Rabobank flags rising global dairy prices, warns of downside risks ahead
While global dairy commodity prices continue to climb in most key exporting countries, the second half of the year is expected to bring increased downside risks.
New Zealand’s avocado industry has been urged to diversify export markets as production is set to take off in the coming years.
In a new report Rabobank says the majority of New Zealand’s avocado exports currently head to Australia and development of other export markets will be essential to ensure sustainable growth opportunities for the country’s producers as production climbs.
The Australian & New Zealand Avocado Outlook 2022 states that New Zealand’s avocado production is forecast to grow by an average 6% annually for the next five years, reaching 57,000 tonnes by 2026 — up from 44,000 tonnes in 2021.
“We expect the majority of this production growth will come from the Northland and Bay of Plenty regions,” says the report’s author, Rabobank associate analyst Pia Piggott.
“And while the general production trend will be in an upwards direction, we also anticipate this growth will be highly variable on an annual basis due to ‘alternate bearing’ which results in irregular crop loads from one season to the next.”
The report says New Zealand is highly reliant on Australia as an export market for avocados with our trans-Tasman neighbours accounting for 79% of total New Zealand exports over the last five years.
“New Zealand is well placed to supply the Australian market as it has a price competitive production base and is able to supply product during the periods in the season when Australian production drops,” Piggott said.
“However, Australian supply has ramped up considerably of late – particularly in Western Australia – leading to a national oversupply, and it’s essential that the New Zealand industry continues to grow its sales into other export markets that can pick up the slack when Australian import demand is lower.”
Piggott says the New Zealand avocado industry made significant progress growing sales to other markets in 2021, despite lower exports overall.
“New Zealand’s total avocado exports by volume were back by 11% in 2021, in large part due to an oversupply of avocados in Australia and the resulting drop in sales into this market,” she says.
While exports to Australia fell, strong growth was recorded in other export markets with avocado sales to the rest of the world (excluding Australia) up by 154%.
This included improved export sales into Singapore, Hong Kong and South Korea – with NZ exports making up 9%, 4% and 125 of total imports into those markets respectively – as well as strong export growth in markets like China, Thailand, Taiwan and India.
Following heavy rain which caused flooding in parts of Nelson-Tasman and sewerage overflows in Marlborough, the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) is urging homeowners and tenants to be cautious when cleaning up and to take the right steps to support claims.
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.
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