Middle East demand cushions global dairy price drop at latest GDT auction
The upheaval in the Middle East may have eased the fall in global dairy prices last week.
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.”
Newly elected Federated Farmers meat and wool group chair Richard Dawkins says he will continue the great work done his predecessor Toby Williams.
Hosted by ginger dynamo Te Radar, the Fieldays Innovation Award Winners Event put the spotlight on the agricultural industry's most promising ideas.
According to DairyNZ's latest Econ Tracker update, there has been a rise in the forecast breakeven milk price for the 2025/26 season.
Despite the rain and a liberal coating of mud, engines roared, and the 50th Fieldays Tractor Pull Competition drew crowds of spectators across the four days of the annual event.
Nationwide rural wellbeing programme, Farmstrong recently celebrated its tenth birthday at Fieldays with an event attended by ambassador Sam Whitelock, Farmers Mutual Group (FMG), Farmstrong partners, and government Ministers.
Six industry organisations, including DairyNZ and the Dairy Companies Association (DCANZ) have signed an agreement with the Ministry for Primary Industries (MPI) to prepare the country for a potential foot and mouth outbreak.
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