Thursday, 19 February 2015 15:55

Dairy farmers still waiting for good news

Written by  Peter Burke
Nathan Guy. Nathan Guy.

Expect the volatility in the international dairy market to be around for some time.

That's the prediction from Primary Industries Minister Nathan Guy who says for the last six to eight months the GDT has been bouncing around a lot and it looks like that will continue for some time.

Guy says the reason for the market volatility is not new and the extra 3% more milk coming out of Europe is adding to a world that has more milk than consumers want to buy.

"But I am always hopeful it is going to stabilise and improve. The medium-long term outlook for dairying is good and we know that the historical price over 15 years is $5.25. My view is that they will get through this season and I am always hopeful the outlook for next season will be more optimistic."

Guy says there is now a great deal of focus on what's happening with the Chinese economy, which is going through structural turmoil.

But he says it's important to remember that NZ is not the only country affected.

"I think about 124 countries call China their number-one market so it's competitive and every industry has to continue to add value to their products."

Guy says he believes it will take another couple of years for the US to rebuild its beef herd and this is good news for NZ farmers.

"Most farmers who have sheep have some beef and that has cushioned the effect of lower lamb prices. Wool has started the year very positively so there are good signals from returns right now.

"Overall, the primary sector is looking good in certain sectors and volatile in others," Guy adds.

More like this

Help available for flood-hit farmers

The chair of the Otago Rural Support Trust, Tom Pinckney, says he believes that they will be especially busy in the coming months as the enormity of the floods hit home.

Red meat's China push

The red meat sector is launching a new campaign to lure Chinese consumers to New Zealand grass-fed beef and lamb.

Getting Onside

Time matters in a biosecurity response, says Ryan Higgs, Chief Executive of biosecurity technology company Onside.

Featured

Taranaki piggery goes solar

Installing 400 solar panels at their Taranaki piggery and cropping operation will have significant environmental, financial and animal welfare benefits for the Stanley family.

Editorial: Keep FTAs coming

OPINION: The dairy industry will  be a major beneficiary of a new free trade deal between NZ and the Gulf Co-operation Council (GCC).

Sharemilker completes the trifecta

The major winners in the 2024 West Coast/Top of the South Share Farmer of the Year award, Michael and Cheryl Shearer were happy to complete the trifecta.

National

Food charity to hold online auction

Meat the Need, New Zealand’s dedicated charity delivering locally sourced protein meals to food-insecure communities, is launching an online National…

Machinery & Products

An ideal solution for larger farms

Designed specifically for large farms that want to drill with maximum flexibility, efficiency and power, the new Lemken Solitair ST…

Landpower increases its offering

Landpower and the Claas Harvest Centre network will launch the Claas Scorpion and Torion material handling solutions to the market…

» Latest Print Issues Online

The Hound

Leaky waka

OPINION: Was the ASB Economic Weekly throwing shade on Reserve Bank governor Adrian Orr when reporting on his speech in…

Know-it-alls

OPINION: A reader recently had a shot at the various armchair critics that she judged to be more than a…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter