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.
Last week's whopping rise in dairy prices is encouraging, but it’s too early to pop the champagne, say analysts.
The NZ dairy season is into its second month and last week’s Global Dairy Trade (GDT) auction was the third for the 2020-21 season. There are 22 more GDT auctions planned before the season ends May 31 next year.
RaboResearch analyst Michal Harvey says the key selling season for New Zealand is still a few weeks away but Fonterra (and other exporters with GDT plus price offerings) can lock away some product at decent prices.
“But we would still be cautious about calling a sustained lift in prices. The underlying fundamentals will mean global markets will need to price in high stocks on the buy and sell side, lower dairy demand in emerging economies as incomes are negatively impacted, and growing milk pools in all key export regions.”
The GDT price index rose 8.3% - the single biggest lift in the index price since late 2016. Most notably, the whole milk powder index price jumped 14% to US$3208/tonne.
Harvey says this takes the WMP index price back to a similar level to that of the start of the year, and remarkably 5% higher than at the same time last year.
Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Boutique Waikato cheese producer Meyer Cheese is investing in a new $3.5 million facility, designed to boost capacity and enhance the company's sustainability credentials.
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Compensation assistance for farmers impacted by Mycoplama bovis is being wound up.
Selecting the reverse gear quicker than a lovestruck boyfriend who has met the in-laws for the first time, the Coalition Government has confirmed that the proposal to amend Fringe Benefit Tax (FBT) charged against farm utes has been canned.
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