A week ago we published this chart which shows the margin over feed cost for US class III milk. It is an ugly sight and is only going to get worse if you believe that the futures market is a guide.
Current margins are down to the critical lower limit of $5/cwt. Beyond this the short term futures for feed and milk price take us back to the depths of 2009 and no sign of a recovery anytime soon. . .
The second payout revision downwards by Fonterra Cooperative Group in just over two months, is the reason why Federated Farmers warns farmers to budget conservatively. It is estimated this revision will see around $500 million less come into the economy.
“When the last revision took place in March, we warned it might not be the final one before the end of the 2011/12 season. Since then, international dairy prices have fallen to levels last seen in August 2009,”says Willy Leferink, Federated Farmers Dairy chairperson.
“While this is due to increased global milk supply, it also coincides with major uncertainties over the direction of the world’s economy. We may be an island but economically we’re not. . .
Meat industry faces challenges positively – Allan Barber:
This season is more of a challenge for the meat industry than last, although suppliers are still reasonably comfortable in spite of the lower lamb price which has now dipped below the $100 mark.
Good growing conditions in most of the country, especially the North Island, have removed the summer stress that always comes with drought and enabled suppliers to put a bit more weight on to compensate. But for processors the combination of extremely high procurement prices, over $6 a kilo for lamb until end March, the exchange rate and low plant throughputs has meant a very challenging first half year. . .
“Team Talk” the best farm amangement tool I’ve seen for decades – Pasture to Profit:
“TEAM TALK….I believe this on-farm staff/team communication system to be the most innovative development I’ve seen in Farm Business Management for decades”
At nearly 2,000 hectares (ha), the average collectively owned Māori farm is about eight times the size of the average New Zealand farm, Statistics New Zealand said today.
The figures come from a survey of farms owned by members of the Federation of Māori Authorities (the Federation), which are a sub-set of all farm and forestry land that is collectively owned by Māori.
“The 140 Federation members’ farms have a total of 272,200ha of farm and forestry plantation land that members directly own and manage. It’s an area that’s more than one and a half times the size of Stewart Island. Altogether these Federation members’ farms occupy nearly 2 percent of New Zealand’s total farming and forestry area,” agricultural statistics manager Hamish Hill said. . .