As August arrives soil conditions are rated average, temperatures above average but winter grass growth in many areas was ahead of the norm, ensuring pasture covers at the onset to calving are very satisfactory.
Reports on the chances of an El Nino summer arriving are waning as the tropical Pacific Ocean cools and this will be a relief for those in the vulnerable eastern areas.
Most northern farms now have 50% or more milking cows and few metabolic issues have been reported, and cow condition in the south is on target for a mid August calving.
What is concerning for all in the sector is the falling milk commodity prices as another global dairy auction drops by over 8%, and the decline now totaling 40% since February with prices now back to levels of two years ago.
Fonterra and Westland have responded in accordance with the market by lowering this year’s predicted payout to $6/kg ms or slightly above, but market analysts suggest that prices should start to improve by the end of the year.
Advisers are urging a careful control of farm costs to balance the downturn in income and suggest favourable feed conditions could allow reduced fertilizer nitrogen.
Surplus in calf and in milk cows and heifers at saleyards have eased in price, but positive feed conditions ensured they all found new homes.
Oceania’s new dairy plant has been commissioned in South Canterbury with the first flows of milk being successfully processed for the new season.
They have attracted a strong following in the area buoyed by promises to pay 10c/kg more than Fonterra and no capital commitment for shares.
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