Middle East demand cushions global dairy price drop at latest GDT auction
The upheaval in the Middle East may have eased the fall in global dairy prices last week.
ASB has trimmed their price forecast by 50c, but maintains dairy prices will increase over 2016.
The bank says Chinese economic concerns are spilling over into dairy markets, making the dairy price recovery slow and stop-start.
ASB still maintains dairy prices will move higher across 2016, but time is not on the side of this season's milk price, according to the latest ASB Farmshed Economics Report.
ASB rural economist Nathan Penny says that as a result, ASB has trimmed this season's milk price forecast by 50c to $4.10/kgMS.
"While we have trimmed our milk price forecast, we do anticipate dairy auction prices will move higher over 2016. With this in mind we maintain our forecast of $6.50/kgMS for the 2016-17 season," Penny says.
On a brighter note for farmers, a lower NZ dollar and interest rates are offering some respite.
"We forecast short-term interest rates to fall over the next six months. With inflation set to remain very low we expect the Reserve Bank to cut the OCR twice this year," Penny says.
The NZ dollar is also doing its best to increase farmgate returns. After ending 2015 above $US0.68, the NZ dollar has fallen as low as $US0.63 at one stage in the early New Year.
"We expect the New Zealand dollar to range in the low- to-mid-60s over 2016," says Penny.
Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Boutique Waikato cheese producer Meyer Cheese is investing in a new $3.5 million facility, designed to boost capacity and enhance the company's sustainability credentials.
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Compensation assistance for farmers impacted by Mycoplama bovis is being wound up.
Selecting the reverse gear quicker than a lovestruck boyfriend who has met the in-laws for the first time, the Coalition Government has confirmed that the proposal to amend Fringe Benefit Tax (FBT) charged against farm utes has been canned.
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