Thursday, February 24, 2011

New Zealand Milk Checks

New Zealand dairy farmer are paid by kilograms of milk solids. The present forecasted price is $8/kg milk solids.

To convert to dollars per hundredweight:

1 kilogram = 2.2046 pounds. So, take the payout ($8) divided by 2.2046 ($3.63 per pound of milk solids). There are 8.4 pounds of solids per hundredweight of milk. Therefore, $3.63x8.4 equals $30.482 per hundredweight.

I see no reason to convert the New Zealand dollars to U.S. dollars, unless the milk check is being sent to the U.S. All costs are local and therefore all milk checks are local.

Virtually, all cows are milked seasonally in New Zealand. The season for this payout began in July 2010 and will end in June 2011. consequently, the payout is still subject to change.


  1. Unless I am mistaken grazing is the status quo in new zealand. so low input costs plus lower milk production plus better cow longevity equals higher pay. seems like a win win situation. add in better weather than the north east and midwest and it sounds like a good place to live

  2. Milk is about 87 percent water so the solids must be near 13 pounds per 100 pounds of milk not 8.4