Fonterra lifts forecast milk price mid-point, advance rate
Fonterra has bumped up its forecast farmgate milk price for the season on the back of rising commodity prices and a strong balance sheet.
Westpac chief economist Kelly Eckhold says last week's Global Dairy Trade (GDT) auction went much better than feared.
Futures market pricing had suggested price falls in the 4-5% range after the last disastrous auction a fortnight ago. The market was thus rightly on edge, notes Eckhold.
"Overall prices rose slightly driven by a strong performance from the 'Fats' - Anhydrous Milk Fat 4%, Cheddar 6.2%, Butter 0.8%) while the 'Powders' fell - albeit by less than feared (Whole Milk Powder -1.6%, Skim Milk Powder -1.1%)," he says.
"We didn't see much of interest in the pattern of buyers - Middle Eastern buyers were better supporters of the auction this time. Chinese demand looks stable.
"Our forecast for the 2024-25 milk price remains unchanged at $8.40 with balanced risks. Of key interest will be the impact of weak Chinese economic growth, which recent data confirms is still travelling below trend, driven by a still weak consumer. That's not great news for soft commodities."
Four New Zealand farmers have been selected as finalists in this year’s Zimmatic Trailblazer Sustainable Irrigation Awards.
Anglers are at loggerheads with an environment group over its plans for a new conservation system.
A complaint by Synlait founder John Penno over the listed milk processor’s recapitalisation plan has been dismissed by regulators.
Eileen and Shane Walker, the driving forces behind a Kapiti Coast wetland project that's in its fifth year, have a love for the environment that's obvious even from a distance.
A new technology company has been formed which will help New Zealand’s farmers and primary sector better understand and capitalise on their natural vegetation and biodiversity.
Beef + Lamb New Zealand (B+LNZ) has launched its Rural Leadership Advancement Scholarship.
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