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

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.

Working with farmers to ensure best outcomes

OPINION: Recent media commentary from Southland Federated Farmers has raised concerns among our rural communities, particularly around Environment Southland’s approach to winter grazing inspections and nitrogen reporting. But let’s be clear, much of what’s been said simply doesn’t reflect reality.

Editorial: Nitrate emergency?

OPINION: Environment Canterbury's (ECan) decision recently to declare a so-called “nitrate emergency” is laughable.

Federated Farmers slam Canterbury nitrate emergency

A shameless political stunt is how Federated Farmers is describing the Canterbury Regional Council decision to declare “a nitrate emergency” on the back of its latest annual groundwater quality survey.

Featured

'One more push' to eliminate FE

Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.

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.

National

Machinery & Products

New McHale terra drive axle option

Well-known for its Fusion baler wrapper combination, Irish manufacturer McHale has launched an interesting option at the recent Irish Ploughing…

Amazone unveils flagship spreader

With the price of fertiliser still significantly higher than 2024, there is an increased onus on ensuring its spread accurately at…

» Latest Print Issues Online

Milking It

Tough times

OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.

MSA triumph

OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter