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
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.
OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…