increase font size
Rabobank’s dairy analyst Emma Higgins.
Rabobank says it doesn’t share Fonterra’s optimism about the international situation this season.
The bank predicts the farmgate milk price to dairy farmers will be $6.80/kgMS, not the $7.00/kgMS promised by Fonterra.
Emma Higgins, Rabobank’s dairy analyst, says the reason for the 20c difference is the unfolding situation in China where local milk production is rising.
Higgins says while a softening of the New Zealand dollar has been helpful, Rabobank sees weakness in the second half of the 2018-19 season because the rise in local Chinese milk production is likely to reduce its imports of milk products, affecting NZ’s whole milk powder.
“NZ places a lot of emphasis on China; it’s our largest trading partner in dairy. That market has been really supportive in the price rally we have seen in this calendar year; it has also helped to underpin a recovery from the dairy downturn a couple of seasons ago.
“Also helping NZ in the last couple of years have been hot summers in China which reduced local production by about 6%. But assuming the current season improves we expect NZ milk production to rise which in turn will reduce China’s need for imports from countries such as NZ.”
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Free workshops are being offered around the country to help farmers take more ownership of their farm business finances.
Japanese consumers pay a premium for food that contains ingredients that support health.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
