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ASB head of rural banking Aidan Gent is encouraging farmers to speak to their banks when they are struggling.
Butter prices look like making another strong run, says ASB senior rural economist Nathan Penny.
If so “we are likely to see record highs again in the comings months with butter prices and milk fat prices more generally,” Penny told Dairy News.
Butter prices have lifted 27% so far this year and are well ahead of the where they were this time last year. Butter prices are only 5% below the record levels set in September 2017.
“Those prices are going to be healthy for the next few months, even better than healthy -- record highs. We will definitely be keeping an eye on those butter prices in the next few (GDT) auctions.”
BNZ senior economist Doug Steel says prices were higher for all products at last week’s GDT auction.
“The 2.7% rise in the GDT Price Index was within our expectation range. This increase essentially offsets the cumulative four small declines over the past four auctions.
“A lower US$ and higher oil prices over recent weeks have been dairy price supportive. Demand seems firm.
“The 0.9% gain in wholemilk powder (WMP) prices (average prices now $US3311/t) looked like a disappointment to NZX futures pricing on the day, but this is still a reasonable result given Fonterra again lifted volumes (5%) above previous forecasts for this auction. WMP prices are tracking above RBNZ forecasts.
“Skimmilk powder (SMP) prices rose 3.6%, but prices remain generally weak at $US1913/t. The gain likely reflects recent poor weather in Europe, where milk production growth has slowed. We expect SMP to remain generally weak as EU production improves over coming months, stockpiles remain large and changes to EU intervention (tendering rather than minimum price) weigh.”
RaboResearch’s dairy analyst Emma Higgins says it was a positive result for dairy farmers overnight at last week’s GDT event.
Price support remains for New Zealand SMP, which is at a premium to most European sourced SMP offered.
“Wild weather has really impacted pasture growth this year in Europe and the spring flush is slow out of the starting blocks this season,” she says.
“Reports are that spring grass growth is trailing about a month behind, at least.
“Beast from the East and Storm Emma have left sodden pastures and a feed crisis in Ireland, which is turning to other European countries to buy in feed.
“This is another contributor to why we think there will be less milk production growth in Europe over the course of 2018 than anticipated earlier in the year.”
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
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.
Horticulture NZ chief executive Nadine Tunley will step down in August.