Thursday, 20 November 2014 14:45

‘A blow to the industry’

Written by 
Andrew Hoggard of Federated Farmers. Andrew Hoggard of Federated Farmers.

FEDERATED FARMERS Dairy chairman Andrew Hoggard has described the lowest auction in five years as "a blow to the industry" as hopes of a lift or at least continued plateau in prices were dashed.

 "We will wait with anticipation for Fonterra's board meeting in December when they will review the payout, but there'll be another GDT before then, so who knows."

Hoggard noted Prime Minister John Key's belief, voiced to Feds' National Council Wednesday morning despite the GDT news, that "GDT has bottomed out and we are likely to see things improve going forward."

But only a day later Finance Minister Bill English said falling dairy prices and low inflation would make returning to economic surplus challenging.

"It was clear from the G20 finance ministers' meeting in Brisbane [Nov 15-16] that growth remains elusive in Europe and more uncertainty in China is being reflected in some sharply lower commodity prices," he told an ASB business breakfast.

"Falls in global commodity prices such as oil, forestry and dairy, together with weak international consumer price inflation, are posing challenges for governments and central banks around the world... New Zealand is not immune to these global trends."

GDT price index fell 3.1% overall with powders plunging 5-6%.

Feds' West Coast provincial president, Katie Milne said Westland's payout forecast of $5.40-5.80/kgMS would be hard to hold with Westland selling more milk powder than anything else.

"Westland suppliers should be prepared that there may be a drop in the payout after the board meeting at the end of the month. However there's nothing wrong with living in hope, and if it does not drop we will all breathe a little easier."

More like this

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

Editorial: A new era for two co-ops

OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.

Featured

Farewell Jim

In a few hundred words it's impossible to adequately describe the outstanding contribution that James Brendan Bolger made to New Zealand since he first entered politics in 1972.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Follow the police beat

OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter