El Niño's helping hand for global dairy prices
Global dairy prices are clawing back lost ground and farmers may need to thank the weather gods for this.
The US currency will determine how the milk payout plays out, says BNZ senior economist Doug Steel.
He told Rural News that, in some ways, the recent GDT price strength looks like catch up due to the recent declines in the US dollar.
A lower US dollar tends to lift product prices that are denominated in that currency.
“Of course, the flipside of a lower US dollar is a higher NZ dollar, while a higher NZ dollar – in itself – tends to put downward pressure on milk price, it very much needs to be seen in the context of product price movements in offshore markets.
“These things do not move in isolation. It is the balance that matters.”
Steel points out that it was no coincidence that the 2013-14 record $8.40 milk price was paid when the NZD/USD was above 0.80.
“That said, a higher NZD/USD will limit the upside to domestic milk prices, but likely more so for next season than the current one.”
Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.
Shipping disruption caused by Houthi rebels in the Red Sea has so far not impacted fertiliser prices or supply on farm.
The opportunity to spend more time on farm while providing a dedicated service for shareholders attracted new environmental manager Ben Howden to work for Waimakariri Irrigation Limited (WIL).
Federated Farmers claims that the Otago Regional Council is charging ahead unnecessarily with piling more regulation on rural communities.
Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.
OPINION: We have good friends from way back who had lived in one of our major cities for many years.
OPINION: A mate of yours truly wants to know why the beef schedule differential is now more than 45-50 cents…
OPINION: Your canine crusader understands that MPI were recently in front of the Parliamentary Primary Sector Select Committee for an…