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The Weekly Dairy Report; Overseas investment, animal welfare and the dry north are the weeks issues

Rural News
The Weekly Dairy Report; Overseas investment, animal welfare and the dry north are the weeks issues

DAIRY

Many areas received rain over the past week but follow up moisture will be needed in northern areas or the feed situation will follow the same track as last year.

The Kaipara area is reportedly worse than a year ago when 15 farms  had to be sold due to last years drought, and it has been suggested 30 more may face a similar fate unless there is a rapid turnaround in the feed situation.

Managers who plan early and have flexibility within their systems will cope with the vagaries of the weather the best, and advisers are suggesting reducing herd size is the best drought preparation, then once a day especially for lighter condition cows.

The time is near for autumn re-grassing to revitalize pastures with the latest cultivars, and good fertility, weed controls and adequate moisture at sowing are all needed for a successful strike.

The big fall in potash pricing will be a big help to replace nutrients lost through intensive grazing and as a replenishment after harvesting silage and hay crops.

Auction prices are still holding firm but bank economists are warning milk price predictions for next year are around $7/kg due to a big expected lift in global supply from Europe, the US and here in NZ.

However there are conflicting views on how the market will react to increase golbal volumes next year and like many of our commodities in agriculture our prosperity is in the hands of Chinese growth.

Consumers are reportedly starting to resist these higher prices and buyers are considering alternative products to remain competitive.

Shanghai Pengxin has had their bid for a takeover offer for Synlait Farms approved by the Overseas Investment Office as they seek to invest in all sections of the production chain.

Reportedly there are 13,000 cows in this sale and this package accompanied with the 16 farms bought off the failed Crafar Farms venture, makes this overseas company now a serious player in the dairy sector.

Bobby calf disposal has been in the spotlight again with New Zealanders accused of inhumane practices in a dairy operation in Chile.

Much commentary has arisen with some believing this will damage NZ's reputation even though this took place overseas,  but at least it does remind all farmers that animal welfare is a big responsibility not to be taken lightly.

Dairy prices

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