As the year moves past June the mild dry weather, in the south, it continues to amaze and concern managers with the lack of soil moisture for the spring.
In these conditions stock are wintering well, but reports from the very dry areas in North Canterbury make grim reading, as the area is still devoid of stock and many workers have had to look for alternative work.
Some soil temperatures are 5 degrees above last year and grass is growing in areas with moisture, but most managers would trade this for wetter ground conditions and a lush spring.
Further north moisture is not an issue and some areas are needing to be very careful about pugging damage, and loss of spring pasture growth potential especially those that are wintering on grass at home.
Murray Goulburn s opening payout prediction of $4.31 has shocked the Australian dairy industry and while $5/kg from Bega Cheese is an improvement, nobody across the ditch makes money at these levels.
Post Brexit the markets have settled, but analysts suggest it’s effects will be seen in the medium term with economic activity sure to suffer in both the UK and Europe.
This week’s milk auction looks pivotal to revealing market sentiment as increased volumes of whole milk powder will test current price levels.
Analysts have reviewed last nights result as OK in these times of uncertainty, although the 0.4% drop by all commodities and 1.6% fall for whole milk powders will not cause any optimism for a payout rise.
The slowness of the upturn will reinforce the importance of reducing costs out of dairy farming systems, and at this stage this avenue appears to be more likely to drive profits, than any hopes of a lift in income.
The numbers still sharemilking have dropped significantly as the economics and security of this system look shaky, and the implications of this change will affect future dairy growth.
Stage Two of the Canterbury Central Plains Irrigation scheme appears to be on track for a start, as farmers in the area look to invest long term with water and realise the diverse range of opportunities this will create.
The harvest, store, and use model for irrigation is the way of the future, and should protect the groundwater reserves, streams and waterways that this drought has depleted.
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