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

 

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>

ALSO:

No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>

ALSO:

Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>

ALSO:

'Work Experience': Welfare Group Opposes The Warehouse Workfare

“This programme is about exploiting unemployed youth, not teaching them skills. The government are subsidising the Warehouse in the name of reducing benefit dependency,” says Vanessa Cole, spokesperson for Auckland Action Against Poverty. More>>

ALSO:

Internet Taxes: Labour To Target $600M In Unpaid Taxes From Multinationals

The Labour Party would target multinationals operating in New Zealand to ensure they don't avoid paying tax if it wins power and is targeting $600 million over three years through a "diverted profits tax," says leader Andrew Little. More>>

ALSO: