Farmgate prices rise as farmers rebuild confidence
Sheep and beef farmers are cautiously optimistic as farmgate prices continue to firm.
An $8/kgMS farm gate milk price is still on the cards with less than six weeks left to run this season.
Last week's subdued Global Dairy Trade (GDT) event wasn't a surprise, according to ASB economist Nat Keall.
"We'd been anticipating a relatively flat event, so the result has few implications for the current season - already in a well-advanced stage - or our early thoughts on the next one," he says. "In general, dairy prices remain heavily range-bound, with an absence of clear direction evident since prices rebounded from the lows they fell to mid last year."
Keall notes that little has happened to radically reshape the global dairy market, and to the extent that dynamics have shifted, different price drivers have moved to offset one another.
"All-up, we still feel comfortable with our $8/kgMS forecast for the current season and our $8.30/kgMS forecast for 2024/25. Risks to next season's forecast look reasonably balanced in our view for now.
"With 2024/25 milk price futures currently trading around $8.45/kgMS, up from nearer $8 when we launched our forecast, hedging some output at that kind of price could be prudent, given the balanced skew of risks."
The strain and pressure of weeks of repairing their flood-damaged properties is starting to tell on farmers and orchardists in the Tasman district.
The sale price of Fonterra’s global consumer and associated businesses to the world’s largest dairy company Lactalis has risen to $4.22 billion.
Alliance Group's proposal to sell a 65% shareholding to Ireland's Dawn Meats won't solve the red meat industry's structural problems, says former Federated Farmers meat and wool chair Toby Williams.
The Government is being warned that some recent bad policy decisions are undermining its target of doubling exports by 2030.
The Commerce Commission has announced that it has filed proceedings against Westpac New Zealand.
Ia Ara Aotearoa Transporting New Zealand says it backs calls for a review on farm transport rules.
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