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

 


GlobalDairyTrade not ‘milk and disaster’

6 August 2014

GlobalDairyTrade not ‘milk and disaster’

The latest decline in the benchmark GlobalDairyTrade (GDT) online auction continues a trend expected by Federated Farmers.

“We’d love to see a plus sign for a change but at least it seems to be tracking in the direction Rabobank has projected,” says Andrew Hoggard, Federated Farmers Vice-Chairperson.

“I don’t expect this latest result will affect the payout forecast in the near term. What will be critical is the expected market recovery in the New Year.

“Unless we have WW3 or a pandemic this isn’t a ‘milk and disaster’ sound bite. Memories seem to be short these days but there are no lakes of milk powder or mountains of butter anywhere.

“It is true that since the new season started on 1 June prices are down 21.3 percent, but that reflects a near perfect production season everywhere on earth.

“While down isn’t a flash word to use, neither was the first half of the 2012/13 season either. A season we seem to be shadowing because in the first half of 2012/13, prices averaged US$3,127 per metric ton yet the second half saw the average grow to $4,213.

“It is why we’re not hitting the panic button just yet, especially when there were signs of life in the latest auction.

“We saw more buyers and they bought more product so things are looking up, if not the price yet.

“Looking at the latest GDT result, the 48,380 metric ton sold is the biggest quantity in 2014/15 season to date. It is also the biggest volume since 3 December 2013. There were also 153 successful bidders, also the most in the current season and the most since 1 April.

“When you’ve got volume and bidders that’s a good indication prices may be close to stabilising.

“We’d recommend farmers review their cashflow using the 2012/13 season as a yardstick,” Mr Hoggard concluded.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news