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

 

GlobalDairyTrade result

GlobalDairyTrade result

The latest GlobalDairyTrade (GDT) result has disappointed Federated Farmers and now means farmers will be preparing for an austere 2014/15 season.

“There’s no way to dress this up as anything but a kick in the guts,” says Andrew Hoggard, Federated Farmers Dairy chairperson.

“This is the auction result that brings the chickens roosting in the Eastern Ukraine home to us on-farm. Dislocated European Milk has definitely put a sinking lid on global dairy prices.

“Unlike most of our competitors who are subsidised there’s not one Kiwi farmer looking for a handout. We may not like what prices are doing but we know this is market forces at work and while it often runs in our favour, this season it isn’t.

“We don’t have subsidies, we have bankers and unlike subsidies you have to pay them back with interest.

“Any type of farming is a long run thing and you have to take the rough with the smooth.

“While Federated Farmers genuinely welcomes the NZX/Massey University Milk Production Predictor and Farmgate Milk Price Calculator, there’s just no way would these have factored in the Eastern Ukraine.

“If you look at the latest GDT result, there’s good volume sold at over 55,000 metric ton and 167 winning bidders, which is a goodly number. Despite this prices are flat to heading south and to us that’s the impact of dislocated European milk.

“With a small domestic market we are trade exposed whereas our competitors can fall back upon large domestic markets.

“This should help price recovery next season and the one afterwards because at current international prices, even with cheap feed grains, international dairy prices are not very attractive. This means herd numbers in Europe and North America will likely be sized to fit.

“Here, our guys will be going through budgets and making the decisions they need to make based on their farming system.

“If we had the power of foresight, we could have kept more calves for beef from the 2012/13 season instead of selling to calf rearers, yet that would have eaten into milk production, especially last season, our best one ever.

“You see with a biological system like farming it is easy to dial back production. If you wish to dial up production without buying animals in then you are talking time lags of at least two seasons.

“Federated Farmers’ advice to farmers is to watch costs but to keep your bank, farm consultant, accountant and family fully in the loop. Take a no surprises approach to get through this,” Mr Hoggard concluded.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: