Market View: Dairy commodity prices soared in March

UPFRONT MARKET VIEW

Commodity prices soar in March

Words by: Amy Castleton

of the March 16 event as a result of the price rise at the March 2 event. The Co-op

The March 2 Global Dairy added 11,500t of WMP over the next 12 Trade (GDT) event took months, with 3500t of that volume the entire industry by added to the March 16 event, and surprise, delivering an extra 7000 to the April and an incredible 15% jump May events. And, there was 200t in the index. This is the of skim milk powder added to largest increase in the GDT each event from March 16 to price index since September May 18. Fonterra also removed 2015. Whole milk powder (WMP) prices soared 21% - the Amy Castleston. 1000t of anhydrous milkfat from the March and April events and 1130t aren’t expected to fall dramatically, and a reasonable milk price still looks to be on largest increase on the day – but of cheese – leaving just 80t of cheddar the cards for next season. we also saw some significant increases in on offer at the March 16 GDT event. Milk production seems to have bounced most other commodities on offer on the Prices did correct a bit at the March back in most regions through March, with platform. 16 event, easing 3.8% overall. Price some better rainfall encouraging pasture

The rise at the March 2 GDT prompted movements were mixed by commodity, growth. The NZX Pasture Growth Index Fonterra to revise its milk price forecast but the fall in the index was led by a 6.2% shows that conditions dropped to a low in up by 40 cents, with the new range now fall in WMP prices. Commodity prices early March but have started to track back $7.30-$7.90/kg MS, making the midpoint still remain high compared to historical up and are forecast to continue improving $7.60/kg MS. Fonterra reaffirmed this milk averages. A bit of a fall in prices was over the remainder of the month. North price forecast when it released its interim expected at the March 16 event, after such Island production in particular is looking results in mid-March. The NZX milk price a spectacular rise at the previous event and better than last season in several places, forecast at the time of writing remained at the extra milk powder volume. with the South Island being a bit more the top end of Fonterra’s range, sitting at Overall, commodity prices are still variable due to weather conditions. There $7.88/kg MS. This forecast is dependent on expected to remain relatively high. At the is plenty of feed around, though demand commodity prices for the remainder of the time of writing, the NZX Dairy Derivatives for supplementary feed has been slow over season remaining at relatively high levels, market was indicating a fall in prices the past few months. though there is some room for downside. over the coming months, particularly

Fonterra also significantly adjusted its as New Zealand heads into the 2021offer volumes on the GDT platform ahead 22 dairy season. In saying this, prices

Milk production seems to have bounced back in most regions through March, with some better rainfall encouraging pasture growth.

• Amy Castleton, senior dairy analyst at

NZX Agri.

DAIRY COMMODITY PRICES

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WMP SMP AMF BUTTER

of the crop

26 Northland regional winners 35 Auckland/Hauraki regional winners 41 Waikato regional winners 47 Bay of Plenty regional winners 58 Central Plateau regional winners 67 Manawatu regional winners 76 Hawke’s Bay/Wairarapa regional winners 85 Taranaki regional winners 93 West Coast/Top of the South regional winners 103 Canterbury/North Otago regional winners 113 Southland/Otago regional winners

of the crop rises above Covid-19

Welcome to the season’s much-anticipated edition of ‘Cream of the Crop’. On behalf of the New Zealand Dairy Industry Awards and the NZ Dairy Exporter, it is my honour to introduce to you our 2021 national finalists.

As I sit here and reflect on the past year it is hard not to focus on the unprecedented changes Covid-19 has brought. Just over a year ago, the world stopped around us and we faced challenges we never thought we would encounter in our lifetime.

However, throughout the world-wide chaos and national lockdowns, the NZ dairy industry kept going. We adapted, we pushed forward and yet again showed our resilience as an industry in an ever-changing world.

So too, did the NZDIA programme. In a time of uncertainty, we came together and showed our ability to be agile, adaptive and resilient to ensure we continued to provide a platform for our entrants to learn, connect and grow within our industry.

The NZDIA programme is like no other. The value you receive out of entering the awards programme is that which you only realise once you take the step to enter. The opportunities to learn about your business or your career path, the connections you make both regionally and nationally to the personal and professional growth you go through, it is all valuable.

Our programme would not be what it is today without the support and dedication from our national sponsors, regional and national judges, our large family of volunteers throughout the country and our management team who together enable us to deliver a thriving and successful program each year.

In a few short weeks our regional winners will come together in Hamilton to take part in the highlight of our programme - Nationals Week. The week is an opportunity for all of our finalists to continue their journey of learning, connecting and growing.

The 2021 National Awards dinner will be held at the Claudelands Events Centre, Hamilton on Saturday, May 15. I extend a warm invitation to join us in celebrating some incredible people of our industry, I look forward to seeing you there.

AMBER CARPENTER

Executive Chair NZ Dairy Industry Awards

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