Monday, 18 February 2019 08:55

Coronavirus impact will be short-lived – OCD

Written by  Staff Reporters
OCD says it has diversified its markets to ensure exposure in China is limited. OCD says it has diversified its markets to ensure exposure in China is limited.

The country's second largest milk processor says any negative impact of coronavirus should be short lived.

Open Country Dairy chief executive Steven Koekemoer has told milk suppliers that how long it takes to contain the virus is key.

“The latest general view is that any negative impact should be short lived,” he says.

“The fundamentals around supply/demand have not changed but the timing of containment of the virus will be key.”

OCD will review the situation this month but says at this stage it sees no reason to adjust the forecast payout. “If the outbreak is controlled in the short term, then we should see higher demand resume and pricing recover.”

OCD has strategically diversified its markets over the last few years to ensure exposure in China is limited. 

“I am confident that in a general tightening global market, we will have no issues selling our product. No doubt pricing in the short term may be impacted, however, we are getting to the tail end of the season and will just need to ride it out,” Koekemoer said.

More like this

Locally grown fruits, veg in full supply

One of the country’s two largest supermarket chains is reporting that for the first time since the disruption of Covid, they have largely full supply on almost all fruit and vegetables grown locally.

Global shipping rates soar again

Covid-19 took global shipping rates to mind boggling highs, but over the subsequent 12-15 months they returned to more sustainable levels. Fast forward to July 2024 and rates have nearly doubled over three months.

HortNZ helps growers rebuild, recover

Horticulture New Zealand (HortNZ) chief executive Nadine Tunley says the industry-good body’s support for growers has proven to be multifaceted.

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

Boost for hort exports

The horticulture sector is a big winner from recent free trade deals sealed with the Gulf states, says Associate Agriculture Minister Nicola Grigg.

National

OSPRI's costly software upgrade

Animal disease management agency OSPRI has announced sweeping governance changes as it seeks to recover from the expensive failure of…

Machinery & Products

BA Pumps expand

Cambridge based BA Pumps & Sprayers, specialists in New Zealand-made spraying equipment, has acquired Tokoroa Engineering’s product range, including the…

Entries open for innovation award

Fieldays and its renowned Innovation Awards are celebrating their 57th year, marking a longstanding tradition in the agricultural calendar, with…

» Latest Print Issues Online

Milking It

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Not fair

OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter