Returns lift, costs down - DairyNZ
The outlook for dairy farmers this season has improved, especially when compared to forecasts only six months ago, according to DairyNZ.
The Global Dairy Trade overall price index was up 4.5% overnight.
The whole milk powder (WMP) index was up 3.2% with an average price US$3,423/MT and the skim milk powder (SMP) index up 9.8%, average price US$2,562/MT.
ASB rural economist Nathan Penny says another solid result in the bag, there is now clear upside to our $6/kgMS 2016/17 milk price forecast.
“As a result, we place our forecast “under review”. Moreover, we expect Fonterra to lift its milk price forecast from $5.25/kgMS to at least $5.75/kgMS sooner rather than later,” he says.
Key WMP prices rose a more modest 3.2% (although that is on top of the whopping 19.8% lift a fortnight ago), he says. For a change, the price strength came in products other than WMP. SMP made up some lost ground, jumping 9.8%. Meanwhile, BMP and cheddar posted the auction’s largest gains of 13.3% and 11%, respectively.
“The solid result reflects the continued impact of wet weather on NZ production,” Penny says.
“Fonterra has reported that milk volumes across the central and upper North Island over October were very weak, with this weakness continuing into November. In the Waikato region (which accounts for 23% of NZ’s dairy herd), late October milk volumes were down around 14% vs. the same time last season.
“At this juncture, we point out that prices have lifted earlier and higher than we anticipated. As a result, if NZ production over the course of the full season is indeed as weak as we now anticipate, then prices are likely to remain at current levels, if not lift further.”
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.
OPINION: Scientists claim to have found a new way to make a substitute for cow's milk that could have a…
OPINION: The Irish have come up with a novel way to measure cow belching, which is said to account for…