GDT up 10.9%

September 2, 2015

The GlobalDairyTrade trade weighted index increased by 10.9% in this morning’s auction.

This is a welcome second successive increase after a run of big falls.

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Quote of the day

August 25, 2015

“What we’re trying to do is create options for New Zealand over the next 20 years so we never recreate the same dependency that we used to have 40 years ago, which was [on] Britain,” he said. “Southeast Asia, for us, is frankly our number one insurance policy if things go the wrong way in China.” –  Tim Groser


Farm gate milk prices here and there

August 24, 2015

It would be interesting to see a comparison of average costs of production too.


Market will find whey

August 20, 2015

Russian police have caught a band of cheese smugglers:

Russian police say they have broken up an international cheese smuggling ring that earned up to £20 million supplying banned western dairy products, in the latest twist in the country’s war-on-drugs style campaign against embargoed foreign food.

Russia banned a range of food products including cheese from the European Union, the United States, Canada, Norway, and Australia in 2014, in retaliation for Western sanctions imposed on Russia following the annexation of Crimea.

In a joint raid involving at least four law enforcement agencies, officers found 470 tons of banned western rennet, a substance containing enzymes used for cheese production, along with forged labels from major cheese producers, the country’s Interior Ministry said in a statement on Tuesday.

The “international criminal group,” which had been supplying illicit cheeses to shops in Moscow and St Petersburg, had earned two billion roubles (about £20 million) since launching their operation earlier this year, police said. . . 

Where there’s will for cheese which the government won’t allow, the market will find the whey, or the rennet or whatever else it needs.

 


GDT up 14.8%

August 19, 2015

The GlobalDairyTrade price index had a very welcome 14.8% increase in this morning’s auction.

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This is just one auction, and one for which Fonterra offered less stock.

But it provides a psychological boost and confirms that prices that go down can also go up again.

 


Quote of the day

August 19, 2015

“I am very disappointed the Labour Party has turned TPP into a political platform and broken what appeared to be a very constructive and bi-partisan position on trade,” he says. “However, I would like to think that when the deal is concluded and proceeds through the ratification process, this position will be reversed. There are enough rational thinkers on trade in the Labour Party to enable this to happen.”

Petersen also dismisses critics’ claims that NZ’s negotiators will sell off the country’s sovereignty in an effort to sign up to the TPP.

“I am close to the negotiations – without being directly involved – and I assure you our negotiators are not going to sell NZ’s sovereignty,” he said. “I would urge [the critics] to wait until the final deal is agreed before passing judgement on these aspects and I believe that when the deal is completed the NZ public will be surprised at how good it is and how ridiculous some of the claims have been.”Mike Petersen


Rural round-up

August 17, 2015

More women working NZ farms – Suzette Howe:

New Zealand is seeing a rise in the number of women working in farming. For years farming has been mainly viewed as a man’s world, but the tide is turning.

Nestled away on a north Canterbury farm, Louisa McClintock is not your average teenage girl. At just 17 she’s fallen in love with farming. She has quit school and is taking up the reins of her granddad’s farm.

“Everyone thought I was going to stay at school till year 13 and do the whole nine yards and go to uni, but I don’t think there’s anything I’d rather be doing; farming is it,” she says. . . 

Getting through the tough times – Andrew Hoggard:

We at least now know where we are with the much anticipated Fonterra forecast payment.  A price of $3.85 per kilo of milk solids is a real shocker.  There’s not going to be many farmers making anything on that payout.

That said, what can realistically be done about helping farmers through the tough times ahead for at least the next few months?

First, there is the no brainer stuff.  Talk to the bank manager.  Talk to advisers.  Put a bit more effort into communication with the family – they will be feeling the pressure as well.  . . 

Water Proposals jeopardise Southland’s farming future

Federated Farmers Southland strongly opposes Environment Southland’s draft ‘Water and Land Plan and are planning meetings to discuss the rural community’s concerns.

President of Federated Farmers Southland, Allan Baird, says “In its current form, the cost to Southland farmers will be crippling and there will be large flow on affects for the wider Southland economy.”

“As proposed, this Plan would severely limit or prohibit development, flexibility, and innovation for farming businesses, which will have huge consequences for Southland’s economy.”

“Farmers want good water quality just like every other Southlander; by progressing the current outcomes based approach that focuses our resources on the priority hot spots. This is consistent with what the Parliamentary Commissioner for the Environment is encouraging in her recent report, but we can’t do that without the flexibility to adapt to the environment and regulatory changes.”    . . .

NZ and Australia likely to trigger milk quota – Allan Barber:

For the first time since 2004 New Zealand and Australian beef exporters look almost certain to run out of US beef quota before the end of the year. High kills in both countries have seen an excess of beef being processed, well ahead of the normal annual production trend.

New Zealand’s annual quota allows shipments of 213,402 tonnes, much of it manufacturing beef for the fast food industry, but also higher value prime beef cuts in the pre Christmas period. If the quota runs out, these cuts will be at risk. The excess production this year is a direct result of the high cow cull because of the downturn in dairy prices. One processor told me the present slaughter rate was four times the normal amount. . . 

Reducing waste to feed the world:

A 2013 Asia-Pacific Economic Cooperation (APEC) agreement to reduce food waste by 10 percent across the region is picking up pace as researchers and technical team members work towards their 2017 goal of developing effective strategies and actions to address urgent global food waste issues.

A third of the edible parts of food produced for human consumption is lost or wasted. That translates into about 1.3 billion ton per year. Lincoln University Associate Professor James Morton says reducing food waste is the logical first step in meeting the needs of a growing world population, which is predicted to reach nine billion by 2050. He recently attended the second of three APEC ‘Multi-Year Project’ meetings focused on addressing global food waste, where he spoke around the need to measure and reduce wastage in the livestock chain. . . 

TPP – it’s time for a breather – Keith Woodford:

The failure to reach closure at the recent TPP negotiations in Hawaii may be a blessing for New Zealand. It may give some time for our negotiators to reflect on what we hope to achieve and what we are prepared to concede.

Most farmers will be supporters of the TPP. They will be working on the apparently reasonable assumption that more free trade has to be good value. . .

Commission releases draft report on 2014/15 review of Fonterra’s base milk price calculation:

The Commerce Commission today released its draft report on Fonterra’s base milk price calculation for the 2014/15 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk and is currently set by Fonterra at $4.40 per kilogram of milk solids for the 2014/15 season.

The Commission is required to review Fonterra’s calculation of the base milk price each year as part of the Dairy Industry Restructuring Act’s (DIRA) milk price monitoring regime. The review assesses whether Fonterra’s approach delivers incentives for it to operate efficiently and provides for contestability in the market for purchasing farmers’ milk.

The Commission’s overall view is that Fonterra’s calculation of the 2014/15 base milk price is largely consistent with both the efficiency and contestability purposes of the DIRA. . . 

 


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