Displaying items by tag: ASB

Successive drops in global dairy prices mean the next season's opening milk price forecast is being trimmed back.

Economists are ruling out two straight seasons of a record farmgate milk price.

ASB says that, amidst the possibility of an incursion into Ukraine by Russia, it is unlikely the dairy industry will see a repeat of 2014 when conflict between the two countries led to a crash in dairy prices.

Global dairy prices have started the New Year in red hot form and ASB economist Nat Keall says a record milk price is now "a practical certainty".

ASB has joined a large chorus of banks by picking a record dairy season and strong meat prices for the year ahead.

A new record milk price for this season has been forecast as dairy products fetch higher on the back of strong demand and softening supply.

Many agricultural loans will now be guided by sustainability considerations including climate change mitigation and adaptation, water use, waste minimisation, labour rights and animal welfare.

"Content without being confident" is how ASB rural general manager Ben Speedy described the mood among dairy farmers at this month's National Fieldays.

Another bank is offering farmers low-cost 'green loans' to help them tackle environmental impacts.

ASB has lifted its 2021-22 forecast farmgate milk price by 70c to $8.20/kgMS.