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The Weekly Dairy Report: Production ahead but auction results unsure more volumes are needed

Rural News
The Weekly Dairy Report: Production ahead but auction results unsure more volumes are needed

The dry spell in the west and southern eastern areas has broken, with all at risk places quenched with significant rains resulting in good grass growth and an early spring emerging.

NIWA have reported the chances of an El Nino season this year have dropped further, as early season milk flows are ahead of last year by 10%.

Good weather has seen the bobby calf harvest peaking as Southern herds move to the last stage of. calving and the nations milk processing capacity will be tested with the peak flow.

The mild winter has caused issues with cows grazing HT Swedes in the south with the bigger diet of leaf of the plant causing photosensitivity problems, causing deaths in a significant number of animals.

Oceania’s dairy commodity prices has reached yearly lows for 3 out of the 4 products listed, as the latest dairytrade auction results stall at similar results to last time.

However on analyzing the results powders firmed slightly but AMF and cheese fell further on restricted total volumes instilling little confidence any turn around is due soon.

The falling currency is helping nullify the weak commodity pricing but murmurings are now being heard that farmers may need to adjust to two years of lower payouts, as the ANZ predicts Fonterra will lower the forecast back to $5.25/kg for next year.

Six candidates are standing for directorships in the Fonterra elections as the challenge to keep this large company at the forefront of the global dairy market still excites.

Positive news from tests of landfill sites used for waste disposal from the oil industry and Fonterra’s tough stance on refusing to take milk from a reoffending farmer with environmental breaches is applauded.

 

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