Few opportunities to lift dairy prices short term

Few opportunities to lift dairy prices short term

Federated Farmers is disappointed at the third fall in a row of the GlobalDairyTrade auction price overnight.

Dairy Chair Andrew Hoggard says the impression created by the 3.6 percent fall is there is less likely to be a lift in this season’s payout.

“It makes the prospects for the advance rate for next season weaker as well. We really do need to see some signs of a recovery and so far we are not seeing them.”

Andrew Hoggard says the reasons for a weak dairy market remain as they have been for some months at least.

“The Chinese market is weak, European exports to Russia have been dislocated, dairy regions around the world have enjoyed good weather and the northern hemisphere is awash with cheap feed grain.”

“For most of these things there is not much we as a nation or industry can do. That includes the European trade dispute with Russia which escalated out of the Ukraine conflict.”

“Anything which can be done at the international political level to restore access into what is the second largest dairy market in the world must be welcome.”

He says the message for New Zealand farmers when dairy prices are weak remains the same.

“Struggling farmers need to talk to their banks and their accountants. Especially in the drought areas there is a real need to keep a close eye on how much feed farmers have on hand and how much they will need through to the spring.”

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