Returns lift, costs down - DairyNZ
The outlook for dairy farmers this season has improved, especially when compared to forecasts only six months ago, according to DairyNZ.
The Global Dairy Trade price index was up 3.5% overnight – with at least one major bank now saying the farmgate milk price may go higher.
The whole milk powder index up 4.9% to an average price of US$3,593/MT and there’s a suggestion it may go to US$4000/MT in the New Year.
ASB’s senior rural economist Nathan Penny says with another firm result in the bag, there is clear upside to our $6/kgMS 2016/17 milk price forecast.
For now we stick with $6/kgMS, but the forecast remains “under review”, he says.
The relative WMP strength reflects the market’s ongoing reaction to the rapid decline (from an already weak position) in NZ production. Prices for WMP, NZ’s key product, have surged around a third over the last four auctions, while SMP prices, in contrast, have jumped 18%.
“In our view, WMP prices may have further to go, and may challenge US$4,000/MT in the New Year. In particular, we expect the data on NZ and EU production are set to get worse before they get better.
“For example, we expect NZ production to fall 5% over the season as a whole from the 3.1% decline for the season to date. Also, we expect flat production in the EU this calendar year, which is less than official EU forecasts of a small rise.
Other event results were:
• AMF index up 2.9%, average price US$5,500/MT
• Butter index up 1.7%, average price US$4,262/MT
• BMP index down 2.6%, average price US$2,408/MT
• Ched index up 2.2%, average price US$3,752/MT
• LAC index up 10.6%, average price US$873/MT
• RenCas index up 2.3%, average price US$6,201/MT
• SMP index up 1.4%, average price US$2,570/MT
Full results on www.globaldairytrade.info
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.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
There have been leadership changes at the Hamilton-based Dairy Goat Co-operative, which has been struggling financially in recent years.