Winston's crusade
OPINION: A short-term sugar hit. That's what NZ First leader Winston Peters is calling the proposed sale of Fonterra's consumer and associated businesses.
ASB is forecasting a milk price of $9.75/kgMS while Fonterra lifted its forecast milk price range last month to $9.50 to $10.50/kgMS with a midpoint of $10/kgMS.
Whole milk powder prices on Global Dairy Trade (GDT) remains above long run averages and a $10/kgMS milk price for the season remains on the card, says ASB senior economist Chris Tennent-Brown.
ASB is forecasting a milk price of $9.75/kgMS while Fonterra lifted its forecast milk price range last month to $9.50 to $10.50/kgMS with a midpoint of $10/kgMS.
Tennent-Brown says that like Fonterra, they will be keeping a careful watch on the global supply and demand dynamics over the coming months.
"We see a balance of risks around our $9.75 pick, with some of those risks pointing to a milk price closer to Fonterra's midpoint, even if prices ease a little bit more from current levels.
"The lower NZD can help this year's milk price at the margin but can be a bigger help for the next season if the weakness continues and is captured as we expect within Fonterra's FX hedging."
WMP prices, which has the biggest impact on Fonterra's milk price, have dropped in the last two consecutive auctions. The first auction of 2025 saw WMP slip 2.1% and skim milk powder 2.2%.
WMP sits at US$3804/tonne - the highest level since July 2022, when it was fetching US$3961/t.
Tennent-Brown says that WMP prices have been declining from the recent peak, but remain significantly higher than a year ago, and above long run averages.
The latest GDT auction saw the price index ease 1.4% to an average price of US$4,029/t.
NZX dairy analyst Rosalind Crickett says the index movement was weighed down by decreases seen to the milk powder products, despite lifts to butter and cheese products - with results spot on with their pre-event expectations.
"In what normally is a quieter start to the year, 87% of product on offer was still sold, but saw weaker demand from both North Asia and the Southeast Asia/Oceania regions."
Crickett says that despite there being -15.7% less WMP and -15% less SMP on offer since the last event, traders have been describing a "hand to mouth" purchasing pattern by regions over the holiday period.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.
Rural retailer Farmlands has reported a return to profitability, something the co-operative says shows clear progress in the second year of its five-year strategy.
According to a new report, the Safer Rides initiative, which offered farmers heavily discounted crush protection devices (CPDs) for quad bikes, has made a significant impact in raising awareness and action around farm vehicle safety.
OPINION: In the past weeks, much has been said and written about one of New Zealand's greatest prime ministers, James Brendan Bolger, who died just a few months after his 90th birthday.
OPINION: Microplastics are turning up just about everywhere in the global food supply, including in fish, cups of tea, and…
OPINION: At a time when dairy prices are at record highs, no one was expecting the world's second largest dairy…