Open Country Dairy prepares to launch first commercial butter
The country's second largest milk processor hopes to produce its first commercial butter within two months.
Big jumps in butter and cheddar cheese prices reflect Chinese consumers returning to restaurants, cafes and bakeries, says Westpac’s senior agro economist Nathan Penny.
He says butter and cheddar are key inputs in the restaurant and bakery businesses.
Penny says over time he expects the recovery to broaden into other products, notably whole milk powder (WMP), which is used as the benchmark to set farm gate milk price.
“However, in the short term and as stocks are run down, the price recovery may be stop-start in nature,” Penny says.
He made the comments after last night’s Global Dairy Trade (GDT) auction saw the price index drop 1.5% and WMP prices dip 2%.
However, the biggest mover was butter prices, jumping 3.8%; cheddar was up 1.5%.
Penny points out that butter prices surged by 10.6% over the two February auctions, while cheddar prices are up 5% since the end of 2022.
For February as a whole, prices posted modest gains, with overall prices rising 1.6% and WMP prices lifting 2.1%.
Penny says the latest GDT result was a little below expectations.
“We had pencilled in a 1% WMP price lift ahead of the auction, while the futures market was pointing to a similarly small rise.”
Westpac is sticking to its 2022/23 milk price forecast of $8.75/kgMS.
Newly elected Federated Farmers meat and wool group chair Richard Dawkins says he will continue the great work done his predecessor Toby Williams.
Hosted by ginger dynamo Te Radar, the Fieldays Innovation Award Winners Event put the spotlight on the agricultural industry's most promising ideas.
According to DairyNZ's latest Econ Tracker update, there has been a rise in the forecast breakeven milk price for the 2025/26 season.
Despite the rain and a liberal coating of mud, engines roared, and the 50th Fieldays Tractor Pull Competition drew crowds of spectators across the four days of the annual event.
Nationwide rural wellbeing programme, Farmstrong recently celebrated its tenth birthday at Fieldays with an event attended by ambassador Sam Whitelock, Farmers Mutual Group (FMG), Farmstrong partners, and government Ministers.
Six industry organisations, including DairyNZ and the Dairy Companies Association (DCANZ) have signed an agreement with the Ministry for Primary Industries (MPI) to prepare the country for a potential foot and mouth outbreak.
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