Middle East demand cushions global dairy price drop at latest GDT auction
The upheaval in the Middle East may have eased the fall in global dairy prices last week.
Canterbury milk processor Synlait says its farmer suppliers will get a record base milk price of $9.25/kgMS this season.
The company lifted its forecast base milk price by a whopping $1.25 on the back of soaring global dairy prices.
Synlait chief executive Grant Watson, who started in his new role this month, says dairy commodity prices have strengthened significantly as strong global demand has outrun restricted supply.
“The New Zealand milk price is also benefiting from a weakening New Zealand dollar against the US dollar,” he says.
Watson expects dairy prices to remain strong for some time.
He notes that as seen in most commodities, Covid is having a significant impact as illness and lockdowns impact production and supply chains. This has been amplified by rising production costs driven by strong inflation and ongoing pressure on our industry to decarbonise.
“As a result of this ongoing demand Synlait believe dairy commodity prices could remain high for some time as these dynamics will take time to unwind, supporting the record milk price forecast.”
Watson says Synlait will continue to monitor movements and keep its farmer suppliers updated. Its next milk price announcement will come in May.
The strong commodity dairy prices mean all NZ farmers are in line for a record payout this season.
Fonterra has announced a forecast milk price range of $8.90 to $9.50/kgMS with a midpoint of $9.20/kgMS. Its previous record milk price - $8.40/kgMS- was paid in 2013/14 season.
Open Country Dairy will this month pay its farmer suppliers a record $9.01/kgMS for milk supplied in November and December.
Holstein Friesian excellence was front and centre at the 2025 Holstein Friesian NZ (HFNZ) Awards, held recently in Invercargill.
The work Fonterra has done with Ballance Agri-Nutrients Ltd, LIC and Ravensdown to save farmers time through better data connections has been recognised with a national award.
This past week has seen another round of negotiations between India and New Zealand to produce a free trade agreement (FTA) between the two countries.
Cautiously optimistic is how DairyNZ's regional manager for the lower North Island, Mark Laurence describes the mood of farmers in his patch.
The Infrastructure Commission has endorsed a plan by Chorus to expand fibre broadband to 95% of New Zealand much to the delight of rural women.
Questions are being raised about just how good the state of the dairy industry is - especially given that the average farmgate payout for the coming season is set to exceed $10/kgMS.
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