Sunday, 19 July 2015 05:00

‘Back to Basics’ as GDT prices slump

Written by 

Federated Farmers say many New Zealand dairy farmers are “going back to basics” as the downward trend in global dairy prices continues.

The latest Global Dairy Trade (GDT) auction showed a greater than expected drop across the range of dairy products, which will affect both farming and the rural communities.

“Farmers are picking up on these price signals and doing things differently this year.  This is reflected in the higher than usual culling of dairy cows as farmers look to decrease the number of mouths they need to feed,” says Federated Farmers dairy chair Andrew Hoggard.

“Feeding cows grass on their farm is cheaper than buying in feed and so many farmers are going back to basics.  This change is evident in the reduced imports of feed such as PKE.”

Hoggard says the recent winter weather experienced across the lower North Island and the South Island and this ‘back to basics’ tactic, suggests milk production in New Zealand is unlikely to increase this season, contrasting with the last couple.

“With the tightening of the belt, farmers do not need or want extra costs.  If central government thinks it can shunt costs on such things as rural roading onto local government, then they need to think again, as all these costs then pile up at the farmer’s door.

“Maybe this could have been possible or more palatable in a good payout year, but it certainly isn’t when things look like they do now.

"I am pleased that farmers have spent a heap of money on environmental stuff during the good years.  Now we’re back to basics, thankful for the improvements we have made”, adds Hoggard.

More like this

Feds vow to keep Govt honest

Buoyed by a survey showing farmer confidence rising to its highest level in over a decade, Federated Farmers says it's not taking its foot off the pedal.

Turning NZ into a pine plantation

Federated Farmers meat and wool chair, Toby Williams says what the Government has effectively signed up for is a decade more of planting pine trees on productive land because that’s the only way for our country to achieve such a steep reduction.

Repeat $10 milk price forecast

With a record $10-plus/kgMS milk price almost locked in for this season, next season isn’t looking too shabby either.

Kiwi farmers are the best

OPINION: Pre-Parliament, I was involved with the International Dairy Federation. I attended firstly business meetings at the annual conference, then later, board meetings as a sitting board member.

Featured

Methane targets disappoint farmers

Beef + Lamb New Zealand (B+LNZ) has reiterated calls for New Zealand to revise its methane targets after the Government's "disappointing" announcement of its revised Nationally Determined Contribution (NDC).

'Prepare for more pine trees'

Prepare for more pine trees. That's the message from North Otago farmer Jane Smith following the new methane emission targets recently announced by the Government.

National

Certainty welcomed

There's been very little reaction to the government science reform announcement, with many saying the devil will be in the…

Science 'deserves more funding'

A committee which carried out the review into New Zealand's science system says the underinvestment will continue to compromise the…

Machinery & Products

Landpower win global award

Christchurch-headquartered Landpower and its Claas Harvest Centre dealerships has taken out the Global After Sales Excellence award in Germany, during…

Innovation, new products galore

It has been a year of new products and innovation at Numedic, the Rotorua-based manufacturer and exporter of farm dairy…

» Latest Print Issues Online

Milking It

No buyers

OPINION: Australian dairy is bracing for the retirement of an iconic dairy brand.

RIP Kitkat V

OPINION: Another sign that the plant-based dairy fallacy is unravelling and that nothing beats dairy-based products.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter