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The Weekly Dairy Report: Relief as milk auction prices settle

Rural News
The Weekly Dairy Report: Relief as milk auction prices settle

Frosty weather returns after the cold snap and some regions are reporting cooler weather has reduced grass growth rates and managers are being urged to slow the rotation down and increase supplements to maintain covers.

With calving now in full swing in the north, managers and workers need to be reminded of the humane animal disposal rules which farmers must abide by, so the sector is not tarnished with reports of shoddy practices.

Also with induction procedures now restricted, advisers are encouraging reproduction techniques to help, by mating yearlings ahead of the main herd, reaching target LWT’s for growth and limiting the number of weeks these animals are with the bull.

These heifers are now only 8-10 weeks from joining and must be up to weight if the goal of 85% in calf by week 6 is achievable.

Fonterra are reporting that milk production is ahead by 2 million kg ms for the new season, but at present strong stocks and subdued demand are keeping prices low.

The latest Global dairytrade auction prices flattened,  although whole milk powder prices lifted, skim milk powder offered dropped to a low only seen two years ago. Volumes were restricted to keep the pressure off a nervous market but positive results from the next few auctions will be needed to confirm that the market has indeed bottomed.

As yet it is too early to tell how the Russian ban on dairy imports for nominated countries will affect the global flow, but it is another complication in a market looking for the stability.

Real estate figures show dairy farm prices have peaked and sales turnover has fallen to below the 10 year average on the back of the milk price downturn and rural interest rate rises

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