Why?
OPINION: A mate of yours truly wants to know why the beef schedule differential is now more than 45-50 cents a kilo between North and South Island producers – if you look at February 2024 steer prices.
Westpac economists are forecasting global dairy and beef prices to rise on the back of drought in the US and elsewhere.
"After a bumper 2012 worldwide production season, the curse of drought has hit several major grain-producing areas, particularly the US," says Westpac senior economist Felix Delbruck. "This has pushed up feed costs for Northern Hemisphere cattle farmers and is likely to boost global dairy and beef prices."
Delbruck notes that world dairy prices have already risen from recent lows, with Global Dairy Trade auction prices up about 20% since late July. The impact on beef prices is likely to take longer as farmers off-load stock.
However, immediate gains to local farmers may be limited. "As is often the case, the dollar has followed dairy prices higher, tempering the gains at the farm gate," says Delbruck. Westpac continues to forecast a dairy payout of $5.70 for the 2012/13 season.
"In the 2013/14 season and beyond, prospects are firmer," says Delbruck. "With a recovery in global growth and ongoing income growth in emerging markets, particularly China, we expect increased demand to underpin prices."
Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
There have been leadership changes at the Hamilton-based Dairy Goat Co-operative, which has been struggling financially in recent years.
Horticulture NZ chief executive Nadine Tunley will step down in August.
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Another 16 commercial beef farmers have been selected to take part in the Informing New Zealand Beef (INZB) programme designed to help drive the uptake of genetics in the industry.
Trade Minister Todd McClay says Kiwi exporters will be $100 million better off today as the NZ-EU Free Trade Agreement (FTA) comes into force.
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