$10 milk price still in sight despite global dairy markets softening
A $10 milk price remains on the cards for this season despite recent softening of global dairy prices.
The final Global Dairy Trade (GDT) auction for the 2023-24 season augurs well the forecast milk price for the new season.
While the banks are forecasting between $8.35 to $8.40/kgMS, Fonterra later this week, its forecast range for the season starting June 1.
Last week's GDT delivered good news: while the price index rose 3.3%, Chinese buyers returned after pulling back in the earlier May auction. Also, whole milk powder prices rose 2.9% to US$3,408/metric tonne.
Westpac chief economist Kelly Eckhold noted that auction was "another very strong one with gains across the board".
"All categories rose and wrong-footed futures markets, which again saw a much flatter result," says Eckhold.
"Chinese buyers returned this time after pulling back in the early May auction. Overall prices are now 10 per cent or so above their long-term averages. We can certainly see upside risk building to our milk price forecast of $8.40/kgMS for the 2024/25 season."
ASB senior economist Chris Tennent-Brown believes farmers can hope for a farmgate milk price in the top half of Fonterra's guidance range ($7.50-$8.10/kgMS) this year.
"We remain comfortable with our $8.35/kgMS forecast."
Acclaimed fruit grower Dean Astill never imagined he would have achieved so much in the years since being named the first Young Horticulturist of the Year, 20 years ago.
The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
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.
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