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


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news