$8 final milk price likely
An $8/kgMS farm gate milk price is still on the cards with less than six weeks left to run this season.
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.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.