Tuesday, 24 March 2015 09:36

Stay realistic, keep milking

Written by 

Farmers are hoping last week’s big drop in the GDT price index is just a blip, says Federated Farmers Waikato president Chris Lewis.

Farmers will hope prices bounce back at the next auction on April 1, he says.

“Farmers are sick of the word ‘volatility’ but the last auction just reinforces the level of uncertainty out there,” he told Dairy News.

He says farmers are more positive about next season but he cautions them about getting their hopes too high.

The 8.8% drop in the GDT price index brings to an end a six-auction winning streak that started last December and had two big improvements in February. Whole milk powder slumped 9.6 % and skim milk powder fell 5.5%.

It was the first auction since the 1080 contamination threats were made public by New Zealand police.

Federated Farmers Dairy chairman Andrew Hoggard says farmers will be disappointed but he points out farmers have no control over the markets. 

“That is the nature of farming so it’s always hard to accurately predict the reasons for these drops, which ultimately affect our bottom lines.

“To be honest I wasn’t expecting such a big drop, given the previous lifts in GDT, but that just goes to show how unpredictable the market is.”

Hoggard says there’s a lot of speculation on why the price has fallen, and all indicators now point to a supply issue. However until the experts have had time for analysis it is hard to know for sure.

“Regardless of where it has come from, this is not great for farmer confidence, and hopes of getting back to a $6-plus payout next season will be lower if we don’t see continuing lifts in the next few auctions.  

 “In light of everything, it’s important farmers don’t jump to conclusions too early and just get on with what they can control – putting sustainable milk in the vat.”

More like this

Milking trifecta a juggling act

Milking cows, goats and sheep on one farm has been a steep learning curve for Te Aroha farmer Kevin Schuler and his brother Paul.

Featured

 

Covid minces meat prices

Farmgate red meat prices are taking a hit as Covid continues to disrupt dining out businesses around the world.

Not a very cherry start!

What was expected to be a bumper cherry crop this year has been badly hit by untimely wet weather.

Hort sector denied!

MPI has turned down a request from the horticulture sector to declare the recent hail and rainstorms, that decimated many orchards around the country and cost growers millions
of dollars in lost income, as an ‘adverse event’.

National

Expat workers ready for NZ

Dairy industry recruitment company Rural People Limited is seeing a huge increase in overseas interest to fill New Zealand farming…

Machinery & Products

Kubota ROPS tractors here

Kubota New Zealand product specialist Shaun Monteith says Rollover Protective Structure (ROPS) tractors make up 30% of all tractors in…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Dung paint

India now has its own cow dung paint, a world-first. 

Fresh for 60 days

A Queensland-based company is set to release its own production of milk this year that stays fresh for at least…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter