US remains important market - Fonterra
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
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."
New tariffs imposed by President Donald Trump signal an uncertain future, but New Zealand farmers know how to adapt to changing conditions, says Auriga Martin, chief executive of Farm Focus.
A global trade war beckons, which is bad news for a small open economy like New Zealand, warns Mark Smith ASB senior economist.
Carterton's Awakare Farm has long stood as a place where family, tradition and innovation intersect.
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
Trade and Agriculture Minister Todd McClay says New Zealand's trade interests are best served in a world where trade flows freely.
New Zealand's red meat sector says it is disappointed by the United States' decision to impose tariffs on New Zealand exports.
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