Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Dairy price rise not the breaking dawn


Dairy price rise not the breaking dawn

Federated Farmers is warning against overstating the 14.8 percent rise in the latest GlobalDairyTrade online auction, saying the increase is driven solely by supply and demand.

“New Zealand’s drought needs to be taken with the one that the United States suffered and unexceptional production out of Europe,” says Willy Leferink, Federated Farmers Dairy Chairperson.

“When you look at the global picture it is no wonder prices have spiked upwards. Westpac is forecasting New Zealand’s production may actually decline for the first time in years. The truth is that the supply of milk and global demand is finely balanced.

“This makes markets skitty and while any increase in international price is welcome, it is moot when you are yet to be fully paid-out for what you have produced. In the North Island many herds have either stopped production or are in the process of drying off early.

“So forget images of flash new cars because it is going to be a lean winter on-farm and I believe many farmers will be looking at a cash loss for the 2012/13 season.

“There is one thing Government and councils can really help us out with and that is tightening their belts to keep future rates and fee increases to the absolute minimum. That message is one that I feel will be welcomed by businesses outside the farm-gate as well.

“With winter coming North Island farmers are going into it with spartan pasture covers and low feed reserves. Much winter feed has been used early meaning the cost of supplements will rise along. There is also the need to renew or undersow damaged farm pasture.

“The markets know recovery from drought can take several seasons for these reasons.

“While it has been damn tough, we are incredibly proud of the way New Zealand’s dairy farmers have prioritised animal health and welfare. I must also thank all of the banks and the rural supply merchants who have shown understanding through extending their lines of credit.

“For consumers there will likely be price rises but they need to know their milk and dairy products are not as simple as mixing sugar and flavouring with carbonated water. What the drought hopefully shows them is how much care and effort goes into producing dairy products.

“It underscores to me that faming is as much a craft as it is a science,” Mr Leferink concluded.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news