Strong production, tested demand send milk prices crashing
Strong global milk production and rebalancing of demand among key buyers has delivered one of the biggest drops in whole milk powder prices in recent years.
Milk payout has slumped 30% over the past three years, forcing some dairy goat farmers to sell up.
The infant formula market in China has been changing. Updated regulations governing the manufacture of infant formula in China, which has increased trust in domestically produced products, along with a falling birth rate, have led to a drop in demand for imported infant formula.
Covid-19 had only accelerated changes that had been taking place over the last two-to-three years. Sales of infant formula through the ‘Daigou’ channel - cross border trading by visitors and international students from China - have also dried up over the past three years.
Waikato farmer Kevin Schuler, who milks cows, goats and sheep on adjoining properties, says dairy goat farmers are facing a tough time.
Schuler says everyone is working hard on farm, at the company level (NZ Dairy Goat Co-operative), and at board level.
NZDGC chief executive David Hemara told Rural News that the co-operative was currently meeting and updating shareholders on market conditions.
“We haven’t completed our current trading year or announced a final season payout to shareholders.”
