increase font size
Emma Higgins.
Global dairy prices posted their second increase in a row.
Last night’s Global Dairy Trade (GDT) auction saw the price index rise 1.7%.
Whole milk powder price rose 0.3% to US$2674/metric tonne.
However, Rabobank has downgraded its 2018-19 full-year forecast by 40c/kgMS.
Rabobank analyst Emma Higgins says while December GDT events have seen marginally better prices, the run of falls across earlier months, combined with the recent uptick in the New Zealand dollar, has fed into the bank’s downward revision; $6.65/kgMS to $6.25/kgMS.
Despite a continued slow-down in milk supply growth across the “Big 7” dairy exporting regions in the final quarter of 2018, exceptionally strong New Zealand milk production in recent months has seen Oceania commodity prices drift lower.
She says milk supply growth across the Big 7 (the EU, the US, New Zealand, Australia, Uruguay, Argentina & Brazil) sunk to 0.8% year-on-year in quarter three and indicative quarter four numbers show a similar modest growth rate.
The minimal growth rate was largely a result of lower production in Australia, the EU and the US.
“The lingering effects from mother nature have severely impacted Australian milk flows and stalled European growth with feed quality and quantity impacted across the second half of 2018. The US also looks set to see the lowest year-on-year milk production growth since 2013, due largely to tightening margins,” Higgins said.
Key results
AMF index up 4.0%, average price US$4,936/MT
Butter index up 4.9%, average price US$3,928/MT
BMP not offered
Ched index up 2.2%, average price US$3,263/MT
LAC index up 1.6%, average price US$935/MT
RenCas index down 2.1%, average price US$5,056/MT
SMP index up 3.4%, average price US$2,042/MT
SWP index not available, average price not available
WMP index up 0.3%, average price US$2,674/MT
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
An $8/kgMS farm gate milk price is still on the cards with less than six weeks left to run this season.
Free workshops are being offered around the country to help farmers take more ownership of their farm business finances.
Could smaller foodservice operators take advantage of the benefits of artificial intelligence (AI)?
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
OPINION: Talking about plant-based food: “Chicken-free chicken” start-up Sunfed has had its valuation slashed to zero by major investor Blackbird…
OPINION: Synlait's financial woes won’t be going away anytime soon.
