DAIRY
A turnaround in moisture levels has seen pasture prospects lift nationally as the country recovers from a dry spell and Fonterra predicts yearly milk flows to be up 6% on last years record volumes.
Some areas in the east coast of the south island are still a bit dry but dairying in these areas is covered by irrigation and the Southland dry is not predicted to last.
Pastures are moving into a summer phase and me levels are dropping and with the rain more nitrogen is being applied to encourage new regrowth.
Some topping has been done before and after grazing as operators endeavour to get pastures under control and regain quality feed.
Rotations are lengthening as the summer starts and maagers are urged to refresh their budgets and rotate bulls to ensure all late cows are covered.
Northern herds are booking early pregnacy tests which can be used for culling is summer gets dry and some facial eczema spores have been recorded so managers will need plans to cope when the problem worsens.
The national dairy herd now tallies 6.6 million head as the surge of conversions changes NZ’s stock mix.
The giant US co-operative Land O’Lakes has joined the global dairy platform with an expected start in March 2014, bringing the sellers now to six and increasing the transparency of market prices for farmers to follow.
The latest auction result saw prices lift again under reduced tonnages with Whole Milk powders dropping but all other commodities lifting in price.
Most importantly especially for Fonterra was a lift in rennet casein by 7.3% which will help that companies profits out of added value products.
In a surprise move Fonterra maintains its predicted payout rate but reduced the dividend to just 10c/kg ms as the conflict of high milk prices affects the return from its added value products.
Land farming systems are under scrutiny in Taranaki as contamination fears are blamed on the oil drilling waste and the Greens are urging regular testing of milk on properties that have been involved in this practice.
Synlait were quick to remind farmers that it’s processing mix of powder products allows it to maximize its return to suppliers, and the new Chinese owned milk facility at Glenavy will be ready for the spring of 2014 and with a large local operator signed up to supply.
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