Strong production, tested demand send milk prices crashing
Strong global milk production and rebalancing of demand among key buyers has delivered one of the biggest drops in whole milk powder prices in recent years.
The final Global Dairy Trade (GDT) auction for the 2023-24 season augurs well the forecast milk price for the new season.
While the banks are forecasting between $8.35 to $8.40/kgMS, Fonterra later this week, its forecast range for the season starting June 1.
Last week's GDT delivered good news: while the price index rose 3.3%, Chinese buyers returned after pulling back in the earlier May auction. Also, whole milk powder prices rose 2.9% to US$3,408/metric tonne.
Westpac chief economist Kelly Eckhold noted that auction was "another very strong one with gains across the board".
"All categories rose and wrong-footed futures markets, which again saw a much flatter result," says Eckhold.
"Chinese buyers returned this time after pulling back in the early May auction. Overall prices are now 10 per cent or so above their long-term averages. We can certainly see upside risk building to our milk price forecast of $8.40/kgMS for the 2024/25 season."
ASB senior economist Chris Tennent-Brown believes farmers can hope for a farmgate milk price in the top half of Fonterra's guidance range ($7.50-$8.10/kgMS) this year.
"We remain comfortable with our $8.35/kgMS forecast."
A 50% tariff slapped by the US on goods from India last month has opened an opportunity for New Zealand wool carpets exports to North America.
There's been unprecedented demand from secondary school students across the country to study agricultural related subjects.
Brett Wotton, an Eastern Bay of Plenty kiwifruit grower and harvest contractor, has won the 2025 Kiwifruit Innovation Award for his work to support lifting fruit quality across the industry.
Academic Dr Mike Joy and his employer, Victoria University of Wellington have apologised for his comments suggesting that dairy industry CEOs should be hanged for contributing towards nitrate poisoning of waterways.
Environment Southland's catchment improvement funding is once again available for innovative landowners in need of a boost to get their project going.
The team meeting at the Culverden Hotel was relaxed and open, despite being in the middle of calving when stress levels are at peak levels, especially in bitterly cold and wet conditions like today.
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