Graph 5.1: Trend in milksolids payout to dairy farmers for the last 30 seasons 40 Dollars 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 <strong>New</strong> <strong>Zealand</strong> <strong>Dairy</strong> <strong>Statistics</strong> <strong>2010</strong>-<strong>11</strong> 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 Season <strong>Dairy</strong> company payout (inflation adjusted) Average dairy company total payout ($/kg milksolids) 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 <strong>2010</strong>/<strong>11</strong>
ii) <strong>Dairy</strong> farm land sale values • Number of farms sold lowest in more than 20 years • Average sale price of farms drops to $2.3 million • Nominal price per hectare also falls The average sale price of dairy farms ($2.34 million) decreased <strong>11</strong>% in <strong>2010</strong> (Table 5.2). The inflation- adjusted average price per hectare of $29,500 has dropped back to 2006 levels. Table 5.2: Trend in dairy land sale values for the last 20 years Year Number of farms sold Average sale price ($) Inflation adjusted average sale price a Average hectares Average price per hectare ($) Inflation adjusted average price per hectare a Price per kg milkfat b Price per kg milksolids c 1991 538 362,819 570,355 58 6,283 9,877 21.7 12.5 736 1992 897 446,979 696,036 62 7,183 <strong>11</strong>,185 23.1 13.3 743 1993 834 543,984 835,843 61 8,903 13,680 31.0 17.8 753 1994 784 704,245 1,070,712 61 <strong>11</strong>,640 17,697 37.5 21.6 761 1995 672 775,<strong>11</strong>0 1,126,636 58 13,400 19,477 41.9 24.1 796 1996 784 785,510 1,<strong>11</strong>9,255 60 13,187 18,790 41.6 23.9 812 1997 520 674,809 950,979 54 12,388 17,458 38.5 22.1 821 1998 496 704,309 975,9<strong>11</strong> 64 <strong>11</strong>,076 15,347 32.0 18.4 835 1999 600 769,606 1,070,233 72 10,759 14,962 33.1 19.0 832 2000 576 856,374 1,167,049 80 10,740 14,636 35.3 20.3 849 2001 941 1,032,618 1,363,857 74 13,959 18,437 41.2 23.7 876 2002 704 1,049,939 1,349,755 72 14,658 18,844 45.6 26.2 900 2003 722 1,347,676 1,707,844 82 16,498 20,907 49.9 28.7 913 2004 800 1,550,792 1,919,001 85 18,287 22,629 50.1 28.8 935 2005 728 1,833,049 2,204,613 87 21,085 25,359 56.2 32.3 962 2006 576 2,208,693 2,555,458 87 25,308 29,281 65.4 37.6 1000 2007 699 2,541,870 2,883,278 91 28,035 31,800 73.6 42.3 1020 2008 662 3,267,025 3,562,628 93 35,143 38,323 88.4 50.8 1061 2009 277 2,641,186 2,780,575 84 31,323 32,976 64.4 37.0 1099 <strong>2010</strong> 242 2,339,029 2,339,029 79 29,528 29,528 65.8 37.8 <strong>11</strong>57 Source: Quotable Value <strong>New</strong> <strong>Zealand</strong> Rural Property Sales <strong>Statistics</strong> (Table D3) a Adjusted using the Consumers Price Index for the end of the June quarter b Price per kg milkfat has been derived from price per kg milksolids (1996 to current year) c Price per kg milksolids has been derived from price per kg milkfat (1991 to 1995) CPI <strong>New</strong> <strong>Zealand</strong> <strong>Dairy</strong> <strong>Statistics</strong> <strong>2010</strong>-<strong>11</strong> 41