"Our" business?
OPINION: One particular bone the Hound has been gnawing on for years now is how the chattering classes want it both ways when it comes to the success of NZ's dairy industry.
Fonterra farmers are in line to be paid a milk price over $9/kgMS for the first time ever.
The co-operative today lifted its 2021-22 forecast farmgate milk price range to $8.90 - $9.50/kgMS, up from $8.40 - $9.00 per kgMS.
This increases the midpoint of the range, which farmers are paid off, by 50 cents to $9.20/kgMS.
The previous record milk price of $8.40/kgMS was set in 2013-14 season.
Fonterra chief executive Miles Hurrell says the price lift is good news for both farmers and New Zealand communities.
The new midpoint of $9.20/kgMS would contribute $13.8 billion to the New Zealand economy this season.
Hurrell says the increase is the result of consistent demand for dairy at a time of constrained global milk supply.
“In general, demand globally remains strong – although, we are seeing this vary across our geographic spread. Overall, global milk supply growth is forecast to track below average levels, with European milk production growth down on last year and US milk growth slowing due to high feed costs.
“It’s a similar supply picture in New Zealand. Earlier this month we reduced our forecast milk collections for 2021/22 from 1,525 million kgMS to 1,500 million kgMS due to varied weather and challenging growing conditions.”
While the higher forecast Farmgate Milk Price does put pressure on margins in Fonterra’s consumer and foodservice businesses, prices in the ingredients business are favourable for milk price and earnings at this stage, notes Hurrell.
“As a result, we remain comfortable with our current 2021/22 earnings guidance of 25-35 cents per share.”
Hurrell says there are a number of factors the co-op is keeping a close eye on, including growing inflationary pressures impacting on operational costs, the increased potential for volatility as a result of high dairy prices and economic disruptions from COVID-19, particularly as governments respond to the rapid spread of the Omicron variant.
According to the most recent Rabobank Rural Confidence Survey, farmer confidence has inched higher, reaching its second highest reading in the last decade.
From 1 October, new livestock movement restrictions will be introduced in parts of Central Otago dealing with infected possums spreading bovine TB to livestock.
Phoebe Scherer, a technical manager from the Bay of Plenty, has won the 2025 Young Grower of the Year national title.
The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards, providing the opportunity to honour both rising talent and industry stalwarts.
Award-winning boutique cheese company, Cranky Goat Ltd has gone into voluntary liquidation.
As an independent review of the National Pest Management Plan for TB finds the goal of complete eradication by 2055 is still valide, feedback is being sought on how to finish the job.
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