Middle East demand cushions global dairy price drop at latest GDT auction
The upheaval in the Middle East may have eased the fall in global dairy prices last week.
Economists aren't too excited about last week’s 2.2% overall lift in the Global Dairy Trade price index.
Anne Boniface, Westpac senior economist, says there was a 2.5% lift in whole milk powder prices, while butter and AMF prices also rose, partially unwinding the big falls seen in the previous auction. But the lift did not fully unwind the weaker dairy prices through November.
“Local conditions for most dairy farmers remain very favourable, and strong momentum in New Zealand milk production likely continued in November.”
Westpac is picking a $6.10/kgMS milk price for the season. “As we’ve noted previously, this forecast continues to assume we see a modest improvement in dairy prices in early 2019, with the risk of a further downward revision if this fails to eventuate in the coming months.”
ASB’s senior rural economist Nathan Penny says the rise snapped a run of seven consecutive falls.
“Nonetheless, we are suspicious. First, the rise is similar to falls in the US currency over the past fortnight. In particular, the Chinese yuan has lifted, making the USD-priced products cheaper for Chinese buyers.”
Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Boutique Waikato cheese producer Meyer Cheese is investing in a new $3.5 million facility, designed to boost capacity and enhance the company's sustainability credentials.
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Compensation assistance for farmers impacted by Mycoplama bovis is being wound up.
Selecting the reverse gear quicker than a lovestruck boyfriend who has met the in-laws for the first time, the Coalition Government has confirmed that the proposal to amend Fringe Benefit Tax (FBT) charged against farm utes has been canned.
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