Winston Peters calls Fonterra vote result 'utter madness'
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
 Northland regional Federated Farmers dairy chair Matt Long says a record milk price this season would be a huge psychological boost for local dairy farmers.
		  	
		  
		  		  
		  Northland regional Federated Farmers dairy chair Matt Long says a record milk price this season would be a huge psychological boost for local dairy farmers.
		  
		  
		  
	  A record milk price this season would be a huge psychological boost for Northland farmers, says the region's Federated Farmers dairy chair Matt Long.
He expects farmers to use the extra income to reduce debt and improve the environmental footprints of their business.
"I also expectsome to spend on productivity improvements and some well-earned spending on things to improve their lifestyle," Long told Rural News.
"The forecast payout is very positive, but necessary given soaring inflation of input costs."
Long points out that soaring costs and worker shortages remain the biggest challenges facing local farmers, who endured a severe drought in the previous two seasons.
Fonterra's latest milk price forecast for the season is in the range of $8.90 to $9.50/kgMS, with a mid-point of $9.20/kgMS.
For Northland, based on milk production of around 81 million kgMS at $9.20 payout would pump nearly $750 million into the region's economy.
BNZ economist Doug Steel notes that dairy prices have started the New Year in fine form, pushing higher from the already elevated levels reached in 2021.
"Prices are 28% above a year ago, nearly 38% higher than their 5-year average, and at their highest level since 2014," notes Steel.
An expected 4% drop in NZ milk production is one of the factors keeping the milk price at record levels.
"While there is some rain in the near-term forecast, we expect NZ milk production to remain below last year's strong late season outcomes over coming months such that the full season will be down in the order of 4% or more," he says. Milk production in key overseas markets - the US and Europe - is also spluttering. Tighter supply is also pushing prices up.
But Steel says there are some downward risks as well - China's growth could be slower than anticipated and Omicron is still looming large around the globe.
But for now, at least, milk price prospects are strong.
"For farmers facing such things as variable weather, higher costs, rising interest rates, proposed options to price agricultural emissions, an exceptionally tight labour market, and the possibility of significant disruption from Omicron circulating in the community - it is good to take one thing off the worry list."
Having been hit by a severe drought over the previous two seasons, Northland's milk production is tracking well.
Long says Northland's climate is highly variable.
"I think after a difficult start to the season most farms will be having at least average production," he says.
However, like most other growers, they are also facing soaring input costs.
On his farm at Matapouri, eastern Whangarei Long milks 200 cows and hopes to supply 65,000 kgMS this season.
"We are rebuilding after two years of quite intense drought," he says.
Acclaimed fruit grower Dean Astill never imagined he would have achieved so much in the years since being named the first Young Horticulturist of the Year, 20 years ago.
The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.

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