increase font size
A "global dairy crisis" could be good for New Zealand dairy farmers, says Federated Farmers.
This year is shaping up as a bumpy one for the international dairy industry, with the worst US drought since Ronald Reagan was president and thousands of European dairy farmers taking to the streets in protest.
"We seem to be staring down the barrel of a global dairy crisis, which could benefit New Zealand's dairy farmers," says Willy Leferink, Federated Farmers dairy chairperson.
"An act of nature in the United States and subsidies elsewhere are putting dairy farmers under the most unimaginable pressure. WeatherWatch's Philip Duncan says half of the continental United States is now in drought.
"The world's largest corn crop is withering and that's a key marker because US dairy and beef production is grain dependent. US grain prices have climbed a quarter in the past three weeks and corn is following suit.
"The US is also the world's third largest dairy exporter right behind ourselves and the European Union.
"Before drought struck, US dairy production growth was slowing but the brakes will be fully on now. I've heard estimates the United States Department of Agriculture's modest 0.2% growth forecast may turn into a 2% fall.
"This is important because Fonterra Cooperative Group's opening season milk price forecast of $3.85 per kilogram of milksolids (kg/MS), is down on last season's opening of $4.40 kg/MS.
"While the season just ended may return Fonterra's farmers $6.05 kg/MS for their milk, it comes from a season right out of the box. Westland Milk Products has also lowered its milksolids payout range for the season just ended, to between $6.00 and $6.20 kg/MS.
"It is fair to say the 2012-13 season is looking tough everywhere plus we have a monkey on our back called the high Kiwi dollar.
"In the United Kingdom, thousands of dairy farmers have marched in London to protest milk payouts lower than the cost of production. That's due to a vicious supermarket price war.
"Hundreds of dairy farmers from Italy, Germany, Ireland and France have gone further, spraying milk outside the European Parliament. While it tells me they have no RMA-type legislation, it shows a sense of frustration in a world that needs this food.
"Here, New Zealand milk is unsubsidised and most of it is sold through cooperatives for export; we are not at the mercy of supermarkets or domestic processors.
"Local retail dairy prices are directly tied to the international market place and while they rode the commodities wave up, that same wave means retail prices have come down.
"In the space of 12-months, fresh milk has fallen 8% while cheddar is down 16% and butter has dropped 24%. We just hope what's good for consumers in the short term won't turn sour for 'NZ Inc' longer term," Leferink concluded.
Academic Dr Mike Joy and his employer, Victoria University of Wellington have apologised for his comments suggesting that dairy industry CEOs should be hanged for contributing towards nitrate poisoning of waterways.
A comment by outspoken academic Dr Mike Joy suggesting that dairy industry leaders should be hanged for nitrate contamination of drinking/groundwater has enraged farmers.
Federated Farmers says the final report into banking competition is a significant step forward for rural New Zealand - and a vindication of the farming sector's concern.
Farmer lobby group Federated Farmers has announced it is supporting a new Member’s Bill which it says could bring clarity to New Zealand farmers and save millions in legal costs.
Federated Farmers says climate protest group Greenpeace is manufacturing outrage and attempting to scare New Zealanders with headlines that have no basis in science.
NZPork has appointed Auckland-based Paul Bucknell as its new chair.
The Government claims to have delivered on its election promise to protect productive farmland from emissions trading scheme (ETS) but red meat farmers aren’t happy.
Foot and Mouth Disease outbreaks could have a detrimental impact on any country's rural sector, as seen in the United Kingdom's 2000 outbreak that saw the compulsory slaughter of over six million animals.
The Ministry for the Environment is joining as a national award sponsor in the Ballance Farm Environment Awards (BFEA from next year).
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.
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…
