dairy prices

Finally, some bad news

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Labour are all cock-a-hoop as one of the nation’s economic indicators had a slight dip.

Prices have fallen by 3 per cent at the latest GlobalDairyTrade auction arresting a series of recent rises.

The decline is the first since July. Read more »

More good news

2010 - . Photo Simon Baker -------------------------------------- simon baker | media +64 21 329-873 www.simonbaker.co.nz theboss@simonbaker.co.nz

Photo Simon Baker

 

Prices have again risen at Fonterra’s GlobalDairyTrade auction, but at a more subdued level than in previous events.

The GDT price index was up 1.7 per cent on Wednesday morning (NZT) with the average price up to $US2975 ($NZ4070) per tonne. It is the fourth successive rise with previous increases at the fortnightly auction ranging between 6.6 and 12.7 per cent.

However, the price for key whole milk powder, Fonterra’s main product, was down 0.2 per cent to $US2782. Read more »

Thanks Labour for declaring a crisis in dairy

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Dairy prices have risen for fourth consecutive auction, all since Labour declared a crisis in dairy.

Dairy product prices climbed in the latest GlobalDairyTrade auction, increasing for a fourth consecutive time after nearly six months of declines.

The GDT average winning prices rallied 9.9% to US$2834, the highest level since March, up from $US2568 at the previous auction three weeks ago. Some 35,243 tonnes of product was sold, down from 36,050 tonnes of product three weeks ago.

The AgriHQ 2015-16 Farmgate Milk Price increased 74c to $5.39 per kilogram milk solids, compared with Fonterra?s 2015-16 milk price forecast of $4.60/kgMS. ? Read more »

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.

Read more »

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 »

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.”

Read more »

What about our milk then? Isn’t that a bigger problem than house prices?

The country’s economy is facing a “full-blown cyclone” as global dairy prices tumble, says New Zealand First.

Opposition parties are warning of dark days ahead after dairy prices dropped 10.7 percent in Fonterra’s latest Globaldairytrade auction.

NZ First leader Winston Peters says our economy risks falling back into a recession.

“It is economic chicanery to excuse the risk with `dairy is a small part of the overall economy’, when one in five exports are dairy.” Read more »

Bad news Bill English cops another: widening current account deficit

New Zealand’s current account deficit widened in the fourth quarter as a growing economy helped foreign companies earn more from local investments.

The current account deficit grew to $2.6 billion, seasonally adjusted, the largest since the fourth quarter of 2008, and from about $2.4 billion three months earlier, according to Statistics New Zealand.

The annual deficit was $7.8b pushing the annual gap to 3.3 percent of gross domestic product, from a deficit of $6.1b, or 2.6 percent of GDP, in the year ended September 30.

The current account is the broadest measure of the flow of goods and services across the border and a widening gap traditionally signals a risk for the currency as it shows a nation is spending more than it earns.

The income deficit grew by $434 million to $2.8b, the highest since the fourth quarter of 2010, reflecting more income earned from foreign investments in New Zealand and less income earned from investments abroad. Read more »

Looks like Bill will need to keep ACC high for a bit longer

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The economy looks to take another hit as dairy prices crash overnight

International dairy prices fell by 8.8 per cent at this morning’s GlobalDairyTrade auction – the first sale to be held since last week’s 1080 infant formula contamination scare. Read more »

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