Green but not much grass!
Dairy farmers in the lower North Island are working on protecting next season, according to Federated Farmers dairy chair Richard McIntyre, who farms just north of the Horowhenua township of Levin.
While the 2012/13 season will be tough for farmers, Federated Farmers believes it is not as dire as some commentators say.
"Will some farm businesses fail as a result of lower payouts and a high dollar? Sadly, that answer is probably yes," says Bruce Wills, Federated Farmers president.
"I can understand why the outlook for some is negative given a slew of farm confidence results and projected falls in income. Federated Farmers was painfully honest even before the start of this season that it would be a tough one.
"Before the Ministry for Primary Industries (MPI) forecasts, farm sales recorded by the Real Estate Institute had slid back to levels last seen in September 2010.
"Yet there are blue clouds appearing among the grey. Five of the last six GlobalDairyTrade auctions have been up and in the latest auction, wholemilk powder jumped 9.2%.
"This comes off an excellent production start to the new season. I have read that milk volumes are up 13% on last year and last season was one out of the box. I can say from my farm we currently have excellent growing conditions for beef and lamb too.
"That said cold weather and rain has impacted grass growth in some areas and is a concern going forward.
"After a terrible start to the new season, we are seeing wool prices slowly climb with an encouragingly high clearance rate too.
"Beef prices are holding up despite the drought in the United States. While lamb has reversed recent gains to be in the $90 range, initiatives like what McDonald's New Zealand is doing with lamb may open up new export opportunities.
"Look, this is a tough season and make no bones about it. Yet tough does not mean dire because we produce food and fibre the world needs.
"What would really help us is less pressure on the dollar. There is no quick fix but winding back government spending and paying down debt would help relieve the pressure. Combine that with a focus on the quality of regulation instead of the quantity and things will look up.
"I guess we need to look past the short term because the medium term remains bright," Wills says.
Farmer-led charity, Meat the Need is calling for donations to enable it to supply more meals to families in need.
Weaker pricing and demand from China continue to impact New Zealand red meat export earnings.
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
Horticulture NZ chief executive Nadine Tunley will step down in August.
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