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Waibury Ag Investments May 2017 Dairy Farming NZ Update

Wednesday, 31 May 2017 at 10:23am

Dairy Farming nz update MAY 2017 photo of milking shed

 

While the beginning of May saw the last of the warm autumn weather, the country saw temperatures drop with a cold wintery blast arriving in the middle of the month.  The last two weeks in particular were cold, with snow arriving in the South Island and frost settling across the country, a good reminder that winter has nearly arrived.

 

The good news is that pasture covers and winter crop volumes are all on target for the impending dry-off and animal condition is reported as above average leading into the winter.

 

It has been a good month for Global Dairy Auctions. All products offered saw significant price rises, except skim milk powder (down to $US1982).  Best of all for NZ suppliers was the whole milk powder price, which at $US3233/tonne was back to the levels last seen early in the new year.  

 

A new flavoured milk powder product has also being added to the list of products sold via the global dairy auction, as this selling system reflects the diversified number of dairy products sold.

 

This month Fonterra's announced two price rises: the first of $6.15 per kg of milksolids for the 2016-17 season, and an opening forecast of $6.50 for the 2017-18 season.  This was ahead of market expectations and welcomed by Dairy Farmers across the country, giving everyone in the industry renewed optimism for the future.

 

In other news, the ASB is floating the idea of quarterly based farmgate milk price payments to reduce price volatility, and encourage participation in milk futures.  Legislative changes would be needed, but ideas aimed at making income predictions more reliable, will be welcomed by all farmers.