Better days coming - Open Country Dairy
Open Country Dairy suppliers have received a final payout of $7.37/ kgMS for milk sent to the factories in October and November last year.
The country's second-largest milk processor says the recent hike in global dairy prices won’t change its ‘disciplined’ milk price forecasting.
OCD chief executive Steve Koekemoer says the company will continue to closely monitor market activities over the coming weeks to substantiate any trend.
“We are in our lower volume period and will keep our focus on the larger peak volume months as we head into the season,” he told farmer suppliers.
“The fundamentals suggest that the market should be well balanced, and prices should remain stable at current levels.”
The Global Dairy Trade (GDT) auction on July 8 saw the price index jump 8.3%. Whole milk powder (WMP) prices rose 14%.
Koekemoer says while he was expecting a positive result, the magnitude was ‘impressive’.
“With China, domestic WMP prices having increased recently and customers wanting to fill their pipeline. It seems many have taken a position to stock up early,” he says.
Meanwhile, at its recent round of farmer meetings, Koekemoer says the key topic has been the recovery of dairy prices post-Covid.
“This is understandable and obviously an important focus for us too.”
OCD has adjusted both its September and November settlements up by another 10c – as it gains more confidence in the new season’s
outlook.
Koekemoer notes that the foodservice channels globally are getting “into a more normalised operating mode”.
“Our shipments, which were slightly delayed over the Covid lockdown period due to international banking delays, staff shortages overseas and other disruptions have returned to normal,” he explains.
“With dairy being a great source of nutrition, we have found global demand to be very stable.”
OCD says it is looking at another record-breaking season. It expects to process 1.91 billion litres of milk from 1000 suppliers.
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New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Horticulture NZ chief executive Nadine Tunley will step down in August.