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The Weekly Dairy Report: Dry in the south but at risk areas mainly under irrigation

Rural News
The Weekly Dairy Report: Dry in the south but at risk areas mainly under irrigation

The east coast of the South Island continues to miss significant rainfalls that caught many areas in the North this Labour weekend and remains dry.

Irrigators are working full time wetting the soils in the south but with river levels low those schemes that rely on surplus river water for storage will be getting nervous.

Drought prone areas in the north have received adequate rain but farmers are still concerned with low ground water reserves heading into the summer dry period

NZ milk flows are well ahead of last year and with most of the world’s exporters also lifting production many dairy commodities are being stored for future consumption once demand rebuilds.

Fonterra has announced they are to expand their processing capacity with two new dryers being considered at Studholme in South Canterbury in a 5-10yr plan that looks to handle the expansion due to increased irrigation in that area.

The USDA reported that Oceania prices for Skim Milk Powder have slipped even further than auction, to levels last seen in September 09, and one dairy analyst is now suggesting that even if there is an upturn, forecast prices for this year will only be in the $4.75/kg/ms region.

Both Aoraki Polytechnic and PGGWrightson are banking on a strong dairy focus as they upskill young people to enter the industry and the rural retailer looks to achieve a bigger slice of the dairy pie to build on this years improved profit result.

Dairy farmers in the South Otago region have recorded disappointing results in following the regional Water Plan with far too many failures of effluent disposal and are receiving little sympathy from the regional council or Federated Farmers.

Dairy NZ is surveying farmers to try and solve some of the issues with the swede poisoning issue and PGGW have recommended not to feed the HT variety of this brassica to pregnant cows, until they identify the true cause of this problem.

Early dairy beef weaners are now being marketed and while the first Waikato sale saw prices little different than last year with beef so strong values are sure to lift.

Dairy prices

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3 Comments

No money down, no need for repayment. There are many of us who would like to buy 22,500 heifers, on such terms.

[this week] WA-based livestock exporter Wellard celebrated a $100 million deal to supply 22,500 dairy cattle to the Sri Lankan Department of Economic Development. Wellard will source Friesian Jersey-cross heifers from around Australia and ship them to Sri Lanka over the next two years. The Wellard deal, financed by Rabobank and backed by Australia's Export Finance Investment Corporation, includes management and veterinary support. Wellard will also set up a farm and build a dairy as Sri Lanka builds on the success of earlier consignments of 2000 cattle.

https://au.news.yahoo.com/thewest/a/25365302/forrest-eyes-wa-dairies/

say what you like about the China heifer buying, they came up with the cash of what was taken.

is this aid for the SRLkans, subsidies for the Ozzies producers, or gift to Rabo/Wellard?

 

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two views - water v milk

the map on page 8

the table on page 9

http://issuu.com/ashguardian/docs/dairy_focus_-_october

 

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