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

 


Farmers welcome GlobalDairyTrade stabilisation

Farmers welcome GlobalDairyTrade stabilisation

Federated Farmers is pleased to see stabilisation in the latest benchmark GlobalDairyTrade (GDT) online auction result but warns price volatility will likely continue until well into the last quarter.

“It is great to see GDT average still in the US$3,000 a metric ton range but that slight 0.6 percent fall means we are on exactly US$3,000,” says Andrew Hoggard, Federated Farmers Dairy Chairperson.

“It seems to underscore how similar this season is to 2012/13. At a similar point two seasons ago, the average winning price was just US$54 more except it had come up from the high 2,000’s.

“But before anyone traipses back to the beginning of the year to make a more dramatic story, any price before 1 June is completely irrelevant when you are talking about this 2014/15 season.

“Prices will oscillate around for the near term but we understand from various experts that prices are expected to rise in the later half of the season. That’s a reflection of Chinese and Northern Hemisphere production winding down as they close out their main season while we ramp up.

“Prices have been flat to falling because of an awesome global production season in the first half of 2014. This put an extra seven billion litres of internationally traded milk onto the export market and was so voluminous, it could have filled 2,800 Olympic sized swimming pools.

“There are also two critical things to look at in the latest auction result. They are the number of winning bidders as well as the volume of product won.

“We are encouraged to see the latest auction sold the second most volume since January in the old season, while the last four auctions this season have seen a large number of winning bidders.

“As we said after the last auction result, “we saw more buyers and they bought more product so things are looking up, if not the price yet.”

“Whilst this result is pleasing, it is just one result, and the messages to farmers remain the same “play it tight for this season,” Mr Hoggard concluded.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

OECD And Zero Carbon Reports: Environmental Pressures Rising In New Zealand

New Zealanders enjoy a high environmental quality of life and access to pristine wilderness. However, New Zealand’s growth model, based largely on exploiting natural resources, is starting to show its environmental limits with increasing greenhouse gas emissions and water pollution ... More>>

ALSO:

Statistics: Record Net Annual Migration Levels Continue

In the February 2017 year, 71,300 more migrants arrived in New Zealand than left, Stats NZ said today. This equalled the previous annual record set in January 2017. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news