Milking longer with maize silage
This season's dry conditions have made one thing clear: not having enough feed on hand can bring your season to an early close.
Rabobank says strong global supply is weighing on the dairy market, with international dairy commodity prices down across the board.
Milk production in New Zealand and Australia is particularly strong, on the back of favourable seasonal conditions, with milk flows tracking above last season's levels. Global demand remains patchy, with weak retail sales in the US and several key EU markets.
Earlier this week Fonterra dropped its 2011-12 forecast payout by 15c/kgMS. It says a strong Kiwi dollar and declining commodity prices.
In its March agribusiness review, Rabobank says commodity prices in New Zealand dollar terms weakened by a further 6.5% on average in February on the back of softer international prices.
At the same time the New Zealand dollar firmed 4.5% during the period.
On the international market, strong global supply out of Australia, New Zealand and the US is weighing on dairy commodity prices, it says.
"Milk powders are trading around 20% below the levels seen this time last year, with cheese prices down around 10%," it says.
Recent rain has offered respite for some from the ongoing drought.
New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.
With much of the North Island experiencing drought this summer and climate change projected to bring drier and hotter conditions, securing New Zealand’s freshwater resilience is vital, according to state-owned GNS Science.
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