Make the right decision, Peters urges Fonterra farmers
New Zealand First leader and Foreign Minister Winston Peters is ratcheting up pressure on Fonterra farmers as they vote on divesting the co-operative’s consumer and related businesses.
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.”
Relationships are key to opening new trading opportunities and dealing with some of the rules that countries impose that impede the free flow of trade.
Dawn Meats chief executive Niall Browne says their joint venture with Alliance Group will create “a dynamic industry competitor”.
Tributes have flowed following the death of former Prime Minister and political and business leader, Jim Bolger. He was 90.
A drop in methane targets announced by the Government this month has pleased farmers but there are concerns that without cross-party support, the targets would change once a Labour-led Government is voted into office.
Farmer shareholders of meat processor Alliance have voted in favour of a proposed $270 million joint venture investment by Irish company, Dawn Meats.
The former chair of the Bay of Plenty Regional Council and farmer, Doug Leeder, says rural communities' biggest fear right now is the lack of long-term certainty over environmental regulations.
OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.
OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.