increase font size
Rabobank’s dairy analyst Emma Higgins.
Rabobank says it doesn’t share Fonterra’s optimism about the international situation this season.
The bank predicts the farmgate milk price to dairy farmers will be $6.80/kgMS, not the $7.00/kgMS promised by Fonterra.
Emma Higgins, Rabobank’s dairy analyst, says the reason for the 20c difference is the unfolding situation in China where local milk production is rising.
Higgins says while a softening of the New Zealand dollar has been helpful, Rabobank sees weakness in the second half of the 2018-19 season because the rise in local Chinese milk production is likely to reduce its imports of milk products, affecting NZ’s whole milk powder.
“NZ places a lot of emphasis on China; it’s our largest trading partner in dairy. That market has been really supportive in the price rally we have seen in this calendar year; it has also helped to underpin a recovery from the dairy downturn a couple of seasons ago.
“Also helping NZ in the last couple of years have been hot summers in China which reduced local production by about 6%. But assuming the current season improves we expect NZ milk production to rise which in turn will reduce China’s need for imports from countries such as NZ.”
Twenty five secondary school students from around New Zealand recently completed a three day residential programme designed to explore career opportunities across the food and fibre production supply chain.
OPINION: With 10,500 dairy farms, New Zealand continues to punch above its weight around the world.
A team effort that is paying dividends for the wider New Zealand economy.
The country's second largest milk processor is warning against 'complacency' during a review of competition regulations in the dairy sector.
Horowhenua organic dairy farmers Ange and Wayne Moxham have taken their business to a new level.
A Palmerston North shearer has been sentenced to six months' community detention and 12 months' supervision after being found to have physically abused three lambs while shearing them.
Power Farming has launched a joint venture in Southland.
Food rescue charity Meet the Need has released its 2025/26 Impact Report, revealing a record year of growth alongside a stark warning: demand for food support across New Zealand is rising faster than supply can keep up.
As we move into the second half of 2026, the Tractor and Machinery Association (TAMA) reports that Year-to-Date figures ending June 30 saw new tractor deliveries hitting 1,386 units or 10.7% ahead of the same period in 2025.
The avocado sector is entering the new season with a larger crop and positive market opportunities.
New Zealand growers have always adapted to changing conditions, but one challenge is steadily gaining ground across the horticulture sector: resistance.
OPINION: The Irish dairy sector is facing a new dilemma - maintaining year-round fresh milk supplies.
OPINION: Could beef cows play an increasingly important role in improving profitability and resilience on hill country farms?
