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ASB head of rural banking Aidan Gent is encouraging farmers to speak to their banks when they are struggling.
The GlobalDairyTrade price index lifted by 1.9% at the auction held overnight.
Whole milk powder was up 1.8% to an average price of US$2,304/MT and skim milk powder was up 0.2% to an average price of US$1,891/MT.
ASB's Nathan Penny says the lift was well below expectations of a 10% rise.
Although the bank is sticking to it $4.60/kgMS milk price forecast – Fonterra's current forecast - the downside risk to this has grown, he says.
Butter and anhydrous milk fat posted the largest gains of 9.0% and 6.1%, respectively. Meanwhile, butter milk powder and casein posted similar-sized falls.
"The modest rise comes despite Fonterra's lower auction volumes," Penny says. "Ahead of the auction, Fonterra lowered the amount of WMP offered by 5% from what it had signalled previously.
"Moreover, Fonterra also lowered the amount of WMP it plans to offer over the rest of the season by 9%.
"Our view remains that dairy prices will move higher over 2016. NZ production is falling hard (we estimate that production is down around 3% in the season to November compared to the same period last season) and a large hole is developing in global dairy exports, particularly for whole milk powder (WMP)."
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.
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