increase font size
Taranaki farmers at the DairyNZ Farmers Forum.
Lower milk production around the world will help keep the farmgate milk price high, says DairyNZ chairman Michael Spaans.
Opening the DairyNZ Farmers Forum in Taranaki today, Spaans noted that milk production had slowed in Europe and Australia.
While the US was still producing more milk, most of it was being absorbed by the domestic market.
Spaans says milk production across the globe, particularly Europe, has been constrained by lower milk prices …”quite a good thing for us”.
“When we find it tough, we have the resilience to keep going…. places like Europe and other producers who rely a lot on grain, they actually find it a lot tougher.
“We see it is holding back growth of milk production in Europe and this is certainly going to help our milk price going forward.”
Spaans noted that Australian milk production was “bit of a mess”, dipping quite significantly.
“The US is looking quite solid and growing but a lot of production is being absorbed by the domestic market; some milk is now starting to come into the world market.”
While milk production has slowed, global demand remains strong.
But Spaans had a word of caution for farmers; things can change quickly.
“From the lessons learnt during the last few seasons, we know these things change and we know that opening forecast can be wrong.”
He says farmers also know prices could move around during the year.
“We should ensure we farm profitably, remain cautious and use extra cash, if it does come through, wisely.”
DairyNZ says Waikato farmers need certainty on Plan Change 1, but they say that certainty must be matched with practical, workable rules and a clear transition that doesn't get ahead of the new resource management system currently under review.
OPINION: The dairy sector has been told that it cannot afford to rest on its laurels.
The dairy industry cannot rest on its laurels despite providing one in every four export dollars earned by the country, says DairyNZ chief executive Campbell Parker.
Increased competition for water means the whole community is looking at how irrigators use water.
Analysis of decades of research has revealed the implementation of good farming practices plays a critical role in reducing nutrient losses to improve freshwater outcomes.
Fonterra has reduced its forecast 2026/27 Farmgate Milk Price.
New Zealand dairy farmers are set to be the first in the world to receive access to a new digital physical milk pricing tool that enables them to fix the price for their physical milk.
State farmer Pāmu is opening its farm gates this summer in an effort to give the rural sector the opportunity to see how large-scale, multi-system farming is delivering productivity and profitability across New Zealand.
A five-year study has found that the cost of reducing emissions without technology may be significant and unsustainable for Northland dairy farmers.
DairyNZ says Waikato farmers need certainty on Plan Change 1, but they say that certainty must be matched with practical, workable rules and a clear transition that doesn't get ahead of the new resource management system currently under review.
While the Government has moved quickly to make commercial hauliers' lot easier during the current fuel crisis, they appear to be stuck in the creep box when it comes to the agricultural industry.
OPINION: No one messes around with Winston Peters, more so in a general election year.
OPINION: Staying on Federated Farmers, this week's annual general meeting in Auckland is shaping up to be an interesting one.
