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.
Growing more lambs in the shoulder season is among proposals for maximising the value of New Zealand lamb in a new report from Rabobank.
Animal proteins analyst Blake Holgate says there is likely an oversupply of product during some months of the year, while supply is unable to meet demand in other months.
Farmers who are prepared to produce lambs in the shoulders of the season have an opportunity to capitalise on the increased export of higher-value chilled meat products during the off-peak times. In 2016, the average value of chilled lamb exports was $11,697/tonne versus $6096/t for frozen lamb exports.
Holgate told Rural News there is a lot of rhetoric these days about value-add. The report, released late last week, headed ‘Maximising the Value of NZ Lamb’, was produced to provide a better understanding of how to add value to lamb, what is involved and the roles different industry players have.
He says the value-add journey has started and will continue and farmers need to understand better how they can engage.
Farmers can discuss with their processor what products or strategies they have or are developing and whether they can align themselves with those products.
Whether it is current products, something on the horizon or general strategy, farmers can look at how they align their farming systems and adjust to the future. Producing more lambs in the shoulder season is just one proposal.
Firstly, farmers can start to work with processors and discuss incentives to meet the higher costs of changing systems.
“Secondly [farmers need to] understand accreditation schemes and traceability requirements; if we want to add value we need to get those nailed,” Holgate says.
“Farmers need to buy into some of those schemes, get their house in order and be proactive on that front.”
Consistency of product quality is important “to ensure our consumers around the world are getting the same eating experience every time they go into a restaurant or supermarket.
“If we want to [sell] premium product and expect people to pay a lot more for it, we don’t want them to go in there, try it, have a bad experience and not come back.
“So we must ensure our farming systems and measurements meet quality at the processing stage, or relay information up and down the chain to ensure we can move towards a more consistent product.”
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.
OPINION: ACT MP Mark Cameron isn’t everyone’s cup of tea, but he certainly calls it how he sees it, holding…
OPINION: Did former PM Jacinda Ardern get fawning reviews for her book?