Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Analysts surprised by size of drop in dairy price

The 1.2 percent drop in prices at last night's Global Dairy Trade auction was less than what many analysts thought it would be.

Photo: RNZ / Cosmo Kentish-Barnes

Whole milk powder fell 0.5 percent, though skim milk powder had a larger fall at 3.2 percent.

The 1.2 percent decrease was less than the 2.9 and 4.7 percent drops at the previous two auctions.

The latest auction took place as dairy producers worried about the impact of the Covid-19 virus on the world's trading economy.

So far dairy has escaped the worst effects, and the latest figures show a levelling-out of dairy's month-long price fall.

Rabobank dairy analyst Emma Higgins said dairy's easing was unexpectedly positive, but warned that was not the end of the story.

"I was pleasantly surprised, I had expected to see a larger decline.

"But when we really drill down into the numbers to see who is buying and who is not, we start to see the impact of Coronavirus come through."

Read more about the Covid-19 coronavirus:

Higgins said demand in North Asia, including China, was down 45 percent due to the virus.

That was offset by higher demand in South East Asia and Oceania, including Australia.

Another factor was that lower volumes of dairy goods were offered for sale, which reduced supply and helped support prices.

Higgins said that was due partly to dry weather, leaving many North Island dairy pastures parched and less able to offer milk in quantity, while a prolonged drought in Australia greatly reduced production there.

Dairy co-op Fonterra said last week it had managed the impact of the virus so far, but a slowdown at Chinese ports was being watched.

More information will be available when Fonterra reports half year results in two weeks.

Meanwhile, Federated Farmers dairy chairman Chris Lewis saw a bright side to the latest auction figures.

"It's not nice waking up to an email with a negative figure.

"But in the long term view, the New Zealand dollars has dropped against the US dollar and so the fall is probably not as bad as it looked like."

Lewis said New Zealand produced quality food, so farmers faced a good future in the long term.

© Scoop Media

 
 
 
Top Scoops Headlines

 

Gordon Campbell: On The Media Collusion With National’s Attack Lines

For most of the past week, any consumer of this country’s management of Covid-19 would think New Zealand was actually Brazil, or Texas. The media language has been full of claims of “botches” at the border, and laxness and inexcusable errors ... More>>

Gregor Thompson: Don’t Be Too Pessimistic About New Zealand’s Future.

With the first hurdle hopped our Government will be turning its attention to trying to soften the economic damage this pandemic has on our little archipelago. More>>

Eric Zuesse: U.S. Empire: Biden And Kerry Gave Orders To Ukraine’s President

Eric Zuesse, originally posted at Strategic Culture On May 19th, an implicit international political warning was issued, but it wasn’t issued between countries; it was issued between allied versus opposed factions within each of two countries: U.S. and Ukraine. ... More>>

Binoy Kampmark: Budget Cockups In The Time Of Coronavirus: Reporting Errors And Australia’s JobKeeper Scheme

Hell has, in its raging fires, ringside seats for those who like their spreadsheets. The seating, already peopled by those from human resources, white collar criminals and accountants, becomes toastier for those who make errors with those spreadsheets. ... More>>

Binoy Kampmark: Altars Of Hypocrisy: George Floyd, Protest And Black Face

Be wary what you protest about. The modern moral constabulary are out, and they are assisted by their Silicon Valley friends in the Social Media club. Should you dare take a stand on anything, especially in a dramatic way, you will be found out ... More>>

Binoy Kampmark: Welcome Deaths: Coronavirus And The Open Plan Office

For anybody familiar with that gruesome manifestation of the modern work place, namely the open plan office, the advent of coronavirus might be something of a relief. The prospects for infection in such spaces is simply too great. You are at risk from ... More>>


Binoy Kampmark: Why Thinking Makes It So: Donald Trump’s Obamagate Fixation

The “gate” suffix has been wearing thin since the break-in scandal that gave it its birth. Since Watergate, virtually anything dubious and suggestive, and much more besides, is suffixed. Which brings us to the issue of President Donald Trump’s ... More>>



Binoy Kampmark: Brutal Choices: Anders Tegnell And Sweden’s Herd Immunity Goal

If the title of epidemiological czar were to be created, its first occupant would have to be Sweden’s Anders Tegnell. He has held sway in the face of sceptics and concern that his “herd immunity” approach to COVID-19 is a dangerous, and breathtakingly ... More>>