Friday, 19 May 2017 15:00

Less milk to help lift price

Written by 
Taranaki farmers at the DairyNZ Farmers Forum. Taranaki farmers at the DairyNZ Farmers Forum.

Lower milk production around the world will help keep the farmgate milk price high, says DairyNZ chairman Michael Spaans.

Opening the DairyNZ Farmers Forum in Taranaki today, Spaans noted that milk production had slowed in Europe and Australia.

While the US was still producing more milk, most of it was being absorbed by the domestic market.

Spaans says milk production across the globe, particularly Europe, has been constrained by lower milk prices …”quite a good thing for us”.

“When we find it tough, we have the resilience to keep going…. places like Europe and other producers who rely a lot on grain, they actually find it a lot tougher.

“We see it is holding back growth of milk production in Europe and this is certainly going to help our milk price going forward.”

Spaans noted that Australian milk production was “bit of a mess”, dipping quite significantly.

“The US is looking quite solid and growing but a lot of production is being absorbed by the domestic market; some milk is now starting to come into the world market.”

While milk production has slowed, global demand remains strong.

But Spaans had a word of caution for farmers; things can change quickly.

“From the lessons learnt during the last few seasons, we know these things change and we know that opening forecast can be wrong.”

He says farmers also know prices could move around during the year.

“We should ensure we farm profitably, remain cautious and use extra cash, if it does come through, wisely.”

 

More like this

Dairy conversions falling

DairyNZ says a fall in the number of dairy conversions in Canterbury signals strongly that fears of a big rise in dairying there are unwarranted.

Right plants, good planting techniques

Using the right plants and techniques will help maximise the success of riparian planting and ensure value for money by getting it right first time, says DairyNZ.

 
 

» Latest Print Issues Online

Milking It

Goodbye to spillage

Say goodbye to spilt milk, as scientists offer dissolvable milk capsules you add to your tea or coffee just like…

 

» Connect with Dairy News

 
 

Markets

South Island wool sale eases

South Island wool sale eases

The 4700 bales on offer saw a 74% clearance with mixed results, however all prices paid locally are still above…

Wool continues to ease

Wool continues to ease

The 7250 bales of North Island wool on offer saw a 72% clearance with most types easing further.