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John Luxton, DairyNZ.
The latest drop in the Global Dairy Trade price index will impact many farmers carrying a lot of debt, says DairyNZ chairman John Luxton.
Now banks must give young farmers leeway as they work their way through the crisis.
“Hopefully in 12 months there will be a much stronger industry going forward,” he told Dairy News.
The price index fell 9.3% in the latest GDT – the 10th consecutive fall, bringing it to levels not seen since 2002.
Whole milk powder, a crucial product for New Zealand, fell by 10.3% on average to US$1590/tonne.
Skim milk powder prices slumped by 14.4% to US$1419/t on average.
Anhydrous milk fat prices fell by 11.7%, butter by 6.1% and butter milk powder by 5.1%.
Luxton says NZ is very exposed to a thinly traded market.
“One outcome of the low GDT is likely to be a rapid lowering of our cost systems and probably some reduction in milk production out of NZ.
“When you look at the world market there isn’t a big overhang of surpluses despite what people are saying. The supply and demand is reasonably well balanced.”
DairyNZ has pulled together tactics that will help farmers improve on-farm efficiency and have positive benefits for the environment. These tactics are based on research, data, and lessons from leading farmers.
The design and construction of an effective dairy effluent system is a complex process.
After serving three as a DairyNZ director, Waikato farmer Chris Lewis is ready for another term.
DairyNZ has announced the date for its six-yearly Milksolids Levy vote, which will take place from Monday, 16 February to Friday, 13 March 2026.
DairyNZ has announced the date for its upcoming Milksolids Levy vote.
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.
A comment by outspoken academic Dr Mike Joy suggesting that dairy industry leaders should be hanged for nitrate contamination of drinking/groundwater has enraged farmers.
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