DairyNZ lifts breakeven milk price forecast to $8.68 for 2025/26 season
According to DairyNZ's latest Econ Tracker update, there has been a rise in the forecast breakeven milk price for the 2025/26 season.
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.”
Funding is proving crucial for predator control despite a broken model reliant on the goodwill of volunteers.
A major milestone on New Zealand's unique journey to eradicate Mycoplasma bovis could come before the end of this year.
We're working through it, and we'll get to it.
The debate around New Zealand's future in the Paris Agreement is heating up.
A technical lab manager for Apata, Phoebe Scherer, has won the Bay of Plenty 2025 Young Grower regional title.
Following heavy rain which caused flooding in parts of Nelson-Tasman and sewerage overflows in Marlborough, the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) is urging homeowners and tenants to be cautious when cleaning up and to take the right steps to support claims.
OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.
OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.