Posts tagged "ASB"

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...

Fonterra in $11m cheese blunder

[1 February/ Business Day: NZ Farmer] Fonterra Co-operative Group has failed to renew its United States import licences, with sources saying that the company forgot to complete the process to renew the license. The effect of the failure is likely to result in Fonterra’s 2015 quota been allocated to overseas competitors. ASB economist, Nathan Penny...

ASB to pay $3.2m in interest swaps settlement

[24 December/ NZ Herald] ASB Bank has agreed to a settlement with the Commerce Commission over the sale of interest rate swaps to farmers between 2005 and 2009. This follows a 19 million settlement with ANZ Bank. Of the ASB Bank settlement, $2.7 million will go towards compensation. The Commerce Commission said that it believed...

Fonterra thirsts for milk

[12 December/ NZ Herald] The Fonterra Co-operative Group has formed a wholly owned subsidiary, mymilk, in order to take in more milk from the high growth provinces of Southland, Otago and Canterbury without the need for suppliers to buy shares in the co-operative. The Co-operative will also look at establishing the same process in the...

Another $1 off payout likely

[4 December/ Otago Daily Times] The latest global dairy trade auction declined 1.1 percent, with whole milk powder declining 7.7 percent, offsetting all other gains. In addition to strong global production, New Zealand milk production itself has increased by 4 percent from a year ago. This season’s Fonterra milk payout could reduce by as much...

Farmers fear further fall in milk price

[20 November/ Otago Daily Times] Overall prices at the GlobalDairyTrade auction declined 3.1 percent during the most recent auction event, with whole milk powder and skim milk powder failing in excess of 5 percent. Casein prices declined over 12 percent, while anhydrous milk fat, batter, butter milk powder and cheddar all increased by between 1.4...

Disbelief as milk forecast drops again

[11 November/ NZ Farmer] New Zealand’s second biggest milk processor, Open Country Dairy has told farmers to prepare for a reduced payout in the $4.70 to $4.90 range, while Canterbury processor, Synlait is forecasting a payout of $5.00 per kilogram. On a trade-weighted basis, the GlobalDairyTrade price index dropped 0.3 percent, with volume reducing from...