pasture problems
palm kernel Feds fact-finding mission dispel a few myths on PKE. page 22
How much do we really know about the way our pastures roots grow? pages 36-37
Rural NEWS to all farmers, for all farmers
enching Quarantine dr . with Startect d pests Keeps unwante . off your field
THE KNOCKOUT DRENCH ZOE9300
october 8, 2013: Issue 547
www.ruralnews.co.nz
Dairy creaming it! p e te r bu r k e peterb@ruralnews.co.nz
A SENIOR market strategist at Westpac predicts the Fonterra payout could go higher than the forecast $8.62. Imre Speizer last week told a farmers’ seminar in Taranaki he also expects the kiwi dollar to go as high as 86 cents against the US and 92 cents against the Australian currencies, and that interest rates will rise in the next six months. He told Rural News that Chinese consumers’ demand for milk products could prompt a higher payout. People there are buying milk products and that trend will firm up milk prices. The high payout will have a trickledown effect on the New Zealand economy, prompting more spending, he predicts. But he also notes dairy farmers are increasingly cautious. “Farmer borrowers have become a lot more conservative in the years from 2008 onward and are… paying debts rather than spending. “I think we will see a continuation of
Bid! PGG Wrightson auctioneer Jonty Hyslop takes offers for one of 145 Hereford bulls knocked-down for firm prices at one of several South Island sales held last week. See story p5
IDEATION-DON0327
that, but maybe some spending as well.” Speizer says any rise in the kiwi dollar against the US dollar is unlikely to affect the dairy industry because the milk price and exchange rate move in harmony up and down, a phenomenon unique to the dairy industry. “In other words they are both moving with global cycles. We are in a global upturn now, seeing commodity prices – particularly dairy – rising and the kiwi dollar rising with it. In other words, dairy exporters are insulated.” But not so with, say, seafood and
flowers: they don’t have a global cycle, Speizer says. Sheep and beef prices do, but not to the same extent as dairy. “Dairy farmers should be happy longterm with the present system. If we had a fixed exchange rate they’d be better off now, but would have been badly hurt when the milk price dropped.” Rising interest rates will chiefly affect residential properties, Speizer says. The high dairy payout will have some buffering effect, but the high interest rates could affect farm prices. • GDT jumps – page 3
Imre Speizer
Spinning is winning AN AVALANCHE of trade and biosecurity issues dogging MPI in recent months has benefited one sector – public relations and communications. MPI is reported to have spent $250,000 on communications consultants since its creation last year. The bill includes $33,000 for help to manage the fallout over Fonterra’s false botulism scare. Figures provided to Fairfax under the Official Information Act show Senate Communications has been paid $175,579, Catchphrase Communications $30,791 and Network Communication Group $13,794. Senate was paid $33,834 to help stretched MPI staff dealing with the presumed discovery of botulism bacteria in New Zealand milk powder earlier this year. And the firm was paid $18,572 to develop communications for the Primary Growth Partnership. The $30,791 paid to Catchphrase was for aquaculture projects. Also, MPI paid thousands in associated costs such as photocopying, mileage, internet, media monitoring and taxis. MPI, formed in April last year, has at least 18 communications staff. But the ministry still needed outside consultants to write speeches, write and edit website text and articles and answer media queries. • New boss – page 3 @rural_news
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*Dry matter cost calculations takes into consideration the costs of product, delivery, labour, fuel, spreading and spraying. For more information please visit www.donaghys.com