Displaying items by tag: Doug Steel

A record $9/kgMS milk price is becoming a real prospect – but rising costs will slash profit margins.

A $9/kgMS milk price is becoming a real prospect with global dairy prices showing no signs of easing.

While the majority of primary sector prices are generally strong, there are also several challenges ahead for the sector, according to the latest BNZ Rural Wrap report.

Dairy prices have ended a six month poor run, giving stronger hope to an $8 farmgate milk price this season.

This season's farmgate milk price could match last season’s $7.14/kgMS payout, despite the carnage caused by Covid-19.

The US currency will determine how the milk payout plays out, says BNZ senior economist Doug Steel.

While lamb prices are starting the new season at around 16% below last year’s levels, they are not outright weak, according to the BNZ.

The forecast milk payout for this season has gone up by 40c and Fonterra farmers can thank Chinese consumers.

Primary product prices will fall further this year but remain at reasonable levels before some improvement in 2021, according to BNZ senior economist Doug Steel.

Take the win but don’t bet the farm on it lasting.