Posts tagged "ASB"

NZ economy may not be as slow as business confidence suggests – for now

[17 September/Stuff] Statistics New Zealand will release figures on how fast the NZ economy grew in the three months to June 30 later this week. Increased farm production during autumn may have seen strong growth in the quarter, however any disappointment could lead towards an interest rate cut. Despite headlines of weak business confidence and...

Higher dairy export prices boost terms of trade

[6 September/Radio NZ] New Zealand’s purchasing power with the rest of the world rose in the last quarter due to higher dairy prices. The terms of trade increased 0.6 percent in the three months to June. ASB Senior Economist, Mark Smith, said the terms of trade were now only 1.4 percent below the late 2017...

Fonterra set to lower 2018/19 milk price forecast

[30 August/NZ Herald] Fonterra is expected to lower its forecast $7.00 per kg milk price. It legally had to upgrade its price every three months. ASB Senior Rural Economist, Nathan Penny, said based on results since they opened at $7.00 per kg, a downgrade was almost inevitable. He added the market consensus was around $6.40...

$4.44b annual trade balance highest in nine years

[27 August/Otago Daily Times] New Zealand’s trade deficit hit a nine year high of $4.44 billion. This was mainly due to export volumes being stronger than expected. According to Statistics NZ International Statistics Manager, Tehseen Islam, oil prices and a weakened New Zealand dollar were contributing factors, and imports and exports were both up for...

Weaker kiwi raising NZ commodity prices in local terms

[20 August/Otago Daily Times] According to ASB Senior Rural Economist, Nathan Penny, a weakened New Zealand dollar is boosting commodity prices in local terms. The Commodity Price Index had lifted 8.3 percent annually in New Zealand terms. Fonterra dropped its forecast from $6.75 per kilogram of milk solids to $6.70. Mr Penny noted the Chinese...

NZ lamb prices break over $8/kg – highest on record

[5 August/NZ Herald] New Zealand lamb prices have reached their highest level ever. General Manager Livestock and Shareholder Services at Alliance Group, Heather Stacy, said the co-operative has a minimum price starting in September of $8.20 which was the highest it had ever paid. She expected prices to pull back after the traditional Christmas period....

Trade imbalance tops $4 billion in year

[26 July/Otago Daily Times] New Zealand’s annual trade deficit is over $4 billion. This was largely due to a weakening in dairy export values widening the gap. New Zealand’s annual imports increased by $6.02 billion whereas exports rose by $5.65 billion. ASB’s Senior Rural Economist, Nathan Penny, said the balance was weaker than expected and...

‘Bumper’ wine harvest could affect prices

[23 July/The Country] A bumper 2018 wine harvest wold support export volumes and value, but could put downward pressure on prices. According to ASB Senior Rural Economist, Nathan Penny, another potential issue is the trade tensions between the UK, Europe, U.S. and China where the demand for New Zealand’s luxury status wine could fall. He...

MPI will face ‘don’t give a damn’ attitude on M. Bovis, farmer says

[28 May/NZ Herald] The Ministry for Primary Industries will get a don’t give a damn attitude from some farmers as it attempts to eradicate Mycoplasma bovis according to a Southland farmer, following the Government’s announcement of an eradication strategy. Lumsden Farmer, Ben Walling, said he thought it was the right call to attempt to eradicate...

Economic growth takes a hit due to weather

[16 March/Otago Daily Times] Weather related events over the last three months have affected economic growth. Gross Domestic Product increased by 0.6 percent in the three months ended December which was weaker than most forecasts suggested. Growth was also impacted by the fall in NZD/USD exchange rate. According to Statistics New Zealand, higher activity in...

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...