Dairy

Fonterra parties on while Farmers seek mental health counselling

Photo/ Supplied - via tipline

Photo/ Supplied – via tipline

Whilst farmers are taking huge hits as dairy prices continue to track low – Fonterra still has the money to throw small party gatherings at Auckland CBD restaurants.

Last night a group of Fonterra executives partied at Vivace in High Street.

Whilst it was apparently for a couple of staff who were leaving – now is not the time to be seen in public spending up on the company credit card.   Read more »

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To rub salt into Labour wounds over the “dairy crisis”…

 

To rub salt into Labour wounds over the “dairy crisis” that has suddenly reversed, Mike Hosking tells them that there isn’t a crisis.

He is National’s stooge of course…and should be drummed out of all his media jobs.

At the risk of getting another serve from Andrew Little or Winston Peters, I fear I may have some bad news for them.

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Right on cue, dairy prices reverse after Labour declares a crisis

Every time Labour declares a crisis in one industry or another the crisis miraculously turns around.

Literally hours after holding a press conference about a crisis in manufacturing there was an independent report that showed manufacturing was booming and has continued to boom. They declared a crisis with Kiwis flocking across the Tasman…lo and behold that crisis too has been reversed.

Last week Labour declared a crisis in the dairy industry based on milk solid prices…and today…

Wholemilk powder prices – which play a big part in the formation of Fonterra’s farmgate milk price – rallied by 19.1 per cent to US$1,856 a tonne at this morning’s GlobalDairyTrade (GDT) auction, raising hopes that prices may finally have turned after declining sharply since March.   Read more »

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No taxpayer money for failing dairy farms, says Bill

As you know, I’m against the government propping up private businesses, but I can’t understand the lack of consistency here.

Bill English comes good but I bet that will give Steve Joyce the shits.

Finance Minister Bill English said today the Government would not be offering special financial support to dairy farmers in trouble because of low prices.

But Primary Industries Minister Nathan Guy will head to Auckland on Thursday to talk to the dairy giant Fonterra and to major banks about their response to the downturn.

Fonterra last week revised its payout forecast from $5.25 to $3.85 per kilo of milk solids after a slump in prices Fonterra has got in the Gobal Dairy Trade auction.

It also offered interest-free loans to farmers which wont have to be repaid until the milk price goes above $6.

Mr English told Parliament his afternoon that the drop in prices would have a negative effect on the economy “but a containable effect”.   Read more »

Sure John, nobody’s panicking. But the dairy slump’s hit main street

Farmers are keeping their wallets shut as they face at least a year or two of tough conditions.

They’re fighting to stay on their farms, but in the towns, the lack of money is going to kick start unemployment.

Retailers in Taranaki say the downturn in the dairy market is starting to hit turnover, with sales declining by between 10 and 20 percent.

Fonterra has slashed its forecast payout for the season to $3.85 a kilo of milk solids – far below the break-even point for many farmers, whose spending on non-essential items has all but evaporated.

Michael Eager, who owns the R J Eager furniture stores in New Plymouth and Stratford, said it was taking longer to shift stock.

“We are already seeing a slowdown in retail sales. Enquiries have dropped away so it is impacting at the present time quite strongly and particularly in the small towns.

“We have a business in Stratford, and we’re seeing that impact take place now.”   Read more »

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Canada is also puckered up about the TPPA

Their three major concerns revolve around criminalising certain copyright infringements, the dropping of protections on automotive and dairy…

Canada would have to massively overhaul its Copyright Act just a few years after the last round of painstaking amendments, critics warn, if a secret trade and investment deal the government is negotiating is adopted with the terms outlined in a leaked draft from May that was made public this week.

What appears to be a working draft of parts of the 12-country Trans-Pacific Partnership pact, or TPP, was posted online this week by a U.S. non-governmental organization. The text includes terms that would require countries to criminalize certain types of copyright infringement and to force internet service providers and search engines to take down alleged copyright-violating material or even links to it.

The world got a bit of a glimpse into a part of the draft TTPA document earlier this week.  Section-H-1-11-of-Enforcement-TPP-IPChapter-11May2015   Read more »

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Well bugger me, Bill English has become a free marketer

Bill English has just returned and discovered that the Chinese are sitting on a massive stockpile of milk products. From China:

The Finance Minister, fresh from a week long trip to China, New Zealand’s largest export market, said that there was a picture of an international glut of dairy products which would keep prices lower for some months to come.

In recent weeks the US Department of Agriculture had highlighted an increase in stocks of dairy prices being stored in China.

“It appears there’s been almost literally a mountain of milk powder in warehouses around China, more than people thought so it might take a bit longer to work through,” English said.

“The way it’s been described to me, there’s been a perfect storm of excess milk supply, influenced by events in Russia, Europe, in China, in New Zealand, Australia and that’s led to these prices which I think everyone regards, everyone believes are too low for the health of the dairy industry, whether it’s here, in China or in Europe, but it is going to take some time for the prices to pick up.”

English remained confident that there would be a recovery in dairy prices some time in 2015.

“I don’t think there’s much doubt that they’re going to pick up, it’s just a matter of when and how fast.”

Estimates ranged from picking up in a few months to remaining flat until Christmas, English said.

“I haven’t seen any estimate that it would take years to clear up.”

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Can we stop the lying about possums and Tb now please?

One of the reasons that we are told about why we need to carpet bomb our forests with 1080 is that we need to protect our dairy industry from Tb.

And it is a fair enough reason, if it is true. Surely we can’t risk dairy for some little Aussie imports who carry it?

And most of us would agree. But what if we are being lied to?

5862 (2015). Richard Prosser to the Minister for Primary Industries (18 May 2015): How many, if any, possums were dissected to look for Tb for each of the past ten years, and of these, how many were found to have Tb?

Hon Nathan Guy (Minister for Primary Industries ) replied: TBFree New Zealand (previously the Animal Health Board) have been carrying out necroscopy surveillance of possums and other wildlife since 2007. In the 2007/2008 year 4871 possums were surveyed with no Tb infections found, in 2008/2009 13,874 surveyed with 9 found, in 2009/2010 23,339 surveyed with 6 found, in 2010/2011 17576 surveyed with 1 found, in 2011/2012 25,103 surveyed with 9 found, in 2012/2013 18,682 surveyed with 12 found, in 2013/2014 10,930 surveyed with 17 found and in the 2014/2015 year 9,838 possums were surveyed with no infected possums found.

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#Nannystate back-pedals after threatening dairies

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What a fiasco. Auckland Regional Public Health Service’s (ARPHS) Dr Julia Peters is now back-pedaling faster than a duck on heat.

Yesterday Julia Peters was front and centre blaming dairies for the obesity problem in Auckland and said they shouldn’t be allowed to sell unhealthy foods.

What a difference 24 hours can make.

Following a backlash from near on everyone, Julia Peters had to go back on air trying to defend her calls. But did she?

No. Instead she’s now saying

She says the dairy idea was one of many in the ARHPS paper, and has been overblown.

“We’re not looking at a ban on dairies – in fact, that’s not even in the paper.

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Guest Post – Cooperatives – another form of socialist mediocrity

The big issue that dominates the discussion on our dairy industry is falling prices. Our seeming inbred predilection for negative news means we overlook important issues about the future of milk, what is happening internationally and how New Zealand should be responding.

There is sufficient pessimism in some quarters to suggest that dairying is a lost cause and that there should be a deliberate effort to scale it back and stimulate investment in different economic activity.

While diversity is usually a helpful goal in an economy it is far too early to write off dairying. Conservative predictions are for the consumption of milk and milk products to rise by 36% over the next 10 years, away ahead of even the most optimistic numbers on production growth. China is only one of many countries to have growing needs for protein.

Milk2 Read more »

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