Waibury New Zealand Dairy Farming Update Jan 2017

Monday, 30 January 2017 at 1:40pm

The summer rain has been good for grass growth and most of our farms have plentiful feed supplies.  However, less sun has resulted in less pasture clover than previous years, but winter crop establishment looks strong and ground cover for brassicas has been achieved.

 

According to the regional council, the Opuha Dam (South Canterbury) is full again and they are confident plenty of water will be available for the rest of the season.

 

At its December annual meeting Fonterra told shareholders that the indicative payout level to its farmer suppliers this season will be $6.40/kg of milk solids.  That compares to the $4.30/kg milk solids paid out in the 2015/2016 season.  Some analysts predict this will increase to $6.50/kg of milk solids given continuing gains in the global dairy auction.


Rabobank released their quarterly report this month and it also paints a positive picture for New Zealand dairy farmers.  Again, this is largely thanks to a  global downturn in milk production and whole milk powder prices rising 45% during the past six months.  According to the report “dairy demand in the US and Europe had strengthened, enabling stock growth to grind to a halt and global dairy prices had ‘rocketed upwards’ as a result.”


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