Struggling? Give us a call
ASB head of rural banking Aidan Gent is encouraging farmers to speak to their banks when they are struggling.
THE ASB has revised its milk price forecast to $4.70/kgMS after prices in the GDT fell 3.1% overnight, with whole milk powder prices falling 5.1%
The auction overnight was weak where it mattered, senior economist, Chris Tennent-Brown, says in an update. Overall prices are now down nearly 47% in annual terms with whole milk powder and skim milk powder down more than 50% since November, 2013.
Both whole milk powder and skim milk powder fell over 5%. This fall was on the back of earlier signs of life, with WMP up nearly 5% over the two auctions prior. Those gains have now been wiped. Casein prices also fell over 12. Bucking the trend were AMF, butter, BMP and cheddar, posting rises of between 1.4% and 6.1%, the ASB says.
Last night's fall was also the 17th out of the last 19 auctions. Moreover, the falls come as Fonterra has reduced auction volumes to try to generate upward pressure on prices. Fonterra's forecast auction volumes for the 12 months ahead has fallen by 14% since June, ASB says.
"But the market isn't buying. Fonterra's milk production remains up over 4% for the season to date (and 6% nationwide). There is still plenty of milk to go around," the update says.
The ASB has revised its milk price forecast down by 40 cents to $4.70/kgMS. This revision includes a much more protracted recovery in prices, although the bank still expect prices to rise over 2015. "We still expect that production and exports will slow materially over 2015 and thus boost dairy prices. That said there is a risk that the timing of this recovery comes later into next season," Tennent-Brown says.
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.