The Weekly Dairy Report: Heavy rains wet soil conditions further amid optimism at Fieldays

There has been reasonable winter weather for most of the week but extensive rains returned to most of NZ later and made heavy soils even wetter.

   El Nino is expected to be established in Australia by August, but a debate exists between climate analysts as to whether it’s effect will be moderate or weak.

   Cows are now settled into winter grazing and the countdown begins to achieve body condition scores of 5, by calving.

   The last dairy trade auction fell again by 4.2%, surprising some as the price fall is now the longest on record. which have been driven by increased supply from Europe, China and NZ with Fonterra revising upward their volumes offered at future auctions.

   However Fieldays week saw a strong focus on this sector and early reports suggested farmers were out spending this years returns as prospects for next year look less properous.

   War was declared in Australia after A2 milk secured 5% of the fresh milk trade, with Lion and Parmalat running aggressive campaigns disputing some of this products claims.

   Fonterra announced prices for its guaranteed milk price scheme between $6.60-$7.00/kg/ ms as an opportunity for farmers to lock in prices for a certain volume.

   Upgrades, maintenance and compliance of effluent schemes will be priority during the off season as will the repair of lanes to ensure lameness issues are minimized in the new year.

   There has been a change to the welfare code effectively banning euthanizing of new born calves with a blunt instrument, and the Greens Party announced their carbon policy which imposes an extra tax on dairy farmers if they gain political power.

   Ravensdown announced more cuts to the price of urea to $605/tonne on the back of subdued demand in China and America and this will be some relief in the ever rising costs of production.

   The Dairy NZ levy vote produced a positive result on a strong turnout of dairy farmers agreeing to invest for their future.

   The retiring Federated Farmers president Bruce Wills concedes that on some lighter soils a lowering of stocking rate may be needed to reduce the nitrate leaching loads escaping from the soil profiles.