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.
Synlait Milk has dropped forecast milk price for the 2015 -16 season from $5/kgMS to $4.20/kgMS.
Chairman Graeme Milne says the revision is driven by the sustained low global commodity prices since September 2015, and a view that the recovery will be slower than anticipated.
"Our previous forecast of $5/ kgMS expected prices to recover somewhat by this stage in the season, however this hasn't happened and our revised forecast reflects this," says Milne.
"Similar to this time last year, there is still a lot of uncertainty. While our business is focused on value added products, global commodity pricing is the main driver behind the milk price that our suppliers receive.
"European milk production is high following the removal of quotas last year. Low oil prices mean cheap feed for farmers in Europe, USA and China while demand for imported dairy commodities by China, the world's largest importer, has declined as their local milk production has increased."
Milne says Synlait will continue to monitor the situation and expects to revise the forecast milk price again in May 2016.
Managing director and chief executive John Penno says there is no doubt this year will be very tough for dairy farmers, with two straight years of unsustainably low milk prices.
"It's important that we continue to give our suppliers a clear and realistic idea of where the milk price is likely to end up. As always things may change, and we hope they do because it's hard to run a dairy farm business in this environment," says Penno.
"More than half of our suppliers are now involved in our Lead With Pride and Special Milk programmes. Each programmme offers a premium payment over and above the Synlait base milk price for differentiating milk on farm."
"But it's still very tough out there. We're meeting with our suppliers in a few weeks to create a forum where their ideas and options around managing through this period can be shared. They're not alone and we're committed to supporting them where we can."
Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Boutique Waikato cheese producer Meyer Cheese is investing in a new $3.5 million facility, designed to boost capacity and enhance the company's sustainability credentials.
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Compensation assistance for farmers impacted by Mycoplama bovis is being wound up.
Selecting the reverse gear quicker than a lovestruck boyfriend who has met the in-laws for the first time, the Coalition Government has confirmed that the proposal to amend Fringe Benefit Tax (FBT) charged against farm utes has been canned.
OPINION: Years of floods and low food prices have driven a dairy farm in England's northeast to stop milking its…
OPINION: An animal activist organisation is calling for an investigation into the use of dairy cows in sexuallly explicit content…