Opportunities in food, fibre sector
ASB's new head of food and fibre, Kristen Ashby, believes that there’s “heaps of opportunity” in the agriculture sector.
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.
Farmer-owned co-operative Ravensdown is winding down the operations of its agritech subsidiary C-Dax following a long decline in sales.
The recent East Coast Farming Expo, held over two days at Wairoa, offered an insight into the current state of agriculture on the east of the North Island, at a time when the locals are remembering the second anniversary of Cyclone Gabrielle.
A Research programme supported by Beef+Lamb NZ is investigating the potential of ‘accelerometer’ sensors for early detection of conditions such as facial eczema (FE) in sheep.
In the past year, the Farmer Time for Schools programme which seeks to connect New Zealand school students with farmers, has experienced further growth.
Fresh Carriers Co. Ltd (FCC) and Zespri have completed the first ever kiwifruit charter powered by a low-emissions fuel.
New Zealand lingerie brand Rose & Thorne is expanding its virtual bra fitting service in an effort to provide rural women in with better access to specialised advice.
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