Red meat sector battles on
It's a bloody tough year for sheep farmers, but the worst may be over, and the future looks optimistic.
The Omicron outbreak in China that sent 400 million residents into lockdown is behind the latest drop in dairy prices, analysts say.
The good news is that the price weakness is expected to be temporary.
Westpac senior agri economist Nathan Penny notes that the experience in other countries is that Omicron waves eventually pass.
"Some lockdown restrictions in China are already scheduled to lift," he says.
He says the 4.4% drop in whole milk powder (WMP) prices and 4.2% in skim milk powder (SMP) prices weren't unexpected.
Immediately prior to the auction, the futures market had indicated a 4% all in WMP prices.
China is New Zealand's key dairy market and lockdowns have impacted several major cities.
Penny says, with this in mind, it's not surprising that dairy demand and auction prices have taken a hit.
However, the magnitude and breadth of the price falls indicate that China's Omicron outbreak has surpassed all other dairy market concerns.
"At this stage, however, we expect this price weakness to prove temporary," says Penny.
ASB economist Nat Keall says the recent weakness in GDT events takes a little gloss off an outstanding period for prices but is understandable.
Prime Minister Christopher Luxon says the relationship between New Zealand and the US will remain strong and enduring irrespective of changing administrations.
More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.
The a2 Milk Company (a2MC) says securing more China label registrations and developing its own nutritional manufacturing capability are high on its agenda.
Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.
As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.
Livestock can be bred for lower methane emissions while also improving productivity at a rate greater than what the industry is currently achieving, research has shown.
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