A surge in prices at the latest Fonterra global dairy auction once again underlines how New Zealand’s dairy industry is the backbone of the country’s export economy. At the level they have reached, dairy farmers can look to a record payout this season from Fonterra.
Overall, prices rose 4.3% in US dollars, and, better still, 5.1% in NZ$. Star of the show was the cheddar cheese price, which shot up 14%, with other foodservice products also strong.
The average price for whole milk powder, which has the most impact on what farmers are paid, lifted 2.7% to US$3921 (NZ$5408) a tonne, prompting speculation it will push through US$4000/t.
A record payout is already mooted by some some economists in the agricultural sector. Above $8.80kg/MS, it might dispel the gloom being cast across the industry by Cop26, where the focus has shifted to the need to cut methane emissions.
NZ is reported to be joining more than 100 countries in pledging to reduce methane over the next decade.
Collectively, signatories to the pledge – officially launched on Tuesday (Wednesday NZ time) – are aiming to reduce the greenhouse gas 30% by the end of the decade. Continue reading “Farmers are making good money from milk – but they should brace to meet commitments to trim the methane”