Farmgate prices rise as farmers rebuild confidence
Sheep and beef farmers are cautiously optimistic as farmgate prices continue to firm.
The GlobalDairyTrade price index lifted by 1.9% at the auction held overnight.
Whole milk powder was up 1.8% to an average price of US$2,304/MT and skim milk powder was up 0.2% to an average price of US$1,891/MT.
ASB's Nathan Penny says the lift was well below expectations of a 10% rise.
Although the bank is sticking to it $4.60/kgMS milk price forecast – Fonterra's current forecast - the downside risk to this has grown, he says.
Butter and anhydrous milk fat posted the largest gains of 9.0% and 6.1%, respectively. Meanwhile, butter milk powder and casein posted similar-sized falls.
"The modest rise comes despite Fonterra's lower auction volumes," Penny says. "Ahead of the auction, Fonterra lowered the amount of WMP offered by 5% from what it had signalled previously.
"Moreover, Fonterra also lowered the amount of WMP it plans to offer over the rest of the season by 9%.
"Our view remains that dairy prices will move higher over 2016. NZ production is falling hard (we estimate that production is down around 3% in the season to November compared to the same period last season) and a large hole is developing in global dairy exports, particularly for whole milk powder (WMP)."
Kiwis are wasting less of their food than they were two years ago, and this has been enough to push New Zealand’s total household food waste bill lower, the 2025 Rabobank KiwiHarvest Food Waste survey has found.
OPINION: Sir Lockwood Smith has clearly and succinctly defined what academic freedom is all about, the boundaries around it and the responsibility that goes with this privilege.
DairyNZ says its plantain programme continues to deliver promising results, with new data confirming that modest levels of plantain in pastures reduce nitrogen leaching, offering farmers a practical, science-backed tool to meet environmental goals.
'Common sense' cuts to government red tape will make it easier for New Zealand to deliver safe food to more markets.
Balclutha farmer Renae Martin remembers the moment she fell in love with cows.
Academic freedom is a privilege and it's put at risk when people abuse it.
OPINION: Should cows in NZ be microchipped?
OPINION: Legislation being drafted to bring back the controversial trade of live animal exports by sea is getting stuck in the…