World
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – March 14, 2022
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Australian farmers backing milk portal Hugh Stringleman hugh.stringleman@globalhq.co.nz THE farm gate milk price in Australia is sitting around A$7/ kg milksolids and expected by the Bureau of Agricultural and Resource Economics (ABARE) to remain steady for this season and the next. Among processors, milkproducing regions and different seasonal quarters, the range is $6.50-$7.50. Last season’s full season national weighted average price was $6.36. Average farm gate milk prices being paid can be found on the new Milk Value Portal, supported by more than 90% of Australian processors through the Australian Dairy Products Federation (ADPF). The portal was built by the ADPF to restore trust and transparency between processors and farmers and has been enabled by the Dairy Code of Conduct. Companies are now required to publish their milk prices and offer contracts by June 1 before the start of the season in July. They can offer exclusive and non-exclusive supply contracts.
Australian Competition and Consumer Commission (ACCC) deputy chair Mick Keogh said the code had brought about positive changes in the industry over the past two years. As the market evolves, for instance with risk management tools, the code will need to be reviewed.
The Dairy Code of Conduct has brought positive changes over past two years. Mick Keogh ACCC An objective of the Australian dairy industry is to build confidence and grow milk supply after more than a decade of falling prices and upheaval that saw a majority of processors change from cooperative to foreign ownership. According to publications
released at the ABARE Outlook 2022 virtual conference, milk production has fallen below 9 billion litres annually and the return to farms is an average 58c/litre and $5 billion in aggregate. ABARE said the value of dairy exports will rise 31% this season to $3.7b and then fall to $3.1b next season due to easing supply chain bottlenecks and limits on fertiliser. The dairy industry is battling contrasting problems, drought conditions in Victoria and Tasmania and flooding in New South Wales and Queensland. Fonterra Australia is currently paying $7.30/kg and managing director René Dedoncker said the decline in milk production in Victoria and Tasmania was limiting the company’s ability to maximise the high world prices for dairy products. Australian milk production in January was down 6.3% on January 2021, Tasmania down 9.3%, Victoria down 7.5% and Queensland down 6.8%. In the seven months of the current season-to-date, Australian
CHALLENGES: The dairy industry is battling contrasting problems, drought conditions in Victoria and Tasmania and flooding in New South Wales and Queensland. Photo: Wikimedia Commons production is down 2.6%, with the standout states being Tasmania, down 6.5%; Western Australia, down 4.7%; and Victoria, down 3.2%. Flooding in southeastern Queensland and northern New South Wales hit some dairy farmers very hard, including cow losses, no milking and building and equipment damage. Norco, the biggest remaining dairy cooperative in Australia with 200 members in the
Sale yard prices driving graziers’ confidence Hugh Stringleman hugh.stringleman@globalhq.co.nz AUSTRALIAN beef production is forecast to be a record A$16.3 billion in 202223, as high rainfall across much of the eastern states has led to greater pasture availability and widespread restocking. The Australian Bureau of Agricultural and Resource Economics (ABARE) Outlook 2022 conference in early March heard the national cattle herd is at a very low 23 million head. High sale yard prices are driving
BOOST: High sale yard prices are driving confidence among graziers that they can pay high prices now and profit from future sales.
confidence among graziers that they can pay high prices now and profit from future sales. The nationally averaged yards price is 789c/kg, among the highest in the world, and it is expected to fall into the low 700s over the next year. Slaughter volumes have been low over the past year and beef production is steady at about 2m tonnes annually in both 2021-22 and 2022-23. Of that half will be exported and half sold domestically. World prices are expected to remain strong during the outlook period and the
value of exports is estimated at $9b in both this year and next. ABARE forecast a return to normal processing levels as the pandemic runs its course, borders reopen, government policies take effect and supply chain disruptions become resolved.
Australian sheepmeat production is forecast to reach a record $5b in 2021-22 and the value of exports to $4.4b.
Tariffs are falling for exports into countries like Korea, China, Indonesia and the United Kingdom. Other producers are also seeing those benefits, such as the United States into Japan and Korea. Live cattle exports fell 16% to 650,000 head in 2021-22 as limited availability and high prices made live importing too expensive. Australian sheepmeat production is forecast to reach a record $5b in 2021-22 and the value of exports to $4.4b. Exports to the United States received a huge boost, when between July and November 2021 the trade volume was up 45% on the previous corresponding period. Lamb sale yard prices are just under 900c/kg and sheep 648c/kg. Lamb slaughter is 21m head in 2021-22 and sheep slaughter is 6m head.
flooded region, said half of its farms were affected, some devastatingly. Chief executive Michael Hampson said Norco’s head office, ice cream factory and rural store in Lismore were inundated and damaged. The plant would be out of action for some time and all cold-stored stock was lost. Norco has an additional two plants at Labrador in Queensland and in Raleigh, NSW.
Agrievents Wednesday 09/03/2022 – Thursday 31/03/2022 Farmax Conference The Farmax Conference is a platform for thought and discussion around how we can advance New Zealand’s pastoral farm systems into the future. For more information: agritechnz.org.nz/event/ farmax-conference-2021/ Wednesday 30/03/2022 – Thursday 31/03/2022 DigitalAg DigitalAG 2022 brings together technology leaders, agritech developers, early adopters and the next generation of primary industry operators. This event showcases the digital technologies transforming the agricultural and horticultural sectors. Formerly MobileTECH Ag, this is a must-attend event for NZ’s agritech community. Venue: Distinction Hotel & Conference Centre, Fenton Street, Rotorua To register: agritechnz.org.nz/event/digitalag/ Food & fibre women – are you ready to lead change for the people and places you care about? To step-up & make change happen, join our friends @AgriWomensDevelopmentTrust on Next Level - a six-month leadership and governance programme for developing the confidence, skills & connections to inspire others. Connect with your cohort of aspiring food & fibre leaders, grow through individual executive coaching, build a leader mindset and set your action plan to make change happen. Learn more & register at www.awdt.org.nz/next-level/ Module 1 Wairarapa: 05/04/22 – 07/04/2022 Christchurch: 07/06/22 – 09/06/2022 Online: 10/05/22 – 12/05/2022 Module 2 Wairarapa: 27/09/22 – 29/09/2022 Christchurch: 01/11/22 – 03/11/2022 Online: 18/10/22 – 20/10/2022 Should your event be listed here? Phone 0800 85 25 80 or email adcopy@globalhq.co.nz
