The Problem
- Drought is an increasingly common problem for dairy farmers in NZ
- Historically, drought conditions have led to drops in Milk fat Production which threaten farm viability
- NIWA report that a drought combined with an MFP reduction of more than 5% occurs about every 10 to 20 years (depending on dairy region)
- That type of drought can be a financially devastating event for those affected
- Currently there is No Economic Back Stop for dairy farmers in the event of a drought
