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Independent economist Cameron Bagrie.
Independent economist Cameron Bagrie says dairy fundamentals are looking pretty good, despite the GDT dropping in the past three auctions.
“I looked at those results and I thought ‘Hallelujah’ - because of what I’m seeing across red meat, across seafood, across forestry,” Bagrie told a recent DairyNZ Farmers’ Forum.
The income side of the ledger needed to hold up through this period of uncertainty but there were long-term opportunities. Emerging economies such as India and China would evolve and shift up the income scale, and the proportion of their GDP that goes to consumption would “absolutely rocket up”.
Agriculture sector debt, especially dairy, was a point of vulnerability and still needed to come down.
Although very concerned about the global economy, Bagrie said dairy was moving into a period of comparative advantage.
“New Zealand’s in a real healthy space. We’re heading into this period with a breeze at our back.
“I’m not sure New Zealand’s gonna be okay this time around, but I think our one is gonna be relatively light compared to what I’m seeing elsewhere around the globe.
“In the long term, agriculture looks good, but no illusions there’s gonna be some short-term challenges.”
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A significant rise in Global Dairy Trade (GDT) auction last week has prompted one bank to lift its forecast milk price for the season to above Fonterra's mid-point.
Whole milk powder prices on Global Dairy Trade (GDT) remains above long run averages and a $10/kgMS milk price for the season remains on the card, says ASB senior economist Chris Tennent-Brown.
The first Global Dairy Trade (GDT) auction drew mixed results, with drop in powder prices and lift in butter and cheeses.
Weaker milk production in the Northern Hemisphere is keeping dairy prices high.
Farmlands says that improved half-year results show that the co-op’s tight focus on supporting New Zealand’s farmers and growers is working.
Horticulture New Zealand (HortNZ) says that discovery of a male Oriental fruit fly on Auckland’s North Shore is a cause for concern for growers.
Fonterra says its earnings for the 2025 financial year are anticipated to be in the upper half of its previously forecast earnings range of 40-60 cents per share.
Beef + Lamb New Zealand (B+LNZ) is having another crack at increasing the fees of its chair and board members.
Livestock management tech company Nedap has launched Nedap New Zealand.
An innovative dairy effluent management system is being designed to help farmers improve on-farm effluent practices and reduce environmental impact.
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