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The Weekly Dairy Report: Season finishes with little fuss but apprehension continues about what lies ahead

Rural News
The Weekly Dairy Report: Season finishes with little fuss but apprehension continues about what lies ahead

Rain followed by frosts last week freshened up covers, as many cows begin their winter grazing, and are slowly adjusting to the different feeds offered.

The lessons learnt from last years cow deaths were being explained by scientists, and the importance of slow and precise transition systems for animals grazing on swedes and fodder beet (of up to 21 days) were emphasized, but early reports suggest there has still been some early sudden cow deaths.

North Island pasture growth rates are being recorded between 10-14kg/dm while in the south about 5kg lower, with rates affected by heavy frosts and the still dry region of North Canterbury.

The feed situation looks reasonable nationally, with milder than normal weather helping, and a lower stocking rate from the heavier cow cull

Nobody is happy with prices being received from the market however, as last weeks global dairy trade auction declined for the sixth successive event and drove prices lower by another 4.3%, and DairyNZ suggested the predicted payout for next year would leave the average dairy farmer with a $150,000 drop in income.

Synlait followed Fonterra's downgrade by also adjusting backwards to $4.40-$4.60/kg ms for this season, but has predicted next year higher at $5.50 to help early cashflow demands.

Dairy future trading broke records last month, as uncertainty in the market saw customers covering the risks of trading.

Everyone is focusing on how they will adjust to the cashflow challenges that lie ahead, and the big cow cull shows many are planning to destock, reduce bought in feed, cut any expense not associated with production, and survive by maximizing and utilizing pasture grown on farm.

Fonterra has responded to the challenge with a proposed job cuts from head office, and a realignment to boost the marketing team to help sell the extra milk.

Gypsy day came and went, with less activity and more ordered shifts resulting in few road effluent complaints, as it appears the sector is hunkering down to cope with market changes.

Field Days week started with apprehension on how the dairy downturn will affect sales, but an innovative recycling system for shed effuent that seperates clear water from the solids has sparked much interest.

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