds Median Top 10% Top 25% Bottom 25% Bottom 10% 6-week in-calf rate 5,681 65 >71 >69 <60 <54 Graph 4.13: Distribution of estimated 6-week in-calf rate in 2013/14 35 30 25 20 15 10 5 0 < 40 40-45 45-50 50-55 55-60 60-65 65-70 70-75 75-80 80-85 85-90 > 90 Percentage of herds Estimated 6-week in-calf rate (%) 40 New Zealand Dairy Statistics 2013-14

E. Calving i) Planned start of calving and median calving dates The trend in calving dates within and between regions is best shown by the planned start of calving date. The planned start of calving date is 282 days from the date that mating is started in the herd. The farmer has control over, and the ability to change, the start of mating. Mating and calving information is recorded on the LIC Database for approximately 85% of all herds. Calving spread can be controlled to some degree by farm management (for example, cow condition score at calving, level of nutrition in the four to six weeks prior to mating, and the use of CIDR devices and other reproductive technology). The actual start of calving can be meaningless, since the first calving in a herd can be premature, occurring well before the rest of the herd calves. Hence the median calving date (the date that occupies the middle position after the dates are arranged in ascending order) is used as an indicator of actual calving spread. The forecast planned start of calving and actual median calving dates for cows (excluding first calvers) for the 2013/14 season are shown in Graph 4.14. Graph 4.14: Planned start of calving and median calving dates for cows (excluding first calvers) by region 30 Aug 20 Aug 10 Aug Date 31 Jul 21 Jul 11 Jul 1 Jul Northland Waikato Bay of Plenty/ East Coast Taranaki Manawatu/ Wairarapa Region Tasman/ Westland Planned start of calving 2014/15 Median calving 2013/14 Marlborough/ Canterbury Otago/ Southalnd The planned start of calving for five-yearly intervals since 1999/00 is shown in Graph 4.15. The trend is for a similar planned start of calving compared with five years ago, but still earlier than 10 or 15 years ago. New Zealand Dairy Statistics 2013-14 41

Graph 4.15: Trend in planned start of calving dates for cows (excluding first calvers) by region 14 Aug 9 Aug 4 Aug 30 Jul Date 25 Jul 20 Jul 15 Jul 10 Jul 5 Jul 30 Jun Northland Waikato Bay of Plenty/ East Coast Taranaki Manawatu/ Wairarapa Region Tasman/ Westland Marlborough/ Canterbury Otago/ Southland 1999/00 2004/05 2009/10 2014/15 ii) Calving interval The calving interval for a herd tested cow is the number of days between her calving date in the current season and her calving date in the preceding season. No interval is calculated for first-calving heifers. The average calving interval is based on all recorded calving dates for herd tested cows calving during the period from 1 June to 30 November. All records where pregnancy terminated prematurely or resulted in abortion or were induced, were excluded. Table 4.13: Mean calving interval by breed since 2000/01 season Average number of days All breeds Holstein-Friesian Jersey Friesian/Jersey Cross Ayrshire Number of records Average number of days Number of records Average number of days Number of records Average number of days Number of records Average number of days Number of records 2000/01 368.2 2,075,300 368.4 1,120,489 368.4 355,463 367.7 491,090 369.3 25,941 2001/02 368.3 2,093,134 368.7 1,091,334 367.8 363,278 367.7 526,610 369.7 25,572 2002/03 368.4 2,109,651 368.6 1,068,842 368.3 365,913 368.0 562,974 369.4 24,175 2003/04 369.0 2,181,103 369.4 1,067,677 368.2 375,598 368.6 620,523 368.9 23,642 2004/05 369.5 2,210,747 370.1 1,040,243 368.8 383,759 369.0 666,562 370.6 23,169 2005/06 367.8 2,241,175 368.2 1,013,546 367.7 390,971 367.4 706,441 368.2 23,129 2006/07 368.9 2,260,512 369.3 1,002,099 369.0 387,357 368.2 739,493 370.4 22,785 2007/08 369.9 2,349,042 370.4 985,422 369.7 366,954 369.5 853,422 371.0 21,239 2008/09 370.1 2,359,392 371.0 953,577 368.9 359,509 369.5 891,949 371.9 19,948 2009/10 368.7 2,477,122 369.1 972,118 368.3 361,329 368.5 980,435 369.3 16,745 2010/11 368.6 2,628,672 369.2 1,000,637 368.2 364,664 368.2 1,088,976 370.5 19,719 2011/12 368.3 2,807,333 368.5 1,030,006 368.0 370,877 368.2 1,213,169 369.1 20,164 2012/13 368.8 2,927,817 368.7 1,323,053 368.4 370,796 368.7 1,323,053 369.5 20,643 42 New Zealand Dairy Statistics 2013-14

F. Animal Evaluation The genetic merit of New Zealand dairy cows and sires is estimated using statistical methods which allow simultaneous evaluation of cows and sires of all breeds, using all recorded relationships. The structure of the national herd reveals large numbers of crossbred cows, and large numbers of herds with mixed breeds. For this reason the national evaluation system is designed to compare animals irrespective of breed, both nationally and within herd, to assist farmers to select the most profitable animals for the future. There are two types of evaluation calculated for New Zealand dairy animals: 1. Trait evaluations are estimates of an animal s genetic merit (Breeding Values) and lifetime productive ability (Production Values) for individual traits including milkfat, protein, volume, liveweight, somatic cell, fertility and residual survival. 2. Economic evaluations combine an animal s individual trait evaluations to estimate its comparative ability to convert feed into profit, through breeding replacements (Breeding Worth) and lifetime production (Production Worth). For each economic index, Economic Values are calculated for the relevant traits. For Breeding Worth, the Economic Values represent the net income per unit of feed from breeding replacements with a one unit genetic improvement in the trait. For Production Worth, the Economic Values represent the net income per unit of feed from milking cows with a one unit improved productive ability in the trait. In each case the base unit of feed is 5 tonnes of dry matter in average quality pasture. The profit-related traits are combined into a single economic index. For example: Breeding Worth = Milkfat BV x $EV (Milkfat) + Protein BV x $EV (Protein) + Milk BV x $EV (Milk) + Liveweight BV x $EV (Liveweight) + Somatic Cell BV x $EV (Somatic cell) + Fertility BV x $EV (Fertility) + Residual Survival BV x $EV (Residual Survival) where: BV = Breeding Value for each trait $EV = Economic Value for each trait for breeding replacements Animal Evaluation ranks animals in terms of their expected profit per unit of feed eaten. Breeding Worth (BW) and Production Worth (PW) are based on future price predictions for milk components. The economic values for 2014 are presented below (Table 4.14). The economic values are reviewed annually and therefore may change from year to year. Table 4.14: Economic values used from 15 February 2014 Milkfat ($/kg) Protein ($/kg) Milk ($/kg) Liveweight ($/kg) Somatic Cell ($/ score) Fertility ($/%) Residual Survival ($/day) Breeding Worth 2.04 9.17-0.099-1.66-38.37 7.18 0.135 Production Worth 2.04 9.17-0.097-1.66 - - - The information for all Animal Evaluation statistics was sourced from cows and sires recorded on the LIC Herd Improvement Database as at 17 May 2014. The evaluations were conducted with reference to a genetic base of cows born in 2000. Table 4.15 shows the Breeding Values (BV) and Breeding Worth (BW) by breed category, of all bulls born in 2009 first proven in the 2013/14 season with a BW Reliability of 75% or greater. Reliability of BW is reported on a scale from 0% to 99%. 0% is the case where there are no performance records for any related animal used in the bull s evaluation. 99% is the case where the bull has a very large number of performance-recorded daughters. New Zealand Dairy Statistics 2013-14 43

i) Sire Evaluations Table 4.15: Average Breeding Values and Breeding Worth of 2009-born bulls (reliability of 75% or greater) Breed Milkfat BV Protein BV Milk Volume BV Liveweight BV Somatic Cell BV Fertility BV Residual Survival BV BW Number of Bulls Ayrshire 7.1 9.9 332.6 1.9-0.1-2.0 143.1 77.3 7 Holstein Friesian 22.4 30.5 887.4 43.5 0.0 1.0 11.7 176.0 125 Jersey 12.9 0.6-436.3-43.1-0.1 2.3 27.2 168.2 84 HF/J Crossbred 18.7 13.2 129.7-8.5 0.0 2.3 1.9 178.9 52 The genetic trend of proven dairy bulls is shown in Graph 4.16. Bulls born in 2009 are first proven in the 2013/14 season. Graph 4.16: Genetic trend of proven dairy bulls by year of birth (reliability of 75% or greater) (Evaluation date: 17 May 2014) 200 150 100 Breeding Worth ($) 50 0-50 -100-150 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year of birth Holstein-Friesian Jersey Ayrshire Holstein-Friesian/Jersey Crossbreed (Evaluation date: 17 May 2014) Young bulls are initially selected for use in Artificial Breeding based on the genetic merit of their sire and dam. These young sires are then progeny tested to estimate their Breeding Worth more accurately via the performance of their daughters. Each year some progeny tested bulls are returned to service for use as proven sires. Table 4.16 shows the number of sires, by birth year and breed category, for which the Reliability of the BW was at least 75%. The information in this table is updated every year for all age groups to include older bulls that have now been proven in New Zealand. Table 4.16: Number of Sires by birth year and breed category (reliability of BW 75% or greater, includes overseas bulls) Year of Birth Number of Sires Holstein-Friesian Jersey HF/Jersey Crossbred Ayrshire Other Breeds 1999 455 246 142 23 37 7 2000 536 290 137 67 35 7 2001 538 262 161 74 33 8 2002 533 271 162 73 23 4 2003 516 257 149 69 38 3 2004 526 258 150 91 26 1 2005 491 222 154 94 18 3 2006 492 230 155 82 23 2 2007 308 151 94 42 18 3 2008 324 141 101 66 16 0 2009 268 125 84 52 7 0 (Evaluation date: 17 May 2014) 44 New Zealand Dairy Statistics 2013-14

ii) Cow Evaluations The Breeding Worth for herds presented below (Table 4.17 and Graph 4.17) is based on cows of the users of herd testing services, in herds with at least 80 cows, in the 2013/14 season. Table 4.17 shows that 50% of these herds had a BW of 103 or above and 25% of these herds had a BW of 121 or above. Table 4.17: Herd Breeding Worth in 2013/14 Median Top 5% Top 10% Top 25% Bottom 25% Bottom 10% Bottom 5% Herd BW 103 > 144 > 135 > 121 < 79 < 52 < 32 Graph 4.17: Distribution of Herd Breeding Worth in 2013/14 (Evaluation date: 17 May 2014) 20 15 Percentage of herds 10 5 0 <0 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100 Herd BW ($) 100-110 110-120 120-130 130-140 140-150 150-160 160-170 >170 (Evaluation date: 17 May 2014) The Production Worth (PW) for herds presented below (Table 4.18 and Graph 4.18) is based on cows of the users of herd testing services, in herds with at least 80 cows, in the 2013/14 season. Table 4.18 shows that 50% of these herds had a PW of 122 or above and 25% of these herds had a PW of 146 or above. Table 4.18: Herd Production Worth in 2013/14 Median Top 5% Top 10% Top 25% Bottom 25% Bottom 10% Bottom 5% Herd PW 122 > 182 > 168 > 146 < 95 < 67 < 45 Graph 4.18: Distribution of Herd Production Worth in 2013/14 (Evaluation date: 17 May 2014) 12 Percentage of herds 8 4 0 < 10 10-0 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100 100-110 110-120 Herd PW ($) 120-130 130-140 140-150 150-160 160-170 170-180 180-190 190-200 200-210 210-220 >220 (Evaluation date: 17 May 2014) New Zealand Dairy Statistics 2013-14 45

The Breeding Worth (BW) for cows presented below (Table 4.19 and Graph 4.19) is based on all cows of the users of herd testing services, in herds with at least 80 cows, and signed up for herd testing in the 2013/14 season. Table 4.19 shows that 50% of these cows had a BW of 101 or above and that 25% of these cows had a BW of 138 or above. Table 4.19: Cow Breeding Worth in 2013/14 Median Top 5% Top 10% Top 25% Bottom 25% Bottom 10% Bottom 5% Cow BW 101 > 186 > 169 > 138 < 58 < 19 < -6 Graph 4.19: Distribution of Cow Breeding Worth in 2013/14 (Evaluation date: 17 May 2014) 15 10 5 0 < 80 80-60 60-40 40-20 20-0 0-20 20-40 40-60 Percentage of herds 60-80 80-100 100-120 120-140 140-160 160-180 180-200 200-220 220+ Cow BW ($) (Evaluation date: 17 May 2014) The Production Worth (PW) for cows presented below (Table 4.20 and Graph 4.20) is based on cows of the users of herd testing services, in herds with at least 80 cows, in the 2013/14 season. Table 4.20 shows that 50% of these cows had a PW of 121 or above and that 25% of these cows had a PW of 195 or above. Table 4.20: Cow Production Worth in 2013/14 Median Top 5% Top 10% Top 25% Bottom 25% Bottom 10% Bottom 5% Cow PW 121 > 309 > 265 > 195 < 45 < -27 < -74 (Evaluation date: 17 May 2014) Graph 4.20: Distribution of Cow Production Worth in 2013/14 12 10 Percentage of herds 8 6 4 2 0 <-150 150-120 120-90 90-60 60-30 30-0 0-30 30-60 60-90 90-120 120-150 Cow PW ($) 150-180 180-210 210-240 240-270 270-300 300-330 330-360 360+ (Evaluation date: 17 May 2014) 46 New Zealand Dairy Statistics 2013-14

The genetic trend for cows is based on all cows (alive or dead) recorded on the LIC Herd Improvement Database in the 2013/14 season. Also included are the estimated BW and PW for replacement stock (2012 and 2013 born animals). All evaluations can be compared across breeds. The genetic trend for BW by breed category is presented in Graph 4.21. The Breeding Worth for all breed categories has increased over time. Graph 4.21: Trend in Breeding Worth for all cows 150 100 50 0-50 -100-150 1993 1994 1995 1996 1997 1998 1999 2000 Breeding Worth ($) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year of Birth Holstein-Friesian Jersey Ayrshire Holstein-Friesian/Jersey Crossbreed (Evaluation date: 17 May 2014) The trend for PW by breed category is presented in Graph 4.22. Holstein-Friesian/Jersey crossbreds have maintained a higher PW over other breeds, caused by the effects of heterosis (hybrid vigour) in the crossbreds. Graph 4.22: Trend in Production Worth for all cows 200 150 100 Production Worth ($) 50 0-50 -100-150 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year of Birth Holstein-Friesian Jersey Ayrshire Holstein-Friesian/Jersey Crossbreed (Evaluation date: 17 May 2014) New Zealand Dairy Statistics 2013-14 47

Table 4.21 shows the average BVs and BW by breed category, of all 2011 born cows. The Holstein-Friesian/Jersey Crossbred cows had the highest average BW at 119.9. Holstein Friesian cows had the highest milkfat, protein, and milk volume BVs. All evaluations are comparable across breeds. Table 4.21: Average Breeding Worth and Breeding Values of all cows by breed category born in 2011. Breed BW$ Milkfat BV (kg) Protein BV (kg) Milk Volume BV (l) Liveweight BV (kg) Somatic Cell BV (score) Fertility BV (%) Residual Survival BV (days) Cow Numbers Holstein-Friesian 112.6 16.3 19.6 556 30.3 0.02 1.1-15 411,066 Jersey 111.5 5.4-4.0-495 -42.9-0.02 2.0 15 120,224 Ayrshire -5.5-3.2 2.0 85 5.7-0.21-3.8 149 7,318 HF/J Crossbred 119.9 12.8 9.9 106-2.1 0.00 1.7-17 530,069 Guernsey -185.1-19.2-13.9-410 16.7 0.09-3.5 21 99 Milking Shorthorn -145.4-23.1-11.4-290 10.6-0.09-2.4 108 329 Brown Swiss -151.8-18.8-6.2-216 32.5-0.27-7.4 145 103 Other 91.3 8.7 8.5 98 1.8-0.07 0.4 24 66,507 Weighted Average 113.8 12.9 11.8 204 5.6 0.00 1.4-9 1,135,715 (Evaluation date: 17 May 2014) Survivability is measured by the percentage of cows that have a lactation recorded for consecutive years. In the 2013/14 season, the value in the 2-3 years column is the percentage of cows that were milking as two-year-olds in the 2012/13 season and are now milking as three-year-olds in the 2013/14 season. Table 4.22 shows that for the 2013/14 season the highest percentage of survival is in animals aged 2-3 years (87.6%), followed by animals aged 3-4 years (87.4%) and 4-5 years (86.3%). Table 4.22: Survivability percentages since 1996/97 Percentage (%) of age group surviving to next lactation Season 2-3 years 3-4 years 4-5 years 5-6 years 6-7 years 7-8 years 8-9 years 1996/97 84.9 85.1 84.8 81.6 78.2 74.2 69.0 1997/98 85.9 86.7 85.6 81.9 77.7 73.9 68.3 1998/99 84.5 86.1 85.8 83.0 80.0 75.5 70.5 1999/00 84.1 86.2 85.8 82.8 80.7 76.3 70.8 2000/01 85.3 86.7 86.5 83.2 80.1 76.5 71.7 2001/02 85.6 88.4 86.8 84.3 80.8 77.1 73.5 2002/03 85.7 85.9 86.6 83.8 80.8 76.0 71.2 2003/04 85.2 86.9 86.0 83.0 78.7 74.8 69.4 2004/05 85.7 87.3 86.7 82.7 79.7 74.6 69.6 2005/06 85.0 87.5 87.6 84.2 79.7 76.7 70.6 2006/07 84.8 87.8 88.2 84.7 79.5 74.9 71.2 2007/08 84.0 87.6 87.2 84.1 80.0 74.9 69.5 2008/09 86.8 87.7 87.5 83.4 80.2 76.1 70.7 2009/10 87.0 87.2 86.3 82.2 77.6 72.9 67.3 2010/11 86.2 87.2 86.0 81.1 76.8 71.2 65.7 2011/12 87.3 87.7 86.8 81.5 76.8 72.2 65.6 2012/13 87.6 89.2 87.9 82.7 77.9 71.6 66.1 2013/14 87.6 87.4 86.3 82.0 77.2 71.5 64.3 48 New Zealand Dairy Statistics 2013-14

5. Prices received A. Milk prices Up until the end of the 2000/01 season, dairy farmers received payment from the New Zealand Dairy Board through a system of advance and final payouts via dairy companies. Seasonal supply dairy companies passed on the Dairy Board advance payout to their suppliers, in addition to a margin based on dairy company efficiency, product mix and investment policies; together known as the total payout. The introduction of the Dairy Industry Restructuring Act 2001 opened the way for New Zealand s largest dairy companies, Kiwi Co-operative Dairy Company (Kiwi) and New Zealand Dairy Group (NZDG) to merge with the Dairy Board to form Fonterra. Further, the Act allowed the smaller dairy companies, such as Tatua and Westland, to become separate co-operatives. Consequently, the historic payment system became redundant. Tatua and Westland have now established commercial arrangements for sale of dairy products. Payments to seasonal supply farmers are based on the A+B±C system, which incorporates payments for milkfat (A) and protein (B) with adjustments for milk volume (C). The payment system for suppliers to town supply dairy companies varies between companies. Some town supply payment systems are based on the milk volume only, whereas other payment systems are similar to seasonal supply payment systems, which incorporate components of milkfat, protein, and volume. Record dairy co-operative payout of $8.47 The weighted average dairy company total payout (per kilogram of milksolids) received by dairy farmers from seasonal supply dairy companies is shown in Table 5.1 (weightings are based on the number of herds supplying each dairy company). The average payout is given in both nominal and inflation adjusted dollars using the Consumers Price Index. The average dairy company payout of $8.47 per kg milksolids in 2013/14 was a record high and 37% higher than the previous season. Table 5.1: Trend in prices received for milksolids for the last 20 seasons Season Average Dairy Company total payout ($/kg milksolids) Dairy Company payout (inflation adjusted) a 1994/95 3.40 5.10 1995/96 3.99 5.87 1996/97 3.63 5.28 1997/98 3.42 4.89 1998/99 3.58 5.14 1999/00 3.78 5.32 2000/01 5.01 6.83 2001/02 5.35 7.10 2002/03 3.66 4.79 2003/04 4.25 5.43 2004/05 4.58 5.69 2005/06 4.10 4.90 2006/07 4.46 5.22 2007/08 7.67 8.64 2008/09 5.14 5.68 2009/10 b 6.37 6.93 2010/11 b 7.89 8.15 2011/12 b 6.40 6.55 2012/13 b 6.18 6.28 2013/14 b 8.47 8.47 a Weighted to give real dollar values using the Consumers Price Index for the end of the June quarter. Sourced from Statistics New Zealand; Excludes dairy company retentions and deduction for DairyNZ Levy. b Average dairy co-operative payout (Fonterra, Tatua, Westland) New Zealand Dairy Statistics 2013-14 49

Graph 5.1: Trend in milksolids payout to dairy farmers for the last 30 seasons 9.00 8.00 7.00 6.00 Dollars 5.00 4.00 3.00 2.00 1.00 0.00 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 Dairy company payout (inflation adjusted) 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10b Season Average dairy company total payout ($/kg milksolids) 2010/11b 2011/12b 2012/13b 2013/14b B. Dairy farm land prices Dairy farm land prices have been relatively steady for the past two seasons Prior to 2011/12 table 5.2 used data from Quotable Value (QV) on a calendar year. Dairy farm land sales are now based on data provided by the Real Estate Institute of New Zealand (REINZ) on a seasonal basis. Raw data provided by REINZ have been weighted by the number of farms in each region. The farms sold are considered to be economic units. The weighted average sale price of dairy farms increased to $5.37 million in 2013/14 (Table 5.2). The weighted average sale price per hectare of $35,328 increased 9.3% on the previous season. Table 5.2: Trend in dairy land sale values since 2009/10 Season Number of dairy farms sold Weighted average sale price ($) Inflation adjusted average sale price ($) Weighted average land area (ha) Weighted average sale price/ha ($) Inflation adjusted average sale price/ha ($) Weighted average sale price/kgms ($) 2009/10 90 4,128,586 4,417,850 145 31,618 34,380 39 1099 2010/11 143 4,136,532 4,204,461 143 32,726 33,801 38 1157 2011/12 157 4,532,603 4,563,648 171 32,123 32,866 40 1168 2012/13 197 4,579,455 4,579,455 155 32,311 32,833 35 1176 2013/14 312 5,367,060 5,281,726 166 35,328 35,328 41 1195 Source: Real Estate Institute of New Zealand (REINZ), Statistics New Zealand Note: Number of dairy farms sold is for a season (01-Jun to 31-May) and excludes support blocks and non-economic units. Figures have been weighted by the number of dairy farms in each region. CPI 50 New Zealand Dairy Statistics 2013-14

6. Disease Control A. Tuberculosis (Tb) control Control of Tb (M. bovis) over the agricultural industry is managed by TBfree New Zealand, whose primary objective is to manage Tb to reduce the number of infected herds and to prevent Tb vector free areas becoming vector risk areas. The status of a vector area is determined by the prevalence of wild animals (e.g., possums and ferrets) that are considered a source of infection. Both the number of infected dairy herds (from 58 to 47) and the number of Tuberculous dairy cattle decreased in 2013/14. The number of Tuberculous dairy cattle decreased 66% (from 291 to 100). The West Coast of the South Island remains the worst affected Tb area with 32 infected herds and 70% of the Tb dairy cattle in 2013/14. Table 6.1: Tuberculosis (Tb) testing and results in 2013/14 Region Vector Status Number of infected Dairy herds at 30 June 2014 Number of Dairy Cattle Primary Tested in 2013/14 Number of tuberculous a dairy cattle Northland Free 1 95,219 0 Auckland Free 0 32,254 1 Waikato Free 5 610,057 9 Risk 0 202,185 1 Bay of Plenty Free 0 73,388 1 Risk 0 5,197 0 Gisborne Free 0 2,208 0 Hawke s Bay Free 0 11,665 0 Risk 0 41,351 0 Taranaki Free 0 186,730 0 Manawatu/Wanganui Free 0 110,168 0 Risk 0 29,434 0 Wellington Free 0 2,336 0 Risk 1 91,390 1 North Island Free 6 1,124,025 11 Risk 1 369,557 2 North Island Total 7 1,493,582 13 Marlborough Free 0 6,916 0 Risk 0 3,515 0 Tasman/Nelson Free 0 28,164 0 Risk 0 27,211 0 West Coast Free 0 5,205 0 Risk 32 251,901 70 Canterbury Free 1 381,988 4 Risk 1 164,212 1 Otago Free 1 89,196 1 Risk 1 187,142 1 Southland Free 2 173,653 7 Risk 2 119,966 3 South Island Free 4 685,122 12 Risk 36 753,947 75 South Island Total 40 1,439,069 87 New Zealand Free 10 1,809,147 23 Risk 37 1,123,504 77 New Zealand Total 47 2,932,651 100 Sourced from TBfree New Zealand a Tuberculous animals include lesioned reactor cattle and lesioned cull cattle New Zealand Dairy Statistics 2013-14 51

Appendix 1: Farming regions and districts The following map shows the six LIC regions and the farming regions used in all analyses presented in this report. The list of districts, which follow local authority boundaries, within each region is also given. 1 Northland Far North Whangarei Kaipara 2 Auckland Rodney North Shore Waitakere Auckland Manukau Papakura Franklin 3 Waikato Thames/Coromandel Hauraki Waikato Matamata/Piako Hamilton Waipa Otorohanga South Waikato 10 Manawatu Wanganui Rangitikei Manawatu Palmerston North Horowhenua Kapiti Porirua Upper Hutt Lower Hutt Wellington 11 Wairarapa Tararua Masterton Carterton South Wairarapa 12 Nelson/Marlborough Tasman Nelson Marlborough Kaikoura 15 South Canterbury Timaru MacKenzie Waimate 16 Otago Waitaki Central Otago Queenstown/Lakes Dunedin Clutha 17 Southland Southland Gore Invercargill 1 4 Bay of Plenty Western Bay of Plenty Tauranga Whakatane Kawerau Opotiki 5 Central Plateau Rotorua Taupo 13 West Coast Buller Grey Westland 14 North Canterbury Hurunui Waimakariri Christchurch Banks Peninsula 2 2 3 6 5 9 8 4 7 6 Western Uplands Waitomo Ruapehu Selwyn Ashburton 10 11 7 East Coast Gisborne Wairoa 8 Hawkes Bay 13 12 Northland Hastings Napier Central Hawkes Bay 9 Taranaki New Plymouth Stratford South Taranaki 17 16 15 14 Waikato Bay of Plenty / East Coast Taranaki Manawatu / Wairarapa South Island 52 New Zealand Dairy Statistics 2013-14