Editorial: Taming Trump
OPINION: The world is bracing for a trade war between the two biggest economies.
Is China's appetite for dairy back on the rise?
Last week's Global Dairy Trade (GDT) auction saw an increase in Chinese demand for skim milk powder.
Westpac's Kelly Eckhold says this was interesting given weaker demand from China in hard commodities and oil.
"Chinese demand increased again - especially for skim milk powder. This is interesting given the generally weak economic data seen of late and weaker demand from China in hard commodities and oil. Westpac reduced its Chinese growth forecast for 2025 and 2026 this month to 4.5% for each year," says Eckhold.
He says conditions in the dairy sector continue to look positive.
"It remains to be seen how durable the recovery is given the uncertainties on Chinese growth and demand. However, interest rates are now falling which will further assist on-farm costs going forward," he says.
NZX dairy analyst Rosalind Crickett notes that whole milk powder (WMP) rose 1.5% to settle at US$3,448/t. Skim milk powder (SMP) also rose 2.2% to reach US$2,809/t, its highest average price on the platform in the last 12-months.
"Factoring market sentiment, the increased demand for both milk powders is not surprising - given the off-peak of milk production in the Northern Hemisphere combined with factors such as the bluetongue virus which has been increasing in prominence in both the UK and Europe."
Fonterra will announce its annual results this week and is expected to give an update on its forecast milk price for the season, currently at a mid-point of $8.50/kgMS.
Among the regular exhibitors at last month’s South Island Agricultural Field Days, the one that arguably takes the most intensive preparation every time is the PGG Wrightson Seeds site.
Two high producing Canterbury dairy farmers are moving to blended stockfeed supplements fed in-shed for a number of reasons, not the least of which is to boost protein levels, which they can’t achieve through pasture under the region’s nitrogen limit of 190kg/ha.
Buoyed by strong forecasts for milk prices and a renewed demand for dairy assets, the South Island rural real estate market has begun the year with positive momentum, according to Colliers.
The six young cattle breeders participating in the inaugural Holstein Friesian NZ young breeder development programme have completed their first event of the year.
New Zealand feed producers are being encouraged to boost staff training to maintain efficiency and product quality.
OPINION: The world is bracing for a trade war between the two biggest economies.
OPINION: In the same way that even a stopped clock is right twice a day, economists sometimes get it right.
OPINION: The proposed RMA reforms took a while to drop but were well signaled after the election.