Open Country unveils major expansion plan
Confirming its "immense faith" in the dairy industry, the country's second largest milk processor is embarking on a significant investment programme.
Open Country Dairy suppliers have received a final payout of $7.37/ kgMS for milk sent to the factories in October and November last year.
Open Country chief executive Mark de Lautour says the final payout was “was at the higher end of our range for the period and reflected that market price improved slightly earlier than we had forecast”.
In his monthly message to farmer suppliers, de Lautour says he expects prices to improve in the coming months.
“We expect further upside in the coming two periods remaining in this milk season, however this is conditional on continued demand – especially following Chinese New Year – and finished product price improvement.”
OCD pays its farmers the full milk price in four periods every 12 months.
The Talley’s-owned business is forecasting a milk price of between $7.50 to $7.80/kgMS for the January period, which covers milk supplied between December last year and January this year. Farmers will be paid in full in March.
For the May period (milk supplied between February and May this year) OCD suppliers can expect a milk price of between $8 and $8.40/kgMS. For September period (June to September supply) Open Country is forecasting between $8.30 and $8.70/kgMS.
Meanwhile, Open Country’s sales team are busy preparing for the Gulfood trade show in mid-February. Held in Dubai, Open Country has a significant presence at this show with the Middle East being a key geographic market for the company.
“While centered around this part of the world, buyers globally attend, so it represents a good opportunity to meet a number of both current and potential customers,” says de Lautour.
Among the regular exhibitors at last month’s South Island Agricultural Field Days, the one that arguably takes the most intensive preparation every time is the PGG Wrightson Seeds site.
Two high producing Canterbury dairy farmers are moving to blended stockfeed supplements fed in-shed for a number of reasons, not the least of which is to boost protein levels, which they can’t achieve through pasture under the region’s nitrogen limit of 190kg/ha.
Buoyed by strong forecasts for milk prices and a renewed demand for dairy assets, the South Island rural real estate market has begun the year with positive momentum, according to Colliers.
The six young cattle breeders participating in the inaugural Holstein Friesian NZ young breeder development programme have completed their first event of the year.
New Zealand feed producers are being encouraged to boost staff training to maintain efficiency and product quality.
OPINION: The world is bracing for a trade war between the two biggest economies.
OPINION: Should Greenpeace be stripped of their charitable status? Farmers say yes.
OPINION: After years of financial turmoil, Canterbury milk processor Synlait is now back in business.