fbpx
Print this page
Sunday, 19 July 2015 05:00

‘Back to Basics’ as GDT prices slump

Written by 

Federated Farmers say many New Zealand dairy farmers are “going back to basics” as the downward trend in global dairy prices continues.

The latest Global Dairy Trade (GDT) auction showed a greater than expected drop across the range of dairy products, which will affect both farming and the rural communities.

“Farmers are picking up on these price signals and doing things differently this year.  This is reflected in the higher than usual culling of dairy cows as farmers look to decrease the number of mouths they need to feed,” says Federated Farmers dairy chair Andrew Hoggard.

“Feeding cows grass on their farm is cheaper than buying in feed and so many farmers are going back to basics.  This change is evident in the reduced imports of feed such as PKE.”

Hoggard says the recent winter weather experienced across the lower North Island and the South Island and this ‘back to basics’ tactic, suggests milk production in New Zealand is unlikely to increase this season, contrasting with the last couple.

“With the tightening of the belt, farmers do not need or want extra costs.  If central government thinks it can shunt costs on such things as rural roading onto local government, then they need to think again, as all these costs then pile up at the farmer’s door.

“Maybe this could have been possible or more palatable in a good payout year, but it certainly isn’t when things look like they do now.

"I am pleased that farmers have spent a heap of money on environmental stuff during the good years.  Now we’re back to basics, thankful for the improvements we have made”, adds Hoggard.

More like this

Working with farmers to ensure best outcomes

OPINION: Recent media commentary from Southland Federated Farmers has raised concerns among our rural communities, particularly around Environment Southland’s approach to winter grazing inspections and nitrogen reporting. But let’s be clear, much of what’s been said simply doesn’t reflect reality.

Editorial: Nitrate emergency?

OPINION: Environment Canterbury's (ECan) decision recently to declare a so-called “nitrate emergency” is laughable.

Federated Farmers slam Canterbury nitrate emergency

A shameless political stunt is how Federated Farmers is describing the Canterbury Regional Council decision to declare “a nitrate emergency” on the back of its latest annual groundwater quality survey.

Featured

Carrfields invests in new Ashburton R&D hub

The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.

Elite sheep dogs to go head-to-head at Ashburton A&P Show

A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.

National

Machinery & Products

New pick-up for Reiter R10 merger

Building on experience gained during 10 years of making mergers/ windrowers, Austrian company Reiter has announced the secondgeneration pick-up on…

Krone EasyCut B1250 fold

In 2024, German manufacturer Krone introduced the F400 Fold, a 4m wide disc front mower, featuring end modules that hinge…