The Weekly Dairy Report: A food safety scare is the last thing the fragile NZ dairy markets need at present

More rain in the very dry areas this week, but volumes have been mixed and follow up moisture will be needed, if this is to become a drought breaker.

The raised alpine river flows allowed some harvesting into the storage scheme out of the Rangitata, and reinforces the need for more ponds to utilize these surpluses.

Winter brassica crops will respond quickly to this moisture, and this is the greatest need, as severe concerns have been expressed on feed shortages for cow wintering in the drought areas.

North Island regions have also recieved moisture and with a tropical cyclone bearing down on them, more rain could fall by the weekend.

A disturbing development of a threat to put 1080 into infant formula product surfaced this week, and reinforced how important food safety is for all our agricultural products.

While it appears this may be a hoax publicity stunt, the sector has wasted no time in checking all it's food safety protocols and advising it's customers of how it is handling this situation, and next weeks auction will indicate how successful they have been in this regard.

Another positive auction result saw the dairy commodities index lift by another 1.1%, carried by strong rises for cheddar and butter milk powder, although whole milk powder prices did ease slightly.

Fonterra did show that they are optimistic prices have turned for the better, by increasing autumn volumes supplied to the globaltrade auction system.

In the EU milk flows are easing,inspite of the imminent quota removal and it is reported herd numbers are declining although yield per head has risen to partly compensate.

A visiting Dutch dairy leader urges NZ farmers to consider feed barns, to increase production and lower the sectors environmental footprint.

And in the south, the price downturn has stalled Mataura Valley Milk’s plans, to build a processing plant in Southland.