$150B farm succession challenge looms for NZ agriculture
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.
New Zealand milk production has stayed stronger for longer than anticipated, matching the exceptional prior-year comparables will become more difficult beyond Christmas, says Rabobank's quarterly report.
Compared to last year, feed reserves are reduced, milk prices are lower, and the probability of ideal climatic conditions occurring two years in a row is very small, the report says.
Many New Zealand farmers are also entering the second half of the season with below-average soil moisture levels, making pasture growth susceptible to any dry spells.
Rabobank says the slow recovery in international dairy prices that started in August 2012 continues through Q4, but failed to regain strong legs.
Upward pressure on prices was created in part by the first contraction in milk supply in export regions since early 2010.
The fact that this contraction failed to generate a stronger rise in prices suggest that consumption was weaker than anticipated and key buyers have accumulated solid forward coverage.
Milk production growth in key export regions is expected to continue to fall below prior-year levels through the first half of 2013, the report says.
While current buyer inventories will provide temporary protection from supply shortages, the market will inevitably tighten further if there is even a modest improvement in demand for imports from key buying regions – which appears highly likely.
But the timing and vigour of the market peak has likely been pushed back and will be softened by a weaker economic outlook than envisaged three months ago.
Two butcheries have claimed victory at the 100% New Zealand Bacon & Ham Awards for 2025.
A Taupiri farming company has been convicted and fined $52,500 in the Hamilton District Court for the unlawful discharge of dairy effluent into the environment.
The Climate Change Commission’s 2025 emissions reduction monitoring report reveals steady progress on the reduction of New Zealand’s climate pollution.
Another milestone has been reached in the fight against Mycoplasma bovis with the compensation assistance service being wound up after helping more than 1300 farmers.
The Government’s directive for state farmer Landcorp Farming (trading as Pamu) to lifts its performance is yielding results.
The move to bring bovine TB testing in-house at Ospri officially started this month, as a team of 37 skilled and experienced technicians begin work with the disease eradication agency.
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