Editorial: Wake up Wellington
OPINION: The distress that the politicians and bureaucrats are causing to the people of Wairoa and the wider Tairāwhiti is unforgivable.
OPINION: Last week's Global Dairy Trade (GDT) auction result doesn’t make good reading.
Prices of major dairy commodities have fallen by a quarter over the past year. Looking over a longer period, whole milk powder (WMP) prices are now at a seven-year low.
Just a few months ago, analysts were predicting a farmgate milk price over $8.50/ kgMS.
A string of GDT price slumps has snuffed out confidence. Analysts are now advising farmers to budget on the lower range of Fonterra’s forecast range of $6.25 to $7.75/kgMS.
Fonterra this month slashed its forecast range mid-point by $1/kgMS.
Before Fonterra’s decision and the dramatic price falls on GDT, DairyNZ’s 2023- 24 forecast for net cash income was $8.78kg/ MS.
It’s estimated total expenses were on average around $8.72 kg/MS for the same season.
With analysts now eying a payout under $7/kgMS, there is a risk of significant cash loss for many dairy farmers.
DairyNZ rightly points out that this isn’t the first time there has been large milk price forecast decreases.
“And we know from experience that farmers rein in their expenditure, to minimise cash losses.”
Dairy sector debt has also decreased by $5.4 billion, from $41.7 billion in 2018 to $36.3 billion in 2023, putting farmers in a better financial position.
There are a few key things that farmers can consider, to help manage their farm businesses during the current economic climate.
With a reduced milk price forecast, now is the time to look line-by-line at where spending can be decreased and pause non-essential capital projects. However, changes need to be well thought through and not have longterm effects on profit, or the wellbeing of your people or animals.
Dairy farmers are known for their resilience, but that doesn’t make coping during challenging times any easier.
Third-year student Cady Burns has won the Waikato Regional Council Prize in Water Science for 2024.
The Rural Change programme, providing free private mental health professional sessions to the rural industry, is set to continue its next chapter within Rural Support Trust from 1 July 2024.
Beef + Lamb New Zealand chief executive Sam McIvor will step down in July.
A new report shows farm employers across the dairy, sheep and beef, and arable sectors have continued to invest strongly in one of their greatest assets – their staff.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
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