Posts tagged "ASB"

Meat, dairy soften sales total

[10 December/ NZ Herald] Data from Statistics New Zealand showed the volume of all manufacturing sales rose a seasonally adjusted 0.3 percent for the quarter, while the value increased 0.5 percent. ASB Senior Economist, Jane Turner said the increase was small compared to other periods due to the weak meat and dairy sales volumes. Ms...

Analysts expect Fonterra to lower its forecast payout before Christmas

[23 November/ Stuff] Federated Farmers remained optimistic that Fonterra’s forecast price of $6.75 per kilogram of milk solids would be maintained in December, unlike most other analysts who believed it would decrease to around $6.50 per kilogram. If the price did decrease to this level, it would mean a reduction of almost $500 million for...

Farmers nervous as milk prices slide

[22 November/ Radio NZ] The latest decrease in global milk prices has made dairy farmers dissatisfied and anxious. Whole milk powder was at its lowest level since October 2016 after a 2.7 percent decrease at the Global dairy trade auction to USD2778 per tonne. Whole milk powder prices determine farmer pay-out, and most needed USD3000...

DairyNZ, Fonterra pay tribute after death of Michael Spaans

[21 November/New Zealand Herald] DairyNZ and Fonterra have paid tribute to recent DairyNZ Chairman and Fonterra Director Michael Spaans, 54, who has passed away. Mr Spaans, a Te Aroha farmer, had a successful career in the industry. He served on the DairyNZ board from 2008 before being elected as Chairman in 2015. He also served...

Wool prices lift, but long way to go

[2 November/New Zealand Herald] ASB Senior Rural Economist Nathan Penny said that the worst appeared to be over for wool prices, as they increased 25 percent since record low levels in July this year.  However, he also warned that the industry was not out of the woods just yet, as prices remain below the 10-year...

Milk price of $7 possible this season

 [7 September/ NZ Herald] ASB Senior Rural Economist Nathan Penny said a $7 or above milk price is a possibility this season if the weather does not improve soon. The rain was now starting to hurt production, which was reportedly down from last season in some key regions. Global milk fats demand continued to increase,...

Milk fat prices take a break

[3 August/ NZ Herald] ASB Senior Rural Economist Nathan Penny said a slowdown in milk fat prices is likely temporary due to surging demand and tight inventories. Prices overall decreased 1.6 percent. Butter and anhydrous milk both decreased 4.9 percent while skim milk powder fell 3 percent. Whole milk powder prices rose 1.3 percent however...

Butter hits $US6000 per tonne

[20 July/ Otago Daily Times] Butter prices have reached a record high surpassing USD6000/metric tonne in this week’s GlobalDairyTrade auction. Tighter global supply and a pro-milk fat health trend have caused prices to increase. Overall, prices were unchanged this auction, with a 0.2 percent increase. Whole milk powder increased 0.3 percent- marginally lower than futures...

WMP lift against auction trend

[6 July/ Otago Daily Times] In this week’s GlobalDairyTrade auction, whole milk powder increased 2.6 percent, against an overall 0.4 percent decline. This went against futures prices before the auction, predicting whole milk prices to decrease 2 percent. The WMP increase cancelled out the previous auction’s 3.3 percent drop and ASB Senior Rural Economist Nathan Penny...

Whole Milk Powder leads fall in dairy prices

 [22 June/ NZ Herald] Dairy prices posted their first decrease since early March in this week’s GlobalDairyTrade auction with an overall price fall of 0.8 percent led by a 3.3 percent fall in the whole milk powder price. ASB Senior Rural Economist Nathan Penny said the whole milk powder decrease might be due to better-than-expected...

Demand pushes butter prices to record high

[8 June/ Otago Daily Times] Butter prices reached a record high of USD5631 per metric tonne in this week’s GlobalDairyTrade auction. Overall dairy prices lifted 0.6 percent, and the key whole milk powder price fell 2.9 percent. Anhydrous milk fat prices fell 1.2 percent from a record high. ASB Senior Rural Economist Nathan Penny said...

Dairy economist Nathan Penny recommends change to milk price system

[11 May/ Business Day: NZ Farmer] ASB Rural Economist, Nathan Penny said Fonterra should introduce a quarterly based milk price system in order to reduce price volatility and decrease the risk of farmers going out of business. Mr Penny added that if farmers knew what price they would be paid at the end of the...

Premium products the key to turning NZ into ‘restaurant of the world’

 [17 March/ Stuff] The ASB Perspective 2025 panel discussion focused on what New Zealand needs to do to become the “restaurant to the world” by 2025. KPMG Farm Enterprise Specialist Julia Jones said listening to customers in overseas markets, looking at trends like alternative proteins and synthetic non-animal milk, and moving with the times would...

Beef prices boosted by US demand

 [21 March/ Otago Daily Times] In ASB’s latest Commodities Weekly, ASB senior rural economist Nathan Penny said beef prices (P2 steer/kg) had lifted 2.5 percent since the end of 2016 so far, and would set a new record for the month if prices maintained their average over March. Australia’s lack of beef supply and strong...

Agribusiness Investment Showcase startups vie for investment

[13 March/ Stuff] Sponsored by the ASB and New Zealand Trade and Enterprise (NZTE), the New Zealand Agribusiness Investment Showcase will allow start-up businesses to avoid having to make separate pitches to many institutional or angel investors, and instead pitch in one room to a wide audience of investors.  This year’s showcase will feature 12...

Forestry sector poised for banner year

 [9 March/ National Business Review] Pruned export logs hit their highest level in almost ten years last month, with log exports seeing a 9 percent increase over the December quarter year on year. ASB Senior Rural Economist Nathan Penny said says local and international demand for New Zealand timber is strong, partially due to increases...

Dairy must reset itself

[21 March/ NZ Farmers Weekly] The future of the dairy industry was the main topic of discussion at the New Zealand Agri Investment Week. ASB Economist, Nathan Penny said farmers would become more focused on what they could control, such as productivity, rather than capital gains. ANZ Agri and Strategy Manager, Ross Verry said dairy...

Economy Hub: Rate cut – new mood or bluff?

[11 March/ NZ Herald] The Reserve Bank has cut 25 basis points from the Official Cash Rate, decreasing it to a record low of 2.25 percent. Reserve Bank Governor, Graeme Wheeler said deterioration in the global growth outlook, dairy challenges, and persistently low inflation were reasons for the cut. Mr Wheeler added that cheap fuel...

Meat and dairy decline offsets manufacturing growth

 [9 March/ Otago Daily Times] Manufacturing volumes across New Zealand rose in the quarter to December, but a 4.8 percent decrease in the value of meat and dairy meant overall values decreased by 1.9 percent. Statistics New Zealand Business Indicators Manager, Neil Kelly said meat and dairy manufacturing sales had increased, following a large increase...

Dairy prices stuck

[25 January/ NZ Farmer Weekly] Federated Farmers Dairy Chairman, Andrew Hoggard said the two disappointing GlobalDairyTrade auction results in January raised the probability that Fonterra will reduce its forecasted payout. Mr Hoggard said the co-operative should not delay its announcement so the industry know the true picture. ANZ Bank Rural Economist, Con Williams said the...

Five biggest rural lenders to conduct ‘stress test’

[11 November/ NZ Herald] The Reserve Bank has asked New Zealand’s top five rural lenders, ANZ, ASB, BNZ, Rabobank and Westpac, to conduct stress tests of their exposure to dairy farm debt. The central bank has also encouraged the five banks to set aside provisions to reflect a likely increase in problem loans to the...

No flood of European milk expected

[12 March/ Business Day: NZ Farmer] US Dairy Expert, Professor William Bailey said the European Commission forecasts milk production to grow less than 2 percent during 2015 and 2016. Mr Bailey added that European dairy farmers are not expected to significantly increase milk product when quotas are abandoned in April, amid fears it may open...

Global dairy auction prices keep firming

[5 March/ NZ Herald] Dairy prices at the latest Global Dairy Trade (GDT) auction suggest that Fonterra will meet its expected $4.70/ kgms farm gate milk price for the current season. The GDT price index gained 1.1 percent from the previous auction held two weeks ago, its sixth consecutive gain. Whole milk power fell by...

Dairy prices bounce back

[4 February/ NZ Herald] The most recent GlobalDairyTrade auction delivered a 9.4 percent increase in prices, driven by concerns about supply levels as a result of dry conditions. Whole milk powder prices increased 19.2 percent to USD 2,874, but remain short of the USD 3,500 necessary for the co-operative to deliver its current forecast of...