Beef prices climb as supply contracts in key markets
With production volumes contracting in most major beef-producing regions, global cattle prices have continued to rise across recent months.
Whole milk powder prices were softer at last week’s GDT auction, taking the average price down 1.5% to US$3231/t and the overall price index down 1.1%, says Rabobank dairy analyst Emma Higgins.
This coincides with Fonterra last week revising upwards its production forecast for the full season versus last season to -2% (from -3% previously) to 1.5billion kgMS.
While New Zealand product pricing now tends to wane as focus turns to the northern hemisphere, the late spring retains demand for fresh skim milk powder (SMP), says Higgins.
SMP lifted 3.6% last week and NZ product is still selling for more than European product.
ASB’s Nathan Penny says the WMP fall contrasted with its expectations. However the sharp move lower in the NZ dollar more than compensates for the fall. Since the last GDT auction the NZD versus USD has fallen about 4.5%.
The net affect sees overall dairy auction prices about 3% higher in NZ dollar terms – the terms that matter for the farmgate milk price.
Fonterra’s Global Dairy Update released last week says NZ dairy exports in February increased 4% (11,000t) on the same month last year.
Growth was again driven by WMP and fluid and fresh dairy, up a combined 12% (16,000t) for the month, slightly offset by declines in cheese, lactose and AMF.
Exports for the 12 months to February were flat on the previous comparable period, it said.
Exports of fluid and fresh dairy and WMP -- both among the largest export categories, and up a combined 117,000t (7%) -- this was offset by declines in most other categories. – Pam Tipa
According to ASB, Fonterra's plan to sell it's Anchor and Mainlands brands could inject $4.5 billion in additional spending into the economy.
New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.
The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.
Dignitaries from all walks of life – the governor general, politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.
Agriculture and Forestry Minister, Todd McClay is encouraging farmers, growers, and foresters not to take unnecessary risks, asking that they heed weather warnings today.
With nearly two million underutilised dairy calves born annually and the beef price outlook strong, New Zealand’s opportunity to build a scalable dairy-beef system is now.
OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.
OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.