Good feed conditions continue and Synlait ups its forecast

DAIRY

Nationally the season has been above average for feed with those farmers in dry areas well used to managing the summer feed deficits.

Operators are starting to cull inefficient cows exposed by pregnancy tests, lengthening rotations, feeding supplements planned for the summer, and changing to once a day if unable to protect animals condition scores.

The earthquake at Eketahuna spooked cows, causing some milk to be dumped and some damage to the Pahiatua plant resulted in product being  transported to Hawera. Once again farmers are reminded to have emergency plans in place for power outages and milk disposal.

Environment Canterbury reports good progress in better utilisation of water in the region, and extensive new water meter installations will ensure sound data will be available in managing this precious resource sustainably in the future.

The latest real estate data showed more farms changed hands since April 2008, driven by a very strong demand for dairy and dairy support properties.

Federated Farmers however was wary of these rising prices noting farm debt was also still on the increase, and reminded farmers of the cyclical nature of agricultural commodities.

In the market place at auction, the average price of dairy products topped $5,000/tonne for the first time as prices for premium products at last outpaced a flat milk powder market even with reduced volumes.

Milk powder concentrate prices lifted by 10% and other added value products also rose significantly, much to the relief of investors in the Fonterra shareholders fund.

More good news from the dairy processors with Synlait announcing they are predicting an increase in profit by at least $10 million and will raise the milk forecast to farmers to $8.30-$8.40/kg/ms.

They also expect to have their new lactoferrin and infant formulae plants operating soon and contributing heavily to profits in the future.