Editorial: Optimism all around
OPINION: Two reports out last week confirm that the worst may be over for pastoral farmers.
OPINION: Given what's happening around the world, New Zealand dairy farmers are on to a pretty good thing with its internationally envied farming system.
A record milk price this season and another solid opening forecast for the new season bodes well for farmers’ income.
Dairy demand is still quite strong and supply remains constrained globally, especially in the US and Europe.
However, there are some short-term challenges: Covid, China’s most recent lockdowns and the unrest in Sri Lanka – a key market for Fonterra milk powder.
Milk prices are expected to remain at elevated levels this new season. While some economists downgraded their opening forecast payout for 2022-23, it remains at historically high levels. Dairy commodity prices are expected to continue to fall in the coming months but relatively low global milk supplies are expected to put a floor under prices later in the year.
Global risks are highly elevated at present, driving uncertainty; the Ukraine situation is adding pressure to what was already an overheated commodity market.
Oil prices have skyrocketed but continue to seesaw on headlines about how the war is progressing. Energy commodities were already in tight supply before the invasion and the supply situation is now a lot less certain.
High gas prices are pushing up fertiliser prices which, in turn, is pushing up the prices of grain and food in general.
The cost of producing milk is rising, particularly in the northern hemisphere, where indoor farming systems mean much greater exposure to high prices for fertiliser, grain and fuel. All this means New Zealand’s mostly pasture-based farming can still expect solid returns for its products.
Normally, high milk prices trigger a jump in production, but there is no strong evidence that production has rebounded.
And the models say it will take until the second half of the year to get significant production growth, with the risk being that input costs increase further, the weather holds back production or some other unexpected event comes along and knocks milk production back again.
Most economists believe dairy prices globally have probably peaked, but the downside should be limited by the high input costs, unless demand absolutely tanks. So NZ dairy farmers can look forward to another solid season, which has just kicked off.
When we work through the numbers, the record high milk price should more than offset the expenses. For most NZ dairy farmers, they will be somewhere between profitable and achieving record profitability. Yes, costs will remain high but the high milk price will ensure good times will continue.
On the eve of his departure from Federated Farmers board, Richard McIntyre is thanking farmers for their support and words of encouragement during his stint as a farmer advocate.
A project reducing strains and sprains on farm has won the Innovation category in the New Zealand Workplace Health and Safety Awards 2025.
Beef + Lamb New Zealand (B+LNZ), in partnership with the Ministry for Primary Industries (MPI) and other sector organisations, has launched a national survey to understand better the impact of facial eczema (FE) on farmers.
One of New Zealand's latest and largest agrivoltaics farm Te Herenga o Te Rā is delivering clean renewable energy while preserving the land's agricultural value for sheep grazing under the modules.
Global food company Nestle’s chair Paul Bulcke will step down at its next annual meeting in April 2026.
Brendan Attrill of Caiseal Trust in Taranaki has been announced as the 2025 National Ambassador for Sustainable Farming and Growing and recipient of the Gordon Stephenson Trophy at the National Sustainability Showcase at in Wellington this evening.
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