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 will be fronting farmers at three large public meetings organised by Federated Farmers over the coming weeks.
Federated Farmers and a major Australian-owned bank are at loggerheads over emissions reduction targets set for New Zealand farmer clients.
More locally grown tomatoes are coming to stores this month and you can thank New Zealand greenhouses for that.
Changing skill demands and new job opportunities in the primary sector have prompted Massey University to create a new degree course and add a significant major into another in 2025.
It was bringing in a new Canterbury A&P Association (CAPA) show board, more in tune with the CAPA general committee, that has ensured that Christchurch will have a show this year, says CAPA general committee president Bryce Murray.
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