South Island dairy production lifts despite stormy summer, feed risks loom
South Island dairy production is up on last year despite an unusually wet, dull and stormy summer, says DairyNZ lower South Island regional manager Jared Stockman.
Now banks must give young farmers leeway as they work their way through the crisis.
“Hopefully in 12 months there will be a much stronger industry going forward,” he told Dairy News.
The price index fell 9.3% in the latest GDT – the 10th consecutive fall, bringing it to levels not seen since 2002.
Whole milk powder, a crucial product for New Zealand, fell by 10.3% on average to US$1590/tonne.
Skim milk powder prices slumped by 14.4% to US$1419/t on average.
Anhydrous milk fat prices fell by 11.7%, butter by 6.1% and butter milk powder by 5.1%.
Luxton says NZ is very exposed to a thinly traded market.
“One outcome of the low GDT is likely to be a rapid lowering of our cost systems and probably some reduction in milk production out of NZ.
“When you look at the world market there isn’t a big overhang of surpluses despite what people are saying. The supply and demand is reasonably well balanced.”
