Food prices drop in last month, Labour’s ‘crisis’ works again

Remember when Labour declared milk prices were?too high, that supermarkets needed regulation and also fresh fruit and vegetables were too expensive and so they needed to remove GST from them.

They also claimed that manufacturing was in crisis, it immediately recovered. They claimed that there was a brain drain and there was an immigration crisis, which promptly reversed. The last crisis was in milk prices and that has rebounded too.

Now it appears food prices have dropped in the last month.

Falling fresh milk prices led the way for grocery prices to go down last month, Statistics New Zealand says.

“Grocery food prices fell 0.8 per cent in October, led by a 5.7 per cent fall in fresh milk prices,” Statistics NZ consumer prices manager Matt Haigh said today.

Seasonally lower prices for fruit and vegetables also influenced the overall drop in prices. ? Read more »


Thanks Labour for declaring a crisis in dairy


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 »

They look like bottles of motor oil to me

Sad face dairy owner

Sad face dairy owner

Some people are never happy.

The perpetually outraged in our society simply run off their gobs on Twitter or cry to the Media Party who produce lots of sad face photos of the outraged people.

Consumers are souring to the taste of Anchor’s All Black Rugby World Cup promotional bottles of two-litre milk, Wellington dairy owners say.

Thakor Gopal, owner of Island Bay’s Hy-Grade dairy said the marketing campaign was costing him sales, which he estimated had dipped about 20 per cent since the black bottles were launched earlier this month

Gopal said some of his customers were put off by the idea of milk in a black bottle.

“They say it should not be in a black bottle – lots of people are unhappy.” ? Read more »


Could Labour start declaring a crisis everywhere please


Less than a month ago Labour declared a crisis in dairy.

They have previously declared a crisis in emigration (since reversed) and? a crisis in manufacturing (it’s now one of the fastest growing sectors). Both of those areas have reversed simply by Labour claiming a crisis. It can’t have been them who fixed the problems, they are in opposition, and John Key’s government barely lifts a finger over anything…so it can only have been Labour declaring a crisis that has been the catalyst for change.

That appears to have happened in dairy as well with the second successive milk auction experiencing a rise after 10 previous declines in prices.

Dairy prices rise again in another positive GlobalDairyTrade auction.

Prices at the overnight auction lifted 10.9 per cent, hitting an average price of US$2226 per metric tonne (FAS). ?? Read more »


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 »


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 »


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 »


Kiwis to pay more for medicine to line Fonterra shareholder pockets?

The TPP is starting to take its toll on John Key.

When the Trade Minister has to dictate to his favourite newspaper columnist then you know they are in trouble.

But now it is starting to look like we are going to have to pay more for our medicines so Fonterra shareholders can put more cash into their pockets.

John Key is gathering international support for a dairy deal as Trans-Pacific Partnership trade talks edge towards agreement.

Dairy products represent 20 percent of New Zealand’s exports and open access to the 11 other TPP countries would be a huge gain.

The Prime Minister says he’s making calls around the world.

“We’re getting more support from some of the other countries,” he told reporters today.

“I’m in the process of making phone calls to leaders and others to encourage them to see it our way ? we’re presenting the strongest case we possibly can.”

Access for agricultural products is one of the most contentious issues at the TPP negotiations. ? Read more »

Parroting the obvious

In August 2014 real reporters around the world ran stories about China’s milk stockpile, and everyone in China who was anybody, knew China was stockpiling those resources.

The news that Russia is banning imports of dairy products from all EU states should be the least of our concerns.

What dairy farmers here should be doing, rather, is looking even further to the east, to China.

For there are some ominous signs that that country’s snapping up of massive volumes of dried milk powder produced in the west may well have been a stockpiling exercise and that it is now coming to an end ahead of an anticipated downturn in the Chinese economy.

That could have quite severe repercussions here where a lot of the ‘surplus’ milk, which has been sloshing about in the market, has gone to drying plants in an exercise which acts as a useful price stabiliser. The effects are already being felt in the arena of global dairy auctions, where prices dropped 8.4 per cent this week and are now 50 per cent lower than they were in February ? and it’s worth noting that whole milk powder (down 11.5 per cent) and skim milk powder (down 6.5 per cent) were among the big losers.

So stand by for even more price cuts at the farm gate…

Yet, despite how many junkets to China and resources put in by NZ Inc and a newspaper, it’s only when Bill English makes comment on it off his own bat, does Frances O’Sullivan – a newspaper’s?pre-eminent repeater – actually even record it as happening.

It was Bill English who finally punctured the myth that the lengthy price slump that has carved billions of dollars off New Zealand dairy returns is simply a short-run thing.

Not so, said the Finance Minister on his return from China this week. ? Read more »