DAIRY GIANT Fonterra is responsible for most of New Zealand’s dairy exports and accounts for approximately one-third of global trade.

The merchandise terms of trade rose 4.1% in the March 2013 quarter, due to export prices rising and import prices falling, Statistics New Zealand says.

Competition for cattle has resulted in more upward pressure on cattle prices over the last two weeks.

There has been a decent lift in export lamb prices on the spot market as procurement competition lifts up a notch. Some companies lifted prices by 15c/kg this during last week. 

Half of New Zealand's sheep and beef farmers are worried about their on-going viability, the latest quarterly 'Rabobank Rural Confidence Survey' has shown.

“You can see exactly what’s going to happen,” Beef + Lamb New Zealand chairman Mike Petersen told Rural News. “There’s going to be low and slow supply from both the EU and New Zealand which is going to make it incredibly hard to fill Christmas orders.”

Federated Farmers adverse effects spokeswoman Katie Milne says she is amazed that Westpac economists believe the drought may have no effect on the economy because of rising dairy prices.

Farmgate prices lifted in the North Island last week with procurement competition heating up as the kill continues to fall.

ABOUT 20 calls a day are being received by the Waikato Rural Support Trust, mostly from young farmers concerned about their financial position.

THE 2013 year started with reasonable optimism. Dairy production was tracking nicely and dairy prices took off. For sheep there was hope that new Asian demand for lamb and wool would bring a move in the right direction. Meanwhile, the US drought last year meant demand for our beef, grains and produce were looking healthy.