Cold frosty conditions arrive in the south along with a backdrop of snow, but dry soils are allowing good utilization of pastures and early fed brassicas with growth still being recorded.
Winter grazing arrangements have been made and careful planning will be needed to ensure every kilogram of valuable feed is utilized efficiently.
Grain prices are falling as the margin between PKE and wholegrain offers managers cheaper options for quality feed.
Many areas of the North Island and West Coast and Southern regions have all had plentiful moisture, and after last months mild conditions pasture supplies have improved markedly.
With the downturn every cost of the dairy operation should be scrutinized, but one commentator urged farmers to look at achieving a low cost of milk, by getting the balance right with input costs and production.
And this has just become even harder this week as Fonterra readjusted downwards this years payout to $4.40 and predicted next years rate at $5.25/kg ms.
DairyNZ calculated this will remove $150,000 from this years average dairy farmers income, and the new seasons rate will with retrospective payments, mean the average income will be just $4.75/kg ms at the farm gate and result in Canterbury farmers being $300,000 short.
Another auction, and for the sixth successive event another decline, is the markets sorry plight at the moment, as global dairy commodity prices struggle under excess supply.
Butter and anhydrous milk fat lead the products down, but whole wilk powder's drop by 3.1% to $2309US/tonne will be a worry for future payout predictions.
Dairy futures had a record month of trading as uncertainty of prices lead customers to lock in risk, and Fonterra opened their Guaranteed Milk price offers for those farmers needing to secure certainty of price.
Reports suggest there is strong disappointment with Fonterra’s performance and some are changing to the smaller processors and releasing share capital to fund the shortfall.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.