Fonterra cuts forecast Fonterra this week revised its 2021/22 forecast Farmgate Milk Price range to $9.10-$9.50 per kg milk solids (from its previous forecast of $9.30-$9.90). This reduces the midpoint of the range, which farmers are paid, to $9.30 (from $9.60). Fonterra cited lockdowns in China due to COVID-19, the economic crisis in Sri Lanka, […]
Exports
Economic Week – May 6
Commodity prices slip from highs After trending up over recent months the ANZ World Commodity Price Index dropped 1.9% in April compared to March. Dairy prices fell 4.0% month-on-month, driven primarily by lower prices for whole milk powder. ANZ noted Chinese lockdowns causing logistical nightmares and dampening consumer demand while its economic slowdown will also […]
Economic Week – 29 April
by Nick Clark, National Manager General Policy Farm sales slip but still stronger than a year ago The Real Estate Institute of New Zealand’s latest Rural Property Statistics have shown there were 395 farm sales in the three months ended March 2022. This was down 11.4% on the three months to February 2022 and also […]
Economic Week – April 22
Inflation running hot As widely expected, inflation intensified in the March 2022 quarter, increasing to its highest annual rate in 32 years. Statistics NZ’s Consumer Price Index recorded a 1.8% increase in the March quarter compared to the December quarter, pushing the annual rate of inflation up from 5.9% to 6.9%. Although a little lower […]
Animal agriculture ‘essential to global food system’
Animal foods can form part of a healthy, sustainable and ethical lifestyle, despite increasing claims to the contrary, says Lincoln University Professor of Livestock, Pablo Gregorini. His recent article, Animal source foods in healthy, sustainable and ethical diets – An argument against drastic limitation of livestock in the food system, is sparking discussion worldwide, including […]
Economic Week – March 17
by Nick Clark, National Manager General Policy GDP rebounds Economic activity continued its volatility over the past two years, with December 2021 quarter’s Gross Domestic Product up 3.0% on the September 2021 quarter. That quarter had seen a 3.6% decline so most of that drop was recovered. Comparing the December 2021 quarter with the December […]
Economic Week – March 4
by Nick Clark, National Group Manager General Policy Sheep and beef outlook positive Beef + Lamb New Zealand’s Mid-Season Update for the 2021/22 season has shown a positive outlook for sheep and beef farmers thanks to strong international demand for sheepmeat and beef exceeding supply pushing up prices. Including co-products, total lamb exports are forecast […]
Climate change and food security: We should act on both because it’s the right thing to do
Federated Farmers are currently working with a wide range of stakeholders on how to best develop an appropriate pricing mechanism that achieves a wide range of outcomes. This partnership is called He Waka Eke Noa, or The Primary Sector Climate Action Partnership and the outcomes sought include reducing emissions, maintaining food production, and protecting the […]
Economic Week – February 18
Next week’s OCR call. Next Wednesday the Reserve Bank will review monetary policy settings, including the official cash rate. It’s the first review since 24 November and a lot has happened in the three months since. The economy has been overheating, with inflation high and likely to go higher and unemployment rock bottom. All the […]
China FTA Upgrade enters into force in April
New Zealand’s economic recovery from COVID-19 continues to build momentum, with the Upgrade to New Zealand’s Free Trade Agreement (FTA) with China entering into force on 7 April 2022, Minister for Trade and Export Growth Damien O’Connor announced today. Aotearoa New Zealand and China have now ratified the Upgrade Protocol and agreed the Entry into Force date, […]