Big problems for dairy producers

We hear so much good stories about New Zealand dairy farming — but they have big problems.

They are carrying huge levels of debt, amounting on average to over €6,000 per cow (average about €2m per farm), due mainly to rapid expansion. Some reports put the borrowing a lot higher.

The banks estimate the average cost of milk production in New Zealand to be 21c/litre, which is similar to average Irish costs.