Buttery prize
OPINION: Westland Milk may have won the contract to supply butter to Costco NZ but Open Country Dairy is having the last laugh when it comes to cashing in on NZ grass-fed butter.
The country's second-largest dairy processor says its supply chain is being managed tightly around the Covid-19 outbreak.
Covid-19 is forecast to strip more than $1.3 billion dollars off New Zealand’s primary exports in the coming year, including $390 million off dairy exports.
Open Country Dairy chief executive Steve Koekemoer says so far the outbreak hasn’t impacted demand for its products.
“Our products have continued to move relative freely into market. “Clearly, we share the concern within the industry regarding ongoing disruption with availability of containers and potential restrictions at ports going forward.
“With us heading into the tail end of the season, we expect the short-term impact to be minor and with that are turning our focus to next season.”
Koekemoer says dairy pricing has come under pressure over the past few weeks due to the Covid-19 impact but with the limited supply due to the dry weather, OCD is maintaining its current forecast.
OCD will hold supplier meetings later this month where farmers will be updated on the impact of coronavirus.
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All eyes are on milk production in New Zealand and its impact on global dairy prices in the coming months.
Claims that some Southland farmers were invoiced up to $4000 for winter grazing compliance checks despite not breaching rules are being rejected by Environment Southland.
According to the most recent Rabobank Rural Confidence Survey, farmer confidence has inched higher, reaching its second highest reading in the last decade.
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