Margin squeezed but profits possible: Despite the rapid downward movements in milk price, and upward movements in onfarm costs, the rules of a successful dairy farming system remain the same.

The article discusses the challenges faced by dairy farmers in New Zealand due to a decrease in milk prices and an increase in on-farm costs. Despite these challenges, successful dairy farming systems remain the same. The article highlights the importance of pasture utilization and the ability to adapt to changes in pasture supply for increased profitability. It also examines the performance of the top 10% of dairy farmers, who achieve exceptional results in terms of net margin over feed. The article concludes that pasture management is the key driver of profitability in the dairy industry. [Extracted from the article]