'Grand Alliance' growing grass-fed beef exports to China
Alliance Group and Grand Farm have signed a strategic co-operation agreement with a focus on delivering more premium New Zealand grass-fed beef to Chinese consumers.
Demand for dairy products in China hangs on what further steps the Chinese Government takes to stem the spread of coronavirus.
Westpac market strategist Imre Speizer says there are risks to near-term demand which could be affected by coronavirus developments.
The steps that China has taken to contain the outbreak – such as extending the Lunar New Year holiday period, and limiting the movements of people – has kept many factories closed.
Speizer told Rural News has meant less demand for their inputs, including milk powder.
“These disruptions might prove to be short-lived, but that depends on what further steps the government might take to contain the spread of the virus.”
Last week, global prices tumbled; whole milk powder price dropped 6.2% to hover just above the US$3000/MT mark.
Speizer says the obvious explanation for last week’s decline is uncertainty regarding the coronavirus outbreak.
“Financial markets have been reacting to those developments for around two weeks, with global equities, interest rates, industrial commodities and risky currencies falling sharply,” he says.
“Moreover, whole milk powder futures prices had been falling since late January. It was unsurprising, then, that last week’s GDT auction followed suit.”
The forecast milk price also hinges on supply coming out of New Zealand: persistently dry conditions in the upper North Island and eastern South Island could see milk production fall short of what the market is expecting.
Fonterra figures show in December 2019, the co-op collected 184 million kgMS from farmer suppliers: 0.6% down for the same month in 2018, according to its monthly global dairy update.
Season to date collection was over 909m kgMS, 0.5% down on the previous season.
North Island milk collection in December was 106.4 million kgMS, down 2.5% on last December. Season to date collection was 564 million kgMS, down 0.4% on last season.
Fonterra says December weather had some impact on pasture quality in some northern regions, however grazing crops are doing well, and cow condition remain very good.
South Island milk collection in December was 77 million kgMS, up 2.2% on last December. Season to date collection was 345 million kgMS, down 0.6% on last season.
“Favourable weather conditions across Canterbury continued, allowing for excellent pasture growth rates,” it says.
Westpac is still maintaining its $7.40/kgMS forecast milk price for Fonterra suppliers.
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?