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

 

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO: