New Zealand’s dairy industry, which is proving again it is the backbone of the country’s export industries, has been given fresh encouragement with the big co-op Fonterra signalling a record milk price for the season that has just opened.
It comes as the payout for the just-finished season stands as the highest since the co-op was formed in 2001.
So although farmers have made decisions for this season on the number of cows they are milking, they have the incentive to go hard on production levels, despite the pressure from higher costs and worries over climate changes measures, including projected charges on emissions.
Fonterra’s buoyant forecast contrasts with a recent report by agribusiness banking specialist Rabobank which said that despite global milk production looking set to decrease for the fourth consecutive quarter in Q2 2022, weakening global demand is expected to create a scenario that will see moderate price declines in dairy commodities during the second half of the year. Continue reading “Farmers start new dairy season on an encouraging note as Fonterra signals another record milk price”