The Ministry of Agriculture and Forestry (MAF) published a monitoring report revealing the farm diary profitability in the fiscal season of 2009/2010. Although, the situation has improved evidently since last year, showing signs of improvement, the farmers are still not so confident in the ability of dairy industry to make it out of the global 2-year financial recession.

The instability in debts and payments and incomes and expenses contributed heavily in the farmer's doubtfulness that things would get better.

Phil Journeaux, the Manager of MAF North Island, stated that farmers are optimistic at how the dairy industry seems to proceed, yet cautious, with their spending plans. He also added, "Most farmers had a poor financial year in 2008/09, and with the low payout forecast at the start of the 2009/10 season, farmers kept a very tight rein on expenditure".

According to the report, the milk production increased in that fiscal quarter, on the national level, especially in the South Island, whereas, on the North Island the current drought did not allow the industry to function properly.

The data in this report is collected from the farmers and the dairy industry representatives, across the country.