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

 

Promising signs for drive for milling wheat self-sufficiency

A big drop in the amount of unsold cereal grain since July, and continuing strong demand for milling wheat, are key features of the latest Arable Industry Marketing Initiative (AIMI) survey.

It is estimated unsold stocks of cereal grain, summed over all six crops, reduced by 44% between 1 July and 10 October. "That’s a good sign, even if deliveries hadn’t happened by the time of the October survey, that people have been meeting the market and getting product sold," Federated Farmers Arable Vice-Chairperson Grains, Brian Leadley, said.

Total production from the 2019 harvest (wheat, barley and oats) was 799,900 tonnes, about 25,000t up on the 2018 harvest.

While unsold stocks across the six crops are up by 95% (or 52,700 tonnes) compared to October last year, people shouldn’t read too much into that, Brian said.

"This time last year there was very little left about.

"When you look at it on a five to 10-year rolling average, stocks still on hand from the 2109 harvest (108,492t unsold, 227,747t sold and stored on farm) are not that massive.

"There’s a bit of concern about the feed barley market, which is a bit flat at the moment. We’d like to see that move a bit."

Overall, Brian described the situation as "stable.

"Prices aren’t bad but not a lot moved. It reflects the mood in agriculture, I think. Feed grains are being bought when it’s actually needed rather than being bought and stockpiled or bought in preparation."

Milling wheat options have been taken up, with the mills responding well to calls from Federated Farmers and others in the industry to put out forward contracts early to send the right signals.

"It’s given some confidence to growers."

The area sown plus intended to be sown in wheat, barley or oats, as at 10 October 2019, was estimated to be 5% down (5,300ha) on the area harvested in 2018. Over the two year period, Feed barley area was down 18%, feed wheat area was largely unchanged (down 2%) but milling wheat was up 27% and malted barley was up 16%.

"When there’s lesser demand for feed grains, the lift for milling wheat fits in well. It also has a bigger window for planting. For good yields of feed wheats they have to be planted early whereas with some of the milling varieties you can get them in a bit later.

"That can work with the farming rotation. A lot of arable farmers have a livestock grazing system within their operation, and with good returns for red meat in particular, it supports that later planting possible with milling varieties."

On the whole, the trend is promising for the drive by the Arable Food Industry Council for New Zealand to be self-sufficient in milling wheat by 2025, Brian said.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>

ALSO:


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>