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

Dr Mike Joy says sorry, escapes censure

Academic Dr Mike Joy and his employer, Victoria University of Wellington have apologised for his comments suggesting that dairy industry CEOs should be hanged for contributing towards nitrate poisoning of waterways.

Farmer anger over Joy's social media post

A comment by outspoken academic Dr Mike Joy suggesting that dairy industry leaders should be hanged for nitrate contamination of drinking/groundwater has enraged farmers.

Featured

NZ household food waste falls again

Kiwis are wasting less of their food than they were two years ago, and this has been enough to push New Zealand’s total household food waste bill lower, the 2025 Rabobank KiwiHarvest Food Waste survey has found.

Editorial: No joking matter

OPINION: Sir Lockwood Smith has clearly and succinctly defined what academic freedom is all about, the boundaries around it and the responsibility that goes with this privilege.

DairyNZ plantain trials cut nitrate leaching by 26%

DairyNZ says its plantain programme continues to deliver promising results, with new data confirming that modest levels of plantain in pastures reduce nitrogen leaching, offering farmers a practical, science-backed tool to meet environmental goals.

National

Machinery & Products

JDLink Boost for NZ farms

Connectivity is widely recognised as one of the biggest challenges facing farmers, but it is now being overcome through the…

New generation Defender HD11

The all-new 2026 Can-Am Defender HD11 looks likely to raise the bar in the highly competitive side-by-side category.

» Latest Print Issues Online

Milking It

Full cabinet

OPINION: Legislation being drafted to bring back the controversial trade of live animal exports by sea is getting stuck in the…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter